Problem 2Statement of cash flows. The information shown below is taken from the accounts of Waverly Corporation for the year ended December 31. 2017 Net income $344,000 Amortization of patent 12.000 Proceeds from issuance of common stock 33,000 Decrease in inventory 37,000 Sale of building at a $15.000 gain 85.000 Decrease in accounts payable 15,000 Purchase of equipment 185,000 Payment of cash dividends 44,000 Depreciation expense 55.000 Decrease in accounts receivable 23,000 Payment of mortgage 85.000 Increase in short-term notes payable 8,000 Sale of land at a $5,000 loss 40,000 Purchase of delivery van 33,000 Cash at beginning of year 105,000 Instructions Prepare a statement of cash flows for Robinson Corporation for the year ended December 31, 2017. Note: Homework is graded on completion basis. Make sure you make a thorough effort on each question to ensure full points are eamed. Show your work and/or explain your answer for each multiple choice question Chapter 5 1. The amount of time that is expected to elapse until an asset is realized or otherwise converted into cash is referred to as 2. Treasury stock should be reported as an) a current asset b. investment c. other asset. d. reduction of stockholders' equity Explain in one or two sentences why your answer (for #2 above) is correct? 3. Which of the following should be reported for capital stock? a. The shares authorized b. The shares issued c. The shares outstanding d. All of these answer choices are correct Explain in one or two sentences why your answer (for #3 above) is correct? 4. Houghton Company has the following items: common stock. $1.500.000; treasury stock, S210,000 deferred income taxes. $250,000 and retained earnings. $780.000. What total amount should Houghton Company report as stockholders' equity? a $1,390,000 b. $2,170,000 c. $2,420,000 d. $2,070,000 Show how you calculated your answer (for #6 above)? The following accounts appeared on the trail balance of Elbert Company at December 31, 2017. Salaries and Wages Payable Debt Investments (long-term) Cash Bonds Payable Due 1/1/2025 Allowance for Doubtful Accts. Copyrights Notes Receivable (due in 6 months) Income Taxes Payable Preferred Stock Appropriated Retained Earnings Accounts Receivable Prepaid Insurance 34 200 Common Stock 281,400 Unappropriated Retained Earnings 170 250 Inventory 1,200,000 Land 17.800 Trading Securities 192.000 Interest Payable 138,000 Buildings 158,000 Accounts Payable 750,000 Additional Paid-in Capital 294,000 Notes Payable (short-term) $518,400 Accumulated Depreciation - Bldg. 56,250 Supplies 1.125.000 318,000 1,480.250 475,000 73.200 5.700 1,928,000 409.950 163.800 $92,000 783,000 37,800 Instructions: Compute each of the following: 1. Total current assets 2. Total property, plant, and equipment 3. Total assets 4. Total current liabilities 5. Total stockholders' equity 2 Problem 2Statement of cash flows. The information shown below is taken from the accounts of Waverly Corporation for the year ended December 31. 2017 Net income $344,000 Amortization of patent 12.000 Proceeds from issuance of common stock 33,000 Decrease in inventory 37,000 Sale of building at a $15.000 gain 85.000 Decrease in accounts payable 15,000 Purchase of equipment 185,000 Payment of cash dividends 44,000 Depreciation expense 55.000 Decrease in accounts receivable 23,000 Payment of mortgage 85.000 Increase in short-term notes payable 8,000 Sale of land at a $5,000 loss 40,000 Purchase of delivery van 33,000 Cash at beginning of year 105,000 Instructions Prepare a statement of cash flows for Robinson Corporation for the year ended December 31, 2017. Note: Homework is graded on completion basis. Make sure you make a thorough effort on each question to ensure full points are eamed. Show your work and/or explain your answer for each multiple choice question Chapter 5 1. The amount of time that is expected to elapse until an asset is realized or otherwise converted into cash is referred to as 2. Treasury stock should be reported as an) a current asset b. investment c. other asset. d. reduction of stockholders' equity Explain in one or two sentences why your answer (for #2 above) is correct? 3. Which of the following should be reported for capital stock? a. The shares authorized b. The shares issued c. The shares outstanding d. All of these answer choices are correct Explain in one or two sentences why your answer (for #3 above) is correct? 4. Houghton Company has the following items: common stock. $1.500.000; treasury stock, S210,000 deferred income taxes. $250,000 and retained earnings. $780.000. What total amount should Houghton Company report as stockholders' equity? a $1,390,000 b. $2,170,000 c. $2,420,000 d. $2,070,000 Show how you calculated your answer (for #6 above)? The following accounts appeared on the trail balance of Elbert Company at December 31, 2017. Salaries and Wages Payable Debt Investments (long-term) Cash Bonds Payable Due 1/1/2025 Allowance for Doubtful Accts. Copyrights Notes Receivable (due in 6 months) Income Taxes Payable Preferred Stock Appropriated Retained Earnings Accounts Receivable Prepaid Insurance 34 200 Common Stock 281,400 Unappropriated Retained Earnings 170 250 Inventory 1,200,000 Land 17.800 Trading Securities 192.000 Interest Payable 138,000 Buildings 158,000 Accounts Payable 750,000 Additional Paid-in Capital 294,000 Notes Payable (short-term) $518,400 Accumulated Depreciation - Bldg. 56,250 Supplies 1.125.000 318,000 1,480.250 475,000 73.200 5.700 1,928,000 409.950 163.800 $92,000 783,000 37,800 Instructions: Compute each of the following: 1. Total current assets 2. Total property, plant, and equipment 3. Total assets 4. Total current liabilities 5. Total stockholders' equity 2