accounting homework
https---cxp.cengage.com-activityservice-run-html5-handler.jsp?id=3cbd58defe7b34f_56p09g&takeId=3cbd58defe7b34f&ifr=1&a.pdf 1. EX.16-03 2. EX.16-06.ALGO (Algorithmic) Classifying Cash Flows Identify the type of cash flow activity for each of the following events (operating, investing, or financing): a. Redeemed bonds b. Issued preferred stock c. Paid cash dividends d. Net income e. Sold equipment f. Purchased treasury stock g. Purchased patents h. Purchased buildings i. Sold long-term investments j. Issued bonds k. Issued common stock Cash Flows from Operating Activities—Indirect Method The net income reported on the income statement for the current year was $222,500. Depreciation recorded on equipment and a building amounted to $66,500 for the year. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End of Year Beginning of Year Cash $61,410 $65,090 Accounts receivable (net) 77,870 80,320 Inventories 153,530 138,380 Prepaid expenses 8,540 9,180 Accounts payable (merchandise creditors) 68,590 72,640 Salaries payable 9,890 9,050 a. Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments. Statement of Cash Flows (partial) Cash flows from operating activities: $ Adjustments to reconcile net income to net cash flow from operating activities: https://cxp.cengage.com/activityservice/run/html5/handler.jsp?... 1 of 8 11/10/19, 12:00 PM 3. EX.16-10 4. EX.16-14.ALGO (Algorithmic) Changes in current operating assets and liabilities: Net cash flow from operating activities $ b. If the direct method had been used, would the net cash flow from operating activities have been the same? Reporting changes in Equipment on Statement of Cash Flows An analysis of the general ledger accounts indicates that delivery equipment, which cost $200,000 and on which accumulated depreciation totaled $60,000 on the date of sale, was sold for $132,500 during the year. Using this information, indicate the items to be reported on the statement of cash flows. Transaction Section of Statement of Cash Flows Added or Deducted $200,000 cost of equipment $60000 accumulated depreciation $132,500 sales price $7,500 loss on sale of equipment (assume the indirect method is used) Reporting Issuance and Retirement of Long-Term Debt On the basis of the details of the following bonds payable and related discount accounts, indicate the items to be reported in the Financing Activities section of the statement of cash flows, assuming no gain or loss on retiring the bonds: ACCOUNT Bonds Payable ACCOUNT NO. Balance Date Item Debit Credit Debit Credit Jan. 1 Balance 320,000 2 Retire bonds 64,000 256,000 June 30 Issue bonds 192,000 448,000 ACCOUNT Discount on Bond Payable ACCOUNT NO. https://cxp.cengage.com/activityservice/run/html5/handler.jsp?... 2 of 8 11/10/19, 12:00 PM 5. PR.16-01.ALGO (Algorithmic) Balance Date Item Debit Credit Debit Credit Jan. 1 Balance 14,400 2 Retire bonds 5,120 9,280 June 30 Issue bonds 12,900 22,180 Dec. 31 Amortize discount 1,110 21,070 Item Section of Statement of Cash Flows Added or Deducted Amount Retire bonds $ Issue bonds $ Amortization of discount $ Statement of Cash Flows—Indirect Method The comparative balance sheet of Merrick Equipment Co. for December 31, 20Y9 and 20Y8, is as follows: Dec. 31, 20Y9 Dec. 31, 20Y8 Assets Cash $272,310 $254,480 Accounts receivable (net) 98,650 91,400 Inventories 278,470 270,610 Investments 0 104,840 Land 142,840 0 Equipment 307,250 239,250 Accumulated depreciation—equipment (71,930) (64,520) Total assets $1,027,590 $896,060 Liabilities and Stockholders' Equity Accounts payable $185,990 $176,520 Accrued expenses payable 18,500 23,300 Dividends payable 10,280 8,060 Common stock, $10 par 55,490 43,910 Paid-in capital: Excess of issue price over par-common stock 208,600 121,860 Retained earnings 548,730 522,410 Total liabilities and stockholders’ equity $1,027,590 $896,060 Additional data obtained from an examination of the accounts in the ledger for 20Y9 are as follows: a. Equipment and land were acquired for cash. b. There were no disposals of equipment during the year. c. The investments were sold for $94,360 cash. d. The common stock was issued for cash. https://cxp.cengage.com/activityservice/run/html5/handler.jsp?... 3 of 8 11/10/19, 12:00 PM 6. PR.16-03.ALGO (Algorithmic) e. There was a $68,430 credit to Retained Earnings for net income. f. There was a $42,110 debit to Retained Earnings for cash dividends declared. Required: Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments. Merrick Equipment Co. Statement of Cash Flows For the Year Ended December 31, 20Y9 Cash flows from operating activities: $ Adjustments to reconcile net income to net cash flow from operating activities: Changes in current operating assets and liabilities: Net cash flow from operating activities $ Cash flows from (used for) investing activities: $ Net cash flow used for investing activities Cash flows from (used for) financing activities: Net cash flow from financing activities $ Cash at the beginning of the year Cash at the end of the year $ Statement of Cash Flows—Indirect Method The comparative balance sheet of Whitman Co. at December 31, 20Y2 and 20Y1, is as follows: https://cxp.cengage.com/activityservice/run/html5/handler.jsp?... 4 of 8 11/10/19, 12:00 PM Dec. 31, 20Y2 Dec. 31, 20Y1 Assets Cash $ 931,500 $ 1,006,120 Accounts receivable (net) 847,670 773,150 Inventories 1,285,470 1,183,010 Prepaid expenses 29,810 35,400 Land 320,440 484,380 Buildings 1,481,080 912,870 Accumulated depreciation-buildings (419,180) (391,230) Equipment 521,640 461,090 Accumulated depreciation-equipment (143,450) (161,150) Total assets $4,854,980 $4,303,640 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $ 922,450 $ 973,420 Bonds payable 271,880 0 Common stock, $20 par 318,000 118,000 Paid-in capital: Excess of issue price over par-common stock 766,000 566,000 Retained earnings 2,576,650 2,646,220 Total liabilities and stockholders’ equity $4,854,980 $4,303,640 The noncurrent asset, noncurrent liability, and stockholders' equity accounts for 20Y2 are as follows: ACCOUNT Land ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 484,380 Apr. 20 Realized $152,500 cash from sale 163,940 320,440 ACCOUNT Buildings ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 912,870 Apr. 20 Acquired for cash 568,210 1,481,080 ACCOUNT Accumulated Depreciation-Buildings ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 391,230 https://cxp.cengage.com/activityservice/run/html5/handler.jsp?... 5 of 8 11/10/19, 12:00 PM Dec. 31 Depreciation for year 27,950 419,180 ACCOUNT Equipment ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 461,090 Jan. 26 Discarded, no salvage 50,700 410,390 Aug. 11 Purchased for cash 111,250 521,640 ACCOUNT Accumulated Depreciation-Equipment ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 161,150 Jan. 26 Equipment discarded 50,700 110,450 Dec. 31 Depreciation for year 33,000 143,450 ACCOUNT Bonds Payable ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 May 1 Issued 10-year bonds 271,880 271,880 ACCOUNT Common Stock, $20 par ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 118,000 Dec. 7 Issued 10,000 shares of common stock for $40 per share 200,000 318,000 ACCOUNT Paid-in Capital in Excess of Par-Common Stock ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 566,000 Dec. 7 Issued 10,000 shares of common stock for $40 per share 200,000 766,000 ACCOUNT Retained Earnings ACCOUNT NO. https://cxp.cengage.com/activityservice/run/html5/handler.jsp?... 6 of 8 11/10/19, 12:00 PM Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 2,646,220 Dec. 31 Net loss 33,500 2,612,720 Dec. 31 Cash dividends 36,070 2,576,650 Required: Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments. Whitman Co. Statement of Cash Flows For the Year Ended December 31, 20Y2 Cash flows from operating activities: $ Adjustments to reconcile net loss to net cash flow from operating activities: Changes in current operating assets and liabilities: Net cash flow used for operating activities $ Cash flows from (used for) investing activities: $ Net cash flow used for investing activities Cash flows from (used for) financing activities: $ Net cash flow from financing activities $ Cash at the beginning of the year https://cxp.cengage.com/activityservice/run/html5/handler.jsp?... 7 of 8 11/10/19, 12:00 PM Cash at the end of the year $ https://cxp.cengage.com/activityservice/run/html5/handler.jsp?... 8 of 8 11/10/19, 12:00 PM