Financial & Managerial Accounting
13th Edition
ISBN: 9781285866307
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Textbook Question
Chapter 14, Problem 14.2APR
Statement of
The comparative balance sheet of Del Ray Enterprises Inc. at December 31, 2016 and 2015 is as follows:
Dec 31,2016 | Dec. 31,2015 | |
Assets | ||
Cash | $ 146.600 | S 179,800 |
Accounts receivable (net)………………………….. | 224,600 | 242,000 |
Merchandise inventory………………………….. | 321,600 | 299,200 |
Prepaid expenses………………………….. | 13,400 | 9,600 |
Equipment………………………….. | 655,000 | 537,000 |
Accumulated depreciation—equipment………………………….. | (170,800) | (132,200) |
Total assets………………………….. | $ 1,190,400 | $1,135,400 |
Liabilities and Stockholders’ Equity | ||
Accounts payable (merchandise creditors) ………………………….. | $ 250,200 | S 237,600 |
Mortgage note payable………………………….. | 0 | 336,000 |
Common stock, $10 par………………………….. | 74,000 | 24,000 |
Paid in capital: Excess of issue price over par—common stock………………………….. | 470,000 | 320,000 |
396,200 | 217,800 | |
Total liabilities and stockholders’ equity………………………….. | $1,190,400 | $1,135,400 |
Additional data obtained from the income statement and from an examination of the accounts in the ledger for 2016 are as follows:
- a. Net income, $332,000
- b. Depreciation reported on the income statement, $83,400
- c. Equipment was purchased at a cost of $162,800 and fully
depreciated equipment costing $44,800 was discarded, with no salvage realized. - d. The mortgage note payable was not due until 2018 but the terms permitted earlier payment without penalty.
- e. 10,000 shares of common stock were issued at $20 for cash.
- f. Cash dividends declared and paid. $153,600
Instructions
Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities.
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STATEMENT OF CASH FLOWS
An entity provided the following data:
December 31, 2017
December 31, 2018
Trade accounts receivable, net of allowance
840,000
780,000
Inventory
1,500,000
1,400,000
Accounts payable
950,000
980,000
Total sales were P12,000,000 for 2018 and P11,000,000 for 2017. Cash sales were 20% of total sales each year. Cost of goods sold was P8,400,000 for 2018.
Variable expenses for 2018 amounted to P1,200,000 and varied in proportion to sales. Variable expenses had been paid 50% in the year incurred and 50% the following year.
Fixed expenses, including P350,000 depreciation and P50,000 bad debt expense, totaled P1,000,000 each year. Eighty percent of fixed expenses involving cash were paid in the year incurred and 20% the following year. Each year there was a P50,000 bad debt estimate and a P50,000 writeoff.
1. What amount of cash was disbursed for variable expenses during 2018?
2. What amount of cash…
STATEMENT OF CASH FLOWS
An entity provided the following data:
December 31, 2017
December 31, 2018
Trade accounts receivable, net of allowance
840,000
780,000
Inventory
1,500,000
1,400,000
Accounts payable
950,000
980,000
Total sales were P12,000,000 for 2018 and P11,000,000 for 2017. Cash sales were 20% of total sales each year. Cost of goods sold was P8,400,000 for 2018.
Variable expenses for 2018 amounted to P1,200,000 and varied in proportion to sales. Variable expenses had been paid 50% in the year incurred and 50% the following year.
Fixed expenses, including P350,000 depreciation and P50,000 bad debt expense, totaled P1,000,000 each year. Eighty percent of fixed expenses involving cash were paid in the year incurred and 20% the following year. Each year there was a P50,000 bad debt estimate and a P50,000 writeoff.
1. What is the cash collected from customers during 2018?
2. What is the amount of purchases…
From the following information, balance the ledger
Cash A/c
Date
Particulars
Amount
Date
Particulars
Amount
1.6.2017
CAPITAL
84000
5.6.2017
Purcahses
14600
10.6.2017
sales
9500
30.6.2017
General expenses
178
30.6.2017
Salaries
4500
30.6.17
Bal C/d
?
Select one:
a. 84222 OMR
b. 45522 OMR
c. 74222 OMR
d. 94222 OMR
Chapter 14 Solutions
Financial & Managerial Accounting
Ch. 14 - Prob. 1DQCh. 14 - Prob. 2DQCh. 14 - A corporation issued 2,000,000 of common stock in...Ch. 14 - A retail business, using the accrual method of...Ch. 14 - If salaries payable was 100,000 at the beginning...Ch. 14 - Prob. 6DQCh. 14 - A corporation issued 2,000,000 of 20-year bonds...Ch. 14 - Fully depreciated equipment costing 50,000 was...Ch. 14 - Prob. 9DQCh. 14 - Name five common major classes of operating cash...
Ch. 14 - Prob. 14.1APECh. 14 - Classifying cash flows Identify whether each of...Ch. 14 - Prob. 14.2APECh. 14 - Prob. 14.2BPECh. 14 - Prob. 14.3APECh. 14 - Prob. 14.3BPECh. 14 - Prob. 14.4APECh. 14 - Prob. 14.4BPECh. 14 - Land transactions on the statement of cash flows...Ch. 14 - Land transactions on the statement of cash flows...Ch. 14 - Prob. 14.6APECh. 14 - Prob. 14.6BPECh. 14 - Prob. 14.7APECh. 14 - Prob. 14.7BPECh. 14 - Prob. 14.8APECh. 14 - Prob. 14.8BPECh. 14 - Prob. 14.1EXCh. 14 - Prob. 14.2EXCh. 14 - Classifying cash flows Identify the type of cash...Ch. 14 - Prob. 14.4EXCh. 14 - Prob. 14.5EXCh. 14 - Prob. 14.6EXCh. 14 - Prob. 14.7EXCh. 14 - Determining cash payments to stockholders The...Ch. 14 - Prob. 14.9EXCh. 14 - Reporting changes in equipment on statement of...Ch. 14 - Prob. 14.11EXCh. 14 - Prob. 14.12EXCh. 14 - Reporting land acquisition for cash and mortgage...Ch. 14 - Prob. 14.14EXCh. 14 - Prob. 14.15EXCh. 14 - Prob. 14.16EXCh. 14 - Prob. 14.17EXCh. 14 - Prob. 14.18EXCh. 14 - Prob. 14.19EXCh. 14 - Prob. 14.20EXCh. 14 - Prob. 14.21EXCh. 14 - Cash flows from operating activities direct method...Ch. 14 - Prob. 14.23EXCh. 14 - Prob. 14.24EXCh. 14 - Prob. 14.25EXCh. 14 - Prob. 14.26EXCh. 14 - Prob. 14.1APRCh. 14 - Statement of cash flowsindirect method The...Ch. 14 - Prob. 14.3APRCh. 14 - Prob. 14.4APRCh. 14 - Statement of cash flowsdirect method applied to PR...Ch. 14 - Prob. 14.1BPRCh. 14 - Prob. 14.2BPRCh. 14 - Prob. 14.3BPRCh. 14 - Prob. 14.4BPRCh. 14 - Statement of cash flowsdirect method applied to PR...Ch. 14 - Prob. 14.1CPCh. 14 - Prob. 14.2CPCh. 14 - Analysis of statement of cash flows Dillip Lachgar...Ch. 14 - Prob. 14.4CP
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