Managerial Accounting
3rd Edition
ISBN: 9780077826482
Author: Stacey M Whitecotton Associate Professor, Robert Libby, Fred Phillips Associate Professor
Publisher: McGraw-Hill Education
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Chapter 12, Problem 3.2GBP
To determine
Introduction:
To evaluate:
Cash flow statement.
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Salus Mea Inc., is developing its annual financial statements at December 31, current year. The
statements are complete except for the statement of cash flows. The completed comparative
balance sheets and income statement are summarized as follows:
Balance sheet at December 31
Cash
Accounts receivable
Merchandise inventory
Property and equipment
Less: Accumulated depreciation
Accounts payable
Wages payable
Note payable, long-term
Common stock and additional paid-in capital
Retained earnings
Income statement for current year
Sales
Cost of goods sold
Depreciation expense
Other expenses
Net income
Additional Data:
1. Bought equipment for cash, $48,900.
2. Paid $14,700 on the long-term note payable.
Current Year
$ 73,250
15,250
23,450
209,250
(57.450)
$263,750
$ 16,500
2,000
56,300
103,950
$5,000
$263.750
$205,000
(123,500)
(11,700)
(4),000)
$26.800
3. Issued new shares of stock for $38,050 cash.
4. Dividends of S650 were declared and paid.
5. Other expenses all relate to wages.
6.…
XS Supply Company is developing its annual financial statements at December 31. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized:
Current Year
Previous Year
Balance Sheet at December 31
Cash
$
35,090
$
30,150
Accounts Receivable
36,200
28,600
Inventory
42,200
38,600
Equipment
130,000
106,000
Accumulated Depreciation—Equipment
(31,200
)
(25,600
)
Total Assets
$
212,290
$
177,750
Accounts Payable
$
37,200
$
27,600
Salaries and Wages Payable
1,090
1,350
Note Payable (long-term)
43,400
50,000
Common Stock
92,200
73,200
Retained Earnings
38,400
25,600
Total Liabilities and Stockholders’ Equity
$
212,290
$
177,750
Income Statement
Sales Revenue
$
126,000
Cost of Goods Sold
73,000
Other Expenses
40,200
Net Income
$
12,800…
W
BGP Electrical Supply is developing its annual financial statements at December 31, current year. The statements are complete except
for the statement of cash flows. The completed comparative balance sheets and income statement are summarized:
Balance sheet at December 31
Cash
Accounts receivable
Merchandise inventory
Property and equipment.
Less: Accumulated depreciation
Accounts payable
Accrued wages expense
Note payable, long-term
Common stock and additional paid-in capital.
Retained earnings
Income statement for current year
Sales
Cost of goods sold
Other expenses
Net income
Additional Data:
Current Year Prior Year
$ 29,400
$ 37,300
32,700
28,900
38,300
100,800
(25,300)
42,000
121,500
(30,700)
$ 202,800
$36,700
1,400
44,500
89,600
30,600
$ 202,800
Cash flows from operating activities:
$ 123,000
73,000
38,100
$ 11,900
BGP ELECTRICAL SUPPLY
Statement of Cash Flows
For the Year Ended December 31, Current Year
$ 172,100
a. Bought equipment for cash, $20,700.
b. Paid $6,300 on the…
Chapter 12 Solutions
Managerial Accounting
Ch. 12 - Compare the purposes of the income statement, the...Ch. 12 - What information does the statement of cash flows...Ch. 12 - Prob. 3QCh. 12 - What are the major categories of business...Ch. 12 - Prob. 5QCh. 12 - Prob. 6QCh. 12 - Prob. 7QCh. 12 - Prob. 8QCh. 12 - Prob. 9QCh. 12 - Prob. 10Q
Ch. 12 - As a junior analyst, you are evaluating the...Ch. 12 - Prob. 12QCh. 12 - Prob. 13QCh. 12 - Prob. 14QCh. 12 - Prob. 15QCh. 12 - Prob. 1MCCh. 12 - Prob. 2MCCh. 12 - Prob. 3MCCh. 12 - Prob. 4MCCh. 12 - Prob. 5MCCh. 12 - Prob. 6MCCh. 12 - Prob. 7MCCh. 12 - Prob. 8MCCh. 12 - Prob. 9MCCh. 12 - Prob. 10MCCh. 12 - Prob. 1MECh. 12 - Prob. 2MECh. 12 - Prob. 3MECh. 12 - Prob. 4MECh. 12 - Prob. 5MECh. 12 - Prob. 6MECh. 12 - Prob. 7MECh. 12 - Prob. 8MECh. 12 - Prob. 9MECh. 12 - Interpreting Cash Flows from Operating, Investing,...Ch. 12 - Prob. 11MECh. 12 - Prob. 12MECh. 12 - Prob. 13MECh. 12 - Prob. 1ECh. 12 - Prob. 2ECh. 12 - Prob. 3ECh. 12 - Prob. 4ECh. 12 - Prob. 5ECh. 12 - Prob. 6ECh. 12 - Prob. 7ECh. 12 - Prob. 8ECh. 12 - Reporting and Interpreting Cash Flows from...Ch. 12 - Prob. 10ECh. 12 - Prob. 11ECh. 12 - Prob. 12ECh. 12 - Prob. 13ECh. 12 - Prob. 14ECh. 12 - Prob. 15ECh. 12 - Prob. 16ECh. 12 - Prob. 17ECh. 12 - Prob. 18ECh. 12 - Prob. 19ECh. 12 - Prob. 20ECh. 12 - Prob. 21ECh. 12 - Prob. 22ECh. 12 - (Supplement 12B) Preparing a Statement of Cash...Ch. 12 - Prob. 1GAPCh. 12 - Prob. 2GAPCh. 12 - Prob. 3.1GAPCh. 12 - Prob. 3.2GAPCh. 12 - Prob. 4.1GAPCh. 12 - Prob. 4.2GAPCh. 12 - Prob. 5GAPCh. 12 - Preparing and Interpreting a Statement of Cash...Ch. 12 - Prob. 7.1GAPCh. 12 - Prob. 7.2GAPCh. 12 - Prob. 1GBPCh. 12 - Prob. 2GBPCh. 12 - Prob. 3.1GBPCh. 12 - Prob. 3.2GBPCh. 12 - Prob. 4.1GBPCh. 12 - Prob. 4.2GBPCh. 12 - Prob. 5GBPCh. 12 - Prob. 6GBP
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- The financial statements for Romeo and Company follow. Assume that the additional investment and the withdrawals were in the form of cash. Required Prepare a statement of cash flows for the year ended December 31, 2018. Check Figure Net cash flows from operating activities, 172,000arrow_forwardThe following balance sheets and income statement were taken from the records of Rosie-Lee Company: Additional transactions were as follows: a. Sold equipment costing 21,600, with accumulated depreciation of 16,200, for 3,600. b. Issued bonds for 90,000 on December 31. c. Paid cash dividends of 36,000. d. Retired mortgage of 108,000 on December 31. Required: 1. Prepare a schedule of operating cash flows using (a) the indirect method and (b) the direct method. 2. Prepare a statement of cash flows using the indirect method.arrow_forwardChapter 13 Statement of Cash Flows-Direct Method The comparative balance sheet of Canace Products Inc. for December 31, 20Y6 and 20Y5, is as follows: Dec. 31, 20Y6 Dec. 31, 20Y5 Assets Cash $287,620 $265,700 Accounts receivable (net) 104,190 95,430 Inventories 294,120 282,540 Investments 109,460 Land 150,860 Equipment 324,520 249,790 Accumulated depreciation (75,970) (67,360) Total assets $1,085,340 $935,560 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $196,450 $184,310 Accrued expenses payable (operating expenses) 19,540 24,320 Dividends payable 10,850 8,420 Common stock, $10 par 58,610 45,840 Paid-in capital: Excess of issue price over par-common stock 220,320 127,240 Retained earnings 579,570 545,430 Total liabilities and stockholders' equity $1,085,340 $935,560 The income statement for the year ended December 31, 20Y6, is as follows: Sales $1,730,890 Cost of goods sold 712,700 Gross profit $1,018,190 Operating expenses: Depreciation expense $8,610…arrow_forward
- XS Supply Company is developing its annual financial statements at December 31. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized: Current Year Previous Year Balance Sheet at December 31 Cash $ 33,300 $ 28,250 Accounts Receivable 34,000 27,500 Inventory 40,000 37,500 Equipment 113,500 95,000 Accumulated Depreciation—Equipment (29,000 ) (24,500 ) Total Assets $ 191,800 $ 163,750 Accounts Payable $ 35,000 $ 26,500 Salaries and Wages Payable 1,500 1,650 Note Payable (long-term) 33,500 39,000 Common Stock 85,600 72,100 Retained Earnings 36,200 24,500 Total Liabilities and Stockholders’ Equity $ 191,800 $ 163,750 Income Statement Sales Revenue $ 115,000 Cost of Goods Sold 67,500 Other Expenses 35,800 Net Income $ 11,700…arrow_forwardRequired: 1. Prepare the statement of cash flows using the indirect method for the year ended December 31, current year. Note: List cash outflows as negative amounts. SHARP SCREEN FILMS, INCORPORATED Statement of Cash Flows For the Year Ended December 31, Current Year Cash flows from operating activities: Adjustments to reconcile net income to net cash provided by operating activities: Cash flows from investing activities: Cash flows from financing activities:arrow_forwardes Aim Limited has the following selected data ($ in millions): Cash balance, January 1 Financing cash flows Capital expenditures Investing cash flows Operating cash flows $ 180 1,090 (400) (500) (440) Required: 1. Calculate the balance of cash at the end of the fiscal year, December 31. 2. Calculate free cash flows. 3. Based on the pattern in cash flows, determine Aim's life cycle stage. Note: Amounts to be deducted should be indicated by a minus sign. 1. Cash balance, December 31 2. Free cash flows 3. Aim's probable life cycle stagearrow_forward
- Sharp Screen Films, Inc., Is developing its annual financial statements at December 31, current year. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized as follows: Corrent Taar ier Ter Balance sheet at December 31 $ 65,650 16,250 23,350 210,550 (60,400) $255,400 $ 10,300 3,300 61,600 100,300 79,900 $255,400 $ 64,500 23,350 18,600 152,000 (46,250) $212,200 $ 20,400 3,600 72,500 66,400 49,300 $212,200 Cash Accounts receivable Merchandige inventory Property and equipment Less: Accumulated depreciation Accounts payable Wages payable Note payable, long-term Common stock and additional paid-in capital Retained earnings acome statement for current year $200,000 97,000 14,150 43,500 $ 45,350 Sales Cost of goods sold Depreciation expense Dther expenses Het income ional Data: Bought equipment for cash, $58,550. Paid $10,900 on the long-term note payable. ssued new shares of stock for $33,900 cash.…arrow_forwardAssume Cramer uses the direct method to prepare the statement of cash flows. Incometax payable was $6,500 at the end of the year, and $3,100 at the beginning of the year. Incometax expense for the year totaled $58,900. What amount of cash did the company pay for incometaxes during the year?a. $55,500b. $62,000c. $58,900d. $62,300arrow_forwardCiti Company is preparing the company's statement of cash flows for the fiscal year just ended. The following information is available: Cash dividends declared for the year Cash dividends payable at the beginning of the year Cash dividends payable at the end of the year The amount of cash paid for dividends was: Multiple Choice O $40,000. O $57,000. O $44,000. O $53,000. $36,000. $ 40,000 17,000 13,000arrow_forward
- At the end of the previous year, a company’s balance sheet reports cash of $30,000. For the current year, the company’s statement of cash flows reports operating cash inflows of $90,000; investing outflows of $110,000; and financing inflows of $40,000. What amount of cash will be reported in the current year’s balance sheet? a. $90,000.b. $20,000.c. $50,000.d. $120,000.arrow_forwardAudio City, Incorporated, is developing its annual financial statements at December 31. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized below: Balance Sheet at December 31 Cash Accounts Receivable Inventory Equipment Accumulated Depreciation-Equipment Total Assets Accounts Payable Salaries and Wages Payable Notes Payable (long-term) Common Stock Retained Earnings Total Liabilities and Stockholders' Equity Income Statement Sales Revenue Cost of Goods Sold Other Expenses Net Income Additional Data: a. Bought equipment for cash, $67,000. b. Paid $12,000 on the long-term notes payable. c. Issued new shares of stock for $24,000 cash. Current Year $ 45,100 12,600 18,400 211,000 (51,000) $ 236,100 JA OPOFF00 $ 7,400 2,100 57,000 88,000 81,600 $ 236,100 $ 182,000 84,000 51,000 $ 47,000 Previous Year $ 51,800 17,000 17,000 144,000 (39,000) $ 190,800 $ 17,800 1,000 69,000 64,000 39,000 $ 190,800 d.…arrow_forwardXS Supply Company is developing its annual financial statements at December 31. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized: Current Year Previous Year Balance Sheet at December 31 $ 34,000 35,000 41,000 121,000 Cash $ 29,000 Accounts Receivable 28,000 Inventory Equipment Accumulated Depreciation-Equipment 38,000 100,000 (25,000) $170,000 $ 27,000 1,400 44,000 72,600 (30,000) $201,000 Total Assets $ 36,000 Accounts Payable Salaries and Wages Payable Note Payable (1long-term) 1,200 38,000 88,600 37,200 Common Stock Retained Earnings 25,000 Total Liabilities and Stockholders' Equity $201,000 $170,000 Income Statement Sales Revenue $120,000 70,000 Cost of Goods Sold Other Expenses 37,800 Net Income $ 12,200 Additional Data: a. Bought equipment for cash, $21,000. b. Paid $6,000 on the long-term note payable. c. Issued new shares of stock for $16,000 cash. d. No dividends were declared or…arrow_forward
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