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prepare a statement of cash flows (indirect method) for Park




CHAPTER 23 ASSIGNMENT;Credit will be withheld for each problem submitted;? without back-up, and;? not submitted on spreadsheet.;PROBLEM # 1;The income statement of Green Company is shown below.;GREEN COMPANY;INCOME STATEMENT;FOR THE YEAR ENDED DECEMBER 31, 2014;Sales $755,000;Cost of goods sold 543,000;Gross profit 212,000;Operating expenses;Selling expenses $52,000;Administrative expenses 89,000 141,000;Net income $71,000;Additional information;1. Accounts receivable decreased $63,000 during the year.;2. Inventory increased $38,000 during the year.;3. Prepaid expenses increased $11,000 during the year.;4. Accounts payable to increased $25,000 during the year.;5. Accrued expenses payable increased $8,000 during the year.;6. Administrative expenses include depreciation expense of $25,000.;Instruction: Prepare the operating activities section of the statement of cash flows for the year ended December;31, 2014, for Green Company, using the indirect method.;PROBLEM 2;Presented below is the income statement of Car, Inc.;Sales $380,000;Cost of goods sold 225,000;Gross profit $155,000;Operating expenses 85,000;Income before income taxes 70,000;Income taxes 28,000;Net income $ 42,000;In addition, the following information related to net changes in working capital is presented;Debit Credit;Cash $12,000;Accounts receivable 25,000;Inventories $19,400;Salaries payable (operating expenses) 8,000;Accounts payable 12,000;Income taxes payable 3,000 The company also indicates that depreciation expense for the year was $16,700 and that the deferred tax liability;account increased $2,600.;Instruction: Prepare a schedule computing the net cash flow from operating activities that would be shown on a;statement of cash flows using the direct method.;PROBLEM # 3;Park, Inc. has prepared the following comparative balance sheets for 2012 and 2013;2013 2012;Cash $ 287,000 $ 153,000;Accounts receivable 149,000 117,000;Inventory 150,000 180,000;Prepaid expenses 18,000 27,000;Plant assets 1,280,000 1,050,000;Accumulated depreciation (450,000) (375,000);Patent 153,000 174,000;$1,587,000 $1,326,000;Accounts payable $ 153,000 $ 168,000;Accrued liabilities 60,000 42,000;Mortgage payable ? 450,000;Preferred stock 525,000 ?;Additional paid-in capital?preferred 120,000 ?;Common stock 600,000 600,000;Retained earnings 129,000 66,000;$1,587,000 $1,326,000;1.The Accumulated Depreciation account has been credited only for the depreciation expense for the period.;2. The Retained Earnings account has been charged for dividends of $158,000 and credited for the net income;for the year.;The income statement for 2013 is as follows;Sales $1,980,000;Cost of sales 1,089,000;Gross profit 891,000;Operating expenses 670,000;Net income $ 221,000;Instruction: From the information above, prepare a statement of cash flows (indirect method) for Park, Inc. for;the year ended December 31, 2013.


Paper#19304 | Written in 18-Jul-2015

Price : $57