Introduction To Managerial Accounting
8th Edition
ISBN: 9781259917066
Author: BREWER, Peter C., Garrison, Ray H., Noreen, Eric W.
Publisher: Mcgraw-hill Education,
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Chapter 13, Problem 12F15
Ravenna Company is a merchandiser that uses the indirect method to prepare the operating activities section of its statement of
During the year, Ravenna paid a $6000 cash dividend and it sold a piece of equipment for $3,000 that had accumulated depreciation cost $6,000 and had accumulated depreciation of $4,000. The company did not retire my bonds a repurchase my of its own common stock during the year.
Require:
12. What is the amount of gross
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Students have asked these similar questions
The Net Profit of LSLS Corporation for the year is $ 2,515,250. Using the following information in
the table and find out the Net Cash Flows from Operating Activities by Indirect Method
SI. No :
Particulars
Amount ($)
1
Depreciation Expense
25,565.00
Decrease in Current Liabilities
57,677.00
3
Increase in Prepaid Insurance
67,076.00
4
Loss on Sale of Machinery
322,387.00
Gain on sale of Non Current Asset
377,553.00
6
Increase in Salaries Payable
64,704.00
7
Provision for Taxation
123,321.00
$ 2,584,921
O $ 2,548,921
O $ 2,544,921
O $ 2,458,921
Prepare a Statement of Cash Flows
Comparative financial statements for Weaver Company follow:
During this year, Weaver sold some equipment for $20 that had cost $40 and on which there was accumulated depreciation of $16. In addition, the company sold long-term investments for $10 that had cost $3 when purchased several years ago. Weaver paid a cash dividend this year and the company repurchased $40 of its own stock. This year Weaver did not retire any bonds.
Required:
1. Using the indirect method, determine the net cash provided by operating activities for this year.
2. Using the information in (1) above, along with an analysis of the remaining balance sheet accounts, prepare a statement of cash flows for this year.
Ravenna Company is a merchandiser that uses the indirect method to prepare the operating activities section of its statement of cash flows. Its balance sheet for this year is as follows:
Ending Balance
Beginning Balance
Cash
$
113,600
$
136,600
Accounts receivable
89,800
96,800
Inventory
120,600
110,000
Total current assets
324,000
343,400
Property, plant, and equipment
318,000
308,000
Less accumulated depreciation
106,000
77,000
Net property, plant, and equipment
212,000
231,000
Total assets
$
536,000
$
574,400
Accounts payable
$
70,400
$
125,000
Income taxes payable
54,600
74,400
Bonds payable
132,000
110,000
Common stock
154,000
132,000
Retained earnings
125,000
133,000
Total liabilities and stockholders’ equity
$
536,000
$
574,400
During the year, Ravenna paid a $13,200 cash dividend and it sold a piece of equipment for $6,600 that had originally cost…
Chapter 13 Solutions
Introduction To Managerial Accounting
Ch. 13.A - Prob. 1ECh. 13.A - Prob. 2ECh. 13.A - Prob. 3ECh. 13.A - Prob. 4ECh. 13.A - Prob. 5PCh. 13.A - Prob. 6PCh. 13.A - Prob. 7PCh. 13 - Prob. 1QCh. 13 - Prob. 2QCh. 13 - Prob. 3Q
Ch. 13 - What general guidelines can you provide for...Ch. 13 - Prob. 5QCh. 13 - Prob. 6QCh. 13 - Prob. 7QCh. 13 - Prob. 8QCh. 13 - A business executive once stated, “Depreciation is...Ch. 13 - If the Accounts Receivable balance increases...Ch. 13 - Would a sale of equipment for cash be considered a...Ch. 13 - Prob. 12QCh. 13 - Ravenna Company is a merchandiser that uses the...Ch. 13 - Prob. 2F15Ch. 13 - Prob. 3F15Ch. 13 - Ravenna Company is a merchandiser that uses the...Ch. 13 - Prob. 5F15Ch. 13 - Ravenna Company is a merchandiser that uses the...Ch. 13 - Ravenna Company is a merchandiser that uses the...Ch. 13 - Prob. 8F15Ch. 13 - Prob. 9F15Ch. 13 - Prob. 10F15Ch. 13 - Prob. 11F15Ch. 13 - Ravenna Company is a merchandiser that uses the...Ch. 13 - Ravenna Company is a merchandiser that uses the...Ch. 13 - Prob. 14F15Ch. 13 - Prob. 15F15Ch. 13 - Prob. 1ECh. 13 - Net Cash Provided by Operating Activities For the...Ch. 13 - Prob. 3ECh. 13 - Prob. 4ECh. 13 - Net Cash Provided by Operating Activities Changes...Ch. 13 - Prepare a Statement of Cash Flows; Free Cash Flow...Ch. 13 - Prob. 7PCh. 13 - Prob. 8PCh. 13 - Prob. 9PCh. 13 - Prepare a Statement of Cash Flows; Free Cash...Ch. 13 - Prob. 11PCh. 13 - Prepare a Statement of Cash Flows A comparative...Ch. 13 - Prob. 13PCh. 13 - Prob. 14P
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- Ravenna Company is a merchandiser that uses the indirect method to prepare the operating activities section of its statement of cash flows. Its balance sheet for this year is as follows: Ending Balance Beginning Balance Cash $ 61,000 $ 72,650 Accounts receivable 51,200 55,000 Inventory 68,700 62,500 Total current assets 180,900 190,150 Property, plant, and equipment 186,000 175,000 Less accumulated depreciation 62,000 43,750 Net property, plant, and equipment 124,000 131,250 Total assets $ 304,900 $ 321,400 Accounts payable $ 40,000 $ 71,200 Income taxes payable 31,200 36,700 Bonds payable 75,000 62,500 Common stock 87,500 75,000 Retained earnings 71,200 76,000 Total liabilities and stockholders’ equity $ 304,900 $ 321,400 During the year, Ravenna paid a $7,500 cash dividend and it sold a piece of equipment for $3,750 that had originally cost $7,800 and had…arrow_forwardRavenna Company is a merchandiser that uses the indirect method to prepare the operating activities section of its statement of cash flows. Its balance sheet for this year is as follows: Ending Balance Beginning Balance Cash $ 61,000 $ 72,650 Accounts receivable 51,200 55,000 Inventory 68,700 62,500 Total current assets 180,900 190,150 Property, plant, and equipment 186,000 175,000 Less accumulated depreciation 62,000 43,750 Net property, plant, and equipment 124,000 131,250 Total assets $ 304,900 $ 321,400 Accounts payable $ 40,000 $ 71,200 Income taxes payable 31,200 36,700 Bonds payable 75,000 62,500 Common stock 87,500 75,000 Retained earnings 71,200 76,000 Total liabilities and stockholders’ equity $ 304,900 $ 321,400 During the year, Ravenna paid a $7,500 cash dividend and it sold a piece of equipment for $3,750 that had originally cost $7,800 and had…arrow_forwardRavenna Company is a merchandiser that uses the indirect method to prepare the operating activities section of its statement of cash flows. Its balance sheet for this year is as follows: Ending Balance Beginning Balance Cash $ 61,000 $ 72,650 Accounts receivable 51,200 55,000 Inventory 68,700 62,500 Total current assets 180,900 190,150 Property, plant, and equipment 186,000 175,000 Less accumulated depreciation 62,000 43,750 Net property, plant, and equipment 124,000 131,250 Total assets $ 304,900 $ 321,400 Accounts payable $ 40,000 $ 71,200 Income taxes payable 31,200 36,700 Bonds payable 75,000 62,500 Common stock 87,500 75,000 Retained earnings 71,200 76,000 Total liabilities and stockholders’ equity $ 304,900 $ 321,400 During the year, Ravenna paid a $7,500 cash dividend and it sold a piece of equipment for $3,750 that had originally cost $7,800 and had…arrow_forward
- Ravenna Company is a merchandiser that uses the indirect method to prepare the operating activities section of its statement of cash flows. Its balance sheet for this year is as follows: Ending Balance Beginning Balance Cash and cash equivalents $ 102,000 $ 122,400 Accounts receivable 81,700 88,000 Inventory 109,700 100,000 Total current assets 293,400 310,400 Property, plant, and equipment 291,000 280,000 Less accumulated depreciation 97,000 70,000 Net property, plant, and equipment 194,000 210,000 Total assets $ 487,400 $ 520,400 Accounts payable $ 64,000 $ 113,700 Income taxes payable 49,700 65,700 Bonds payable 120,000 100,000 Common stock 140,000 120,000 Retained earnings 113,700 121,000 Total liabilities and stockholders’ equity $ 487,400 $ 520,400 During the year, Ravenna paid a $12,000 cash dividend and it sold a piece of equipment for $6,000 that had…arrow_forwardRavenna Company is a merchandiser that uses the indirect method to prepare the operating activities section of its statement of cash flows. Its balance sheet for this year is as follows: Ending Balance Beginning Balance Cash and cash equivalents $ 118,400 $ 142,300 Accounts receivable 93,900 101,200 Inventory 126,100 115,000 Total current assets 338,400 358,500 Property, plant, and equipment 333,000 322,000 Less accumulated depreciation 111,000 80,500 Net property, plant, and equipment 222,000 241,500 Total assets $ 560,400 $ 600,000 Accounts payable $ 73,600 $ 130,700 Income taxes payable 57,100 77,300 Bonds payable 138,000 115,000 Common stock 161,000 138,000 Retained earnings 130,700 139,000 Total liabilities and stockholders’ equity $ 560,400 $ 600,000 During the year, Ravenna paid a $13,800 cash dividend and it sold a piece of equipment for $6,900 that…arrow_forwardRavenna Company is a merchandiser that uses the indirect method to prepare the operating activities section of its statement of cash flows. Its balance sheet for this year is as follows: Ending Balance Beginning Balance Cash and cash equivalents $ 118,400 $ 142,300 Accounts receivable 93,900 101,200 Inventory 126,100 115,000 Total current assets 338,400 358,500 Property, plant, and equipment 333,000 322,000 Less accumulated depreciation 111,000 80,500 Net property, plant, and equipment 222,000 241,500 Total assets $ 560,400 $ 600,000 Accounts payable $ 73,600 $ 130,700 Income taxes payable 57,100 77,300 Bonds payable 138,000 115,000 Common stock 161,000 138,000 Retained earnings 130,700 139,000 Total liabilities and stockholders’ equity $ 560,400 $ 600,000 During the year, Ravenna paid a $13,800 cash dividend and it sold a piece of equipment for $6,900 that…arrow_forward
- Ravenna Company is a merchandiser that uses the indirect method to prepare the operating activities section of its statement of cash flows. Its balance sheet for this year is as follows: Ending Balance Beginning Balance Cash and cash equivalents $ 118,400 $ 142,300 Accounts receivable 93,900 101,200 Inventory 126,100 115,000 Total current assets 338,400 358,500 Property, plant, and equipment 333,000 322,000 Less accumulated depreciation 111,000 80,500 Net property, plant, and equipment 222,000 241,500 Total assets $ 560,400 $ 600,000 Accounts payable $ 73,600 $ 130,700 Income taxes payable 57,100 77,300 Bonds payable 138,000 115,000 Common stock 161,000 138,000 Retained earnings 130,700 139,000 Total liabilities and stockholders’ equity $ 560,400 $ 600,000 During the year, Ravenna paid a $13,800 cash dividend and it sold a piece of equipment for $6,900 that…arrow_forwardRavenna Company is a merchandiser that uses the indirect method to prepare the operating activities section of its statement of cash flows. Its balance sheet for this year is as follows: Ending Balance Beginning Balance Cash and cash equivalents $ 118,400 $ 142,300 Accounts receivable 93,900 101,200 Inventory 126,100 115,000 Total current assets 338,400 358,500 Property, plant, and equipment 333,000 322,000 Less accumulated depreciation 111,000 80,500 Net property, plant, and equipment 222,000 241,500 Total assets $ 560,400 $ 600,000 Accounts payable $ 73,600 $ 130,700 Income taxes payable 57,100 77,300 Bonds payable 138,000 115,000 Common stock 161,000 138,000 Retained earnings 130,700 139,000 Total liabilities and stockholders’ equity $ 560,400 $ 600,000 During the year, Ravenna paid a $13,800 cash dividend and it sold a piece of equipment for $6,900 that…arrow_forwardRavenna Company is a merchandiser using the indirect method to prepare the operating activities section of its statement of cash flows. Its balance sheet for this year is as follows: Ending Balance Beginning Balance Cash and cash equivalents $ 89,000 $ 106,750 Accounts receivable 71,500 77,000 Inventory 96,000 87,500 Total current assets 256,500 271,250 Property, plant, and equipment 255,000 245,000 Less accumulated depreciation 85,000 61,250 Net property, plant, and equipment 170,000 183,750 Total assets $ 426,500 $ 455,000 Accounts payable $ 56,000 $ 99,500 Income taxes payable 43,500 57,000 Bonds payable 105,000 87,500 Common stock 122,500 105,000 Retained earnings 99,500 106,000 Total liabilities and stockholders’ equity $ 426,500 $ 455,000 During the year, Ravenna paid a $10,500 cash dividend and sold a piece of equipment for $5,250 that originally cost $12,000 and had accumulated depreciation of $8,000. The company did not retire any bonds or…arrow_forward
- Ravenna Company is a merchandiser using the indirect method to prepare the operating activities section of its statement of cash flows. Its balance sheet for this year is as follows: Ending Balance Beginning Balance Cash and cash equivalents $ 89,000 $ 106,750 Accounts receivable 71,500 77,000 Inventory 96,000 87,500 Total current assets 256,500 271,250 Property, plant, and equipment 255,000 245,000 Less accumulated depreciation 85,000 61,250 Net property, plant, and equipment 170,000 183,750 Total assets $ 426,500 $ 455,000 Accounts payable $ 56,000 $ 99,500 Income taxes payable 43,500 57,000 Bonds payable 105,000 87,500 Common stock 122,500 105,000 Retained earnings 99,500 106,000 Total liabilities and stockholders’ equity $ 426,500 $ 455,000 During the year, Ravenna paid a $10,500 cash dividend and sold a piece of equipment for $5,250 that originally cost $12,000 and had accumulated depreciation of $8,000. The company did not retire any bonds or…arrow_forwardRavenna Company is a merchandiser using the indirect method to prepare the operating activities section of its statement of cash flows. Its balance sheet for this year is as follows: Ending Balance Beginning Balance Cash and cash equivalents $ 89,000 $ 106,750 Accounts receivable 71,500 77,000 Inventory 96,000 87,500 Total current assets 256,500 271,250 Property, plant, and equipment 255,000 245,000 Less accumulated depreciation 85,000 61,250 Net property, plant, and equipment 170,000 183,750 Total assets $ 426,500 $ 455,000 Accounts payable $ 56,000 $ 99,500 Income taxes payable 43,500 57,000 Bonds payable 105,000 87,500 Common stock 122,500 105,000 Retained earnings 99,500 106,000 Total liabilities and stockholders’ equity $ 426,500 $ 455,000 During the year, Ravenna paid a $10,500 cash dividend and sold a piece of equipment for $5,250 that originally cost $12,000 and had accumulated depreciation of $8,000. The company did not retire any bonds or…arrow_forwardRavenna Company is a merchandiser using the indirect method to prepare the operating activities section of its statement of cash flows. Its balance sheet for this year is as follows: Ending Balance Beginning Balance Cash and cash equivalents $ 89,000 $ 106,750 Accounts receivable 71,500 77,000 Inventory 96,000 87,500 Total current assets 256,500 271,250 Property, plant, and equipment 255,000 245,000 Less accumulated depreciation 85,000 61,250 Net property, plant, and equipment 170,000 183,750 Total assets $ 426,500 $ 455,000 Accounts payable $ 56,000 $ 99,500 Income taxes payable 43,500 57,000 Bonds payable 105,000 87,500 Common stock 122,500 105,000 Retained earnings 99,500 106,000 Total liabilities and stockholders’ equity $ 426,500 $ 455,000 During the year, Ravenna paid a $10,500 cash dividend and sold a piece of equipment for $5,250 that originally cost $12,000 and had accumulated depreciation of $8,000. The company did not retire any bonds or…arrow_forward
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