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There are five problems that I need help with on the attached excel sheet, Information needed to fill the excel sheet are also in a attached document. the designated numbers to do calculation are labeled January- February. This may seem confusing so feel free to ask questions if you do not understand the assignment.

Chapter 1 Exercise 2: Indirect calculation of operating cash flows

Video Corporation's balance sheet revealed the following account balance information:

Account

Dec. 31, 20X6

Dec. 31, 20X5

Accounts receivable

$52,000

$57,000

Merchandise inventory

75,000

68,000

Accounts payable

21,000

19,500

The accrual-basis net income was $107,000. In computing net income, the company recorded $12,600 of depreciation expense; there were no gains or losses from investing and financing activities.

On the basis of the preceding information, calculate Video's cash flows from operating activities by using the indirect method.

Chapter 1 Exercise 3:Indirect calculation of operating cash flows

Specialty Services Inc. reported a net income of $110,000 for the year just ended, which includes an $18,000 gain on the sale of long-term investments. The following data were obtained from comparative balance sheets:

 

Oct. 31, 20X2

Oct. 31, 20X1

Trade accounts receivable

$245,000

$203,000

230,000

308,000

Accumulated depreciation: equipment

120,000

65,000

Accounts payable

190,000

124,000

Accrued liabilities

38,000

73,000

There were no purchases or disposals of equipment during the year. The long-term investment had a carrying (book) value of $77,000 and was sold for cash on June 15.

On the basis of the preceding information, determine the cash provided by operating activities from November 1, 20X1 through October 31, 20X2. The firm uses the indirect method of statement preparation.

CHAPTER 1 Exercise 6: Equipment transaction and cash flow reporting

The property, plant, and equipment section of ProComp Inc.'s comparative balance sheet follows:

 

Dec. 31, 20X4

Dec. 31, 20X3

Property, plant, & equipment

  Land

$ 94,000

$ 94,000

  Equipment

652,000

527,000

  Less: Accumulated depreciation

(316,000)

(341,000)

New equipment purchased during 20X4 totaled $280,000. The 20X4 income statement disclosed equipment depreciation expense of $41,000 and a $9,000 loss on the sale of equipment. 

  1. Determine the cost and accumulated depreciation of the equipment sold during 20X4.
  2. Determine the selling price of the equipment sold.
  3. Show how the sale of equipment would appear on a statement of cash flows prepared by using the indirect method.

CHAPTER 1 PROBLEM 2:Operating activities: Direct and indirect methods
The 20X5 income statement of Office Products Inc. follows:

OFFICE PRODUCTS INC.
Income Statement
for the Year Ended December 31, 20X5

Net sales

 

$980,000

Cost of goods sold

Beginning inventory

$235,000

 

Net purchases

  720,000

 

Goods available for sale

$955,000

 

Less: Ending inventory

  260,000

 

Cost of goods sold

 

  695,000

Gross profit

 

$285,000

Expenses

Selling & administrative

$149,000

 

Depreciation

  54,000

  203,000

 

 

$ 82,000

Other revenue (expense)

Interest expense

mce_markernbsp;(18,000)

 

Gain on sale of equipment

  26,000

  8,000

Income before income taxes

 

mce_markernbsp;90,000

Income taxes

 

  27,000

Net income

 

mce_markernbsp;63,000

  1. The following additional information was obtained from the general ledger and management personnel:
    1. Accounts payable related to the purchases of merchandise decreased during 20X5 by $32,800. In contrast, accounts receivable increased by $23,700.
    2. Prepaid expenses and wages payable increased throughout 20X5 by $2,400 and $5,600, respectively.
    3. The balance in the income taxes payable account on January 1 was $4,900; the December 31 balance was $4,100.
    4. The company financed a $78,000 equipment purchase by signing a note payable that is due in 20X8.

Instructions

e.                  Prepare the operating activities section of the statement of cash flows by using the direct method.

f.                    Prepare the operating activities section of the statement of cash flows by using the indirect method.

CHAPTER 1 Problem 3:Cash flow information: Direct and indirect methods

The comparative year-end balance sheets of Sign Graphics Inc. revealed the following activity in the company's current accounts:

 

20X5

20X4

Increase
(decrease)

Current assets

  Cash

$ 55,400

$ 35,200

$ 20,200

  Accounts receivable (net)

83,800

88,000

(4,200)

  Inventory

243,400

233,800

9,600

  Prepaid expenses

25,400

24,200

1,200

Current liabilities

  Accounts payable

$ 123,600

$140,600

$(17,000)

  Taxes payable

43,600

49,200

(5,600)

  Interest payable

9,000

6,400

2,600

  Accrued liabilities

38,800

60,400

(21,600)

  Note payable

44,000

-

44,000

 

 The accounts payable were for the purchase of merchandise. Prepaid expenses and accrued liabilities relate to the firm's selling and administrative expenses. The company's condensed income statement follows:

SIGN GRAPHICS INC.
Income Statement
for the Year Ended December 31, 20X5

 Sales

 

$713,800

 Less: Cost of goods sold

 

  323,000

 Gross profit

 

$390,800

 Less: Selling & administrative expenses

$186,000

 

 Depreciation expense

17,000

 

 Interest expense

27,000

  230,000

 Add: Gain on sale of land

 

$160,800

 

 

  21,800

 Income before taxes

 

$182,600

 Income taxes

 

36,800

 Net income

 

$145,800

  1. Other data:
    1. Long-term investments were purchased for cash at a cost of $74,600.
    2. Cash proceeds from the sale of land totaled $76,200.
    3. Store equipment of $44,000 was purchased by signing a short-term note payable. Also, a $150,000 telecommunications system was acquired by issuing 3,000 shares of preferred stock.
    4. A long-term note of $49,400 was repaid.
    5. Twenty thousand shares of common stock were issued at $5.19 per share.
    6. The company paid cash dividends amounting to $128,600.

Instructions

g. Prepare the operating activities section of the company's statement of cash flows, assuming use of

1) the direct method.

2) the indirect method.

h. Prepare the investing and financing activities sections of the statement of cash flows.

Accounting Basics, Accounting

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