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

What seasonal relatives would describe this situation

The manager of a fashionable restaurant open Wednesday through Saturday says that the restaurant does about 35 percent of its business on Friday night, 30 percent on Saturday

Calculate the cost rate for each activity

Lux Pty Ltd produces a single product,  The company uses a standard costing system. Based on producing 15500 units of product  per month, the standard cost specification.

Discuss any benefits you can think of for a company

Discuss any benefits you can think of for a company to (a) cross-list its equity shares on more than one national exchange, and (b) to source new equity capital from foreign

How would the following items affect the afn

Explain the additional funds needed equation. How would the following items affect the AFN? a) The dividend payout ratio, b) The profit margin, c) The capital intensity ratio,

Determing cost driver-computing cost

What is the appropriate cost driver for allocating overhead to pizzas in Year 1? Using normal costing, compute the cost of each of the 336,033 meat pizzas produced in year 1.

Price bus lines provides school bus service

Price Bus Lines provides school bus service to two school districts: East and West.Price has one support centre that is responsible for service, maintenance, and cleanup of it

Relevant costs-special sales order

Hull Motors, Inc. (HMI), produces small gasoline-powered motors for use in lawn mowers. The company has been growing steadily over the past five years and is operating at fu

Preparing list of all product components

Suppose that your team is going to form the company that will manufacture chocolate chip cookies. The team is responsible for preparing list of all product components and co

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

 
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