Managerial Accounting: Tools for Business Decision Making
7th Edition
ISBN: 9781118334331
Author: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Publisher: WILEY
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Chapter 13, Problem 13.11AP
To determine
Cash Flow Statement:
Cash Flow Statement is a fundamental financial statement that renders valuable information regarding the
The cash flow statement also provides information regarding the net cash change that occurred during a period, classifying the activities into three categories those are cash from operating activities, investing, and financing activities.
To prepare: The statement of
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Mulder Corporation's comparative balance sheets for year end at December 31, 2017 are presented below:
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2017 2016
Cash $10,300 $3,900
Accounts receivable 6,200 14,400
Inventory 11,000 8,000
Land 32,000 28,000
Buildings 74,000 74,000
Accumulated depreciation - buildings (15,000) (12,000)
      Total $118,500 $116,300
Accounts payable $17,370 31,100
Common stock ($5 par) 60,000 60,000
Retained earnings 41,130 25,200
Total $118,500 $116,300
Mulder's 2017 income statement included net sales of $140,000, cost of goods sold of $80,000 and net income of $20,000.
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Compute the inventory turnover and days in inventory ratio for 2017.
The condensed financial statements of Marks Company for the years 2017-2018 are presented below:
Marks CompanyComparative Balance SheetsAs of December 31, 2017 and 2018
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2018
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2017
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Cash
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$404,000
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$155,000
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Accounts receivable (net)
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356,000
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300,000
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Inventories
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375,000
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339,000
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Plant and equipment
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1,830,000
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1,121,000
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Accumulated depreciation
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(260,000
)
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(193,000
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$2,705,000
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$1,722,000
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Accounts payable
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$339,000
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$164,000
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Dividends payable
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-0-
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45,000
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Bonds payable
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405,000
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-0-
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Common stock ($10 par)
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1,521,000
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1,230,000
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Retained earnings
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440,000
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283,000
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$2,705,000
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$1,722,000
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Additional data:
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Market value of stock at 12/31/18 is $80Â per share.
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Marks sold 30,000 shares of common stock at par on July 1, 2018.
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Marks CompanyCondensed…
Financial information for Powell Panther Corporation is shown below:
Powell Panther Corporation: Income Statements for Year Ending December 31 (Millions of Dollars)
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2018
2017
Sales
$
1,800.0
$
1,500.0
Operating costs excluding depreciation and amortization
Â
1,395.0
Â
1,275.0
EBITDA
$
405.0
$
225.0
Depreciation and amortization
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43.0
Â
39.0
Earnings before interest and taxes (EBIT)
$
362.0
$
186.0
  Interest
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40.0
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33.0
Earnings before taxes (EBT)
$
322.0
$
153.0
  Taxes (40%)
Â
128.8
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61.2
Net income
$
193.2
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$
91.8
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Common dividends
$
174.0
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$
73.0
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Powell Panther Corporation: Balance Sheets as of December 31 (Millions of Dollars)
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2018
2017
Assets
Cash and equivalents
$
23.0
$
18.0
Accounts receivable
Â
248.0
Â
225.0
Inventories
Â
396.0
Â
360.0
  Total current assets
$
667.0
$
603.0
Net plant and equipment
Â
429.0
Â
390.0
Total assets
$
1,096.0
$
993.0
Liabilities and Equity
Accounts…
Chapter 13 Solutions
Managerial Accounting: Tools for Business Decision Making
Ch. 13 - (a) What is a statement of cash flows? (b) Mark...Ch. 13 - Prob. 2QCh. 13 - Prob. 3QCh. 13 - Prob. 4QCh. 13 - Prob. 5QCh. 13 - Prob. 6QCh. 13 - Prob. 7QCh. 13 - Contrast the advantages and disadvantages of the...Ch. 13 - Prob. 9QCh. 13 - Prob. 10Q
Ch. 13 - Prob. 11QCh. 13 - Prob. 12QCh. 13 - Prob. 13QCh. 13 - Prob. 14QCh. 13 - Prob. 15QCh. 13 - During 2017. Doubleday Company converted 1,700.000...Ch. 13 - Prob. 17QCh. 13 - Prob. 18QCh. 13 - Prob. 19QCh. 13 - Prob. 20QCh. 13 - Prob. 21QCh. 13 - Prob. 13.1BECh. 13 - Classify items by activities. (LO 1), C Classify...Ch. 13 - Prob. 13.3BECh. 13 - Prob. 13.4BECh. 13 - Prob. 13.5BECh. 13 - Prob. 13.6BECh. 13 - Prob. 13.7BECh. 13 - Prob. 13.8BECh. 13 - Prob. 13.9BECh. 13 - Prob. 13.10BECh. 13 - The management of Morrow Inc. is trying to decide...Ch. 13 - Prob. 13.12BECh. 13 - Prob. 13.13BECh. 13 - Prob. 13.14BECh. 13 - Prob. 13.1DICh. 13 - Prob. 13.2DICh. 13 - Prob. 13.3DICh. 13 - Tabares Corporation had these transactions during...Ch. 13 - An analysis of comparative balance sheets, the...Ch. 13 - Cushenberry Corporation had the following...Ch. 13 - Prob. 13.4ECh. 13 - The current sections of Scoggin Inc.s balance...Ch. 13 - Prob. 13.6ECh. 13 - Rojas Corporations comparative balance sheets are...Ch. 13 - Here are comparative balance sheets for Velo...Ch. 13 - Prob. 13.9ECh. 13 - Compute net cash provided by operating...Ch. 13 - Suppose a recent income statement for McDonalds...Ch. 13 - Compute cash flow from operating activitiesdirect...Ch. 13 - The following information is taken from the 2017...Ch. 13 - You are provided with the following transactions...Ch. 13 - The following account balances relate to the...Ch. 13 - The income statement of Whitlock Company is...Ch. 13 - Prob. 13.4APCh. 13 - Prob. 13.5APCh. 13 - Prob. 13.6APCh. 13 - Prob. 13.7APCh. 13 - Prob. 13.8APCh. 13 - Prob. 13.9APCh. 13 - Prob. 13.10APCh. 13 - Prob. 13.11APCh. 13 - Prob. 13.1BYPCh. 13 - Prob. 13.2BYPCh. 13 - Comparative Analysis Problem: Amazon.com, Inc. vs....Ch. 13 - Prob. 13.4BYPCh. 13 - Prob. 13.5BYPCh. 13 - Prob. 13.7BYPCh. 13 - Ethics Case Wesley Corp. is a medium-sized...Ch. 13 - Prob. 13.9BYP
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- The current sections of Bridgeport Corp.'s balance sheets at December 31, 2016 and 2017, are presented here. Bridgeport Corp.'s net income for 2017 was $153,459. Depreciation expense was $27,081. 2017 2016 Current assets Cash $105,315 $ 99,297 Accounts receivable 80,240 89,267 Inventory 168,504 172,516 Prepaid expenses 27,081 22,066 Total current assets $381,140 $383,146 Current liabilities Accrued expenses payable $ 15,045 $ 5,015 Accounts payable 85,255 92,276 Total current liabilities $100,300 $ 97,291 ember 31, 2017, using Prepare the net cash provided (used) by operating activities section of the company's statement (15,000).) cash flows or the year ende indirect ethod. (Show am that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. Bridgeport Corp. Partial Statement of Cash Flows $ Adjustments to reconcile net income to $ $1arrow_forwardWiemers Corporation’s comparative balance sheets are presented below. WIEMERS CORPORATIONBalance SheetsDecember 31   2017  2016 Cash  $ 3,400   $ 4,000  Accounts receivable (net)  21,700   23,400  Inventory  10,200   7,500  Land  20,100   25,600  Buildings  69,700   69,700  Accumulated depreciation—buildings  (15,500 )  (10,700 )     Total  $109,600   $119,500  Accounts payable  $ 12,000   $ 31,400  Common stock  75,600   69,200  Retained earnings  22,000   18,900      Total  $109,600   $119,500  Wiemers’s 2017 income statement included net sales of $107,000, cost of goods sold of $59,700, and net income of $15,100.Compute the following ratios for 2017. (Round Debt to assets ratio to 1 decimal place, e.g. 1.6, or 1.6% and all other answers to 2 decimal places, e.g. 1.64, or 1.64% .) (a)  Current ratio  enter your answer rounded to 2 decimal places :1 (b)  Acid-test ratio…arrow_forwardFinancial information for Powell Panther Corporation is shown below: Powell Panther Corporation: Income Statements for Year Ending December 31 (Millions of Dollars)  2018 2017 Sales $ 3,900.0 $ 3,000.0 Operating costs excluding depreciation and amortization  2,925.0  2,550.0 EBITDA $ 975.0 $ 450.0 Depreciation and amortization  90.0  69.0 Earnings before interest and taxes (EBIT) $ 885.0 $ 381.0   Interest  86.0  66.0 Earnings before taxes (EBT) $ 799.0 $ 315.0   Taxes (40%)  319.6  126.0 Net income $ 479.4  $ 189.0  Common dividends $ 431.0  $ 151.0  Powell Panther Corporation: Balance Sheets as of December 31 (Millions of Dollars)  2018 2017 Assets Cash and equivalents $ 38.0 $ 30.0 Accounts receivable  432.0  360.0 Inventories  819.0  630.0   Total current assets $ 1,289.0 $ 1,020.0 Net plant and equipment  897.0  690.0 Total assets $ 2,186.0 $ 1,710.0 Liabilities and Equity…arrow_forward
- Financial information for Powell Panther Corporation is shown below: Powell Panther Corporation: Income Statements for Year Ending December 31 (Millions of Dollars)   2018 Sales $ 1,625.0 $ 2017 1,300.0 Operating costs excluding depreciation and amortization  1,300.0  1,105.0 EBITDA $ 325.0 $ 195.0 Depreciation and amortization  39.0  31.0 Earnings before interest and taxes (EBIT) $ 286.0 $ 164.0   Interest  36.0  29.0 Earnings before taxes (EBT) $ 250.0 $ 135.0   Taxes (40%)  100.0  54.0 Net income $ 150.0  $ 81.0  Common dividends $ 135.0  $ 65.0  Powell Panther Corporation: Balance Sheets as of December 31 (Millions of Dollars)   2018 Assets Cash and equivalents $ 23.0 $ 2017 18.0  Accounts receivable  164.0  143.0 Inventories  343.0  312.0   Total current assets $ 530.0 $ 473.0 Net plant and equipment  390.0  312.0 Total assets $ 920.0 $ 785.0 Liabilities and Equity…arrow_forwardSelected information about income statement accounts for the Reed Company is presented below (the company's fiscal year ends on December 31):   2018  2017 Sales $ 4,550,000 $ 3,650,000 Cost of goods sold  2,890,000  2,030,000 Administrative expenses  830,000  705,000 Selling expenses  390,000  342,000 Interest revenue  153,000  143,000 Interest expense  206,000  206,000 Loss on sale of assets of discontinued component  62,000  —   On July 1, 2018, the company adopted a plan to discontinue a division that qualifies as a component of an entity as defined by GAAP. The assets of the component were sold on September 30, 2018, for $62,000 less than their book value. Results of operations for the component (included in the above account balances) were as follows:  1/1/18-9/30/18  2017  Sales  $ 430,000    $ 530,000  Cost of goods sold   (305,000 )    (338,000 ) Administrative expenses   (53,000 )    (43,000 ) Selling…arrow_forwardShown below are comparative balance sheets for Sandhill Company. Sandhill CompanyComparative Balance SheetsDecember 31 Assets  2017   2016  Cash  $ 211,208   $ 68,332  Accounts receivable  273,328   236,056  Inventory  518,702   587,034  Land  248,480   310,600  Equipment  807,560   621,200  Accumulated depreciation—equipment  (204,996 )  (99,392 ) Total  $1,854,282   $1,723,830  Liabilities and Stockholders’ Equity       Accounts payable  $ 121,134   $ 133,558  Bonds payable  465,900   621,200  Common stock ($1 par)  670,896   540,444  Retained earnings  596,352   428,628  Total  $1,854,282   $1,723,830  Additional information: 1.  Net income for 2017 was $288,858. 2.  Depreciation expense was $105,604. 3.  Cash dividends of $121,134 were declared and paid. 4.  Bonds payable amounting to…arrow_forward
- A comparative balance sheet for Rocker Company appears below:  ROCKER COMPANY Comparative Balance Sheet Dec. 31, 2017 Dec. 31, 2016 Assets  Cash $34,000 $11,000 Accounts receivable 18,000 13,000 Inventory 25,000 17,000 Prepaid expenses 6,000 9,000 Long-term investments -0- 17,000 Equipment 60,000 33,000 Accumulated depreciation-equipment (20,000) (15,000) Total assets $123,000 $85,000 Liabilities and stockholders' Equity  Accounts payable $17,000 $7,000 Bonds payable 36,000 45,000 Common stock 40,000 23,000 Retained earnings 30,000 10,000 Total liabilities and stockholders' equity $123,000 $85,000 Additional Information:  1. Net income for the year ending December 31, 2017, was $35,000.  2. Cash dividends of $15,000 were declared and paid during the year.  3. Long-term investments that had a cost of $17,000 were sold for $14,000.  4. Sales for 2017 were $120,000.  Prepare a statement of cash flows for the year ended December 31, 2017, using the indirect method.arrow_forwardPartial balance sheets and additional information are listed below for Funk Company.  Funk Company Partial Balance Sheets as of December 31  2018  2017  Assets     Cash $ 42,000  $ 21,000  Accounts receivable  95,000   90,800  Inventory  26,000   42,000  Liabilities       Accounts payable $ 59,000  $ 74,000     Additional information for 2018: Net income was $172,000.Depreciation expense was $32,000.Sales totaled $820,000.Cost of goods sold totaled $327,000.  Required:Prepare the summary entry for the amount of cash received from customers during 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)arrow_forwardUse the following excerpts from Yardley Company’s financial information.  2018 IncomeStatement   BalanceSheets Sales $455,000      Cost of Goods Sold (221,500)     Operating Expenses, other than Depreciation Expense (60,600)     Depreciation Expense (21,000)     Gain on Sale of Plant Assets 23,500      Net Income $175,400         Dec. 31,2018 Cash   $323,450    Accounts Receivable   39,750    Inventory   31,000    Accounts Payable   17,550    Accured Liabilities   3,500       Dec. 31, 2017 Cash   $133,500    Accounts Receivable   36,500    Inventory   35,000    Accounts Payable   19,550    Accured Liabilities   2,200        Additional Information:    Plant assets were sold for $40,000; book value $16,500.    Dividends of $23,000 were declared and paid. Prepare a statement of cash flows (indirect method) for the year 2018. Use the minus sign to indicate cash outflows, a…arrow_forward
- Use the following excerpts from Victrolia Company’s financial information.  2018 Income Statment  Balance Sheets Sales $475,000   Cost of Goods Sold (221,500)   Operating Expenses, other thanDepreciation Expense (60,600)   Depreciation Expense (21,000)   Gain on Sale of Plant Assets 23,500   Net Income $195,400      Dec. 31,2018 Cash   $347,450 Accounts Receivable   39,750 Inventory   33,000 Accounts Payable   17,550 Accured Liabilities   3,500    Dec. 31, 2017 Cash   $133,500 Accounts Receivable   36,500 Inventory   35,000 Accounts Payable   19,550 Accured Liabilities   2,200     Additional Information:    Plant assets were sold for $45,000; book value $16,500 Dividends of $22,000 were declared and paid  Cash Flow from Financing Activities:    $Dividends Paid  I just need the answer on dividends answer box?arrow_forwardUse the following excerpts from Victrolia Company’s financial information.  2018 Income Statment  Balance Sheets Sales $475,000   Cost of Goods Sold (221,500)   Operating Expenses, other thanDepreciation Expense (60,600)   Depreciation Expense (21,000)   Gain on Sale of Plant Assets 23,500   Net Income $195,400      Dec. 31,2018 Cash   $347,450 Accounts Receivable   39,750 Inventory   33,000 Accounts Payable   17,550 Accured Liabilities   3,500    Dec. 31, 2017 Cash   $133,500 Accounts Receivable   36,500 Inventory   35,000 Accounts Payable   19,550 Accured Liabilities   2,200     Additional Information:    Plant assets were sold for $45,000; book value $16,500 Dividends of $22,000 were declared and paid Prepare a statement of cash flows (direct method) for the year 2018. Use the minus sign to indicate cash out flows, a decrease in cash or cash payments. Victrolia CompanyStatement of…arrow_forwardUse the following excerpts from Victrolia Company’s financial information.  2018 Income Statment  Balance Sheets Sales $455,000   Cost of Goods Sold (221,500)   Operating Expenses, other thanDepreciation Expense (58,600)   Depreciation Expense (20,000)   Gain on Sale of Plant Assets 23,500   Net Income $178,400      Dec. 31,2018 Cash   $329,450 Accounts Receivable   39,750 Inventory   31,000 Accounts Payable   17,550 Accured Liabilities   3,500    Dec. 31, 2017 Cash   $133,500 Accounts Receivable   36,500 Inventory   35,000 Accounts Payable   19,550 Accured Liabilities   2,200     Additional Information:    Plant assets were sold for $45,000; book value $16,500 Dividends of $24,000 were declared and paid Prepare a statement of cash flows (direct method) for the year 2018. Use the minus sign to indicate cash out flows, a decrease in cash or cash payments. Victrolia CompanyStatement of…arrow_forward
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