- •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 the cash flows from operating activities section of the statement of cash flows using the direct method.
Answer:
-
Cash flows from operating activities:
Cash received from customers ($10,000 + $900)
$10,900
Cash paid to suppliers ($1,500 + $500 + $700)
(2,700
)
Cash paid for operating expenses
(2,000
)
Cash paid for taxes ($1,600 - $300)
(1,300
)
Net cash flows from operating activities
$4,900
Learning Objective: 3 Level of Learning: 3
117. Following are the income statement and some additional information for Parson Corporation for 2006.
-
Parson Corporation
Income Statement
For the Year Ended December 31, 2006
Net sales
$10,000
Cost of goods sold
(1,500
)
Gross margin
8,500
Operating expenses
$2,000
Depreciation expense
900
(2,900
)
Income before taxes
5,600
Income taxes
(1,600
)
Net income
$4,000
All sales were on credit and accounts receivable increased by $600 this year compared to last year. Merchandise purchases were on credit with a increase in accounts payable of $400 during the year. Ending inventory was $500 larger than beginning inventory. Income taxes payable increased $300 during the year. All operating expenses were paid for in cash.
Required:
Prepare the cash flows from operating activities section of the statement of cash flows using the indirect method.
Answer:
-
Cash flows from operating activities:
Net income
$4,000
Adjustment for noncash effects:
Depreciation expense
900
Increase in accounts receivable
(600
)
Increase in inventory
(500
)
Increase in accounts payable
400
Increase in taxes payable
300
Net cash flows from operating activities
$4,500
Learning Objective: 4 Level of Learning: 3