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ACG 2071 Managerial Accounting Reporting Cash Flows Minicase

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Question;ACG2071ManagerialAccountingReportingCashFlowsMinicaseCASHFLOWSPROBLEM:KiteCorporation,amerchandiser,recentlycompleteditscalendaryear2011operations.Fortheyear,(1)allsalesarecreditsales,(2)allcreditstoAccountsReceivablereflectcashreceiptsfromcustomers,(3)allpurchasesofinventoryareoncredit,(4)alldebitstoAccountsPayablereflectcashpaymentsforinventory,and(5)OtherExpensesarepaidinadvanceandareinitiallydebitedtoPrepaidExpenses.Thecompany'sbalancesheetsandincomestatementfollow.Prepareastatementofcashflowsingoodform.JosephCorporationComparativeBalanceSheetDecember31,2011and2010AssetsCashAccountsReceivableMerchandiseInventoryPrepaidExpensesEquipmentAccumulatedDepreciationTotalAssetsLiabilitiesandEquityAccountsPayableShorttermNotesPayableLongtermNotesPayableCommonStock,$5parPaidinCapitalinexcessRetainedEarningsTotalLiabilities&Equity$136,500.00$74,100.00$454,500.00$17,100.00$278,250.00$(108,750.00)$851,700.00$71,550.00$90,750.00$490,200.00$19,200.00$216,000.00$(93,000.00)$794,700.00$117,450.00$17,250.00$112,500.00$465,000.00$18,000.00$121,500.00$851,700.00$123,450.00$11,250.00$82,500.00$450,000.00$127,500.00$794,700.00ACG2071ManagerialAccountingReportingCashFlowsMinicaseJosephCorporationIncomeStatementDecember31,2011SalesCostofgoodssoldGrossprofitOperatingExpensesDepreciationexpenseRentExpenseSalariesExpenseOtherExpensesOthergainsandlossesLossonsaleofequipmentIncometaxexpenseNetIncome$36,600.00$150,000.00$175,000.00$67,850.00$1,083,000.00$585,000.00$498,000.00$429,450.00$68,550.00$2,100.00$66,450.00$9,450.00$57,000.00AdditionalInformationonYear2011Transactionsa. Thelossonthecashsaleofequipmentwas$2,100(detailsinb).b. Soldequipmentcosting$51,000,withaccumulateddepreciationof$20,850,for$28,050cash.c. Purchasedequipmentcosting$113,250bypaying$38,250cashandsigningalongtermnotepayableforthebalanced. Borrowed$6,000cashbysigningashorttermnotepayable.e. Paid$45,000cashtoreducethelongtermnotespayable.f. Issued3,000sharesofcommonstockfor$11cashpershare.g. Declaredandpaidcashdividendsof$63,000.

 

Paper#41394 | Written in 18-Jul-2015

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