- •94. Lite Travel Company's accounting records include the following information:
- •95. Freeman Company's accounting records include the following information:
- •99. Hogan Company had the following account balances for 2006:
- •100. Hanson Company had the following account balances for 2006:
- •Problems
- •Required:
- •113. The accounting records of Westlake Industries provided the data below.
- •Required:
- •114. Prepare the spreadsheet entries necessary to determine the amount of cash received from customers for each of the four independent situations below.
- •115. Prepare the spreadsheet entries necessary to determine the amount of cash paid to suppliers for each of the four independent situations below.
- •116. Following are the income statement and some additional information for Carolina Consulting Company.
- •Required:
- •117. Following are the income statement and some additional information for Parson Corporation for 2006.
- •Required:
- •118. Partial balance sheets and additional information are listed below for Sowell Company.
- •Required:
- •119. Partial balance sheets and additional information are listed below for Rickey Company.
- •Required:
- •120. Partial balance sheets and additional information are listed below for Monaco Company.
- •Required:
- •121. Partial balance sheets and additional information are listed below for Ensign Company.
- •Required:
- •122. Partial balance sheets and additional information are listed below for Funk Company.
- •Required:
- •123. Partial balance sheets and additional information are listed below for Julius Company.
- •Required:
- •124. Partial balance sheets for Yarborough Company and additional information are found below.
- •Required:
- •125. Partial balance sheets for abc Company and additional information are provided below.
- •Required:
- •126. The accounting records of Harrison Company provided the data below.
- •Required:
- •127. The accounting records of Unlucky Company provided the data below
- •Required:
- •128. The Murdock Corporation reported the following balance sheet data for 2006 and 2005.
- •Required:
- •129. The following are comparative balance sheets and on income statement for Wentworth Company.
- •In its 2005 Annual Report to Shareholders, Henchman & Co. Provided the following Statement of Cash Flows:
Required:
Prepare a statement of cash flows for 2006 in good form using the indirect method for cash flows from operating activities.
Answer:
Note: This can be solved in spreadsheet form if the instructor wishes.
-
Murdock Company
Statement of Cash Flows
For the Year Ended December 31, 2006
Cash flows from operating activities:
Net income
$ 50,000
Adjustments for noncash effects:
Depreciation expense
53,000
Gain on sale of available for sale securities
(4,500
)
Gain on sale of equipment
(1,000
)
Increase in accounts receivable
(11,750
)
Increase in inventory
(20,000
)
Decrease in prepaid insurance
500
Decrease in accounts payable
(26,420
)
Decrease in salaries payable
(4,500
)
Decrease in notes payable
(50,000
)
Net cash flows from operating activities
$(14,670
)
Cash flows from investing activities:
Sale of available-for-sale securities
74,000
Sale of equipment
6,000
Purchase of equipment
(145,000
)
Net cash flows from investing activities
(65,000
)
Cash flows from financing activities:
Sale of bonds payable
200,000
Payment of cash dividends
(20,000
)
Net cash flows from financing activities
180,000
Net increase in cash
100,330
Cash balance, January 1
(22,955
)
Cash balance, December 31
$ 77,375
Learning Objective: 8 Level of Learning: 3