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Assignment -- 3 parts




Question;Part 1Bracewell Company reported net income of $190,330 for 2014. Bracewell also reported depreciation expense of$45,660 and a gain of $4,950 on disposal of plant assets. The comparative balance sheet shows an increase inaccounts receivable of $18,280 for the year, a $21,250 increase in accounts payable, and a $4,430 decrease inprepaid expenses.Prepare the operating activities section of the statement of cash flows for 2014. Use the indirect method. (Showamounts that decrease cash flow with either a ? sign e.g. ?15,000 or in parenthesis e.g. (15,000).)BRACEWELL COMPANYPartial Statement of Cash FlowsFor the Year Ended December 31, 2014$Adjustments to reconcile net income to$$Part 2Meera Corporation?s comparative balance sheets are presented below.MEERA CORPORATIONComparative Balance SheetsDecember 3120142013$14,670$10,050Accounts receivable20,72023,850Land20,14026,500CashBuildings69,99069,990Accumulated depreciation?buildings(14,910)(10,760)$110,610 $119,630 TotalAccounts payable$11,830$27,880Common stock74,58073,890Retained earnings24,200 17,860 $110,610 $119,630 TotalAdditional information:1. Net income was $22,998. Dividends declared and paid were $16,658.2. All other changes in noncurrent account balances had a direct effect on cash flows, except the change inaccumulated depreciation. The land was sold for $4,930.(a) Prepare a statement of cash flows for 2014 using the indirect method. (Show amounts that decrease cash flowwith either a ? sign e.g. ?15,000, or in parenthesis e.g. (15,000).)MEERA CORPORATIONStatement of Cash FlowsFor the Year Ended December 31, 2014$Adjustments to reconcile net income to$$$(b) Compute free cash flow.Free cash flow$Part 3The following account balances relate to the stockholders? equity accounts of Chipo Corp. at year?end.20142013Common stock, 10,500 and 10,000 shares, respectively, for 2014 and 2013$161,100$134,080Preferred stock, 5,000 shares139,490139,490Retained earnings302,730245,910A small stock dividend was declared and issued in 2014. The market value of the shares was $10,790. Cashdividends were $16,690 in both 2014 and 2013. The common stock has no par or stated value.(a) What was the amount of net income reported by Chipo Corp. in 2014?Net income$(b) Determine the amounts of any cash inflows or outflows related to the common stock and dividend accounts in2014.Common stockDividends$$(c) Indicate where each of the cash inflows or outflows identified in (b) would be classified on the statement of cashflows.Common stockDividends


Paper#39170 | Written in 18-Jul-2015

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