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 14.5APR
Statement of
The comparative balance sheet of Cromme Inc. for December 31, 2016 and 2015, is as follows:
Dec. 31,2016 | Dec. 31,2015 | |
Assets | ||
Cash……………… | $ 625,760 | $ 585,920 |
227,840 | 208,960 | |
Inventories……………………… | 641.760 | 617,120 |
Investments…………… | 0 | 240,000 |
Land…………………… | 328,000 | 0 |
Equipment……………………… | 705,120 | 553,120 |
Accumulated |
(166,400) | (148,000) |
Total assets……………………… | $2,362,080 | $2,057,120 |
Liabilities and Stockholders’ Equity | ||
Accounts payable (merchandise creditors)……………………… | $ 424,4B0 | $ 404.960 |
Accrued expenses payable (operating expenses) ……………………… | 42,240 | 52,640 |
Dividends payable……………………… | 24,000 | 19,200 |
Common stock, $2 par……………………… | 150,000 | 100,000 |
Paid in capital: Excess of issue price over par—common stock………………… | 417,500 | 280,000 |
1,303,860 | 1,200,320 | |
Total liabilities and stockholders’ equity……………………… | $2,362,080 | $2,057,120 |
The income statement for the year ended December 31, 2016, is as follows: | ||
Sales……………………… | $ 5,372,559 | |
Cost of merchandise sold……………………… | 3,306,190 | |
Gross profit……………………… | 52,066,369 | |
Operating expenses: Depreciation expense……………………… | $ 18,400 | |
Other operating expenses……………………… | 1,755,402 | |
Total operating expenses……………………… | 1,773,802 | |
Operating income……………………… | $ 292,567 | |
Other income: Gain on sale of investments……………………… | 40,000 | |
Income before income tax……………………… | $ 332,567 | |
Income tax expense……………………… | 133,027 | |
Net income……………………… | $ 199,540 |
Additional data obtained from an examination of the accounts in the ledger for 2016 are as follows:
- a. The investments were sold for $280,000 cash.
- b. Equipment and land were acquired for cash.
- c. There were no disposals of equipment during the year.
- d. The common stock was issued for cash.
- e. There was a $96,000 debit to Retained Earnings for cash dividends declared.
Instructions
Prepare a statement of cash flows, using the direct 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
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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.
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STATEMENT OF CASH FLOWS
An entity provided the following data:
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Trade accounts receivable, net of allowance
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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.
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Statement of Cash Flows—Direct Method applied to PR 16-1A
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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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