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ACCOUNTING WILEY PLUS 23-4,23-7,23-11,23-12

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Question;The income statement of Rodriquez Company is shown below.RODRIQUEZ COMPANYINCOME STATEMENTFOR THE YEAR ENDED DECEMBER 31, 2012Sales$6,884,420Cost of goods soldBeginning inventory$1,897,410Purchases4,478,260Goods available for sale6,375,670Ending inventory1,601,260Cost of goods sold4,774,410Gross profit2,110,010Operating expensesSelling expenses448,740Administrative expenses695,6601,144,400Net income$965,610Additional information:1. Accounts receivable decreased $317,330 during the year.2. Prepaid expenses increased $160,690 during the year.3. Accounts payable to suppliers of merchandise decreased $281,450 during the year.4. Accrued expenses payable decreased $127,540 during the year.5. Administrative expenses include depreciation expense of $56,710.Prepare the operating activities section of the statement of cash flows using the direct method.Situation A:Chenowith Co. reports revenues of $191,900 and operating expenses of $111,340 in its first year of operations, 2012. Accounts receivable and accounts payable at year-end were $82,360 and $37,200, respectively. Assume that the accounts payable related to operating expenses. Ignore income taxes.Using the direct method, compute net cash provided (used) by operating activities. (If an amount reduces the account balance then enter with negative sign.)Net cashprovidedusedby operating activities$Situation B:The income statement for Edgebrook Company shows cost of goods sold $310,820 and operating expenses (exclusive of depreciation) $227,710. The comparative balance sheet for the year shows that inventory increased $23,390, prepaid expenses decreased $8,240, accounts payable (related to merchandise) decreased $18,620, and accrued expenses payable increased $11,740.Compute (a) cash payments to suppliers and (b) cash payments for operating expenses.(a) Cash payments to suppliers$(b) Cash payments for operating expenses$Condensed financial data of Fairchild Company for 2012 and 2011 are presented below.FAIRCHILD COMPANYCOMPARATIVE BALANCE SHEETAS OF DECEMBER 31, 2012 AND 201120122011Cash$1,807$1,095Receivables1,7501,294Inventory1,5931,902Plant assets1,8971,703Accumulated depreciation(1,203)(1,169)Long-term investments (held-to-maturity)1,3011,465$7,145$6,290Accounts payable$1,216$791Accrued liabilities200230Bonds payable1,4061,649Common stock1,9001,692Retained earnings2,4231,928$7,145$6,290FAIRCHILD COMPANYINCOME STATEMENTFOR THE YEAR ENDED DECEMBER 31, 2012Sales$6,812Cost of goods sold4,692Gross margin2,120Selling and administrative expenses920Income from operations1,200Other revenues and gainsGain on sale of investments90Income before tax1,290Income tax expense531Net income$759Additional information:During the year, $64 of common stock was issued in exchange for plant assets. No plant assets were sold in 2012. Cash dividends were $264.Prepare a statement of cash flows using the indirect method. (If an amount reduces the account balance then enter with negative sign.)Condensed financial data of Fairchild Company for 2012 and 2011 are presented below.FAIRCHILD COMPANYCOMPARATIVE BALANCE SHEETAS OF DECEMBER 31, 2012 AND 201120122011Cash$1,805$1,096Receivables1,7421,299Inventory1,5851,905Plant assets1,8941,700Accumulated depreciation(1,206)(1,178)Long-term investments (held-to-maturity)1,2941,469$7,114$6,291Accounts payable$1,209$793Accrued liabilities210236Bonds payable1,4011,648Common stock1,8911,703Retained earnings2,4031,911$7,114$6,291FAIRCHILD COMPANYINCOME STATEMENTFOR THE YEAR ENDED DECEMBER 31, 2012Sales$6,854Cost of goods sold4,702Gross margin2,152Selling and administrative expenses939Income from operations1,213Other revenues and gainsGain on sale of investments83Income before tax1,296Income tax expense534Net income$762Additional information:During the year, $73 of common stock was issued in exchange for plant assets. No plant assets were sold in 2012. Cash dividends were $270.Prepare a statement of cash flows using the direct method. (If an amount reduces the account balance then enter with negative sign.)

 

Paper#44387 | Written in 18-Jul-2015

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