Problem 1. For the just completed year, Hanna Company had net income of $82,000. Balances in the company's current asset and current liability accounts at the beginning and end of the year were as follows:
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Current assets:
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December 31
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Beginning of
End of Year Year
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Cash
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$ 58,000
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$ 77.000
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Accounts receivable
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$ 166,000
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$ 182,000
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Inventory
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$ 439,000
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$ 358,000
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Prepaid expenses
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$ 11,000
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$ 14,000
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Current liabilities:
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Accounts payable
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$ 364,000
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$ 398,000
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Accrued liabilities
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$ 7,500
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$ 12.000
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Income taxes payable
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$ 36,000
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$ 26.000
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The Accumulated Depreciation account had total credits of $48,000 during the year. Hanna Company did not record any gains or losses during the year.
Required:
Using the indirect method, determine the net cash provided by operating activities for the year. (List any deduction in cash and cash outflows as negative amounts.)
Problem 2. The following changes took place last year in parvoik campany's sheet accounts:
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Asset and Contra•Asset Accounts
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Liabilities and Equity Accounts
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Cash
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$ 11
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D
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Accounts payable $ 35
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Accounts receivable
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$ 15
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I
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Accrued liabilities $ 15
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0
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Inventory
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$ 40
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D
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Income taxes payable $ 20
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Prepaid expenses
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$ 10
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I
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Bonds payable $ 132
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Long-term investments
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$ 12
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0
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Common stock $ 60
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0
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Property, plant, and equipment
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$ 260
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Retained earnings $ 55
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Accumulated depreciation
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$ 55
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I
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Long-term investments that had cost the company $12 were sold during the year for $28, and land that had cost $27 was sold for $15. In addition, the company declared and paid $9 in cash dividends during the year. Besides the sale of land, no other sales or retirements of plant and equipment took place during the year. Pavolik did not retire any bonds during the year or issue any new common stock.
The company's income statement for the year follows:
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Sales
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$ 750
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Cost of goods sold
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320
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Gross margin
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430
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Selling and administrative expenses
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330
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Net operating income
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100
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Nonoperating items:
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Loss on sale of land
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$ (12)
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Gain on sale of investment
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16
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4
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Income before taxes
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104
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Income taxes
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40
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Net Income
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$ 64
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The company's beginning cash balance was $110 and its ending balance was $99.
Required:
1. Using the indirect method, determine the net cash provided by / used in operating activities for the year. (List any deduction in cash and cash outflows as negative amounts.)
2. Prepare a statement of cash flows for the year. (List any deduction in cash and cash outflows as negative amounts.)
Problem 3.
Comparative financial statement data for Carmono Company follow
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Assets
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This Year
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Last Year
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Cash
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$ 9.50
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$ 18.00
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Accounts receivable
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58.00
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51.00
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Inventory
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102.50
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89.60
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Total current assets
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170.00
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158.60
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Property, plant, and equipment
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243.00
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202.00
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Less accumulated depreciation
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48.80
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36.60
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Net property, plant, and equipment
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194.20
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165.40
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Total assets
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$ 364.20
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$324.00
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Liabilities and Stockholders' Equity
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|
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Accounts payable
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$ 61.50
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$ 50.00
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Common stock
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134.00
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103.00
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Retained earnings
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168.70
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171.00
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Total liabilities and stockholders' equity
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$ 364.20
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$324.00
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For this year. the company reported net income as follows:
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Sales
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$1,050.00
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Cost of goods sold
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630.00
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Gross margin
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420.00
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Selling and administrative expenses
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400.00
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Net income
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$ 20.00 |
This year Carmono declared and paid a cash dividend. There were no sales of property, plant. and equipment during this year. The company did not repurchase any of its own stock this year.
Required:
1. Using the indirect method, prepare a statement of cash flows for this year. (List any deduction in cash and cash outflows as negative amounts. Round your Intermediate calculations and final answers to 2 decimal places.)
2. Compute Can-nono's free cash flow for this year.
Problem 4.
Yoric Company listed the net changes in its balance sheet accounts for the past year as follows:
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Cash
Accounts receivable
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Debits > Credits >
Credits by: Debits by: $ 121,200
170,500
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Inventory
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$ 63,300
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Prepaid expenses
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4,600
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Long-term loans to subsidiaries
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87,000
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Long-term investments
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94,000
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Plant and equipment
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280.000
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Accumulated depreciation
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65,800
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Accounts payable
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50.000
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Accrued liabilities
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5,500
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Income taxes payable
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9,200
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Bonds payable
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201,000
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Common stock
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123,000
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Retained earnings
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76.500
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$ 675,800
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$ 675.800
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The following additional information is available about last year's activities:
a. Net income for the year was $ ?
b. The company sold equipment during the year for $35,000. The equipment originally cost $160,300 and it had $126,400 In accumulated depreciation at the time of sale.
c. Cash dividends of $10,800 were declared and paid during the year.
d. The beginning and ending balances In the Plant and Equipment and Accumulated Depreciation accounts are given below:
Beginning Ending
Plant and equipment $ 2,915,000 $ 3,195.000
Accumulated depreciation $ 976,600 $ 1,042.400
e. The balance in the Cash account at the beginning of the year was $109,900; the balance at the end of the year was?
f. If data are not given explaining the change in an account, make the most reasonable assumption as to the cause of the change.
Required:
Using the indirect method, prepare a statement of cash flows for the year. (List any deduction in cash and cash outflows as negative amounts.)