Last Homework & Extra Credit – spring 2020 Part 01 – 5 Points – Indirect Statement of Cash Flows Create the “Operating Section” of the statement of cash flows using the indirect method (ONLY THE...

1 answer below »
I need solutions to this assignment please


Last Homework & Extra Credit – spring 2020 Part 01 – 5 Points – Indirect Statement of Cash Flows Create the “Operating Section” of the statement of cash flows using the indirect method (ONLY THE OPERATING SECTION). Place your answer on this page (operating section only, indirect method). Part 02 – 5 Points – Direct Statement of Cash Flows Your answers will need to be in the below spaces. Cash Received from Customers Cash Paid for Insurance Cash Paid for Salaries Part 03 – Extra Credit – 7 Points Net Income ___________________________________________________________ Income from Operations ________________________________________________ Total Operating Expenses (Selling & Admin. Expenses) _________________________ Gross Margin (Gross Profit) ______________________________________________ Income from Continuing Operations (After Taxes) ____________________________ Instructions I should be able to change the key numbers. I should then delete the student copy. I should then copy the key to make a new student copy. Key Partial InformationBefore Tax #s Accounts Payable255,000 Accounts Receivable650,000 Accrued Liabilities750,000Calculate Accumulated Depreciation252,000 Add. PIC - C/S10,0001) Gross Margin=>8,600,000TRUE Add. PIC - P/S15,000 Allowance for Doubtful Accounts25,000 Amortization Expense - Patent100,0002) Income From Continuing Operations (After-Tax #) =>6,221,600TRUE Office Supplies Expense1,200,000 Bonds Payable350,000 Cash3,500,0003) Total Operating Expenses (Selling & Admin. Exp. )=>3,200,000TRUE Common Stock3,583,000 Customer Deposits600,000 Cost of Goods Sold700,0004) Total D item(s) (as shown on the I/S) =>-320,000TRUE Depreciation Expense450,000 Discontinued Operations (Loss)400,000 Discounts on Notes Payable5,0005) Net Income =>5,901,600TRUE Dividend Revenue65,000 Loss on Sale of Equipment800,0006) Income from Operations =>5,400,000TRUE Interest Expense88,000 Interest Revenue500,0007) Total Other Items=>2,377,000 Inventory90,000 Investments300,000 Gain on Sale of Land3,000,000 Notes Payable (short-term)145,000 Patent165,000 Preferred Stock72,000 Premium on Bonds Payable18,000 Prepaid Insurance150,000 Property, Plant, & Equipment3,000,000 Retained Earnings2,208,100 Salary Expense1,200,000 Sales9,700,000 Sales Discounts200,000 Sales Returns & Allowances200,000 Treasury Stock650,000 Unrealized Loss Short-Term Equity Investments300,000 Unearned Revenue760,000 Coffee Expense250,000 ***** Tax Rate => 20% Net Income Check5,901,600 TRUE Income Statement Income Statement For the Year Ended ……. Sales9,700,000 Less: Sales Discounts(200,000) Sales Returns and Allowances(200,000) Net Sales9,300,000 Cost of Goods Sold(700,000) Gross Margin8,600,000 Total Operating Expenses Salary Expense1,200,000 Depreciation Expense450,000 Coffee Expense250,000 Amortization Expense100,000 Office Supplies Expense1,200,000 Total Operating Expenses3,200,000 Income from Operations5,400,000 Other Revenues (Gains) & Expenses (Losses) Interest Revenue500,000 Loss on Sale of Equipment(800,000) Dividend Revenue65,000 Unrealized Loss Short-Term Equity Investments(300,000) Gain on Sale of Land3,000,000 Interest Expense(88,000) Total Other Revenues & Expenses2,377,000 Income from Continuing Operations (before taxes)7,777,000 Income Taxes (20%)1,555,400 Income from Continuing Operations6,221,600 Discontinued Operations (Loss)(320,000) Net Income5,901,600 TRUE - 0 Student Partial InformationBefore Tax #s Accounts Payable255,000 Accounts Receivable650,000 Accrued Liabilities750,000Calculate Accumulated Depreciation252,000 Add. PIC - C/S10,0001) Gross Margin=>FALSE Add. PIC - P/S15,000 Allowance for Doubtful Accounts25,000 Amortization Expense - Patent100,0002) Income From Continuing Operations (After-Tax #) =>FALSE Office Supplies Expense1,200,000 Bonds Payable350,000 Cash3,500,0003) Total Operating Expenses (Selling & Admin. Exp. )=>FALSE Common Stock3,583,000 Customer Deposits600,000 Cost of Goods Sold700,0004) Total D item(s) (as shown on the I/S) =>FALSE Depreciation Expense450,000 Discontinued Operations (Loss)400,000 Discounts on Notes Payable5,0005) Net Income =>FALSE Dividend Revenue65,000 Loss on Sale of Equipment800,0006) Income from Operations =>FALSE Interest Expense88,000 Interest Revenue500,0007) Total Other Items=> Inventory90,000 Investments300,000 Gain on Sale of Land3,000,000 Notes Payable (short-term)145,000 Patent165,000 Preferred Stock72,000 Premium on Bonds Payable18,000 Prepaid Insurance150,000 Property, Plant, & Equipment3,000,000 Retained Earnings2,208,100 Salary Expense1,200,000 Sales9,700,000 Sales Discounts200,000 Sales Returns & Allowances200,000 Treasury Stock650,000 Unrealized Loss Short-Term Equity Investments300,000 Unearned Revenue760,000 Coffee Expense250,000 ***** Tax Rate => 20% Net Income Check6,541,600 FALSE Statement of Cash Flows - Indirect Review Balance Sheet - Selected Info.20252024 Cash12,000 2,000 Accounts Receivable125,000 65,000 Inventory1,000 8,000 Prepaid Insurance75,000 25,000 Property Plant & Equip.300,000 100,000 Accumulated Depreciation(20,000) (5,000) Accounts Payable23,000 13,000 Salaries Payable15,000 3,000 Notes Payable (Short-Term)14,000 10,000 Dividends Payable- 5,000 Bonds Payable25,000 23,000 Utilities Expense12,000 10,000 Salaries Expense25,000 13,000 Notes Payable (Long-Term)12,000 12,000 Common Stock75,000 75,000 Retained Earnings292,000 31,000 Other Information (2025): Loss on Sale of Equipment 9,000 Cash Received on Equip. Sale 3,000 Depreciation Expense70,000 Amortization Expense30,000 Dividend Paid30,000 Dividend Declared 25,000 Net Income 650,000 Create the "Operating Section" for the 2025 statement of cash flows (Indirect). Fish Corp St of CF Fish CorporationFish Corporation Balance SheetStatement of Cash Flows December 31, 20X5For the Year Ended Dec. 31, 20X5 20X520X4DifferenceOperating Activities: Assets:Net Income376,000 Cash301,00050,000251,000Adjustments to Net Income: A/R300,00070,000230,000A/R(230,000) Inventory324,000200,000124,000Inventory(124,000) Prepaids3,0005,000(2,000)Prepaids2,000 PP&E604,000600,0004,000A/P30,000 Less: Accum. Depr.(267,000)(200,000)67,000Accrued Liab. (short-term)(10,000) Total Assets1,265,000725,000Depreciation Expense70,000 Gain on Sale of Equipment(6,000) Liabilities & Stockholders' Equity:Net Cash Flows from Operating Activities108,000 A/P90,00060,00030,000 Accrued Liab. (short-term)40,00050,000(10,000)Investing Activities: Dividends Payable- 05,000(5,000)Cash Proceeds from Equipment Sale13,000 Bonds Payable150,000100,00050,000Net Cash Flows from Investing Activities13,000 Common Stock614,000500,000114,000 Retained Earnings371,00010,000Financing Activities: Total Liabilities & Stockholders' Equity1,265,000725,000Bonds Payable50,000 Common Stock100,000 Dividend Payment(20,000) Fish CorporationNet Cash Flows from Financing Activities130,000 Income Statement For the Year Ended Dec. 31, 20X5Net Cash Inflows251,000 Beginning Cash Balance50,000 Sales600,000Ending Cash Balance301,000 Cost of Goods Sold100,000 Gross Margin500,000 Selling & Admin. Exp.: Salary Expense60,000 Depreciation Expense70,000 Total Selling & Admin. Exp.130,000 Income from Operations370,000 Other Rev. & Exp. Gain on Sale of Equipment6,000 Net Income376,000 Other Information (20X5): 1) Dividends Declared => $ 15,000 2) Dividends Paid => $ 20,000 3) Equipment Sale => Cost = $ 10,000, Cash Received = $ 13,000 Accum. Depr. = $ 3,000 4) Equipment Purchased => Common Stock Issued => $14,000 Hmk 2005 Fall Bird CorporationBird Corporation Balance SheetStatement of Cash Flows December 31, 20X5For the Year Ended Dec. 31, 20X5 20X520X4DifferenceOperating Activities: Assets:Net Income567,000 Cash588,00026,000562,000Adjustments to Net Income: A/R90,000120,000(30,000)Depreciation Expense35,000 Inventory390,000200,000190,000Gain on Sale of Equipment(12,000) Prepaids1,0005,000(4,000)A/R30,000 PP&E636,000600,00036,000Inventory(190,000) Less: Accum. Depr.(232,000)(200,000)32,000Prepaids4,000 Total Assets1,473,000751,000A/P(10,000) Accrued Liab. (short-term)40,000 Liabilities & Stockholders' Equity:Net Cash Flows from Operating Activities464,000 A/P50,00060,000(10,000) Accrued Liab. (short-term)90,00050,00040,000Investing Activities: Dividends Payable20,0005,00015,000Equipment Purchased with Cash(46,000) Bonds Payable150,000100,00050,000Cash Proceeds from Equipment Sale19,000 Common Stock600,000500,000100,000Net Cash Flows from Investing Activities(27,000) Retained Earnings563,00036,000 Total Liabilities & Stockholders' Equity1,473,000751,000Financing Activities: Bonds Payable50,000 Common Stock100,000 Bird CorporationDividend Payment(25,000) Income StatementNet Cash Flows from Financing Activities125,000 For the Year Ended Dec. 31, 20X5 Net Cash Inflows562,000 Sales750,000Beginning Cash Balance26,000 Cost of Goods Sold100,000Ending Cash Balance588,000 Gross Margin650,000 Selling & Admin. Exp.: Operating Exp.60,000 Depreciation Expense35,000 Total Selling & Admin. Exp.95,000 Income from Operations555,000 Other Rev. & Exp. Gain on Sale of Equipment12,000 Net Income567,000 Other Information (20X5): 1) Dividends Declared => $ 40,000 2) Dividends Paid => $ 25,000 3) Equipment Sale => Cost = $ 10,000, Cash Received = $ 19,000 Accum. Depr. = $ 3,000 4) Equipment Purchased => $46,000 Gray Inc St of CF Fast CorporationFast Corporation Balance SheetStatement of Cash Flows December 31, 20X5For the Year Ended Dec. 31, 20X5 20X520X4DifferenceOperating Activities: Assets:Net Income376,000 Cash301,00050,000251,000Adjustments to Net Income: A/R300,00070,000230,000A/R(230,000) Inventory324,000200,000124,000Inventory(124,000) Prepaids3,0005,000(2,000)Prepaids2,000 PP&E590,000600,000(10,000)A/P30,000 Less: Accum. Depr.(267,000)(200,000)67,000Accrued Liab. (short-term)(10,000) Total Assets1,251,000725,000Depreciation Expense70,000 Gain on Sale of Equipment(6,000) Liabilities & Stockholders' Equity:Net Cash Flows from Operating Activities108,000 A/P90,00060,00030,000 Accrued Liab. (short-term)40,00050,000(10,000)Investing Activities: Dividends Payable- 05,000(5,000)Cash Proceeds from Equipment Sale13,000 Bonds Payable150,000100,00050,000Net Cash Flows from Investing Activities13,000 Common Stock600,000500,000100,000 Retained Earnings371,00010,000Financing Activities: Total Liabilities & Stockholders' Equity1,251,000725,000Bonds Payable50,000 Common Stock100,000 Dividend Payment(20,000) Fast CorporationNet Cash Flows from Financing Activities130,000 Income Statement For the Year Ended Dec. 31, 20X5Net Cash Inflows251,000 Beginning Cash Balance50,000 Sales600,000Ending Cash Balance301,000 Cost of Goods Sold100,000 Gross Margin500,000 Selling & Admin. Exp.: Salary Expense60,000 Depreciation Expense70,000 Total Selling & Admin. Exp.130,000 Income from Operations370,000 Other Rev. & Exp. Gain on Sale of Equipment6,000 Net Income376,000 Other Information (20X5): 1) Dividends Declared => $ 15,000 2) Dividends Paid => $ 20,000 3) Equipment Sale => Cost = $ 10,000, Cash Received = $ 13,000 Accum. Depr. = $ 3,000 AIF Project AIF Fall 2003 - Project Answer each of the below questions with a hand written response. 1) Why should a person care about a properly classified balance sheet? 2) List the 3 parts of the statement of cash flows. 3) What is depreciation expense? 4) What is the purpose of the closing entries? 5)Why should extraordinary items be separately disclosed on the income statement? 6)A firm's business risk increases. What will be the impact of the increased business risk to the firm's cost-of-capital? 7)What was the most interesting item
Answered Same DayMay 01, 2021

Answer To: Last Homework & Extra Credit – spring 2020 Part 01 – 5 Points – Indirect Statement of Cash Flows...

Khushboo answered on May 01 2021
148 Votes
Last Homework & Extra Credit – spring 2020
Part 01 – 5 Points – Indirect Statement of Cash Flows
Create the “Operating Section” of the statement of cash flows using the indirect method (ONLY THE OPERATING SECTION).
Place your answer on this page (operating section only, indirect method).
    Particulars
    Amount ($)
    Amount($)
    
    
    
    Net Income
    
    650,000
    Add: Non-operating expenses
    
    
    Depreciation expenses
    70,000
    
    Amortization expenses
    30,000
    
    Loss on sale of equipment
    9,000
    
    Adjusted income
    
    759,000
    Working capital adjustments
    
    
    Increase in accounts receivable
    (60,000)
    
    Decrease in inventory
    7,000
    
    Increase in prepaid insurance
    (50,000)
    
    Increase in accounts payable
    10,000
    
    Increase in salaries payable
    12,000
    
    Increase in notes payable
    4,000
    
    Cash generated/ used from operating activities
    
    836,000
Part 02 – 5 Points – Direct Statement of Cash Flows
Your a
nswers will need to be in the below spaces.
Cash Received from Customers
    Particulars
    Amount ($)
    Net sales
    760,000
    Add: Opening accounts receivable
    120,000
    Less: Ending accounts receivable
    (250,000)
    Cash receipt from customers
    630,000
Cash Paid for Insurance
    Particulars
    Amount ($)
    Ending prepaid insurance
    25,000
    Insurance expenses
    23,000
    Less: Opening prepaid insurance
    (5,000)
    Cash paid for insurance
    43,000
Cash Paid for Salaries
    Particulars
    Amount ($)
    Beginning salaries payable
    14,000
    Add: Salaries expenses
    110,000
    Less: Closing salaries payable
    (27,000)
    Cash paid for salaries
    97,000
Part 03 – Extra Credit – 7 Points
Net Income___$60,61,600
Income from Operations $5,400,000
Total Operating Expenses (Selling & Admin. Expenses) $3,200,000
Gross Margin (Gross Profit) $8,600,000
Income from Continuing Operations (After Taxes) $6,461,600
    
    
    Sales
    9,700,000
    Less: Sales return
    (200,000)
    Less: Sales Discount
    (200,000)
    Net sales
    9,300,000
    Less: Cost of goods sold
    (700,000)
    Gross profit
    8,600,000
    Less: Operating expense
    
     Coffee expense
    (250,000)
     Salary expense
    (1,200,000)
     Amortization expense- Patent
    (100,000)
     Office supplies expense
    (1,200,000)
     Depreciation expense
    (450,000)
    Total operating expenses
    (3,200,000)
    Net income from operations
    5,400,000
    Less: Other income
    
     Interest expense
    (88,000)
     Interest revenue
    500,000
     Gain on sale of land
    3,000,000
     Loss on sale of equipment
    (800,000)
     Dividend revenue
    65,000
    Net other income
    2,677,000
    
    
    Net income from continuing operation before tax
    8,077,000
    Less: Taxes @20%
    1,615,400
    Net income from continuing operation after tax
    6,461,600
    
    
    Discontinued operation (loss)
    400,000
    
    
    Net income
    6,061,600
    
    
Instructions
        I should be able to change the key numbers.
        I should then delete the student copy.
        I should then copy the key to make a new student copy.
Key
                Partial Information        Before Tax #s
                Accounts Payable        255,000
                Accounts Receivable        650,000
                Accrued Liabilities        750,000            Calculate
                Accumulated Depreciation        252,000
                Add. PIC - C/S        10,000            1) Gross Margin    =>    8,600,000                    TRUE
                Add. PIC - P/S        15,000
                Allowance for Doubtful Accounts        25,000
                Amortization Expense - Patent        100,000            2) Income From Continuing Operations (After-Tax #)     =>    6,221,600                    TRUE
                Office Supplies Expense        1,200,000
                Bonds Payable        350,000
                Cash        3,500,000            3) Total Operating Expenses (Selling & Admin. Exp. )    =>    3,200,000                    TRUE
                Common Stock        3,583,000
                Customer Deposits        600,000
                Cost of Goods Sold        700,000            4) Total D item(s) (as shown on the I/S)     =>    -320,000                    TRUE
                Depreciation Expense        450,000
                Discontinued Operations (Loss)        400,000
                Discounts on Notes Payable        5,000            5) Net Income     =>    5,901,600                    TRUE
                Dividend Revenue        65,000
                Loss on Sale of Equipment        800,000            6) Income from Operations     =>    5,400,000                    TRUE
                Interest Expense        88,000
                Interest Revenue        500,000            7) Total Other Items    =>    2,377,000
                Inventory        90,000
                Investments        300,000
                Gain on Sale of Land        3,000,000
                Notes Payable (short-term)        145,000
                Patent        165,000
                Preferred Stock        72,000
                Premium on Bonds Payable        18,000
                Prepaid Insurance        150,000
                Property, Plant, & Equipment        3,000,000
                Retained Earnings        2,208,100
                Salary Expense        1,200,000
                Sales        9,700,000
                Sales Discounts        200,000
                Sales Returns & Allowances        200,000
                Treasury Stock        650,000
                Unrealized Loss Short-Term Equity Investments        300,000
                Unearned Revenue        760,000
                Coffee Expense        250,000
                ***** Tax Rate => 20%
                Net Income Check        5,901,600
                        TRUE
Income Statement
                        Income Statement
                        For the Year Ended …….
        Sales                    9,700,000
        Less:     Sales Discounts                (200,000)
            Sales Returns and Allowances                (200,000)
            Net Sales                        9,300,000
        Cost of Goods Sold                            (700,000)
            Gross Margin                        8,600,000
        Total Operating Expenses
        Salary Expense                    1,200,000
        Depreciation Expense                    450,000
        Coffee Expense                    250,000
        Amortization Expense                    100,000
        Office Supplies Expense                    1,200,000
            Total Operating Expenses                        3,200,000
        Income from Operations                            5,400,000
        Other Revenues (Gains) & Expenses (Losses)
        Interest Revenue                    500,000
        Loss on Sale of Equipment                    (800,000)
        Dividend Revenue                    65,000
        Unrealized Loss Short-Term Equity Investments                    (300,000)
        Gain on Sale of Land                    3,000,000
        Interest Expense                    (88,000)
            Total Other Revenues & Expenses                        2,377,000
        Income from Continuing Operations (before taxes)                            7,777,000
        Income Taxes (20%)                            1,555,400
        Income from Continuing Operations                            6,221,600
        Discontinued Operations (Loss)                            (320,000)
        Net Income                            5,901,600
                                    TRUE
                                    - 0
Student
                Partial Information        Before Tax #s
                Accounts Payable        255,000
                Accounts Receivable        650,000
                Accrued Liabilities        750,000            Calculate
                Accumulated Depreciation        252,000
                Add. PIC - C/S        10,000            1) Gross Margin    =>                        FALSE
                Add. PIC - P/S        15,000
                Allowance for Doubtful Accounts        25,000
                Amortization Expense - Patent        100,000            2) Income From Continuing Operations (After-Tax #)     =>                        FALSE
                Office Supplies Expense        1,200,000
                Bonds Payable        350,000
                Cash        3,500,000            3) Total Operating Expenses (Selling & Admin. Exp. )    =>                        FALSE
                Common Stock        3,583,000
                Customer Deposits        600,000
                Cost of Goods Sold        700,000            4) Total D item(s) (as shown on the I/S)     =>                        FALSE
                Depreciation Expense        450,000
                Discontinued Operations (Loss)        400,000
                Discounts on Notes Payable        5,000            5) Net Income     =>                        FALSE
                Dividend Revenue        65,000
                Loss on Sale of Equipment        800,000            6) Income from Operations     =>                        FALSE
                Interest Expense        88,000
                Interest Revenue        500,000            7) Total Other Items    =>
                Inventory        90,000
                Investments        300,000
                Gain on Sale of Land        3,000,000
                Notes Payable (short-term)        145,000
                Patent        165,000
                Preferred Stock        72,000
                Premium on Bonds Payable        18,000
                Prepaid Insurance        150,000
                Property, Plant, & Equipment        3,000,000
                Retained Earnings        2,208,100
                Salary Expense        1,200,000
                Sales        9,700,000
                Sales Discounts        200,000
                Sales Returns & Allowances        200,000
                Treasury Stock        650,000
                Unrealized Loss Short-Term Equity Investments        300,000
                Unearned Revenue        760,000
                Coffee Expense        250,000
                ***** Tax Rate => 20%
                Net Income Check        6,541,600
                        FALSE
Statement of Cash Flows - Indirect
Review
Balance Sheet - Selected Info.20252024
Cash12,000 2,000
Accounts Receivable125,000 65,000
Inventory1,000 8,000
Prepaid Insurance75,000 25,000
Property Plant & Equip.300,000 100,000
Accumulated Depreciation(20,000) (5,000)
Accounts Payable23,000 13,000
Salaries Payable15,000 3,000
Notes Payable (Short-Term)14,000 10,000
Dividends Payable- 5,000
Bonds Payable25,000 23,000
Utilities Expense12,000 10,000
Salaries Expense25,000 13,000
Notes Payable (Long-Term)12,000 12,000
Common Stock75,000 75,000
Retained Earnings292,000 31,000
Other Information (2025):
Loss on Sale of Equipment 9,000
Cash Received on Equip. Sale 3,000
Depreciation Expense70,000
Amortization Expense30,000
Dividend Paid30,000
Dividend Declared 25,000
Net Income 650,000
Create the "Operating Section" for the 2025
statement of cash flows (Indirect).
Fish Corp St of CF
    
    Fish Corporation                            Fish Corporation
    Balance Sheet                            Statement of Cash Flows
    December 31, 20X5                            For the Year Ended Dec. 31, 20X5
        20X5        20X4        Difference        Operating Activities:
    Assets:                            Net Income                376,000
    Cash    301,000        50,000        251,000        Adjustments to Net Income:
    A/R    300,000        70,000        230,000        A/R                (230,000)
    Inventory    324,000        200,000        124,000        Inventory                (124,000)
    Prepaids    3,000        5,000        (2,000)        Prepaids                2,000
    PP&E    604,000        600,000        4,000        A/P                30,000
    Less: Accum. Depr.    (267,000)        (200,000)        67,000        Accrued Liab. (short-term)                (10,000)
    Total...
SOLUTION.PDF

Answer To This Question Is Available To Download

Related Questions & Answers

More Questions »

Submit New Assignment

Copy and Paste Your Assignment Here