Prepare the statement of cash flows for 2007

Assignment Help Managerial Accounting
Reference no: EM131289041

Exercise 1

Classify each of the following transactions as an operating activity, an investing activity or a financing activity cash flow, or a non cash transaction - Indicate also its effect on the Income statement (increase or decrease the profit)

1. Provide services for cash
2. Purchase marketable securities for cash
3. Paid cash for rent
4. Received interest on note receivable
5. Paid cash for salaries
6. Received advance payment for services
7. Paid a cash dividend
8. Provide services on account
9. Bought land with cash
10. Collected cash from receivables
11. Issued common stock for cash
12. Repaid principal and interest on a note payable
13. Declared a stock split
14. Purchased inventory with cash
15. Recorded depreciation of fixed asset
16. Paid insurance with cash
17. Issued a note payable in exchange for equipment

Exercise 2

Prepare the statement of Cash flows for 2007, using the indirect method, with the financial statements and additional information as below:

Additional information
1. Purchased land for $ 112,000
2. Purchased new equipment for $ 100,000
3. Sold old equipment that costs $ 132,000 with accumulated depreciation of
$ 102,000 for 20,000 cash. This transaction generated a loss of $ 10,000
4. Issued common stock for $ 50,000

BALANCE SHEET

 

 

Assets

2006

 

2007

Cash

40,600

 

68,800

Accounts Receivable

22,000

 

30,000

Inventory

176,000

 

160,000

Prepaid Rent

4,800

 

2,400

Equipment

288,000

 

256,000

Accumulated depreciation

(236,000)

 

(156,800)

Land

80,000

 

192,000

Total Assets

375,400

 

552,400

 

Liabilities & Equity Accounts Payable

 

 

76,000

 

 

 

67,000

Salaries Payable Stockholders' Equity

Common stock

24,000

 

200,000

 

28,000

 

250,000

Retained Earnings

75,400

 

207,400

Total Liabilities & Equity

375,400

 

552,400

 

INCOME STATEMENT 2007

 

 

 

Sales

1,500,000

 

 

Cost of Goods sold

797,200

 

 

Gross profit

702,800

 

 

Operating expenses Depreciation

 

 

22,800

 

 

Rent

24,000

 

 

Salaries

256,000

 

 

Other operating expenses

258,000

 

 

 

560,800

 

 

Operating Income

142,000

 

 

Loss on disposal of assets

10,000

 

 

Net Income

132,000

 

 

Attachment:- slides-cash-flow.rar

Reference no: EM131289041

Questions Cloud

Command line tools : Suppose you are a network administrator and your boss indicates that a budget has been set aside to upgrade the network servers for the entire company. Your boss asks you to recommend whether the company should upgrade the network servers to Windo..
How their credit is reported protected and accessed : List the essential information that a prospective borrower must provide in a residential loan application, and in a commercial loan.
Visual flowchart you produced : The other instructor loves the Visual Flowchart you produced. But he would really like it to be able to handle multiple students instead of just one at a time. He has asked you to expand the program so that multiple students and their test scores ..
Identify an example of kennedys use of repetition : Outline Kennedy's speech by dividing it into its four major sections, stating the purpose of each section and identifying which paragraphs form each section.
Prepare the statement of cash flows for 2007 : Prepare the statement of Cash flows for 2007, using the indirect method, with the financial statements and Classify each of the following transactions as an operating activity, an investing activity or a financing activity cash flow, or a non cash ..
Companies to identify system vulnerabilities : If known vulnerabilities in software are entry points for an attacker, why are the software vulnerabilities not corrected before the software is released? Should hackers be hired by companies to identify system vulnerabilities?
How are interest rates determined on hud/ fha loans : Distinguish between the release of liability for a veteran and the restoration of entitlement.
How is design for product similar to the design for process : How is the design for a product similar to the design for a process? How are they different? Your initial posting should be approximately 250 to 300 words.
How has fha achieved the goals for which it was established : Explain the difference between loan underwriting commitments made by the VA and those made by HUD/FHA.

Reviews

len1289041

11/24/2016 6:33:41 AM

Basically there are two exercises to be done in the assignment file, the slides cash flow are professor's slides, maybe it helps - Prepare the statement of Cash flows for 2007, using the indirect method, with the financial statements and additional information as below:

Write a Review

 

Managerial Accounting Questions & Answers

  Management accounting system in walmart

Analyze the Walmart's accounting and finance practices. This must be a formal business report which provides both specific processes and strategies involving budgeting, costing, capital decision making, capital acquisition, and cost of capital str..

  The company''s income statements for the years ended december

The company's income statements for the years ended December 31, 2014 and 2013 follow. Assume that all sales are on credit and then compute:

  How framework be used by managers as part of control system

What are the two major factors in the authors' framework? How can the framework be used by managers as part of a comprehensive management accounting and control system?

  What is the difference between product and period costs

What is the difference between product and period costs?

  Prepare a flexible budget performance report

Refer to information in QS 23-14. Assume that actual sales are $ 480,000, actual variable costs for the year are $ 112,000, and actual fixed costs for the year are $ 145,000.

  Explain the four step process used to compute

Explain the four-step process used to compute a predetermined overhead rate.

  What would be the effect on budgeted income

What would be the effect on budgeted income if half of the budgeted sales volume of Product B were shifted to Product A and C in equal rupee amounts, so that the total budgeted sales in rupee remains the same?

  Evaluate performance and control cost

As a production manager, one of your main tasks is to enhance efficiencies by either increasing productivity or reducing cost. Find out whether the responsibility reports required to track performance should be created by department, function, or ..

  This year the corporation reported

This year the corporation reported a $100,000 loss. How much of this loss may Corbin deduct?

  Record the transactions in journal entries

Record the transactions in journal entries - Lamed Corporation recorded the transactions for the just completed month.

  Portions of the financial statements for myriad products

Prepare the cash flows from operating activities section of the statement of cash flows for Myriad Products Company using the direct method.

  What will be the total manufacturing cost for this line

Presley Products Inc. is a manufacturer of limited edition dolls. They use operations costing to measure and track the costs incurred for specific product lines.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd