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TAGUCHI COMPANY Comparative Balance Sheets December 31

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QUIZ 1. TAGUCHI COMPANY Comparative Balance Sheets December 31 Assets 2011 2010 Cash $ 73,000 $ 22,000 Accounts receivable 85,000 76,000 Inventories 170,000 189,000 Land 75,000 100,000 Equipment 260,000 200,000 Accumulated depreciation (66,000) (32,000) Total $597,000 $555,000 Liabilities and Stockholders? Equity Accounts payable $ 39,000 $ 47,000 Bonds payable 150,000 200,000 Common stock ($1 par) 216,000 174,000 Retained earnings 192,000 134,000 Total $597,000 $555,000 Additional information: 1. Net income for 2011 was $103,000. 2. Cash dividends of $45,000 were declared and paid. 3. Bonds payable amounting to $50,000 was redeemed for cash $50,000. 4. Common stock was issued for $42,000 cash. 5. No equipment was sold during 2011, but land was sold at cost. Instructions Prepare a statement of cash flows for 2011 using the indirect method. QUIZ 2. The 2011 accounting records of Verlander Transport reveal these transactions and events. Payment of interest $ 10,000 Collection of accounts receivable $182,000 Cash sales 48,000 Payment of salaries and wages 53,000 Receipt of dividend revenue 18,000 Depreciation expense 16,000 Payment of income taxes 12,000 Proceeds from sale of vehicles 12,000 Net income 38,000 Purchase of equipment for cash 22,000 Payment of accounts payable Loss on sale of vehicles 3,000 for merchandise 115,000 Payment of dividends 14,000 Payment for land 74,000 Payment of operating expenses 28,000 Instructions Prepare the cash flows from operating activities section using the direct method. (Not all of the Items will be used.) SOLTUIN 1. Taguchi Company

 

Paper#20245 | Written in 18-Jul-2015

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