Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Accounting Basics Expert

Accounting


Home >> Accounting Basics

The comparative balance sheets for 2013 and 2012 and the statement of income for 2013 are given below for Wright Company. Additional information from Wright's accounting records is provided also.

WRIGHT COMPANY
Comparative Balance Sheets
December 31, 2013 and 2012
($ in 000s)

2013 2012
  Assets



  Cash $ 109    $ 70  
  Accounts receivable
110   
115  
  Short-term investment
52   
24  
  Inventory
115   
110  
  Land
82   
100  
  Buildings and equipment
615   
480  
     Less: Accumulated depreciation
(163)  
(115)


$ 920    $ 784   

  Liabilities



  Accounts payable $ 35    $ 43  
  Salaries payable
6   
8  
  Interest payable
7   
5  
  Income tax payable
7   
11  
  Notes payable
0   
27  
  Bonds payable
234   
180  
  Shareholders' Equity



  Common stock
355   
280  
  Paid-in capital-excess of par
161   
140  
  Retained earnings
115   
90  


$ 920    $ 784  

WRIGHT COMPANY
Income Statement
For Year Ended December 31, 2013
($ in 000s)
  Revenues



  Sales revenue

$ 460    
  Expenses



  Cost of goods sold $ 210    

  Salaries expense
67    

  Depreciation expense
48    

  Interest expense
17    

  Loss on sale of land
4    

  Income tax expense
64    
410    

  Net income

$ 50    



Additional information from the accounting records:
a. Land that originally cost $18,000 was sold for $14,000.
b.

The common stock of Microsoft Corporation was purchased for $28,000 as a short-term investment not classified as a cash equivalent.
c. New equipment was purchased for $135,000 cash.
d. A $27,000 note was paid at maturity on January 1.
e. On January 1, 2013, bonds were sold at their $54,000 face value.
f. Common stock ($75,000 par) was sold for $96,000.
g. Net income was $50,000 and cash dividends of $25,000 were paid to shareholders.
Required:

Prepare the statement of cash flows of Wright Company for the year ended December 31, 2013. Present cash flows from operating activities by the direct method. (You may omit the schedule to reconcile net income with cash flows from operating activities.)(Enter your answers in thousands. Amounts to be deducted should be indicated with a minus sign.)

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M9798398

Have any Question?


Related Questions in Accounting Basics

Question instructions provide complete answers to the

Question: Instructions: Provide complete answers to the following two problems: 1. Prepare the General Ledger journal entries for the General Fund for the Village of Bath for the year ended December 31, 2017. • The budge ...

Question 1 compare companys net income to its cash provided

Question: 1. Compare company's net income to its cash provided by operating activities for the most recent year-end. Which is larger? 2. Compare company's net income over the last two reporting periods. Next, compare com ...

Questions - q1 during 2017 belen paid the following

Questions - Q1. During 2017, Belen paid the following taxes: Property taxes on residence (paid from escrow account)$1,550Property tax portion of car registration (based on value) 400Property taxes on land held for long-t ...

Question - total fixed costs for randolph manufacturing are

Question - Total fixed costs for Randolph Manufacturing are $754,000. Total costs, including both fixed and variable, are $5,000,000 if 160,000 units are produced. The variable cost per unit is A. $26.54/unit. B. $31.25/ ...

Question - retail entry re just acquired land and a

Question - Retail Entry (RE) just acquired land and a building for a single sum of $400,000. An independent appraisal determined the fair values of the assets (if purchased separately) at $300,000 for the land, $200,000 ...

Question - for the year ended may 31 2015 nike inc

Question - For the year ended May 31, 2015, NIKE, Inc. financial statements included the following data: NIKE, Inc. Selected financial data Revenues 30,601 Cost of sales 16,534 Gross profit 14,067 Total selling and admin ...

Question - maple mount fishery is a canning company in

Question - Maple Mount Fishery is a canning company in Astoria. The company uses a normal costing system in which factory overhead is applied on the basis of direct labor costs. Budgeted factory overhead for the year was ...

Question - monty corporation was organized on january 1

Question - Monty Corporation was organized on January 1, 2020. It is authorized to issue 14,000 shares of 8%, $100 par value preferred stock, and 550,000 shares of no-par common stock with a stated value of $3 per share. ...

Question -what are the factors that affect the decision to

Question - What are the factors that affect the decision to prosecute an entity? How can computers and technology help in investigating a fraud? What kinds of challenges can the involvement of technology present to a cas ...

Question - wilson carver knives uses process costing in its

Question - Wilson Carver Knives uses process costing. In its Cutting Department, all the materials are added at the beginning of the process and conversion costs are added evenly during the processing. During the first m ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As

Follow Us

© Copyright 2013-14 mywordsolution.com All rights reserved