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Dolly Co. sold a machine that cost $74,000 and had a book value of $44,000 for$48,000




Question;Dolly Co. sold a machine that cost $74,000 and had a book value of $44,000 for$48,000. Data from Milner's comparative balance sheets are:12/31/1512/31/14Machinery$800,000$670,000Accumulated depreciation190,000136,000InstructionsWhat four items should be shown on a statement of cash flows (indirect method) fromthis information? Show your calculations.Presented below is the income statement of Patsy, Inc.:Sales revenue$380,000Cost of goods sold225,000Gross profit$155,000Operating expenses85,000Income before income taxes 70,000Income taxes28,000Net income$ ?s 42,000In addition, the following information related to net changes in working capital ispresented:DebitCreditCash $12,000Accounts receivable 20,000Inventories$19,400Salaries payable (operating expenses)Accounts payable14,000Income taxes payable 3,0008,000The company also indicates that depreciation expense for the year was $16,700 andthat the deferred tax liability account increased $2,600.InstructionsPrepare a schedule computing the net cash flow from operating activities that would beshown on a statement of cash flows using the indirect method.Ledler Corporation's balance sheet reported the following:Capital stock outstanding, 5,000 shares, par $30 per sharePaid-in capital in excess of par 80,000Retained earnings 100,000$150,000The following transactions occurred this year:(a) Purchased 200 shares of capital stock to be held as treasury stock, paying $60 pershare.(b) Sold 150 of the shares of treasury stock at $65 per share.(c) Sold the remaining shares of treasury stock at $50 per share.InstructionsPrepare the journal entry for these transactions under the cost method of accounting fortreasury stock.The following information pertains to Parsons Co.:Preferred stock, cumulative:Par value per share $100Dividend rate8%Shares outstanding 10,000Dividends in arrears noneCommon stock:Par value per share $10Shares issued120,000Dividends paid per share$2.10Market price per share$48.00Additional paid-in capital$500,000Unappropriated retained earnings (after closing) $270,000Retained earnings appropriated for contingencies$300,000Common treasury stock:Number of shares 10,000Total cost $250,000Net income $630,000InstructionsCompute (assume no changes in balances during the past year):(a) Total amount of stockholders? equity in the balance sheet(b) Earnings per share of common stock(c) Book value per share of common stock(d) Payout ratio of common stock(e) Return on common stock equityOn January 1, 2015, Warren Corporation had 1,000,000 shares of common stockoutstanding. On March 1, the corporation issued 150,000 new shares to raise additionalcapital. On July 1, the corporation declared and issued a 2-for-1 stock split. On October1, the corporation purchased on the market 500,000 of its own outstanding shares andretired them.InstructionsCompute the weighted average number of shares to be used in computing earnings pershare for 2015.


Paper#44171 | Written in 18-Jul-2015

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