- •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:
129. The following are comparative balance sheets and on income statement for Wentworth Company.
-
Wentworth Company
Balance Sheets
as of December 31
Assets
2006
2005
Cash
$ 21,500
$120,000
Accounts receivable
195,000
105,000
Inventory
180,000
225,000
Long-term investments
0
60,000
Totals
$396,500
$510,000
Liabilities and shareholders' equity
Accounts payable
$ 75,000
$120,000
Operating expenses payable
24,000
15,000
Bonds payable
70,000
100,000
Common stock
125,000
125,000
Retained earnings
102,500
150,000
Totals
$396,500
$510,000
-
Wentworth Company
Income Statement
For the Year Ended December 31, 2006
Sales
$560,000
Cost of goods sold:
Beginning inventory
$225,000
Purchases
330,000
Goods available for sale
555,000
Less: ending inventory
180,000
Cost of goods sold
375,000
Gross profit
185,000
Operating expenses
180,000
Income from operations
5,000
Other expenses:
Loss on sale of long-term investment
(7,500
)
Net loss
$ (2,500
)
Cash dividends of $45,000 were paid in 2006.
Required: Prepare a statement of cash flows for 2006 using the direct method.
Answer:
Note: This can be solved in spreadsheet form if the instructor wishes.
-
Wentworth Company
Statement of Cash Flows
For the Year Ended December 31, 2006
Cash flows from operating activities:
Cash inflows:
From customers
$470,000
Cash outflows:
To suppliers of goods
(375,000
)
For operating expenses
(171,000
)
Net cash flows from operating activities
$(76,000
)
Cash flows from investing activities:
Sale of long-term investments
52,500
Net cash flows from investing activities
52,500
Cash flows from financing activities:
Payment of bonds
(30,000
)
Payment of cash dividends
(45,000
)
Net cash flows from financing activities
(75,000
)
Net decrease in cash
(98,500
)
Cash balance, January 1
120,000
Cash balance, December 31
$ 21,500
Learning Objective: 8 Level of Learning: 3
Use the following to answer questions 130-135: