- •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:
118. Partial balance sheets and additional information are listed below for Sowell Company.
-
Sowell Company
Partial Balance Sheets
as of December 31
Assets
2006
2005
Cash
$40,000
$20,000
Accounts receivable
70,000
85,000
Inventory
40,000
35,000
Liabilities
Accounts payable
$54,000
$62,000
Additional information for 2006:
Net income was $88,000.
Depreciation expense was $19,000.
Required:
Prepare the operating activities section of the statement of cash flows for 2006 using the indirect method.
Answer:
-
Cash flows from operating activities:
Net income
$88,000
Adjustment for noncash effects:
Depreciation expense
19,000
Decrease in accounts receivable
15,000
Increase in inventory
(5,000
)
Decrease in accounts payable
(8,000
)
Net cash flows from operating activities
$109,000
Learning Objective: 4 Level of Learning: 3
119. Partial balance sheets and additional information are listed below for Rickey Company.
-
Rickey Company
Partial Balance Sheets
as of December 31
Assets
2006
2005
Cash
$20,000
$40,000
Accounts receivable
85,000
70,000
Inventory
35,000
40,000
Liabilities
Accounts payable
$62,000
$80,000
Additional information for 2006:
Net income was $160,000.
Depreciation expense was $20,000.
Required:
Prepare the operating activities section of the statement of cash flows for 2006 using the indirect method.
Answer:
-
Cash flows from operating activities:
Net income
$160,000
Adjustment for noncash effects:
Depreciation expense
20,000
Increase in accounts receivable
(15,000
)
Decrease in inventory
5,000
Decrease in accounts payable
(18,000
)
Net cash flows from operating activities
$152,000
Learning Objective: 4 Level of Learning: 3