Use the following information regarding the Lund Corporation to (a) prepare a statement of cash flows using the indirect method and (b) compute Lund's operating-cash-flow-to-current-liabilities ratio. Accounts payable increase $13,500 Accounts receivable increase 6,000 Accrued liabilities decrease 4,500 Amortization expense 9,000 Cash balance, January 1 33,000 Cash balance, December 31 22,500 Cash paid as dividends 43,500 Cash paid to purchase land 135,000 Cash paid to retire bonds payable at par 90,000 Cash received from issuance of common stock 52,500 Cash received from sale of equipment 25,500 Depreciation expense 43,500 Gain on sale of equipment 6,000 Inventory decrease 19,500 Net income 114,000 Prepaid expenses increase 3,000 Average current liabilities 150,000 a. Use negative signs with cash outflow answers. LUND CORPORATION Statement of Cash Flows For Year Ended December 31 Cash Flow from Operating Activities Net Income Answer Add (deduct) items to convert net income to cash basis Depreciation Answer Amortization Answer Gain on Sale of Equipment Answer Accounts Receivable Increase Answer Inventory Decrease Answer Prepaid Expenses Increase Answer Accounts Payable Increase Answer Accrued Liabilities Decrease Answer Cash Flow Provided by Operating Activities Answer Cash Flow from Investing Activities Sale of Equipment Answer Purchase of Land Answer Cash Used by Investing Activities Answer Cash Flow from Financing Activities Issuance of Common Stock Answer Retirement of Bonds Payable Answer Payment of Dividends Answer Cash Used by Financing Activities Answer Net Decrease in Cash Answer Cash at Beginning of Year Answer Cash at End of Year Answer b. Operating-cash-flow-to-current-liabilities ratio (Round answers to two decimal places.)
Use the following information regarding the Lund Corporation to (a) prepare a statement of cash flows using the indirect method and (b) compute Lund's operating-cash-flow-to-current-liabilities ratio. Accounts payable increase $13,500 Accounts receivable increase 6,000 Accrued liabilities decrease 4,500 Amortization expense 9,000 Cash balance, January 1 33,000 Cash balance, December 31 22,500 Cash paid as dividends 43,500 Cash paid to purchase land 135,000 Cash paid to retire bonds payable at par 90,000 Cash received from issuance of common stock 52,500 Cash received from sale of equipment 25,500 Depreciation expense 43,500 Gain on sale of equipment 6,000 Inventory decrease 19,500 Net income 114,000 Prepaid expenses increase 3,000 Average current liabilities 150,000 a. Use negative signs with cash outflow answers. LUND CORPORATION Statement of Cash Flows For Year Ended December 31 Cash Flow from Operating Activities Net Income Answer Add (deduct) items to convert net income to cash basis Depreciation Answer Amortization Answer Gain on Sale of Equipment Answer Accounts Receivable Increase Answer Inventory Decrease Answer Prepaid Expenses Increase Answer Accounts Payable Increase Answer Accrued Liabilities Decrease Answer Cash Flow Provided by Operating Activities Answer Cash Flow from Investing Activities Sale of Equipment Answer Purchase of Land Answer Cash Used by Investing Activities Answer Cash Flow from Financing Activities Issuance of Common Stock Answer Retirement of Bonds Payable Answer Payment of Dividends Answer Cash Used by Financing Activities Answer Net Decrease in Cash Answer Cash at Beginning of Year Answer Cash at End of Year Answer b. Operating-cash-flow-to-current-liabilities ratio (Round answers to two decimal places.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Statement of
Use the following information regarding the Lund Corporation to (a) prepare a statement of cash flows using the indirect method and (b) compute Lund's operating-cash-flow-to-
Accounts payable increase | $13,500 |
6,000 | |
Accrued liabilities decrease | 4,500 |
Amortization expense | 9,000 |
Cash balance, January 1 | 33,000 |
Cash balance, December 31 | 22,500 |
Cash paid as dividends | 43,500 |
Cash paid to purchase land | 135,000 |
Cash paid to retire bonds payable at par | 90,000 |
Cash received from issuance of common stock | 52,500 |
Cash received from sale of equipment | 25,500 |
43,500 | |
Gain on sale of equipment | 6,000 |
Inventory decrease | 19,500 |
Net income | 114,000 |
Prepaid expenses increase | 3,000 |
Average current liabilities | 150,000 |
a. Use negative signs with
LUND CORPORATION Statement of Cash Flows For Year Ended December 31 |
|
---|---|
Cash Flow from Operating Activities | |
Net Income | Answer
|
Add (deduct) items to convert net income to cash basis | |
Depreciation | Answer
|
Amortization | Answer
|
Gain on Sale of Equipment | Answer
|
Accounts Receivable Increase | Answer
|
Inventory Decrease | Answer
|
Prepaid Expenses Increase | Answer
|
Accounts Payable Increase | Answer
|
Accrued Liabilities Decrease | Answer
|
Cash Flow Provided by Operating Activities | Answer
|
Cash Flow from Investing Activities | |
Sale of Equipment | Answer
|
Purchase of Land | Answer
|
Cash Used by Investing Activities | Answer
|
Cash Flow from Financing Activities | |
Issuance of Common Stock | Answer
|
Retirement of Bonds Payable | Answer
|
Payment of Dividends | Answer
|
Cash Used by Financing Activities | Answer
|
Net Decrease in Cash | Answer
|
Cash at Beginning of Year | Answer
|
Cash at End of Year | Answer
|
b. Operating-cash-flow-to-current-liabilities ratio (Round answers to two decimal places.)
Answer
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education