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Westhoff, Incorporated Balance Sheet At December 31 Assets Current Assets Cash Ending Beginning $ 7,000 $ 3,500 Accounts Receivable - net 8,500 8,000 Merchandise Inventory 2,300 4,000 Prepaid Insurance 1,700 2,200 Total Current Assets $ 19,500 $ 17,700 Noncurrent Assets Investments $ 12,000 $ 24,300 Property, Plant, and Equipment - net 75,000 Total Noncurrent Assets $ 87,000 Total Assets $106,500 58,000 $ 82,300 $100,000 Liabilities Current Liabilities Accounts Payable $ 4,500 $ 1,000 Accrued Expenses Income Taxes Payable Total Current Liabilities 9,800 6,000 5,120 4,850 $ 20,300 $ 10,970 Noncurrent Liabilities Notes Payable $ 31,000 $ 42,630 Total Noncurrent Liabilities $ 31,000 $ 42,630 Total Liabilities $ 51,300 $ 53,600 Shareholders' Equity Common Stock, $1 par value Additional Paid-in Capital in Excess of Par - Common Retained Earnings Total Shareholders' Equity Total Liabilities and Shareholders' Equity $ 9,000 $ 9,000 20,000 26,200 20,000 17,400 $ 55,200 $ 46,400 $106,500 $100,000 Sales Cost of Goods Sold Westhoff, Incorporated Income Statement For the Year Ended December 31 Gross Profit Selling, General, and Administrative Expenses Depreciation Expense Total Operating Expenses Operating Income Interest Expense Interest Revenue Income before Tax Income Tax Expense $80,085 48,051 $32,034 $10,700 2,400 $13,100 $18,934 $ (4,000) 3,400 $18,334 (7,334) $11,000 Net Income Prepare the operating activities section of the cash flow statement using the direct method. Assume that accrued expenses relate to selling, general, and administrative expenses. All acquisitions of property, plant, and equipment were made using cash.

Westhoff, Incorporated Balance Sheet At December 31 Assets Current Assets Cash Ending Beginning $ 7,000 $ 3,500 Accounts Receivable - net 8,500 8,000 Merchandise Inventory 2,300 4,000 Prepaid Insurance 1,700 2,200 Total Current Assets $ 19,500 $ 17,700 Noncurrent Assets Investments $ 12,000 $ 24,300 Property, Plant, and Equipment - net 75,000 Total Noncurrent Assets $ 87,000 Total Assets $106,500 58,000 $ 82,300 $100,000 Liabilities Current Liabilities Accounts Payable $ 4,500 $ 1,000 Accrued Expenses Income Taxes Payable Total Current Liabilities 9,800 6,000 5,120 4,850 $ 20,300 $ 10,970 Noncurrent Liabilities Notes Payable $ 31,000 $ 42,630 Total Noncurrent Liabilities $ 31,000 $ 42,630 Total Liabilities $ 51,300 $ 53,600 Shareholders' Equity Common Stock, $1 par value Additional Paid-in Capital in Excess of Par - Common Retained Earnings Total Shareholders' Equity Total Liabilities and Shareholders' Equity $ 9,000 $ 9,000 20,000 26,200 20,000 17,400 $ 55,200 $ 46,400 $106,500 $100,000 Sales Cost of Goods Sold Westhoff, Incorporated Income Statement For the Year Ended December 31 Gross Profit Selling, General, and Administrative Expenses Depreciation Expense Total Operating Expenses Operating Income Interest Expense Interest Revenue Income before Tax Income Tax Expense $80,085 48,051 $32,034 $10,700 2,400 $13,100 $18,934 $ (4,000) 3,400 $18,334 (7,334) $11,000 Net Income Prepare the operating activities section of the cash flow statement using the direct method. Assume that accrued expenses relate to selling, general, and administrative expenses. All acquisitions of property, plant, and equipment were made using cash.

Financial And Managerial Accounting
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter5: Accounting For Retail Businesses
Section: Chapter Questions
Problem 41E: Cost of goods sold and related items The following data were extracted from the accounting records...
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Westhoff, Incorporated Balance Sheet At December 31 Assets Current Assets Cash Ending Beginning $ 7,000 $ 3,500 Accounts Receivable - net 8,500 8,000 Merchandise Inventory 2,300 4,000 Prepaid Insurance 1,700 2,200 Total Current Assets $ 19,500 $ 17,700 Noncurrent Assets Investments $ 12,000 $ 24,300 Property, Plant, and Equipment - net 75,000 Total Noncurrent Assets $ 87,000 Total Assets $106,500 58,000 $ 82,300 $100,000 Liabilities Current Liabilities Accounts Payable $ 4,500 $ 1,000 Accrued Expenses Income Taxes Payable Total Current Liabilities 9,800 6,000 5,120 4,850 $ 20,300 $ 10,970 Noncurrent Liabilities Notes Payable $ 31,000 $ 42,630 Total Noncurrent Liabilities $ 31,000 $ 42,630 Total Liabilities $ 51,300 $ 53,600 Shareholders' Equity Common Stock, $1 par value Additional Paid-in Capital in Excess of Par - Common Retained Earnings Total Shareholders' Equity Total Liabilities and Shareholders' Equity $ 9,000 $ 9,000 20,000 26,200 20,000 17,400 $ 55,200 $ 46,400 $106,500 $100,000
Transcribed Image Text:Westhoff, Incorporated Balance Sheet At December 31 Assets Current Assets Cash Ending Beginning $ 7,000 $ 3,500 Accounts Receivable - net 8,500 8,000 Merchandise Inventory 2,300 4,000 Prepaid Insurance 1,700 2,200 Total Current Assets $ 19,500 $ 17,700 Noncurrent Assets Investments $ 12,000 $ 24,300 Property, Plant, and Equipment - net 75,000 Total Noncurrent Assets $ 87,000 Total Assets $106,500 58,000 $ 82,300 $100,000 Liabilities Current Liabilities Accounts Payable $ 4,500 $ 1,000 Accrued Expenses Income Taxes Payable Total Current Liabilities 9,800 6,000 5,120 4,850 $ 20,300 $ 10,970 Noncurrent Liabilities Notes Payable $ 31,000 $ 42,630 Total Noncurrent Liabilities $ 31,000 $ 42,630 Total Liabilities $ 51,300 $ 53,600 Shareholders' Equity Common Stock, $1 par value Additional Paid-in Capital in Excess of Par - Common Retained Earnings Total Shareholders' Equity Total Liabilities and Shareholders' Equity $ 9,000 $ 9,000 20,000 26,200 20,000 17,400 $ 55,200 $ 46,400 $106,500 $100,000
Sales Cost of Goods Sold Westhoff, Incorporated Income Statement For the Year Ended December 31 Gross Profit Selling, General, and Administrative Expenses Depreciation Expense Total Operating Expenses Operating Income Interest Expense Interest Revenue Income before Tax Income Tax Expense $80,085 48,051 $32,034 $10,700 2,400 $13,100 $18,934 $ (4,000) 3,400 $18,334 (7,334) $11,000 Net Income Prepare the operating activities section of the cash flow statement using the direct method. Assume that accrued expenses relate to selling, general, and administrative expenses. All acquisitions of property, plant, and equipment were made using cash.
Transcribed Image Text:Sales Cost of Goods Sold Westhoff, Incorporated Income Statement For the Year Ended December 31 Gross Profit Selling, General, and Administrative Expenses Depreciation Expense Total Operating Expenses Operating Income Interest Expense Interest Revenue Income before Tax Income Tax Expense $80,085 48,051 $32,034 $10,700 2,400 $13,100 $18,934 $ (4,000) 3,400 $18,334 (7,334) $11,000 Net Income Prepare the operating activities section of the cash flow statement using the direct method. Assume that accrued expenses relate to selling, general, and administrative expenses. All acquisitions of property, plant, and equipment were made using cash.
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