Assigmments: ACCTG

102-M,\\\\times ,

M Question 8 - Chapter\

->,

C

,:'

\ ezto.mheducation.com/ext/map/index.\ Chapter 13 Problems\ 8\ Mary Walker, president of Rusco Company, considers

$49,000

to be the minimum cash balance for operating purposes. As can be seen from the following statements, only

$44,000

in cash was available at the end of this year. Since the company reported a large net income for the yeat, and also issued both bonds and common stock, the sharp decline in cash is puzzling to Ms. Walker\ The following additional information is available for this year.\ a. The company declared and paid a cash dividend.\ b. Equipment was sold during the year for

$67,200

. The equipment originally cost

$148,000

and had accumulated depreciation of

$6900

.\ c. Long-term investments that cost

$88,000

were sold during the year for

$122,500

.\ d. The company did not retire any bonds payable or repurchase any of its common stock.\ Because the Cash account decreased so dramatically during this year, the company's executive committee is anxious to see how the income statement would appear on a cash basis.\ Required:\ Using the direct method, adjust the company's income statement for this year to a cash basis\ Using the data from (i) above, and other data from the problem as needed, prepare a statement of cash flows for this year.\ Complete this question by entering your answers in the tabs below.\ Required 1 Required 2\ Using the direct method, adjust the company's income statement for this year to a cash basis. (Adjustment amounts that are to be deducted should be indicated with a minus sign.)\ \ The following additional information is available for this year.\ a. The company declared and paid a cash dividend.\ b. Equipment was sold during the year for

$67,200

. The equipment originally cost

$148,000

and had accumulated depreelation

$69,000

.

$69,000

.\ c. Long-term investments that cost

$88,000

were sold during the year for

$122,500

.\ d. The company did not retire any bonds payable or repurchase any of its common stock.\ Because the Cash account decreased so dramatically during this year, the company's executive committee is anxious to see how income statement would appear on a cash basis.\ Required:\ Using the direct method, adjust the company's income statement for this year to a cash basis.\ Using the data from (1) above, and other data from the problem as needed, prepare a statement of cash flows for this year.\ Complete this question by entering your answers in the tabs below.\ Required 1 Required 2\ Using the data from (1) above, and other data from the problem as needed, prepare a statement of cash flows for this year: (Cash outflows and amounts to be deducted should be indicated with a minus sign.)

The following additional information is available for this year. a. The company declared and paid a cash dividend. b. Equipment was sold during the year for $67,200. The equipment originally cost $148,000 and had accumulated depreciation $69,000. c. Long-term investments that cost $88,000 were sold during the year for $122,500. d. The company did not retire any bonds payable of repurchase any of its common stock. Because the Cash account decreased so dramatically during this year, the company's executive committee is anxious to see how income statement would appear on a cash basis. Required: 1. Using the direct method, adjust the company's income statement for this year to a cash basis. 2. Using the data from (i) above, and other data from the problem as needed, prepare a statement of cash flows for this year. Complete this question by entering your answers in the tabs below. Using the data from (1) above, and other data from the problem as needed, prepare a statement of cash flows for this year: (Cash putflows and amounts to be deducted should be indicated with a minus sign.)