16 May Question 1 award: acct 212 homework 2 chapter 16
Question
1 award: acct 212 homework 2 chapter 16
2 out of
2.00 points
Exercise 16-1 Cash flow from operations (indirect) L.O. P2
| Rasheed Company reports net income of $460,000 for the year ended December 31, 2011. It also reports $82,800 depreciation expense and a $7,500 gain on the sale of machinery. Its comparative balance sheets reveal a $36,800 increase in accounts receivable, $18,860 increase in accounts payable, $10,120 decrease in prepaid expenses, and $14,260 decrease in wages payable. |
| Required: |
| Prepare only the operating activities section of the statement of cash flows for 2011 using the indirect method. (Amounts to be deducted should be indicated with a minus sign. Omit the “$” sign in your response.) |
2.
award:
2 out of
2.00 points
Exercise 16-4 Cash flows from operating activities (indirect) L.O. P2
| Roney Company’s calendar-year 2011 income statement shows the following: Net Income, $422,000; Depreciation Expense, $52,328; Amortization Expense, $10,550; Gain on Sale of Plant Assets, $3,500. An examination of the company’s current assets and current liabilities reveals the following changes (all from operating activities): Accounts Receivable decrease, $13,400; Merchandise Inventory decrease, $38,860; Prepaid Expenses increase, $2,300; Accounts Payable decrease, $5,750; Other Payables increase, $874. |
| Use the indirect method to compute cash flow from operating activities. (Amounts to be deducted should be indicated with a minus sign. Omit the “$” sign in your response.) |
3.
award:
2 out of
2.00 points
Exercise 16-6 Cash flows from operating activities (indirect) L.O. P2
| BEKHAM COMPANY Income Statement For Year Ended December 31, 2011 |
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| Sales | $ | 1,731,000 | ||||
| Cost of goods sold | 848,190 | |||||
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| Gross profit | 882,810 | |||||
| Operating expenses | ||||||
| Salaries expense | $ | 237,147 | ||||
| Depreciation expense | 41,544 | |||||
| Rent expense | 46,737 | |||||
| Amortization expenses–Patents | 5,193 | |||||
| Utilities expense | 19,041 | 349,662 | ||||
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| 533,148 | ||||||
| Gain on sale of equipment | 6,924 | |||||
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| Net income | $ | 540,072 | ||||
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| Changes in current asset and current liability accounts for the year that relate to operations follow. |
| Accounts receivable | $ | 18,850 | increase | Accounts payable | $ | 14,325 | Decrease |
| Merchandise inventory | 19,975 | increase | Salaries payable | 5,650 | Decrease | ||
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| Use the above income statement and information about changes in noncash current assets and current liabilities to prepare only the cash flows from operating activities section of the statement of cash flows using the indirectmethod. (Amounts to be deducted should be indicated with a minus sign. Omit the “$” sign in your response) |
4.
award:
0.80 out of
1.00 point
Exercise 16-8 Cash flows from investing activities L.O. P3
| a. | Sold land costing $325,000 for $410,000 cash, yielding a gain of $85,000. |
| b. | Paid $112,000 cash for a new truck. |
| c. | Equipment with a book value of $81,000 and an original cost of $170,000 was sold at a loss of $32,000. |
| d. | Long-term investments in stock were sold for $94,200 cash, yielding a gain of $14,750. |
| Use the above information to determine this company’s cash flows from investing activities.(Amounts to be deducted should be indicated with a minus sign. Omit the “$” sign in your response.) |
5.
award:
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