opedDokHInt0ence[The following information applies to the questions displayed below]Forten Company's current year Income statement, comparative balance sheets, and additional Informationfollow. For the year. (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receiptsfrom customers, (3) all purchases of Inventory are on credit, and (4) all debits to Accounts Payable reflectSenscash payments for Inventory.FORTEN COMPANYIncome StatementFor Current Year Ended December 31SalesCost of goods soldGross profitOperating expenses (excludingdepreciation)Depreciation expenseOther gains (losses)Loss on sale of equipmentIncome before taxesIncome taxes expenseNet incomeAssetsCashFORTEN COMPANYComparative Balance SheetsDecember 31Accounts receivableInventoryPrepaid expensesTotal current assetsEquipmentAccumulated depreciation-EquipmentTotal assetsLiabilities and EquityAccounts payableLong-term notes payableTotal liabilitiesEquityCommon stock, $5 par valuePaid-in capital in excess of par,common stockRetained earningsTotal liabilities and equity$146,40034,758FORTEN COMPANYStatement of Cash FlowsCash flows from operating activitiesAdjustments to reconcile net income to net cashprovided by operations:Income statement items not affecting cashMOTULININChanges in current assets and current liabilitiesCash flows from investing activitiesCash flows from financing activities:$652,500299,000353,500Net increase (decrease) in cashCash balance at December 31, prior yearCash balance at December 31, current year181, 150(19,125)153,22543,850For Current Year Ended December 31$109,375CurrentYear$70,90086,910296,656 265, 8001,3502,175455,816 420,100143,500 122,000(43,625) (53,000)$$555,691 489, 100PriorYear$ 67,14172,200139,341 207,225$555,691Additional Information on Current Year Transactionsa. The loss on the cash sale of equipment was $19,125 (details in b)b. Sold equipment costing $88,875, with accumulated depreciation of $44,125, for $25,625 cash.c. Purchased equipment costing $110,375 by paying $58,000 cash and signing a long-term notes payablefor the balance.d. Paid $51,725 cash to reduce the long-term notes payable.e. Issued 3,900 shares of common stock for $20 cash per share.1. Declared and paid cash dividends of $52,900.$87,50064,625Required:1. Prepare a complete statement of cash flows using the indirect method for the current year, (Amounts to be deductedshould be Indicated with a minus sign.)$135,67571,550183,750 164,25058,500174,100 117,625$489, 100$0$0000< Prev7 of 7Next

Cash Flow Statement : It is the statement of cash inflows and outflows from the three cash generated…

Answered: 1 $ 652,500 299,000 353,500 181, 150…

Business

Accounting

1 $ 652,500 299,000 353,500 181, 150 (19,125) 153, 225 43,850 $ 109,375

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter16: Financial Statement Analysis

Section: Chapter Questions

Problem 9E

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Required information [The following information applies to the questions displayed below.] Forten Company's current year income statement, comparative balance sheets, and additional information follow. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, and (5) Other Expenses are paid in advance and are initially debited to Prepaid Expenses. FORTEN COMPANY Comparative Balance Sheets December 31 Current Year Prior Year Assets $ 69,400 85,400 295,156 1,340 $ 86,500 63,625 264,800 2,155 Cash Accounts receivable Inventory Prepaid expenses Total current assets Equipment Accum. depreciation-Equipment 417,080 121,000 (52,500) 451,296 144,500 (43,125) Total assets $552,671 $485,580 Liabilities and Equity Accounts payable Short-term notes payable $ 66,141 13,900 80,041 58,500 $134,175 8,600 Total current…
indicated with a minus sign.) Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operations: Income statement items not affecting cash GOLDEN CORPORATION Statement of Cash Flows For Current Year Ended December 31 Changes in current assets and current liabilities Cash flows from investing activities Cash flows from financing activities: Net increase (decrease) in cash Cash balance at December 31, prior year Cash balance at December 31, current year
Required information [The following information applies to the questions displayed below.] Golden Corporation's current year income statement, comparative balance sheets, and additional information follow. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, and (5) any change in Income Taxes Payable reflects the accrual and cash payment of taxes. Assets Cash Accounts receivable Inventory Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Income taxes payable Total current liabilities Equity Common stock, $2 par value GOLDEN CORPORATION Comparative Balance Sheets December 31 Paid-in capital in excess of par value, common stock Retained earnings Total liabilities and equity GOLDEN CORPORATION Income Statement For Current Year Ended…
Required information [The following information applies to the questions displayed below.] Golden Corp's curent year income statement, comparative balance sheets, and additional information follow. For the year, (1) all sales are credit sales, (2) all credits to Accounts Recelvable reflect cash recelpts from customers, (3) all purchases of Inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for Inventory. (5) Other Expenses are all cash expenses, and (6) any change In Income Taxes Payable reflects the accrual and cash payment of taxes. GOLDEN CORPORATION Comparative Balance Sheets December 31 Current Year Prior Year Assets $ 177,000 102,5e0 620,5e0 9ee,000 370,000 $ 121,300 84,00e Cash Accounts receivable Inventory 539,000 744,300 Total current assets Equipment Accum. depreciation-Equipment 312,00e (11e,500) $ 945,800 (164,500) Total assets $1,185,500 Liabilities and Equity Accounts payable Income taxes payable Total current liabilities Equity Connon…
[The following information applies to the questions displayed below.]Forten Company's current year income statement, comparative balance sheets, and additional information follow. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, and (4) all debits to Accounts Payable reflect cash payments for inventory. FORTEN COMPANYIncome StatementFor Current Year Ended December 31 Sales $ 597,500 Cost of goods sold 288,000 Gross profit 309,500 Operating expenses (excluding depreciation) $ 135,400 Depreciation expense 23,750 159,150 Other gains (losses) Loss on sale of equipment (8,125 ) Income before taxes 142,225 Income taxes expense 28,450 Net income $ 113,775 FORTEN COMPANYComparative Balance SheetsDecember 31 Current Year…
Golden Corporation's current year income statement, comparative balance sheets, and additional information follow. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, and (5) any change in Income Taxes Payable reflects the accrual and cash payment of taxes. Assets Cash Accounts receivable Inventory Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Income taxes payable Total current liabilities GOLDEN CORPORATION Comparative Balance Sheets December 31 Equity Common stock, $2 par value Paid-in capital in excess of par value, common stock Retained earnings Total liabilities and equity GOLDEN CORPORATION Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation)…
Panzarella Corporation's current year income statement, comparative balance sheets, and additional information follow. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, (5) Other Expenses are all cash expenses, and (6) any change in Income Taxes Payable reflects the accrual and cash payment of taxes. Assets Cash Accounts receivable Inventory Total current assets PANZARELLA CORPORATION Comparative Balance Sheets December 31 Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Income taxes payable Total current liabilities Equity Common stock, $2 par value Paid-in capital in excess of par value, common stock Retained earnings Total liabilities and equity PANZARELLA CORPORATION Income Statement For Year Ended December 31 Sales Cost of goods sold Gross…
Golden Corporation's current year income statement, comparative balance sheets, and additional information follow. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, and (5) any change in Income Taxes Payable reflects the accrual and cash payment of taxes. Assets Cash Accounts receivable Inventory Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Income taxes payable Total current liabilities Equity Common stock, $2 par value Paid-in capital in excess of par value, common stock. Retained earnings Total liabilities and equity Sales Cost of goods sold Gross profit GOLDEN CORPORATION Comparative Balance Sheets December 31 GOLDEN CORPORATION Income Statement For Current Year Ended December 31 Operating expenses (excluding depreciation)…
Golden Corporation's current year income statement, comparative balance sheets, and additional information follow. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, and (5) any change in Income Taxes Payable reflects the accrual and cash payment of taxes. GOLDEN CORPORATION Comparative Balance Sheets December 31 Current Year Prior Year Assets Cash $ 171,000 $ 114,700 Accounts receivable 93,500 78,000 Inventory 611,500 533,000 Total current assets 876,000 725,700 Equipment 353,800 306,000 Accumulated depreciation—Equipment (161,500) (107,500) Total assets $ 1,068,300 $ 924,200 Liabilities and Equity Accounts payable $ 101,000 $ 78,000 Income taxes payable 35,000 28,600 Total current liabilities 136,000 106,600 Equity Common stock, $2 par value…
Golden Corporation's current year income statement, comparative balance sheets, and additional information follow. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, and (5) any change in Income Taxes Payable reflects the accrual and cash payment of taxes. GOLDEN CORPORATION Comparative Balance Sheets December 31 Assets Cash Accounts receivable Inventory Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Current Year Prior Year $ $ 171,000 114,700 93,500 78,000 611,500 533,000 876,000 725,700 353,800 306,000 (161,500) (107,500) $ $ 1,068,300 924,200 $ 101,000 $ 78,000 35,000 28,600 Income taxes payable Total current liabilities 136,000 106,600 Equity Common stock, $2 par value 600,400 575,000 Paid-in capital in excess of par value,…
Golden Corporation's current year income statement, comparative balance sheets, and additional information follow. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, and (5) any change in Income Taxes Payable reflects the accrual and cash payment of taxes. GOLDEN CORPORATIONComparative Balance SheetsDecember 31 Current YearPrior YearAssets Cash$ 180,000$ 124,600Accounts receivable107,00087,000Inventory625,000542,000Total current assets912,000753,600Equipment378,100315,000Accumulated depreciation—Equipment(166,000)(112,000)Total assets$ 1,124,100$ 956,600Liabilities and Equity Accounts payable$ 119,000$ 87,000Income taxes payable44,00033,100Total current liabilities163,000120,100Equity Common stock, $2 par value611,200584,000Paid-in capital in excess of par value, common…
Forten Company's current year income statement, comparative balance sheets, and additional information follow. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, and (5) Other Expenses are paid in advance and are initially debited to Prepaid Expenses. Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Short-term notes payable Total current liabilities Long-term notes payable. Total liabilities Equity Common stock, $5 par value Paid-in capital in excess of par, common stock Retained earnings Total liabilities and equity Sales Cost of goods sold Gross profit Operating expenses Depreciation expense Other expenses Other gains (losses). Loss on sale of equipment Income before…