WIXLIB

138.60 outof140points(99%)

1.award:10 out of10.00a.b.c.d.e.Net income for the year was 100,000.Dividends of 80,000 cash were declared and paid.Scoreteck's only noncash expense was 70,000 of depreciation.The company purchased plant assets for 70,000 cash.Notes payable of 20,000 were issued for 20,000 cash .Complete the following spreadsheet in preparation of the statement of cash ftows. (The statement ofcash ftows is not required.) Report operating activities under the indirect method.(Enter all amounts aspositive values.)SCORETECK CORPORATIONSpreadsheet for Statement of cash FlowsFor Year Ended December 31, 2013Analysis of ChangesDec.31 ,2012DebitDec. 31,2013CreditBalance Sheet- Debit Bal. AccountsCash 80,000Accounts receivable120,000Merchandise inventor/250,000Plant assets600,000 1,050,000 100,00070,000./r -60,000190,00020,000./230,000670,00070,000./1 1, 150,00070,000./ 170,000I140,000Balance Sheet- Credit Bal. AccountsAccumulated depreciationAccounts payableNotes payableCommon stockRetained earningsr1 Statement of Cash Flows150,000370,000I-- ation expense./70,000./Increase in accounts receivable./Decrease in accounts payable- ash paid to purchase plant assets ././Cash received from note payable./' 20,000./10,000./--70,000./ Financing activitiesCash paid for dividends250,00070,000././Investing activities100,000./ Net incomeDecrease in merchandise inventory ./390,00020,000./200,000- -Operating activities10,000./80,000./20,000./440,000 1 440,0001, 150,000

2.award:9.10 Olli Of10.00· .pomts · .The following transactions and events occurred during the year. Assuming that this company uses theindirect method to report cash provided by operating activities, indicate where each item would appearon its statement of cash ftows by placing an X in the appropriate column.NoncashInvesting &FinancingActivitiesStatement of cash ngActivitiesa. clared and paid a cash dividendb.Recorded depreciation expensed.Prepaid expenses increased in the yearxe.Accounts receivable decreased in the year·xf.Purchased land by issuing common stockg,Paid cash to purchase inventor/h.Sold equipment for cash, yielding a lossi.Accounts payable decreased in the yearIncome taxes payable increased-in the ar./I x./xPaid cash to settle long-term note payablejxxxxx././././././ x IxNot Reportedon Statementor in Notes I

3.l'l'Nard:10outof10.00.points . · ·Case X:Compute cash received from customers:SalesAccounts receivable, December 31, 20 13Accounts receivable, December 31, 20 14Case Y: Compute cash paid for rent:Rent expenseRent payable, December 31, 20 13Rent payable, December 31, 20 14Case Z: Compute cash paid for merchandise:Cost of goods soldMerchandise inventory, December 31, 20 13Accounts payable, December 31, 20 13Merchandise inventor/, December 31, 20 14Accounts payable, December 31, 20 14 515,00027,20033,600 139,8007,8006,200 525,000158,60066,700130,40082,000For each of the above three separate cases, use the information provided about the calendar-year20 14 operations of Sahim Company to compute the required cash ftow information.lcase :Cash received from customersCase Y:fcase Z: 508,600.ICash paid for rent 141,400.ICash paid for merchandise 48 1,500.I

4award:10 out of.10.00· ··········· points ···············The list includes all balance sheet accounts related to operating activities.Case X Case Y Case Z 4,000 100,000 72,000Net incomeDepreciation expense30,0008,00024,00040,00020,000Accounts receivable increase (decrease)(4,000)(20,000) (10,000) 10,000Inventor/ increase (decrease)Accounts payable increase (decrease)24,000 (22,000) 14,000Accrued liabilities increase (decrease)(44,000) 12,000(8,000)For each of the above separate cases, complete the below table to calculate the cash ftows fromoperations. (Amounts to be deducted should be indicated by a minus sign.)cash Flows from Operating Activities (Indirect)IIcaseX4,0001 Adjustments to reconcile net income to net cash provided by operations:Netlncome--Accounts payableAccounts receivableAccrued liabilitiesDepreciationInventoriesGash provided by (used for) operating activities././././././ caseY 100,000casez /24,000./20,000./10,000./(1 0,000)./(6,000) 88,000 96,000

5.award:10 out of10.00Tl1e following selected information is from Ellerby Company's comparative balance sheets.At December 31FurnitureAccumulated depreciation- Furniture20 132012 132,000 184,500(88,700) (11 0,700)The income statement reports depreciation expense for the year of 18,000. Also, furniture costing 52,500 was sold for its book value on December 31. 20 13.Complete the below table to calculate the cash received from the sale of furniture.Furniture184,500./Sale of assets1Beg.bal.,.I - -- .-- Sale of assets -- - - ----;' - -End.bal.,! 132,000lculate the cash received from the sale of furniture(at book value):Cost 52,500./Accum ated depreciation40,000./Book value ed t xt oti.cat :. t -0 !'XI' 'Id:,, ex .;.ted ,. .:1u: u ' 4'2,500 1Ifo1t11 ;.:t · 1S.O:d ; 1 ·. .,. o ·O".: rc: 1; ro PC«:., d; 1 . :ed.IAccumulated DepreciationBeg.bal.,40,000./ 2013 depreciationOEnd.bal.,11 0,700./18,000./88,700

6.sward:10 out of10.00The following selected information is from the Princeton Company's comparative balance sheets.At December 31Common stock, 10 par valuePaid·in capital in excess of parRetained earnings201320 12 105,000 100,000567,000 342,000313,500 287,500The company's net income for the year ended December 31, 20 13, was 48,000.1. Complete the below table to calculate the cash received from the sale of its common stock during20 13.Conmon stock, 10 parPaid-in capital in excess of parBeg.bal.,Beg.bal.,--IIssuance of common stock ./ ,--IIssuance of common stoc k ./ ,IIOEnd.bal.,105,000calculate the cash received from the sale of its common stock during 201 J:lca h received: ed ted e -:h .c1tc::. t o w. ""'"' t:x cted230,000./jao:!c . · -r.111.-io:!· :.; dY.:d -:. 1 M:.;.a :· "" : ·t:a:·,;):; -:·t. dt:.-.J -.tt::I.2. Complete the below table to calculate the cash paid for dividends during 20 13.Retained Earnings20 13 dividends./l seg.bal.287,500./22,000 1!20 13 Net income48,000./IO 0

7.award:10 out of10.00· ·· ·· ·· ·· ·· ··l oints ·· ·· ·· ·· ·· ·· ·· ·· ·· ·· ·· ·· ·· ·· ·· ·· ·· ·· ·· ·· ·· ·· ·· ·· ·· ·· ·· ····Additional short·term borrowingsPurchase of short·term investmentsCash dividends paidInterest paid 20,0005,00016,0008,000Compute cash ftows from financing activities using the above company information. (Amounts to l ededucted should be indicated by a minus sign.)inanciActivitiesAdditional short-term borrov-;ngs./ Cash dividends paid./20,000./(16,000)./0Gash provided by financing activities-------./ 4,000

8.award:10 out of10.00The statement of cash ftows is one of the four p rimar1 financial statements.2. Select at least three transactions classified as investing activities in a statement of cash ftows.0Plant asset purchases0Intangible asset acquisitions and dispo:salsD Purchase of long-term assets by issuing notes payable to seller0Purchases and sales of natural resourc esD Settle debt with non ash assets3. Select at least three transactions classified as financing activities in a statement of cash ftows.li1 Issuance and settlement of notes payableD Intangible asset acquisitions and disposals0Common stock issuanceD Exchange of stock or debt securities for non-cash assets0Cash paid for dividends4. Select at least three transactions classified as significant noncash financing and investing activitiesin the statement of cash ftows.0Exchange of stock or debt securities for noncash assetsD Bond retirement and issuance0Conversion of bonds into stock0Settle debt with noncash assetsD Intangible asset acquisitions and dispo:sals

9 award:10 out of10.00. ··points ···Sale of short-term investments 6,000Cash collections from customersPurc11ase of used equipmentDepreciation expense16,0005,0002,000Compute cash ftows from investing activities using the above company information. (Amounts to bededucted should be indicated by a minus sign.)Investing ActivitiesSale of short-term investments6 ,000.i'Purchase of used equipment(5,000).i0-Cash provided by investing activities.i 1,000------'--

10.sward:10 out of10.00MOSS COMPANYSelected Ba lance Sheet InformationDecember 31, 20 13 and 20 12201220 13Current assetsCash 84,650 26,800Accounts receivable32,00025,000Inventory54,10060,000Current liabilitiesAccounts payable25,70030,400Income taxes payable2,2002,050MOSS COMPANYIncome StatementFor Year Ended December 31, 20 13Sales 515,000Cost of goods sold33 1,600Gross profitOperating expensesDepreciation expe nseOther expenses183,400 36,000121,500157,500Income before taxesIncome taxes expenseNet income25,9007 ,700 18,200Use the information above to calculate this company's cash ftow s from operating activities using theindirect method. (Amounts to be deducted sho uld be indicated by a minus sign.)

Cash ftows from operating activities:Net income./ 18,200./Adjustments to reconcile net income to operating cash ftowAccounts payable increaseAccounts receivable decreaseDepreciationIncome taxes payable decreaseInventory increaseNet cash provided from operating activities./././"'"' 4,700./7,000./36,000 .I(150) .I(5,900}.I41,6500 59.850'!

11 .award:10 out of10.00pointsClassify the following cash nows as operating. investing, or nnanclng activities.1.Sold long-lenn invesbnents for cash.lnvesbng acllvibes2.Received cash payments from customers.Operaung acllvibes3.Paid cash for wages and salaries.Operaung activities4.Purchased inventories for cash.Operating activities5.Paid cash dividends.Financing actlv1tes6.Issued common stocK for cash.Financing activites7.Received cash interest on a note.Operating activities8.Paid cash Interest on outstanding notes.Operating activities9.Received cash from sale of I and at a loss.Investing activities10.Paid cash for property taxes on building.Operating activities././././././././././

12.sw.ard:9.50 out of10.00· ··············points ··· ··MONTGOMERY INC.Comparative Balance SheetsDecember 31, 20 14 and 20 1320 14AssetsCashAccounts receivable, netInventoryEquipmentAccum. depreciation-Equipment 30,40010,05090,10049,900(22,500)20 13 30,55012,15070, 15041,500(15,300)Total assets 157,950 139,050Liabilmes and EquityAccounts payableSalaries payableCommon stock, no par v alueRetained earnings 23,90050011 0,00023,550 25,400600100,00013,050Total liabilities and equity 157,950 139,050

MONTGOMER Y INC.Income State mentFor Year Ended Oecember 31, 2014Sales 45,575(1 8,950)Cost of goods soldGross profitOperating expensesDepreciation expenseOther expenses26,625 7,2005,550Total operating expense12,750Income before taxesIncome tax expense13,8753,375Net income 10,500

Additional Informationa. No dividends are declared or paid in 20 14.b. Issued additional stock for 10,000 cash in 20 14.c. Purchased equipment for cash in 2014; no equipment was sold in 2014.(1 )Use the above financial statements and addition.al information to prepare a statement of cash ftowsfor the year ended December 31, 20 14, using the indirect method. (Amounts to be deductedshould be indicated by a minus sign.)MONTGOMERY, INC.Statement of cash Flows (Indirect Method)For Year Ended December 31 , 2014Netlncome 10,500./jAdjustments to reconcile net income to net cash provided by operations:Decrease in accounts receivable(19,950)./Decrease in accounts payable./././Depreciation expenseJ7,200JDecrease in s.alaries payable./(100)./Increase in inventory2,100./(1,500)./0txCash ftov-,; from investing activitiesCash paid for equipment./Net cash used in investing activitiesNet cash provided by financing activitiesNet decrease in cashCash balance at beginnin9 of yearCash balance at end of year (1,750)(8,400)./0Cash ftov-,; from financing activitiesCash received from stock issuanceIJt./'./LIr(8,400)10,000./0.J 10,000(1 50)30.550./30,400 '