Project #46458 - acct


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Statement of Cash Flows—Indirect Method

The comparative balance sheet of Mills Engine Co. at December 31, 2014 and 2013, is as follows:

       Dec. 31, 2014        Dec. 31, 2013
Assets          
Cash $ 541,390     $ 581,130  
Accounts receivable (net) 492,660     449,350  
Inventories 747,120     687,570  
Prepaid expenses 17,320     20,570  
Land 186,240     281,520  
Buildings 860,810     530,560  
Accumulated depreciation-buildings (243,630)     (227,380)  
Equipment 303,180     267,990  
Accumulated depreciation-equipment (83,370)     (93,660)  
  $2,821,720     $2,497,650  
Liabilities and Stockholders' Equity
Accounts payable (merchandise creditors) $ 536,130     $ 565,750
Bonds payable 158,020     0
Common stock, $20 par 187,000     69,000
Paid-in capital in excess of par-common stock 447,000     329,000
Retained earnings 1,493,570     1,533,900
  $2,821,720     $2,497,650

The noncurrent asset, noncurrent liability, and stockholders' equity accounts for 2014 are as follows:

ACCOUNT Land ACCOUNT NO.
        Balance
Date Item Debit Credit Debit Credit
2014          
Jan. 1 Balance     281,520  
Apr. 20 Realized $88,600 cash from sale   95,280 186,240  

ACCOUNT Buildings ACCOUNT NO.
        Balance
Date Item Debit Credit Debit Credit
2014          
Jan. 1 Balance     530,560  
Apr. 20 Acquired for cash 330,250   860,810  

ACCOUNT Accumulated Depreciation-Buildings ACCOUNT NO.
        Balance
Date Item Debit Credit Debit Credit
2014          
Jan. 1 Balance       227,380
Dec. 31 Depreciation for year   16,250   243,630

ACCOUNT Equipment ACCOUNT NO.
        Balance
Date Item Debit Credit Debit Credit
2014          
Jan. 1 Balance     267,990  
Jan. 26 Discarded, no salvage   29,500 238,490  
Aug. 11 Purchased for cash 64,690   303,180  

ACCOUNT Accumulated Depreciation-Equipment ACCOUNT NO.
        Balance
Date Item Debit Credit Debit Credit
2014          
Jan. 1 Balance       93,660
Jan. 26 Equipment discarded 29,500     64,160
Dec. 31 Depreciation for year   19,210   83,370

ACCOUNT Bonds Payable ACCOUNT NO.
        Balance
Date Item Debit Credit Debit Credit
2014          
May 1 Issued 20-year bonds   158,020   158,020

ACCOUNT Common Stock, $20 par ACCOUNT NO.
        Balance
Date Item Debit Credit Debit Credit
2014          
Jan. 1 Balance       69,000
Dec. 7 Issued 5,900 shares of common
stock for $40 per share
  118,000   187,000

ACCOUNT Paid-in Capital in Excess of Par-Common Stock ACCOUNT NO.
        Balance
Date Item Debit Credit Debit Credit
2014          
Jan. 1 Balance       329,000
Dec. 7 Issued 5,900 shares of common
stock for $40 per share
  118,000   447,000

ACCOUNT Retained Earnings ACCOUNT NO.
        Balance
Date Item Debit Credit Debit Credit
2014          
Jan. 1 Balance       1,533,900
Dec. 31 Net loss 19,420     1,514,480
Dec. 31 Cash dividends 20,910     1,493,570

Required:


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Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Use the minus sign to indicate cash out flows, cash payments, decreases in cash and for any adjustments, if required.



 Mills Engine Co. 
 Statement of Cash Flows 
 For the Year Ended December 31, 2014 
 Cash flows from operating activities: 
           
 
 
 
     
$  
   
 Adjustments to reconcile net loss to net cashflow from operating activities: 
           
 
 
 
     
  
   
 
 
 
     
  
   
 Changes in current operating assets and liabilities: 
           
 
 
 
     
  
   
 
 
 
     
  
   
 
 
 
     
  
   
 
 
 
     
  
   
 Net cash flow used for operating activities 
         
$  
 Cash flows from investing activities: 
           
 
 
 
     
$  
   
 
 
 
 
$  
       
 
 
 
 
  
 
  
   
 Net cash flow used for investing activities 
         
  
 Cash flows from financing activities: 
           
 
 
 
 
$  
       
 
 
 
 
  
 
$  
   
 
 
 
     
  
   
 Net cash flow provided by financing activities 
         
  
 
 
 
         
$  
 Cash at beginning of the year 
         
  
 Cash at end of the year 
         
$  

 

 

 

Statement of Cash Flows—Direct Method

The comparative balance sheet of Rucker Photography Products Inc. for December 31, 2014 and 2013, is as follows:

  Dec. 31, 2014 Dec. 31, 2013
Assets    
Cash $248,420   $232,680  
Accounts receivable (net) 89,990   83,570  
Inventories 254,050   247,430  
Investments 0   95,860  
Land 130,300   0  
Equipment 280,290   218,760  
Accumulated depreciation-equipment (65,620)   (58,990)  
  Total $937,430   $819,310  
     
Liabilities and Stockholders' Equity    
Accounts payable (merchandise creditors) $169,670   $161,400  
Accrued expenses payable (operating expenses) 16,870   21,300  
Dividends payable 9,370   7,370  
Common stock, $10 par 50,620   40,150  
Paid-in capital in excess of par-common stock 190,300   111,430  
Retained earnings 500,600   477,660  
  Total $937,430   $819,310  

The income statement for the year ended December 31, 2014, is as follows:

Sales     $1,353,970
Cost of merchandise sold     557,500
Gross profit     $796,470
Operating expenses:      
  Depreciation expense $6,630    
  Other operating expenses 703,170    
    Total operating expenses     709,800
Operating income     $86,670
Other expense:      
    Loss on sale of investments     (25,880)
Income before income tax     $60,790
Income tax expense     19,450
Net income     41,340

The following additional information was taken from the records:

  1. Equipment and land were acquired for cash.
  2. There were no disposals of equipment during the year.
  3. The investments were sold for $69,980 cash.
  4. The common stock was issued for cash.
  5. There was a $18,400 debit to Retained Earnings for cash dividends declared.

Required:


  Hide    

Prepare a statement of cash flows, using the direct method of presenting cash flows from operating activities. Use the minus sign to indicate cash out flows, cash payments, and decreases in cash.



 Rucker Photography Products Inc. 
 Statement of Cash Flows 
 For the Year Ended December 31, 2014 
 Cash flows from operating activities: 
           
 
 
 
     
$  
   
 
 
 
 
$  
       
 
 
 
 
  
       
 
 
 
 
  
 
  
   
 Net cash flow from operating activities 
         
$  
 Cash flows from investing activities: 
           
 
 
 
     
$  
   
 
 
 
 
$  
       
 
 
 
 
  
 
  
   
 Net cash flow used for investing activities 
         
  
 Cash flows from financing activities: 
           
 
 
 
     
$  
   
 
 
 
     
  
   
 Net cash flow provided by financing activities 
         
  
 
 
 
         
$  
 Cash at beginning of the year 
         
  
 Cash at end of the year 
         
$  

 

 

 

Statement of Cash Flows—Direct Method

The comparative balance sheet of Flack Inc. for December 31, 2014 and 2013, is as follows:

       Dec. 31, 2014        Dec. 31, 2013
Assets          
Cash $ 205,300     $ 194,830  
Accounts receivable (net) 75,720     69,470  
Inventories 213,420     205,210  
Investments 0     79,850  
Land 109,390     0  
Equipment 233,250     183,660  
Accumulated depreciation-equipment (55,400)     (49,500)  
  $781,680     $683,520  
Liabilities and Stockholders' Equity
Accounts payable (merchandise creditors) $ 141,380     $ 134,650  
Accrued expenses payable (operating expenses) 14,220     17,770  
Dividends payable 7,800     6,200  
Common stock, $1 par 41,800     32,130  
Paid-in capital in excess of par—common stock 159,000     92,960  
Retained earnings 417,480     399,810  
  $781,680     $683,520  

The income statement for the year ended December 31, 2014, is as follows:

Sales   $1,277,600
Cost of merchandise sold   785,720
Gross profit   $ 491,880
Operating expenses:    
Depreciation expense $ 5,900  
Other operating expenses 416,500  
Total operating expenses   422,400
Operating income   $ 69,480
Other income:    
Gain on sale of investments   13,300
Income before income tax   $ 82,780
Income tax expense   33,110
Net income   $ 49,670

The following additional information was taken from the records:

  1. The investments were sold for $93,150 cash.
  2. Equipment and land were acquired for cash.
  3. There were no disposals of equipment during the year.
  4. The common stock was issued for cash.
  5. There was a $32,000 debit to Retained Earnings for cash dividends declared.

Required:


  Hide    

Prepare a statement of cash flows, using the direct method of presenting cash flows from operating activities. Use the minus sign to indicate cash out flows, cash payments, and decreases in cash.



 Flack Inc. 
 Statement of Cash Flows 
 For the Year Ended December 31, 2014 
 Cash flows from operating activities: 
           
 
 
 
     
$  
   
 
 
 
 
$  
       
 
 
 
 
  
       
 
 
 
 
  
 
  
   
 Net cash flow from operating activities 
         
$  
 Cash flows from investing activities: 
           
 
 
 
     
$  
   
 
 
 
 
$  
       
 
 
 
 
  
 
  
   
 Net cash flow used for investing activities 
         
  
 Cash flows from financing activities: 
           
 
 
 
     
$  
   
 
 
 
     
  
   
 Net cash flow provided by financing activities 
         
  
 
 
 
         
$  
 Cash at beginning of the year 
         
  
 Cash at end of the year 
         
$  

 

Subject Business
Due By (Pacific Time) 11/07/2014 01:00 pm
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