Hi, Can you help me with these three assignments. Thanks

FINANCIAL AND MANAGERIAL ACCOUNTING - Fifth Edition E13-19 Requirements 1. Journalize the transactions. Explanations are not required. 2. How much paid-in capital did these transactions generate for Skylar Systems? Solution: Requirement 1 Date 19-May 3-Jun 11-Jun Accounts and Explanation Debit Cash (per share x amount of shares) xx Common Stock (par value x amount of shares) Paid-in capital in Excess of Par Cash Preferred Stock xx Equipment Common Stock (par value x amount of shares) Paid-in Capital in Excess of Par xx Credit xx xx xx xx xx Requirement 2 Cash for common Stock Cash for preferred Stock Equip for Common Stock Total paid-in Capital Chapter 13: Stockholders' Equity xx xx xx $102,150 Page 1 of 3 FINANCIAL AND MANAGERIAL ACCOUNTING - Fifth Edition E13-32 Prepare the company's statement of retained earnings for the year ended December 31, 2016. SUSAN MAY BAKERY, INC. Statement of Retained Earnings Year Ended December 31, 2016 Retained Earnings, Jan 1 2016, as orgianlly reported Prior Period Adjustment Retained Earnings, Jan 1 2016, as adjusted Net Income for the year Dividends Declared Retained Earnings, Dec 31 2016 Chapter 13: Stockholders' Equity xx (xx) xx xx 117,000 (xx) $97,000 Page 2 of 3 FINANCIAL AND MANAGERIAL ACCOUNTING - Fifth Edition E13-34 Compute rate of return on common stockholders' equity for 2016 assuming no dividends were paid to preferred stockholders. Solution: Rate of return on common Stockholders Equity = (Net income - Preferred Divdends) Average comm stockholders equity = (Total Equity - Preferred Equity) Chapter 13: Stockholders' Equity Page 3 of 3 E13-19 Journaling issuance of stock Learning Objective 2 Skylar Systems completed the following stock issuance transactions: May Issued 1,700 shares of $2 par value common stock for cash of $9.50 per share. 19 Jun. 3 Issued 200 shares of $9, no-par preferred stock for $10,000 cash. 11 Received equipment with a market value of $76,000 in exchange for 3,000 shares of the $ common stock. Requirements 1. Journalize the transactions. Explanations are not required. 2. How much paid-in capital did these transactions generate for Skylar Systems? E13-32 Preparing a statement of retained earnings Learning Objective 5 Susan May Bakery, Inc. reported a priorperiod adjustment in 2016. An accounting error caused net income of prior years to be overstated by $4,000. Retained Earnings at December 31, 2015, as previously reported, was $42,000. Net income for 2016 was $79,000, and dividends declared were $20,000. Prepare the company's statement of retained earnings for the year ended December 31, 2016. Retained Earnings Dec. 31, 2016 $97,000 E13-34 Computing rate of return on common stockholders' equity Learning Objective 6 Louisville Exploration Company reported these figures for 2016 and 2015: 2016 2015 $ 15,500,000 $ 18,800,000 Dec. 31, 2016 Dec. 31, 2015 Total Assets $ 324,000,000 $ 316,000,000 Preferred Stock 2,600,000 2,600,000 Common Stock 180,000,000 171,000,000 Retained Earnings 7,000,000 5,500,000 Total Stockholders' Equity $ 189,600,000 $ 179,100,000 Income Statementpartial: Net Income Balance Sheetpartial: Compute rate of return on common stockholders' equity for 2016 assuming no dividends were paid to preferred stockholders. E14-17 Classifying transactions on the statement of cash flowsindirect method Learning Objective 1 Consider the following transactions: Identify the category of the statement of cash flows in which each transaction would be reported. E14-21 Preparing the statement of cash flows indirect method Learning Objective 2 The income statement of Supplements Plus, Inc. follows: Net Cash Prov. by Op. Act. $99,000 Additional data follow: a. Acquisition of plant assets is $121,000. Of this amount, $104,000 is paid in cash and $17,000 by signing a note payable. b. Cash receipt from sale of land totals $26,000. There was no gain or loss. c. Cash receipts from issuance of common stock total $30,000. d. Payment of notes payable is $16,000. e. Payment of dividends is $9,000. f. From the balance sheet: September 30 Cash 2016 2015 $ 38,000 $ 12,000 September 30 2016 2015 Accounts Receivable 44,000 60,000 Merchandise Inventory 91,000 86,000 Plant Assets 201,000 80,000 Accumulated Depreciation (35,000) (10,000) Land 75,000 101,000 Accounts Payable 31,000 15,000 Accrued Liabilities 20,000 26,000 Notes Payable (long-term) 17,000 16,000 Common Stock, no par 37,000 7,000 Retained Earnings 309,000 265,000 Prepare Supplements Plus's statement of cash flows for the year ended September 30, 2016, using the indirect method. Include a separate section for noncash investing and financing activities. E14-22 Computing cash flows for investing and financing activities Learning Objective 2 Consider the following facts for Vanilla Valley: 2. Book Value on Plant Assets Sold $10,000 a. Beginning and ending Retained Earnings are $43,000 and $69,000, respectively. Net income for the period is $58,000. b. Beginning and ending Plant Assets are $120,600 and $126,600, respectively. c. Beginning and ending Accumulated DepreciationPlant Assets are $18,600 and $20,600, respectively. d. Depreciation Expense for the period is $13,000, and acquisitions of new plant assets total $27,000. Plant assets were sold at a $4,000 gain. Requirements 1. How much are cash dividends? 2. What was the amount of the cash receipt from the sale of plant assets? E14A-30 Computing cash flow itemsdirect method Learning Objective 4 Appendix 14A Elite Mobile Homes reported the following in its financial statements for the year ended December 31, 2016: 2. Cash Paid for Merchandise Inventory $18,482 7. Dividends $213 2016 2015 Net Sales $ 24,691 $ 21,555 Cost of Goods Sold 18,015 15,458 Income Statement 2016 2015 Depreciation Expense 273 229 Other Operating Expenses 4,427 4,221 Income Tax Expense 533 489 Net Income $ 1,443 $ 1,158 Cash $ 15 $ 11 Accounts Receivable 795 612 Merchandise Inventory 3,485 2,833 Property and Equipment, net 4,367 3,457 Accounts Payable 1,543 1,358 Accrued Liabilities 936 847 Long-term Liabilities 478 463 Common Stock, no par 675 445 Retained Earnings 5,030 3,800 Balance Sheet Requirements 1. Compute the collections from customers. 2. Compute payments for merchandise inventory. 3. Compute payments of operating expenses. 4. Compute the acquisitions of property and equipment (no sales of property during 2016). 5. Compute the amount of borrowing, with Elite paying no long-term liabilities. 6. Compute the cash receipt from issuance of common stock. 7. Compute the payment of cash dividends. FINANCIAL AND MANAGERIAL ACCOUNTING - Fifth Edition E14-17 Identify the category of the statement of cash flows in which each transaction would be reported. Solution: a. b. c. d. e. f. g. h. i. j. k. Chapter 14: The Statement of Cash Flows Page 1 of 9 FINANCIAL AND MANAGERIAL ACCOUNTING - Fifth Edition nsaction Chapter 14: The Statement of Cash Flows Page 2 of 9 FINANCIAL AND MANAGERIAL ACCOUNTING - Fifth Edition E14-21 Prepare Supplements Plus's statement of cash flows for the year ended September 30, 2016, using the indirect method. Include a separate section for non-cash investing and financing activities. Solution: SUPPLEMENTS PLUS, INC. Statement of Cash Flows Year Ended September 30, 2016 Cash flows from operating activities: Net Income xx Adjustments to Reconcile Net Income to net Cash(provided by op.Activities) Depreciation - Plant Assets xx Decrease in Accounts Receivable xx Increase in merchandise Inventory (xx) Increase in Accounts Payable xx Decrease in Accrued Liabilities (xx) total of adj Net Cash Provided by Operating Actvities 99,000 Cash flows from investing Activities Acquisition of Plant Asset (xx) Cash Receipt from Sale of Land xx Net Cash used for Investing Activities -78,000 Cash Flows from Financing Activities Cash Receipt from Issuance of Common Stock xx Cash Payment of Notes Payable (xx) Cash Payment of Dividends (xx) Net Cash Provided by Financing Activities 5,000 Net Increase (decrease) in Cash xx Cash Balance, September 30, 2015 xx Cash Balance, September 30, 2016 $38,000 Non-Cash investing and Financing Activities: Acquisition of Plan Assets with Notes Payable xx Total non-cash investing and Financing Activities: xx Chapter 14: The Statement of Cash Flows Page 3 of 9 FINANCIAL AND MANAGERIAL ACCOUNTING - Fifth Edition E14-22 Requirements 1. How much are cash dividends? 2. What was the amount of the cash receipt from the sale of plant assets? Solution: Requirement 1 Retained Earnings (let Dividends = X) Beginning + xx Dividend Net Income xx Retained Earnings xx xx xx - Dividends = X = Ending xx Beg Net Income Ending Requirement 2 Plant Assets (let X =Cost of Assets Sold) Beginning + Acquisitions xx xx Chapter 14: The Statement of Cash Flows - Sold X X = = Ending xx $21,000 Page 4 of 9 FINANCIAL AND MANAGERIAL ACCOUNTING - Fifth Edition Plant Assets xx xx 21,000 Sold xx Beg Acquisitions Ending Sold Accumulated Depreciation - Plant Assets xx Beginning xx Dep Expense 21,000 xx Ending Book Value of Plan Asset Sold Gain on plant Asset Sold Total Cash Receipt for Sale of Plant Assets Chapter 14: The Statement of Cash Flows xx xx $14,000 Page 5 of 9 FINANCIAL AND MANAGERIAL ACCOUNTING - Fifth Edition E14A-30 Requirements 1. Compute the collections from customers. 2. Compute payments for merchandise inventory. 3. Compute payments of operating expenses. 4. Compute the acquisitions of property and equipment (no sales of property during 2016). 5. Compute the amount of borrowing, with ELite paying no long-term liabilities. 6. Compute the cash receipt from issuance of common stock. 7. Compute the payment of cash dividends. Solution: Requirement 1 + = Sales Revenue Beginning Accounts Receivable Ending Accounts Receivable Cash Receipts from customers xx xx (xx) $24,508 Requirement 2 + + - Cost of Goods Sold Beginning of Merch Inv Ending Merch Inv Beginning of Acct Payable Ending Acct Payable Cash paid for Merch Inventory Chapter 14: The Statement of Cash Flows xx (xx) xx xx (xx) $18,482 Page 6 of 9 FINANCIAL AND MANAGERIAL ACCOUNTING - Fifth Edition Requirement 3 + = Operating Expenses Beginning Accrued Liabilities Ending Accrued Liabilities Cash receipts from Customers xx xx (xx) $4,338 Requirement 4 12/31/2015 Acquisitions 12/31/2016 Property and Equipment, net xx xx xx 4,367 Depr Requirement 5 Long-Term Liabilities xx Payment 12/31/2015 15 Issuance 0 478 12/31/2016 Requirement 6 Common Stock Retirement xx 12/31/2015 230 Issuance xx 12/31/2016 xx xx 12/31/2015 Net Income xx 12/31/2016 0 Requirement 7 Retained Earnings Dividend Chapter 14: The Statement of Cash Flows xx Page 7 of 9 FINANCIAL AND MANAGERIAL ACCOUNTING - Fifth Edition of property during erm liabilities. Chapter 14: The Statement of Cash Flows Page 8 of 9 FINANCIAL AND MANAGERIAL ACCOUNTING - Fifth Edition Chapter 14: The Statement of Cash Flows Page 9 of 9 1) A corporation is a separate legal entity that is organized independently of its owners. a. True b. False 2) Stockholders of a corporation are not personally liable for the corporation's debt. a. True b. False 3) The issue price is the price the stock initially sells for the first time it is sold. a. True b. False 4) Most corporations set par value low and issue common stock at a premium a. True b. False 5) When a corporation issues no-par stock, it debits the asset received and credits the stock account. a. True b. False 6) Treasury stock is a contra equity account. a. True b. False 7) The journal entry for the purchase of treasury stock includes a credit to Cash. a. True b. False 8) Stock dividends have no effect on total stockholders' equity. a. True b. False 9) A 3-for-1 stock split of a $3 par value share will result in three shares of $1 par value being issued for each share of $3 par value stock. a. True b. False 10) A small stock dividend, a large stock dividend and a stock split have no effect on total assets. a. True b. False 11) The statement of cash flows explains why net income as reported on the income statement does not equal the change in the cash balance. a. True b. False 12) Investors and management use the statement of cash flows to evaluate a firm's profitability. a. True b. False 13) Buying property, plant, and equipment for cash is considered a cash outflow for the financing activities section of the statement of cash flows. a. True b. False 14) The financing section of the statement of cash flows involves transactions relating to the equity accounts and the long-term liability accounts. a. True b. False 15) To complete the statement of cash flows, the net change in cash and cash balances must be shown. a. True b. False 16) Companies sometimes obtain financing and do not receive cash. Although such transactions do not directly involve cash, they still must be reported in the financing section of the statement of cash flows. a. True b. False 17) Free cash flow is calculated by adding cash payments planned for investments in longterm assets and cash dividends to the amount of net cash provided by operating activities. a. True b. False 18) Although the direct method is easier to use, the Financial Accounting Standards Board (FASB) prefers the indirect method of reporting cash flows from operating activities. a. True b. False 19) The net cash flow from operating activities is calculated in the same way, whether the company uses the direct or the indirect method of preparing the statement of cash flow. a. True b. False 20) The net cash flow from operating activities is calculated in the same way, whether the company uses the direct or the indirect method of preparing the statement of cash flow. a. True b. False Multiple choice questions, worth 2pts each: 60 21) Which of the following is true of a corporation? A) A corporation cannot be privately held. B) The earnings of a corporation may be subject to double taxation. C) A corporation has a limited life. D) The stockholders of a corporation have unlimited liability for the corporation's debt. 22) Which of the following corporate characteristics is a disadvantage of a corporation? A) Stockholders have limited liability. B) A corporation has a continuous life. C) There is no mutual agency between the stockholders and the corporation. D) Earnings of a corporation may be subject to double taxation. 23) Outstanding stock represents shares of stock that ________. A) are held by the stockholders B) are sold for the highest price C) have been authorized by state law D) have been issued but may or may not be held by stockholders 24) The two basic sources of stockholders' equity are ________. A) common stock and bonds B) common stock and preferred stock C) paid-in capital and retained earnings D) no-par and stated value stock 25) Paid-in capital consists of ________. A) amounts received from customers B) amounts raised by issuing bonds or preferred stocks C) earnings generated by the corporation D) amounts received from stockholders in exchange for stock 26) Preferred stockholders ________. A) are guaranteed that they will not have a loss on their investment B) are guaranteed to receive an annual dividend payment C) receive a set percentage of corporation net income D) receive a dividend preference over common stockholders 27) Which of the following is included in the entry to record the issuance of 14,000 shares of $7 par value common stock at $21 per share cash? A) Cash is debited for $294,000. B) Common Stock is debited for $98,000. C) Common Stock is credited for $294,000. D) Paid-In Capital in Excess of ParCommon is debited for $196,000. 28) The following information is from the December 31, 2017 balance sheet of Lawson Corporation. Preferred Stock, $100 par Paid-In Capital in Excess of ParPreferred Common Stock, $1 par Paid-In Capital in Excess of ParCommon Retained Earnings Total Stockholders' Equity $560,000 43,000 190,000 510,000 191,500 $1,494,500 What was the average issue price of the common stock shares? (Round your answer to the nearest cent.) A) $1.88 B) $1.00 C) $2.68 D) $3.68 29) Green Apron, Inc. had the following transactions in 2017, its first year of operations: Issued 33,000 shares of common stock. Stock has par value of $1.00 per share and was issued at $24.00 per share. Earned net income of $73,000. Paid no dividends. At the end of 2017, what is the total amount of paid-in capital? A) $33,000 B) $865,000 C) $792,000 D) $73,000 30) A corporation originally issued $8 par value common stock for $10 per share. It purchased the stock for $13 per share. Which of the following is included in the entry to record the sale of 70 shares of treasury stock for $14 per share? A) Paid-In Capital From Treasury Stock Transactions is credited for $980. B) Treasury StockCommon is credited for $910. C) Treasury StockCommon is credited for $980. D) Paid-In Capital From Treasury Stock Transactions is debited for $70. 31) Orleans, Inc. was incorporated on January 1, 2014. Orleans issued 4,000 shares of common stock and 1,200 shares of preferred stock on that date. The preferred stock is cumulative, $100 par, with an 12% dividend rate. Orleans has not paid any dividends yet. In 2017, Orleans had its first profitable year, and on November 1, 2017, Orleans declared a total dividend of $63,000. What is the total amount that will be paid to preferred shareholders? A) $14,400 B) $57,600 C) $13,200 D) $63,000 32) Which of the following requires a formal journal entry? A) selection of a new CEO B) stock dividend distribution C) stock split D) date of record 33) ) Maywood, Inc. has 3,000 shares of common stock outstanding. A stockholder has 300 shares. If the company distributes a 25% stock dividend, the stockholder now holds ________ shares of Maywood stock. A) 375 B) 750 C) 300 D) 75 34) Which of the following is a reason for a company to announce a stock split? A) to reward investors B) to increase total stockholders' equity C) to decrease the market price at which the stock is trading D) to provide the shareholders with something of value, when the company cannot afford a cash dividend 35) Cash dividends and treasury stock purchases ________. A) represent cash payments that are made to ensure higher reported profits B) may be limited by creditors to ensure that the company maintains a minimum level of stockholders' equity C) may be restricted as a way to lower federal income tax expense D) make more resources available to pay liabilities 36) A business's cash receipts and cash payments for a specific period are reported on a(n) ________. A) income statement B) balance sheet C) statement of cash flows D) cash reconciliation statement 37) Perez Biofuels Company is preparing its statement of cash flows using the indirect method. Refer to the following information: 1. 2. Repayments on Long-term Notes Payable $58,000 New borrowing on Long-term Notes Payable $19,000 Which of the following statements is correct? A) Net cash used for financing activities is $(39,000). B) Net cash used for investing activities will is $58,000. C) Net cash provided by financing activities is $39,000. D) Net cash provided by investing activities is to $39,000. 38) The issuance of common stock for cash is shown as a ________. A) negative cash flow in the investing activities section of the statement of cash flows B) positive cash flow in the investing activities section of the statement of cash flows C) negative cash flow in the financing activities section of the statement of cash flows D) positive cash flow in the financing activities section of the statement of cash flows 39) Harrison Recyclers Company uses the indirect method to prepare its statement of cash flows. Refer to the following information for 2017: 1. 2. 3. Retained Earnings, beginning balance, $138,000 Retained Earnings, ending balance, $122,000 There is a net loss of $15,000 for the year. What is the amount of dividends declared during the year? A) $31,000 B) $2,000 C) $1,000 D) $16,000 40) ) Lopez Corp. uses the indirect method to prepare its statement of cash flows. Refer to the following information for 2017: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. Long-Term Notes Payable, beginning balance, $85,000 Long-Term Notes Payable, ending balance, $71,000 Common Stock, beginning balance, $3,100 Common Stock, ending balance, $27,000 Retained Earnings, beginning balance, $76,000 Retained Earnings, ending balance, $120,000 Treasury Stock, beginning balance, $5,200 Treasury Stock, ending balance, $10,100 No stock was retired. No treasury stock was sold. During 2016, the company repaid $37,000 of long-term notes payable. During 2016, the company borrowed $51,000 on a new note payable. Net income for the year was $54,000. Assume all dividends declared during the year were paid. What is the net cash flow from financing activities? A) $19,000 B) $9,000 C) ($14,000) D) $23,000 41) O'Brien Coatings Company uses the indirect method to prepare its statement of cash flows. Refer to the following information for 2017: The beginning balance in the Cash account was $2,900. Net cash provided by operating activities: $40,000 Net cash used for investing activities: $(25,500) Net cash provided by financing activities: $1,700 The statement of cash flows will show ________. A) ending cash of $16,200 B) total net cash flows of positive $65,500 C) total net cash flows of negative $16,200 D) ending cash of $19,100 42) Which of the following appears on a statement of cash flows prepared using the direct method? A) adjustments to net income B) cash payments for salaries C) adjustments for gains and losses on sale of property D) increase/decrease in current assets 43) Which of the following items are included as an operating activity on the statement of cash flows, using the direct method? A) purchase of treasury stock B) payment of dividends C) issuance of stock D) payment of interest expense 44) The financing activities section of a statement prepared using the direct method includes changes in ________. A) Accounts Payable B) Accounts Receivable C) Merchandise Inventory D) Long-term Notes Payable 45) Merchandise Inventory increased $28,000 and Accounts Payable decreased $19,600 during the year. Accounts Payable relates only to the acquisition of merchandise inventory. Sales were $796,000 and Cost of Goods Sold was $549,700. Compute the payment made to the suppliers. A) $577,700 B) $569,300 C) $597,300 D) $47,600 46) On a statement of cash flows prepared using the direct method, cash received from selling merchandise is considered a ________. A) cash inflow from investing activities B) cash inflow from operating activities C) cash outflow from financing activities D) cash outflow for financing activities 47) Regarding the use of a spreadsheet for the preparation of the statement pf cash flows, which of the following statements is true? A) The T-account approach works well for all companies. B) The statement of cash flows cannot be prepared directly from the spreadsheet because additional information is needed. C) The spreadsheet is needed when companies face complex situations. D) The spreadsheet can only be used if the indirect method for operating activities is also used. 48) Which of the following is the typical order of the sections on a statement of cash flows? A) operating, financing, investing B) financing, investing, operating C) investing, operating, financing D) operating, investing, financing 49) Regarding the use of a spreadsheet for the preparation of the statement of cash flows, which of the following statements is incorrect? A) The spreadsheet starts with the beginning balance sheet and concludes with the ending balance sheet. B) When companies face complex situations, a spreadsheet can help in preparing the statement of cash flows. C) The spreadsheet cannot be used for the direct method. D) Accountants can prepare the statement of cash flows directly from the lower part of the spreadsheet. 50) Which of the following is considered an operating activity on the statement of cash flows prepared using the direct method? A) dividends paid to stockholders B) sale of merchandise inventory for cash C) payment to purchase equipment D) the receipt of cash from sale of equipment Solve it: Worth 5pts each: (please complete all problems to maximize your points and show all work) 50 51) William Smith is a sole proprietor of a successful business. He is interested in incorporating to protect his personal assets. Which advantage of incorporation is most applicable? What are other advantages of organizing as a corporate entity? a. 52) William Smith is a sole proprietor of a successful business. He is interested in incorporating to protect his personal assets. What are some disadvantages of organizing as a corporate entity? a. 53) List the four basic rights of stockholders. a. - b. - c. - d. - 54) Micro Electronics completed the following stock issuance transactions: Issued 4,000 shares of $3 par value common stock for June 7 cash of $12 per share Issued 400 shares of no-par preferred stock for Aug. 16 $25,000 cash Received equipment with a market value of $75,000 Sept. in exchange for 5,000 shares of the $3 par value 19 common stock Prepare the journal entries to record these transactions. Explanations are not required. Date Accounts and Explanation Debit Credit June 7 Aug. 16 Sept. 19 55) Orange Office Supply Corporation completed the following stock issuance transactions: Issued 5,000 shares of $4 stated value common stock Mar. 28 for cash of $20 per share Received merchandise inventory with a market value of $46,000 in exchange for 2,000 shares of the $4 stated May 1 value common stock. Issued 450 shares of 5%, $20 par value preferred stock May 14 for $50 per share Prepare the journal entries to record these transactions. Explanations are not required. Date Accounts and Explanation Debit Credit Mar. 28 May 1 May 14 56) Johnson Tires Company uses the indirect method to prepare the statement of cash flows. Refer to the following comparative balance sheet for Johnson Tires Company and complete the third column to show the increases or decreases. Johnson Tires Company Comparative Balance Sheet December 31, 2017 and 2016 Cash Accounts Receivable Merchandise Inventory Total Assets 2016 $39,600 26,400 204,000 270,000 2015 $19,800 38,500 126,500 184,800 Accounts Payable Accrued Liabilities Long-term Notes Payable Total Liabilities 4,800 2,400 100,800 108,000 6,600 1,100 99,000 106,700 Common Stock Retained Earnings Treasury Stock Total Stockholders' Equity 36,000 135,600 (9,600) 162,000 2,200 81,400 (5,500) 78,100 Increase/ (Decrease) Total Liabilities and Stockholders' Equity$270,000$184,800 57) Budget Auto Parts Company uses the indirect method to prepare the statement of cash flows. Refer to the following income statement: Budget Company Income Statement Year Ended December 31, 2017 Sales Revenue $360,000 Interest Revenue 1,500 Gain on Sale of Plant Assets 6,000 Total Revenues and Gains Cost of Goods Sold 165,000 Salary Expense 67,500 Depreciation Expense 18,000 Other Operating Expenses 34,500 Interest Expense 1,500 Income Tax Expense 7,500 Total Expenses Net Income (Loss) $367,500 294,000 $73,500 Additional information provided by the company includes the following: Current assets other than cash increase by $36,000. Current liabilities decrease by $1,500. Prepare the operating activities section of the statement of cash flows. Cash Flows from Operating Activities: Net Income Adjustments to Net Income: Depreciation Expense $xx xx Gain on Disposal of Plant Assets Increase in Current Assets Decrease in Current Liabilities Net Cash Provided by Operating Activities (xx) (xx) (xx) (xx) $xx 58) Starfire Telescopes Company uses the indirect method to prepare the statement of cash flows. Refer to the following income statement: Starfire Telescopes Company Income Statement Year Ended December 31, 2017 Sales Revenue $275,000 Interest Revenue 2,600 Total Revenues Cost of Goods Sold 135,000 Salary Expense 66,500 Depreciation Expense 32,000 Other Operating Expenses 35,900 Interest Expense 2,400 Income Tax Expense 6,500 Loss on Sale of Plant Assets 2,000 Total Expenses Net Loss $277,600 280,300 ($2,700) Additional information provided by the company includes the following: Current assets other than cash decreased by $25,000. Current liabilities increased by $3,000. Prepare the operating activities section of the statement of cash flows. Cash Flows from Operating Activities: Net Loss Adjustments to Net Loss: Depreciation Expense Loss on Sale of Plant Assets Decrease in Current Assets Increase in Current Liabilities Net Cash Provided by Operating Activities ($xx) xx xx xx xx xx $xx 59) Christopher Corp. is preparing its statement of cash flows using the indirect method. It provides the following information about transactions for the year: Plant assets, netbeginning balance: $111,000 Plant assets, netending balance: $148,000 Equipment was purchased for $65,000. Equipment with a net asset value of $12,000 was sold for $18,000. Depreciation Expense of $16,000 was recorded during the year. What was the amount of net cash provided by (used for) investing activities? A) $(47,000) B) $47,000 C) $(63,000) D) $(39,000) 60) Caleb Auto Parts Company uses the indirect method to prepare its statement of cash flows. Refer to the following portion of the comparative balance sheet: Caleb Company Comparative Balance Sheet December 31, 2017 and 2016 2017 2016 Increase (Decrease) Cash $42,000 $36,000 $6,000 Accounts Receivable62,000 70,000 (8,000) Merchandise Inventory106,000 50,000 56,000 PP&E, net 240,000 180,000 60,000 Total Assets $450,000 $336,000 $114,000 Additional information provided by the company includes the following: Equipment costing $104,000 was purchased for cash. Equipment with a net book value of $20,000 was sold for $28,000. Depreciation expense of $24,000 was recorded during the year. Prepare the investing activities section of the statement of cash flows. Investing Activities: Cash Receipt from Sale of Equipment $xx Cash Payment for Acquisition of Equipment(xx) Net Cash Used for Investing Activities $(xx) Essay Problems: Worth 10 pts each. (Please complete all problems to maximize your points and show all work) I have provided multiple hints for you to help with the process. 50 61) Carpenter Schools, Inc. is authorized to issue 500,000 shares of $2 par common stock. The company issued 106,000 shares at $6 per share. When the market price of common stock was $10 per share, Carpenter declared and distributed a 10% stock dividend. Later, Carpenter declared and paid a $0.10 per share cash dividend. Prepare the journal entries to record these transactions. Explanations are not required. Answer: Accounts and Explanation Debit Credit Stock Dividends Common Stock Dividend Distributable Paid-In Capital in Excess of ParCommon Common Stock Dividend Distributable Common Stock$ Cash Dividends Dividends Payable Dividends Payable Cash 62) On July 31, 2017, Archer, Inc. reported the following information in the equity section of their balance sheet: Stockholders' Equity: Common Stock, $1.00 par, 500,000 shares authorized, 20,000 shares issued and outstanding Paid-In Capital in Excess of ParCommon Retained Earnings Total Stockholder's Equity $20,000 1,180,000 3,200,000 $4,400,000 Assume that Archer splits its common stock 3-for-1. Prepare an equity section of the balance sheet that shows the effects of the stock split. (Please round all numbers to the nearest cent.) Stockholders' equity: Common stock, $0.xx par, xx shares authorized, xx shares issued and outstanding Paid-In Capital in Excess of ParCommon Retained Earnings Total Stockholder's Equity $xx xx xx $xx 63) Flowers, Inc. had beginning retained earnings of $125,000 on January 1, 2017. During the year, Flowers declared and paid $40,000 of cash dividends and earned $55,000 of net income. Prepare a statement of retained earnings for Flowers, Inc. for the year ending December 31, 2017. Flowers, Inc. Statement of Retained Earnings Year Ended December 31, 2017 Retained Earnings, January 1,2017 Net income for the year Dividends Declared Retained Earnings, December 31, 2017 $ xx xx xx (xx) $ xx 64 & 65 ) Colorful Cat Company uses the direct method to prepare its statement of cash flows. Refer to the following financial statement information for the year ending December 31, 2017: Colorful Cat Company Comparative Balance Sheet December 31, 2017 and 2016 Cash Accounts Receivable Merchandise Inventory Plant and Equipment, net Total Assets 2017 $33,000 29,000 56,000 126,000 $244,000 2016 $13,000 36,000 29,000 92,000 $170,000 Increase (Decrease) $20,000 (7,000) 27,000 34,000 $74,000 Accounts Payable Accrued Liabilities Long-term Notes Payable Total Liabilities $9,000 7,000 70,000 $86,000 $13,000 3,000 79,000 $95,000 $(4,000) 4,000 (9,000) $(9,000) Common Stock Retained Earnings Treasury Stock Total Stockholders' Equity $55,000 115,000 (12,000) $158,000 $3,000 78,000 (6,000) $75,000 $52,000 37,000 (6,000) $83,000 Total Liabilities and Stockholders' Equity $244,000 $170,000 $74,000 Colorful Cat Company Income Statement Year Ended December 31, 2017 Sales Revenue $291,300 Interest Revenue 1,000 Gain on Sale of Plant Assets 6,000 Total Revenues and Gains Cost of Goods Sold 145,000 Salaries and Wages Expense 49,000 Depreciation ExpensePlant Assets 16,000 Other Operating Expense 25,000 Interest Expense 3,500 Income Tax Expense 7,800 Total Expenses Net Income Colorful Cat Company Statement of Retained Earnings Year Ended December 31, 2017 Retained Earnings, January 1, 2017 Add: Net income Less: Dividends Retained Earnings, December 31, 2017 $298,300 246,300 $52,000 $78,000 52,000 15,000 $115,000 Prepare the operating activities section of the statement of cash flows, using the direct method. Accounts Receivable beginning balance Add: Sales Revenue Less: Accounts Receivable ending balance Collections from Customers xx xx (xx) xx Merchandise Inventory, ending balance Add: Cost of Goods Sold Less: Merchandise Inventory, beginning balance Purchases Add: Accounts Payable, beginning balance Less: Accounts Payable, ending balance Cash Paid for Merchandise Inventory xx xx (xx) xx xx (xx) $xx Accrued Liabilities, beginning balance Add: Other Operating Expenses Less: Accrued Liabilities, ending balance Cash Paid for Other Operating Expenses xx xx (xx) $xx Total Cash Payments $xx Colorful Cat Company Statement of Cash Flows (Partial) Year Ended December 31, 2017 Cash Flows from Operating Activities: Receipts Collections from Customers $xx Interest Received xx Total Cash Receipts Payments To Suppliers (xx) To Employees (xx) For Interest (xx) For Income tax (xx) Total Cash Payments Net Cash Provided by Operating Activities $xx (xx) $xx