Solution 1 SOLUTION Activity Classification During the last 2 years of operations Barnes Company had the following transactions Required Classify each of
Solution SOLUTION Activity Classification During the last years of operations Barnes Company had the following transactions
Solution SOLUTION Activity Classification During the last years of operations Barnes Company
During the last years of operations Barnes Company had the following transactions Required Classify each of
Solution SOLUTION Activity Classification During the last years of operations
Barnes Company had the following transactions Required Classify each of
Solution SOLUTION Activity Classification During the last years
Solution SOLUTION Activity Classification
(Solution) 1 - SOLUTION Activity Classification During the last 2 years of operations, Barnes Company had the following transactions: Required: Classify each of...

Category: General
Words: 1050
Amount: $12
Writer:

Paper instructions

2 - SOLUTION Operating Cash Flows: Indirect Method Blaylock Company has provided the following partial comparative balance sheets and the income statement for 2014. Blaylock Company Comparative Balance Sheets At December 31, 2013 and 2014 2013 Current assets: Accounts receivable $357,000 Inventories 125,000 Current liabilities: Wages payable $300,000 Blaylock Company Income Statement For the Year Ended December 31, 2014 Revenues $1,200,000 Gain on sale of equipment 50,000 Less: Cost of goods sold -650,000 Less: Depreciation expense -125,000 Less: Interest expense -25,000 Net income $450,000 Required: Compute operating cash flows using the indirect method. Use a minus sign to indicate any decreases in cash or cash outflows. Blaylock Company Cash Flows from Operating Activities For the Year Ended December 31, 2014 Net Income 450000 Add (deduct) adjusting items:  A) Decrease in accounts payable B) Decrease in accounts receivable $75,750 C) Decrease in interest expense D) Decrease in preferred stock Or E) Increase in cost of goods sold A Decrease in bonds payable B) Decrease in interest expense C) Decrease in wages payable -62,500 D) Increase in cost of goods sold Or E) Increase in revenues A Decrease in bonds payable B) Decrease in interest expense C) Decrease in preferred stock D) Increase in cost of goods sold Or E) Increase in inventories -25,000 A Decrease in inventories B) Depreciation expense C) Increase in accounts receivable D) Increase in wages payable Or E) Interest expense -25000 A Gain on sale of equipment -50000 B) Loss on sale of equipment C) Net income D) Net increase in cash Or E) Retained earnings Net cash from operating activities $363,250 3 - SOLUTION Cash Flows from Investing Activities During the year, equipment with a book value of $125,000 was sold for $175,000 (original purchase cost of $225,000). New equipment was purchased. Murray Company provided the following comparative balance sheets: Murray Company Comparative Balance Sheets At December 31, 2013 and 2014 Long-Term Assets 2013 Plant and equipment $1,000,000 Accumulated depreciation -500,000 Land 500,000 Required:  Calculate the investing cash flows for the current year. Use a minus sign to indicate a cash outflow. Purchase of Plant and Equipment -250000 Sale of Plant and Equipment 175000 Purchase of Land -182,750 Net cash flow from Investing Activities -257750 4 - SOLUTION Adjustments to Net Income Consider the following independent events: Required:  Indicate whether each event will be added to or deducted from net income in order to compute cash flow from operations. a. Loss on sale of an asset ADD b. Decrease in accounts receivable ADD c. Increase in prepaid insurance LESS d. Depreciation expense ADD $357,000 125,000 $300,000 $1,200,000 50,000 -650,000 -125,000 -25,000 $450,000 450000 $75,750 A Decrease in bonds payable B) Decrease in interest expense C) Decrease in wages payable -62,500 D) Increase in cost of goods sold Or E) Increase in revenues A Decrease in bonds payable B) Decrease in interest expense C) Decrease in preferred stock D) Increase in cost of goods sold Or E) Increase in inventories -25,000 A Decrease in inventories B) Depreciation expense C) Increase in accounts receivable D) Increase in wages payable Or E) Interest expense -25000 A Gain on sale of equipment -50000 B) Loss on sale of equipment C) Net income D) Net increase in cash Or E) Retained earnings Net cash from operating activities $363,250 3 - SOLUTION Cash Flows from Investing Activities During the year, equipment with a book value of $125,000 was sold for $175,000 (original purchase cost of $225,000). New equipment was purchased. Murray Company provided the following comparative balance sheets: Murray Company Comparative Balance Sheets At December 31, 2013 and 2014 Long-Term Assets 2013 Plant and equipment $1,000,000 Accumulated depreciation -500,000 Land 500,000 Required:  Calculate the investing cash flows for the current year. Use a minus sign to indicate a cash outflow. Purchase of Plant and Equipment -250000 Sale of Plant and Equipment 175000 Purchase of Land -182,750 Net cash flow from Investing Activities -257750 4 - SOLUTION Adjustments to Net Income Consider the following independent events: Required:  Indicate whether each event will be added to or deducted from net income in order to compute cash flow from operations. a. Loss on sale of an asset ADD b. Decrease in accounts receivable ADD c. Increase in prepaid insurance LESS d. Depreciation expense ADD1 - SOLUTION ActviTy Classifcaton During The lasT 2 years oF operatons, Barnes Company had The Following Transactons: Required: ClassiFy each oF These Transactons as an operatng actviTy, an investng actviTy, or a fnancing actviTy. Also, indicaTe wheTher The actviTy is a source oF cash or a a. Purchased a new planT For $5,260,000. b. Issued bonds wiTh a six-year maTuriTy daTe For $2,104,000. FINANCING, Source of Cash c. ReporTed profTs oF $7,364,000 For The mosT recenT year. OPERATING, Source of Cash d. Sold equipmenT For $526,000. INVESTING, Source of Cash e. Paid cash dividends oF $2,104,000. FINANCING, Use of Cash F. Sold a 30% inTeresT in a company. FINANCING, Source of Cash g. Retred a long-Term noTe payable. FINANCING, Use of Cash h. ReporTed a loss For The year ($526,000). OPERATING, Use of Cash i. Issued common sTock For $1,052,000. FINANCING, Source of Cash 2 - SOLUTION Operatng Cash ±lows: IndirecT MeThod Blaylock Company has provided The Following partal comparatve balance sheeTs and The income sTaTemenT For 2014. Blaylock Company Comparatve Balance SheeTs AT December 31, 2013 and 2014 2013 2014 CurrenT asseTs: AccounTs receivable $357,000 $281,250 InvenTories 125,000 150,000 CurrenT liabilites: Wages payable $300,000 $237,500 Blaylock Company Income STaTemenT ±or The Year Ended December 31, 2014 Revenues $1,200,000 Gain on sale oF equipmenT 50,000 Less: CosT oF goods sold -650,000 Less: Depreciaton expense -125,000 Less: InTeresT expense -25,000 NeT income $450,000 Required: CompuTe operatng cash ²ows using The indirecT meThod. Use a minus sign To indicaTe any decreases in cash or cash ou³lows. Blaylock Company Cash ±lows From Operatng Actvites ±or The Year Ended December 31, 2014 Net Income 450000 Add (deducT) adjustng iTems: A) Decrease in accounTs payable B) Decrease in accounts receivable $75,750 C) Decrease in inTeresT expense D) Decrease in preFerred sTock Or E) Increase in cosT oF goods sold A Decrease in bonds payable B) Decrease in inTeresT expense C) Decrease in wages payable -62,500 D) Increase in cosT oF goods sold Or E) Increase in revenues A Decrease in bonds payable B) Decrease in inTeresT expense C) Decrease in preFerred sTock D) Increase in cosT oF goods sold Or E) Increase in inventories -25,000 A Decrease in invenTories B) Depreciaton expense C) Increase in accounTs receivable D) Increase in wages payable Or E) Interest expense -25000 INVESTING, Use of Cash

Answer

Get Essay Answer
1,200,000+ Questions
Satisfaction guaranteed