Chapter 12: Complete mini exercises M12-1 and M12-2 Chapter 13: Complete mini exercise M13-1, M13-2 Use templates: Unit 8 Homework Templates ACC111 5th.xlsx

M12-1 SOLUTIONS! SOLUTIONS! Identifying Companies from Cash Flow Patterns Cash provided by (used for) operating activities Cash provided by (used for) investing activities Csah provided by (used for) financing activities Net change in cash Cash position at the beginning of the year Cash position at the end of the year Case 1 2 3 Case 1 Case 2 Case 3 $3,000.00 ($120,000.00) $80,000.00 ($70,000.00) $10,000.00 ($40,000.00) $75,000.00 $75,000.00 ($30,000.00) $8,000.00 ($35,000.00) $10,000.00 $2,000.00 $40,000.00 $30,000.00 $10,000.00 $5,000.00 $40,000.00 M12-2 SOLUTIONS! SOLUTIONS! Matching Items Reported to Cash Flow Statement Categories (Indirect Method) answer 1 2 3 4 5 6 Purchase of Investments Proceeds from issuance of stock Purchase of property and equipment Depreciation Accounts payable (decrease) Inventories (increase) M13-1 SOLUTIONS! SOLUTIONS! Calculations for Horizontal Analyses LOCKEY FENCING CORPORATION Income Statements For the year ended December 31 Net Sales Cost of Goods Sold Gross Profit Selling, General, and Administrative Expenses Income from Operations Interest Expense Income before Income Tax Income Tax Expense Net Income Current Amounts $100,000.00 $58,000.00 $42,000.00 $9,000.00 $33,000.00 $3,000.00 $30,000.00 $9,000.00 $21,000.00 Previous Amounts $75,000.00 $45,000.00 $30,000.00 $4,500.00 $25,500.00 $3,750.00 $21,750.00 $6,525.00 $15,225.00 $ change % change M13-2 SOLUTIONS! SOLUTIONS! Calculations for Vertical Analyses Current Amounts Net Sales $100,000.00 Cost of Goods Sold $58,000.00 Gross Profit $42,000.00 Selling, General, and Administrative Expenses $9,000.00 Income from Operations $33,000.00 Interest Expense $3,000.00 Income before Income Tax $30,000.00 Income Tax Expense $9,000.00 Net Income $21,000.00 % change Previous Amounts $75,000.00 $45,000.00 $30,000.00 $4,500.00 $25,500.00 $3,750.00 $21,750.00 $6,525.00 $15,225.00 % change