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 13.3AP
The income statement of Whitlock Company is presented here.
WHITLOCK COMPANY
Income Statement
For the Year Ended November 30, 2017
| Sales revenue | $7,700,000 | |
| Cost of goods sold | ||
| Beginning inventory | $1,900,000 | |
| Purchases | 4,400,000 | |
| Goods available for sale | 6,300,000 | |
| Ending inventory | 1,400,000 | |
| Total cost of goods sold | 4,900,000 | |
| Gross profit | 2,800,000 | |
| Operating expenses | 1,150,000 | |
| Net income | $1,650,000 |
Additional information:
1.
2. Prepaid expenses increased $150,000 during the year.
3. Accounts payable to suppliers of merchandise decreased $340,000 during the year.
4. Accrued expenses payable decreased $100,000 during the year.
5. Operating expenses include depreciation expense of $70,000.
Instructions
Prepare the operating activities section of the statement of
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The income statement of Whitlock Company is presented here.
WHITLOCK COMPANYIncome StatementFor the Year Ended November 30, 2020
Sales revenue
$7,431,800
Cost of goods sold
Beginning inventory
$1,880,900
Purchases
4,343,000
Goods available for sale
6,223,900
Ending inventory
1,490,000
Total cost of goods sold
4,733,900
Gross profit
2,697,900
Operating expenses
1,144,400
Net income
$1,553,500
Additional information:
1.
Accounts receivable increased $190,300 during the year, and inventory decreased $390,900.
2.
Prepaid expenses increased $169,000 during the year.
3.
Accounts payable to suppliers of merchandise decreased $340,300 during the year.
4.
Accrued expenses payable decreased $102,600 during the year.
5.
Operating expenses include depreciation expense of $81,900.
Prepare the operating activities section of the statement of cash…
The income statement of Whitlock Company is presented here.
WHITLOCK COMPANYIncome StatementFor the Year Ended November 30, 2020
Sales revenue
$7,588,000
Cost of goods sold
Beginning inventory
$1,924,100
Purchases
4,303,700
Goods available for sale
6,227,800
Ending inventory
1,334,300
Total cost of goods sold
4,893,500
Gross profit
2,694,500
Operating expenses
1,077,400
Net income
$1,617,100
Additional information:
1.
Accounts receivable increased $208,800 during the year, and inventory decreased $589,800.
2.
Prepaid expenses increased $167,900 during the year.
3.
Accounts payable to suppliers of merchandise decreased $343,500 during the year.
4.
Accrued expenses payable decreased $104,000 during the year.
5.
Operating expenses include depreciation expense of $83,600.
Prepare the operating activities section of the statement of cash flows…
The income statement of Pina Company is shown below.
PINA COMPANY
INCOMESTATEMENT
FOR THE YEAR ENDED DECEMBER 31, 2020
Sales revenue
$6,880,000
Cost of goods sold
Beginning inventory
$1,880,000
Purchases
4,440.000
Goods available for sale
6,320,000
Ending inventory
Cost of goods sold
1,620,000
4,700,000
Gross profit
2,180,000
Operating expenses
Selling expenses
Administrative expenses
460,000
700,000
1,160,000
Net income
$1,020,000
Additional information:
1.
Accounts receivable decreased $380,000 during the year.
Prepaid expenses increased $150,000 during the year.
Accounts payable to suppliers of merchandise decreased $250,000 during the year.
2.
3.
4.
Accrued expenses payable decreased $90,000 during the year.
5.
Administrative expenses include depreciation expense of $50,000.
Prepare the operating activities section of the statement of cash flows using the direct method.
PINA COMPANY
Statement of Cash Flows (Partial)
24
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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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