Prepare a statement of cash flows

Assignment Help Accounting Basics
Reference no: EM131769094

The comparative balance sheet of Cromme Inc. for December 31, 2016 and 2015, is as follows:

1

Dec. 31, 2016

Dec. 31, 2015

2

Assets

3

Cash

$625,650.00

$586,340.00

4

Accounts receivable (net)

228,170.00

208,030.00

5

Inventories

641,480.00

617,130.00

6

Investments

0.00

240,290.00

7

Land

328,170.00

0.00

8

Equipment

706,070.00

552,300.00

9

Accumulated depreciation-equipment

(165,580.00)

(147,010.00)

10

Total assets

$2,363,960.00

$2,057,080.00

11

Liabilities and Stockholders' Equity

12

Accounts payable (merchandise creditors)

$424,300.00

$404,860.00

13

Accrued expenses payable (operating expenses)

41,850.00

52,880.00

14

Dividends payable

23,200.00

19,880.00

15

Common stock, $2 par

150,000.00

100,000.00

16

Paid-in capital: Excess of issue price over par-common stock

417,500.00

280,000.00

17

Retained earnings

1,307,110.00

1,199,460.00

18

Total liabilities and stockholders' equity

$2,363,960.00

$2,057,080.00

The income statement for the year ended December 31, 2016, is as follows:

1

Sales

$5,378,129.00

2

Cost of merchandise sold

 3,306,510.00

3

Gross profit

$2,071,619.00

4

Operating expenses:

5

Depreciation expense

$18,570.00

6

Other operating expenses

1,755,879.00

7

Total operating expenses

1,774,449.00

8

Operating income

$297,170.00

9

Other income:

10

Gain on sale of investments

40,390.00

11

Income before income tax

$337,560.00

12

Income tax expense

133,650.00

13

Net income

$203,910.00

Additional data obtained from an examination of the accounts in the ledger for 2016 are as follows:

A. The investments were sold for $280,680 cash.
B. Equipment and purchase of land were acquired for cash.
C. There were no disposals of equipment during the year.
D. The common stock was issued for cash.
E. There was a $96,260 debit to Retained Earnings for cash dividends declared.

Prepare a statement of cash flows, using the direct method of presenting cash flows from operating activities. Be sure to complete the heading of the statement. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Use the minus sign only to indicate the net cash outflows for each section. "Deduct", "Less" or colons (:) will automatically appear if required.

Reference no: EM131769094

Questions Cloud

Write about a time you felt motivated at work : What would be an example of a situation where instruction is not necessary to solve a performance problem?
How does learning about music apply to your life : What is your personal reaction/response to this composer and/or the music we have studied so far in class?
Business cost of capital compare to the cost of capital : What options do small businesses have for raising capital? How does small business cost of capital compare to the cost of capital for a large business?
Find the probability that the player will win : In a game of darts, a player throws the dart and wins X = 30/D dollars, where D is the distance in inches of the dart from the center of the dartboard.
Prepare a statement of cash flows : Prepare a statement of cash flows, using the direct method of presenting cash flows from operating activities
Cost of capital is and how it is determined : Briefly explain what a firm's cost of capital is and how it is determined.
Prepare a state of shareholders equity of spain ltd : On July 1 20X3, Spain Ltd was registered as a public company. Prepare a state of Shareholders Equity of Spain Ltd on completion of the above transactions
Terms of an option-based approach : Explain the foundation of Merton's model in terms of an option-based approach.
Provides a reasonable approximation to the pdf : Use the R commands set.seed(111); hist(runif(100), freq=F) to generate a sample of size 100 from the uniform(0, 1) distribution and to plot its histogram.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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