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ACC - Wiley Plus Exercise - 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, 2012;Sales $6,884,420;Cost of goods sold Beginning inventory $1,897,410;Purchases 4,478,260;Goods available for sale 6,375,670;Ending inventory 1,601,260;Cost of goods sold 4,774,410;Gross profit 2,110,010;Operating expenses Selling expenses 448,740;Administrative expenses 695,660;1,144,400;Net income $965,610;Additional 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 cash providedusedby 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 2011;2012;2011;Cash $1,807;$1,095;Receivables 1,750;1,294;Inventory 1,593;1,902;Plant assets 1,897;1,703;Accumulated depreciation (1,203;(1,169;Long-term investments (held-to-maturity) 1,301;1,465;$7,145;$6,290;Accounts payable $1,216;$791;Accrued liabilities 200;230;Bonds payable 1,406;1,649;Common stock 1,900;1,692;Retained earnings 2,423;1,928;$7,145;$6,290;FAIRCHILD COMPANYINCOME STATEMENTFOR THE YEAR ENDED DECEMBER 31, 2012;Sales $6,812;Cost of goods sold 4,692;Gross margin 2,120;Selling and administrative expenses 920;Income from operations 1,200;Other revenues and gains Gain on sale of investments 90;Income before tax 1,290;Income tax expense 531;Net income $759;Additional 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 2011;2012;2011;Cash $1,805;$1,096;Receivables 1,742;1,299;Inventory 1,585;1,905;Plant assets 1,894;1,700;Accumulated depreciation (1,206;(1,178;Long-term investments (held-to-maturity) 1,294;1,469;$7,114;$6,291;Accounts payable $1,209;$793;Accrued liabilities 210;236;Bonds payable 1,401;1,648;Common stock 1,891;1,703;Retained earnings 2,403;1,911;$7,114;$6,291;FAIRCHILD COMPANYINCOME STATEMENTFOR THE YEAR ENDED DECEMBER 31, 2012;Sales $6,854;Cost of goods sold 4,702;Gross margin 2,152;Selling and administrative expenses 939;Income from operations 1,213;Other revenues and gains Gain on sale of investments 83;Income before tax 1,296;Income tax expense 534;Net income $762;Additional 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.)

 

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