Working Papers, Volume 1, Chapters 1-15 for Warren/Reeve/Duchac's Corporate Financial Accounting, 13th + Financial & Managerial Accounting, 13th
13th Edition
ISBN: 9781285869582
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Chapter 14, Problem 14.5BPR
Statement of
The comparative
| Dec. 31,2016 | Dec. 31.201S | ||
| Assets | |||
| Cash | $ 70,720 | $ | 47,940 |
| 207,230 | 188,190 | ||
| Inventories | 298,520 | 289,850 | |
| Investments. | 0 | 102,000 | |
| Land | 295,800 | 0 | |
| Equipment | 438,600 | 358,020 | |
| Accumulated |
(99,110) | (84,320) | |
| Total assets | $1,2’1,760 | $ | 901,680 |
| Liabilities and Stockholders' Equity | |||
| Accounts payable (merchandise creditors) | $ 205,700 | $ | 194,140 |
| Accrued expenses payable (operating expenses! | 30,600 | 26,860 | |
| Dividends payable | 25,500 | 20,400 | |
| Common stock. Si par. | 202,000 | 102,000 | |
| Paid in capital: Excess of issue price over par—common stock | 354,000 | 204,000 | |
| 393,960 | 354,280 | ||
| Total liabilities and stockholders’ equity | $1,211,760 | $ | 901,680 |
The income statement for the year ended December 31, 2016, is as follows:
| Sales- | $2,023,898 | |
| Cost of merchandise sold | 1,245,476 | |
| Gross profit | $ 778,422 | |
| Operating expenses: | ||
| Depreciation expense | $ 14,790 | |
| Other operating expenses | 517,299 | |
| Total operating expenses | 532,089 | |
| Operating income | $ 246,333 | |
| Other expenses: | ||
| Loss on sale of investments | (10,200) | |
| Income before income tax | $ 236,133 | |
| Income tax expense- | 94,453 | |
| Net income- | $ 141,680 |
Additional data obtained from an examination of the accounts in the ledger for 2016 are as follows:
a. Equipment and land were acquired for cash.
b. There were no disposals of equipment during the year.
c. The investments were sold for $91,800 cash.
d. The common stock was issued for cash.
e. There was a $102,000 debit to Retained Laming for cash dividends declared. Instructions
Prepare a statement of cash flows, using the direct method of presenting cash flows from operating activities.
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Statement of Cash Flows—Indirect Method
The following balances are available for Chrisman Company:
December 31
2017
2016
Cash
$12,200
$15,300
Accounts receivable
30,500
22,900
Inventory
24,200
40,400
Prepaid rent
13,700
9,200
Land
114,400
114,400
Plant and equipment
610,000
457,500
Accumulated depreciation
(99,100)
(45,800)
Totals
$705,900
$613,900
Accounts payable
$18,300
$15,300
Income taxes payable
4,600
7,600
Short-term notes payable
53,400
38,100
Bonds payable
114,000
153,000
Common stock
305,000
228,800
Retained earnings
210,600
171,100
Totals
$705,900
$613,900
Bonds were retired during 2017 at face value, plant and equipment were acquired for cash, and common stock was issued for cash. The depreciation expense for the year was $53,300. Net income was reported at $39,500.
Required:
1. Prepare a statement of cash flows for 2017 using the indirect method in the Operating…
Statement of Cash Flows—Indirect Method
The following balances are available for Chrisman Company:
December 31
2017
2016
Cash
$7,800
$9,800
Accounts receivable
19,500
14,600
Inventory
15,500
25,900
Prepaid rent
8,800
5,900
Land
73,100
73,100
Plant and equipment
390,000
292,500
Accumulated depreciation
(63,400)
(29,300)
Totals
$451,300
$392,500
Accounts payable
$11,700
$9,800
Income taxes payable
2,900
4,900
Short-term notes payable
34,100
24,400
Bonds payable
73,000
98,000
Common stock
195,000
146,300
Retained earnings
134,600
109,100
Totals
$451,300
$392,500
Bonds were retired during 2017 at face value, plant and equipment were acquired for cash, and common stock was issued for cash. Depreciation expense for the year was $34,100. Net income was reported at $25,500.
Required:
1. Prepare a statement of cash flows for 2017 using the indirect method in the Operating Activities section.…
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
$234,050
$216,220
Accounts receivable (net)
84,790
77,660
Inventories
239,340
229,910
Investments
0
89,080
Land
122,770
0
Equipment
264,080
203,280
Accumulated depreciation-equipment
(61,820)
(54,820)
Total assets
$883,210
$761,330
Liabilities and Stockholders' Equity
Accounts payable
$159,860
$149,980
Accrued expenses payable
15,900
19,790
Dividends payable
8,830
6,850
Common stock, $10 par
47,690
37,310
Excess of paid-in capital over par
179,290
103,540
Retained earnings
471,640
443,860
Total liabilities and stockholders’ equity
$883,210
$761,330
The income statement for the year ended December 31, 20Y6, is as follows:
Sales
$1,406,850
Cost of merchandise sold
579,300
Gross…
Chapter 14 Solutions
Working Papers, Volume 1, Chapters 1-15 for Warren/Reeve/Duchac's Corporate Financial Accounting, 13th + Financial & Managerial Accounting, 13th
Ch. 14 - Prob. 1DQCh. 14 - Prob. 2DQCh. 14 - A corporation issued 2,000,000 of common stock in...Ch. 14 - A retail business, using the accrual method of...Ch. 14 - If salaries payable was 100,000 at the beginning...Ch. 14 - Prob. 6DQCh. 14 - A corporation issued 2,000,000 of 20-year bonds...Ch. 14 - Fully depreciated equipment costing 50,000 was...Ch. 14 - Prob. 9DQCh. 14 - Name five common major classes of operating cash...
Ch. 14 - Prob. 14.1APECh. 14 - Classifying cash flows Identify whether each of...Ch. 14 - Prob. 14.2APECh. 14 - Prob. 14.2BPECh. 14 - Prob. 14.3APECh. 14 - Prob. 14.3BPECh. 14 - Prob. 14.4APECh. 14 - Prob. 14.4BPECh. 14 - Land transactions on the statement of cash flows...Ch. 14 - Land transactions on the statement of cash flows...Ch. 14 - Prob. 14.6APECh. 14 - Prob. 14.6BPECh. 14 - Prob. 14.7APECh. 14 - Prob. 14.7BPECh. 14 - Prob. 14.8APECh. 14 - Prob. 14.8BPECh. 14 - Prob. 14.1EXCh. 14 - Prob. 14.2EXCh. 14 - Classifying cash flows Identify the type of cash...Ch. 14 - Prob. 14.4EXCh. 14 - Prob. 14.5EXCh. 14 - Prob. 14.6EXCh. 14 - Prob. 14.7EXCh. 14 - Determining cash payments to stockholders The...Ch. 14 - Prob. 14.9EXCh. 14 - Reporting changes in equipment on statement of...Ch. 14 - Prob. 14.11EXCh. 14 - Prob. 14.12EXCh. 14 - Reporting land acquisition for cash and mortgage...Ch. 14 - Prob. 14.14EXCh. 14 - Prob. 14.15EXCh. 14 - Prob. 14.16EXCh. 14 - Prob. 14.17EXCh. 14 - Prob. 14.18EXCh. 14 - Prob. 14.19EXCh. 14 - Prob. 14.20EXCh. 14 - Prob. 14.21EXCh. 14 - Cash flows from operating activities direct method...Ch. 14 - Prob. 14.23EXCh. 14 - Prob. 14.24EXCh. 14 - Prob. 14.25EXCh. 14 - Prob. 14.26EXCh. 14 - Prob. 14.1APRCh. 14 - Statement of cash flowsindirect method The...Ch. 14 - Prob. 14.3APRCh. 14 - Prob. 14.4APRCh. 14 - Statement of cash flowsdirect method applied to PR...Ch. 14 - Prob. 14.1BPRCh. 14 - Prob. 14.2BPRCh. 14 - Prob. 14.3BPRCh. 14 - Prob. 14.4BPRCh. 14 - Statement of cash flowsdirect method applied to PR...Ch. 14 - Prob. 14.1CPCh. 14 - Prob. 14.2CPCh. 14 - Analysis of statement of cash flows Dillip Lachgar...Ch. 14 - Prob. 14.4CP
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