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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Textbook Question
Chapter 13, Problem 13.8E
Here are comparative balance sheets for Velo Company.
VELO COMPANY
Comparative Balance Sheets
December 31
| Assets | 2017 | 2016 |
| Cash | $ 63,000 | $ 22,000 |
| 85,000 | 76,000 | |
| Inventory | 170,000 | 189,000 |
| Land | 75,000 | 100,000 |
| Equipment | 270,000 | 200,000 |
| Accumulated depreciation—equipment | (66,000) | (32,000) |
| Total | $597,000 | $555,000 |
| Liabilities and |
||
| Accounts pavable | $ 39.000 | $ 47,000 |
| Bonds pavable | 150,000 | 200,000 |
| Common stock ($1 par) | 216,000 | 174,000 |
| 192,000 | 134,000 | |
| Total | $597,000 | $555,000 |
Additional information:
1. Net income for 2017 was $93,000.
2. Cash dividends of $35,000 were declared and paid.
3. Bonds payable amounting to $50,000 were redeemed for cash $50,000.
4. Common stock was issued for $42,000 cash.
5. No equipment was sold during 2017, but land was sold at cost.
Instructions
Prepare a statement of
Prepare a statement of cash flaws—indirect method.
(LO 2). AP
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Mulder Corporation's comparative balance sheets are presented below:
MULDER CORPORATION
Balance Sheets
December 31
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.
Compute the current ratio for 2017 of Mulder Corporation.
Financial information for Powell Panther Corporation is shown below:
Powell Panther Corporation: Income Statements for Year Ending December 31 (Millions of Dollars)
2018
2017
Sales
$
1,800.0
$
1,500.0
Operating costs excluding depreciation and amortization
1,395.0
1,275.0
EBITDA
$
405.0
$
225.0
Depreciation and amortization
43.0
39.0
Earnings before interest and taxes (EBIT)
$
362.0
$
186.0
Interest
40.0
33.0
Earnings before taxes (EBT)
$
322.0
$
153.0
Taxes (40%)
128.8
61.2
Net income
$
193.2
$
91.8
Common dividends
$
174.0
$
73.0
Powell Panther Corporation: Balance Sheets as of December 31 (Millions of Dollars)
2018
2017
Assets
Cash and equivalents
$
23.0
$
18.0
Accounts receivable
248.0
225.0
Inventories
396.0
360.0
Total current assets
$
667.0
$
603.0
Net plant and equipment
429.0
390.0
Total assets
$
1,096.0
$
993.0
Liabilities and Equity
Accounts…
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
$
$1
Chapter 13 Solutions
Managerial Accounting: Tools for Business Decision Making
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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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