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cHAPTER 23 ASSIGNMENT-accounting problems




Question;cHAPTER 23 ASSIGNMENTCredit will be withheld for each problem submitted? without back-up, and? not submitted on spreadsheet.PROBLEM # 1The income statement of Green Company is shown below.GREEN COMPANYINCOME STATEMENTFOR THE YEAR ENDED DECEMBER 31, 2014Sales $755,000Cost of goods sold 543,000Gross profit 212,000Operating expensesSelling expenses $52,000Administrative expenses 89,000 141,000Net income $71,000Additional 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 December31, 2014, for Green Company, using the indirect method.PROBLEM 2Presented below is the income statement of Car, Inc.:Sales $380,000Cost of goods sold 225,000Gross profit $155,000Operating expenses 85,000Income before income taxes 70,000Income taxes 28,000Net income $ 42,000In addition, the following information related to net changes in working capital is presented:Debit CreditCash $12,000Accounts receivable 25,000Inventories $19,400Salaries payable (operating expenses) 8,000Accounts payable 12,000Income taxes payable 3,000 The company also indicates that depreciation expense for the year was $16,700 and that the deferred tax liabilityaccount increased $2,600.Instruction: Prepare a schedule computing the net cash flow from operating activities that would be shown on astatement of cash flows using the direct method.PROBLEM # 3Park, Inc. has prepared the following comparative balance sheets for 2012 and 2013:2013 2012Cash $ 287,000 $ 153,000Accounts receivable 149,000 117,000Inventory 150,000 180,000Prepaid expenses 18,000 27,000Plant assets 1,280,000 1,050,000Accumulated depreciation (450,000) (375,000)Patent 153,000 174,000$1,587,000 $1,326,000Accounts payable $ 153,000 $ 168,000Accrued liabilities 60,000 42,000Mortgage payable ? 450,000Preferred stock 525,000 ?Additional paid-in capital?preferred 120,000 ?Common stock 600,000 600,000Retained earnings 129,000 66,000$1,587,000 $1,326,0001.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 incomefor the year.The income statement for 2013 is as follows:Sales $1,980,000Cost of sales 1,089,000Gross profit 891,000Operating expenses 670,000Net income $ 221,000Instruction: From the information above, prepare a statement of cash flows (indirect method) for Park, Inc. forthe year ended December 31, 2013.


Paper#38825 | Written in 18-Jul-2015

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