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Category > Accounting Posted 19 Apr 2017 My Price 12.00

ACC 201 Chapter 13 Problem set A

ACC 201 Chapter 13 Problem set A

Problem 13-1A

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Correct answer.

Your answer is correct.

 

 

You are provided with the following transactions that took place during a recent fiscal year.

Complete the table indicating whether each item (1) affects operating activities, investing activities, financing activities, or is a noncash transaction reported in a separate schedule, and (2) represents a cash inflow or cash outflow or has no cash flow effect. Assume use of the indirect approach.

Problem 13-3A

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Correct answer.

Your answer is correct.

 

 

The income statement of Toby Zed Company is presented here.

Toby Zed Company
Income Statement
For the Year Ended November 30, 2014

Sales revenue

     

$7,500,000

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

     

2,600,000

Operating expenses

     

1,150,000

Net income

     

$1,450,000


Additional information:

1.

 

Accounts receivable increased $200,000 during the year, and inventory decreased $500,000.

2.

 

Prepaid expenses increased $175,000 during the year.

3.

 

Accounts payable to suppliers of merchandise decreased $340,000 during the year.

4.

 

Accrued expenses payable decreased $105,000 during the year.

5.

 

Operating expenses include depreciation expense of $85,000.


Prepare the operating activities section of the statement of cash flows for the year ended November 30, 2014, for Toby Zed Company, using the indirect method. 
(Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

Problem 13-5A

Rattigan Company’s income statement contained the condensed information below.

Rattigan Company
Income Statement
For the Year Ended December 31, 2014

Service revenue

     

$970,000

Operating expenses, excluding depreciation

 

$624,000

   

Depreciation expense

 

55,000

   

Loss on disposal of plant assets

 

25,000

 

704,000

Income before income taxes

     

266,000

Income tax expense

     

40,000

Net income

     

$226,000


Rattigan’s balance sheet contained the comparative data at December 31, shown below.

   

2014

 

2013

Accounts receivable

 

$75,000

 

$60,000

Accounts payable

 

41,000

 

27,000

Income taxes payable

 

13,000

 

7,000


Accounts payable pertain to operating expenses.

Prepare the operating activities section of the statement of cash flows using the indirect method. 
(Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

Problem 13-7A

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Correct answer.

Your answer is correct.

 

 

Presented below are the financial statements of Rajesh Company.

Rajesh Company
Comparative Balance Sheets
December 31

Assets

 

2014

 

2013

Cash

 

$37,000

   

$20,000

 

Accounts receivable

 

33,000

   

14,000

 

Inventory

 

30,000

   

20,000

 

Equipment

 

60,000

   

78,000

 

Accumulated depreciation—equipment

 

(29,000

)

 

(24,000

)

   Total

 

$131,000

 

 

$108,000

 

             

Liabilities and Stockholders’ Equity

           

Accounts payable

 

$29,000

   

$ 15,000

 

Income taxes payable

 

7,000

   

8,000

 

Bonds payable

 

27,000

   

33,000

 

Common stock

 

18,000

   

14,000

 

Retained earnings

 

50,000

 

 

38,000

 

   Total

 

$131,000

 

 

$108,000

 

 

Rajesh Company
Income Statement
For the Year Ended December 31, 2014

Sales revenue

 

$242,000

Cost of goods sold

 

175,000

Gross profit

 

67,000

Operating expenses

 

24,000

Income from operations

 

43,000

Interest expense

 

3,000

Income before income taxes

 

40,000

Income tax expense

 

8,000

Net income

 

$32,000


Additional data:

1.

 

Depreciation expense is 13,300.

2.

 

Dividends declared and paid were $20,000.

3.

 

During the year equipment was sold for $9,700 cash. This equipment cost $18,000 originally and had accumulated depreciation of $8,300 at the time of sale.


(a) Prepare a statement of cash flows using the indirect method. 
(Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

 

Problem 13-9A

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Partially correct answer.

Your answer is partially correct.

 

 

Condensed financial data of Sinjh Inc. follow.

SINJH INC.
Comparative Balance Sheets
December 31

Assets

 

2014

 

2013

Cash

 

$100,350

   

$48,400

 

Accounts receivable

 

92,800

   

33,000

 

Inventory

 

112,500

   

102,850

 

Prepaid expenses

 

29,300

   

26,000

 

Long-term investments

 

140,000

   

114,000

 

Plant assets

 

265,000

   

242,500

 

Accumulated depreciation

 

(47,000

)

 

(52,000

)

   Total

 

$692,950

 

 

$514,750

 

             

Liabilities and Stockholders’ Equity

           

Accounts payable

 

$112,000

   

$67,300

 

Accrued expenses payable

 

16,500

   

17,000

 

Bonds payable

 

110,000

   

150,000

 

Common stock

 

220,000

   

175,000

 

Retained earnings

 

234,450

 

 

105,450

 

   Total

 

$692,950

 

 

$514,750

 

 

SINJH INC.
Income Statement
For the Year Ended December 31, 2014

Sales revenue

 

$392,780

   

Gain on disposal of plant assets

 

5,000

 

$397,780

Less:

       

     Cost of goods sold

 

135,460

   

     Operating expenses, excluding depreciation

 

12,410

   

     Depreciation expense

 

45,000

   

     Income tax expense

 

27,280

   

     Interest expense

 

4,730

 

224,880

Net income

     

$172,900


Additional information:

1.

 

New plant assets costing $80,000 were purchased for cash during the year.

2.

 

Old plant assets having an original cost of $57,500 and accumulated depreciation of 50,000 were sold for $12,500 cash.

3.

 

Bonds payable matured and were paid off at face value for cash.

4.

 

A cash dividend of $43,900 was declared and paid during the year.


Prepare a statement of cash flows using the indirect method. 
(Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

Problem 13-11A

The comparative balance sheets for Strackman Lux Company as of December 31 are presented below.

Strackman Lux Company
Comparative Balance Sheets
December 31

Assets

 

2014

 

2013

Cash

 

$59,520

   

$45,000

 

Accounts receivable

 

44,000

   

62,000

 

Inventory

 

154,550

   

142,000

 

Prepaid expenses

 

15,280

   

21,000

 

Land

 

145,000

   

130,000

 

Buildings

 

200,000

   

200,000

 

Accumulated depreciation—buildings

 

(60,000

)

 

(40,000

)

Equipment

 

228,000

   

155,000

 

Accumulated depreciation—equipment

 

(45,000

)

 

(35,000

)

   Total

 

$741,350

 

 

$680,000

 

             

Liabilities and Stockholders’ Equity

           

Accounts payable

 

$46,350

   

$40,000

 

Bonds payable

 

300,000

   

300,000

 

Common stock, $1 par

 

195,000

   

160,000

 

Retained earnings

 

200,000

 

 

180,000

 

   Total

 

$741,350

 

 

$680,000

 


Additional information:

1.

 

Operating expenses include depreciation expense of $40,000.

2.

 

Land was sold for cash at book value of $20,000.

3.

 

Cash dividends of $25,000 were paid.

4.

 

Net income for 2014 was $45,000.

5.

 

Equipment was purchased for $95,000 cash. In addition, equipment costing $22,000 with a book value of $12,000 was sold for $6,000 cash.

6.

 

Issued 35,000 shares of $1 par value common stock in exchange for land with a fair value of $35,000.


Prepare a statement of cash flows for the year ended December 31, 2014, using the indirect method. 
(Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

 

 

 

Answers

(118)
Status NEW Posted 19 Apr 2017 08:04 AM My Price 12.00

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file 1492591207-ACC 201 Chapter 13 Problem set A Answers.docx preview (1222 words )
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