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acct 212 homework 2 chapter 16

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Question;1 award: acct 212 homework 2 chapter 162 out of;2.00 points;Exercise 16-1 Cash flow from operations (indirect) L.O. P2;Rasheed;Company reports net income of $460,000 for the year ended December 31, 2011.;It also reports $82,800 depreciation expense and a $7,500 gain on the sale of;machinery. Its comparative balance sheets reveal a $36,800 increase in;accounts receivable, $18,860 increase in accounts payable, $10,120 decrease;in prepaid expenses, and $14,260 decrease in wages payable.;Required;Prepare;only the operating activities section of the statement of cash flows for 2011;using the indirect method. (Amounts;to be deducted should be indicated with a minus sign. Omit the;$" sign in your response.);2.;award:2 out of;2.00 points;Exercise 16-4 Cash flows from operating activities (indirect) L.O. P2;Roney;Company?s calendar-year 2011 income statement shows the following: Net;Income, $422,000, Depreciation Expense, $52,328, Amortization Expense;$10,550, Gain on Sale of Plant Assets, $3,500. An examination of the;company?s current assets and current liabilities reveals the following;changes (all from operating activities): Accounts Receivable decrease;$13,400, Merchandise Inventory decrease, $38,860, Prepaid Expenses increase;$2,300, Accounts Payable decrease, $5,750, Other Payables increase, $874.;Use;the indirect method to compute cash flow from operating;activities. (Amounts to be deducted should be;indicated with a minus sign. Omit the "$" sign in your;response.);3.;award:2 out of;2.00 points;Exercise 16-6 Cash flows from operating activities (indirect) L.O. P2;BEKHAM COMPANY;Income Statement;For Year Ended December 31, 2011;Sales;$;1,731,000;Cost;of goods sold;848,190;Gross;profit;882,810;Operating;expenses;Salaries;expense;$;237,147;Depreciation;expense;41,544;Rent;expense;46,737;Amortization;expenses?Patents;5,193;Utilities;expense;19,041;349,662;533,148;Gain;on sale of equipment;6,924;Net;income;$;540,072;Changes;in current asset and current liability accounts for the year that relate to;operations follow.;Accounts;receivable;$;18,850;increase;Accounts;payable;$;14,325;Decrease;Merchandise;inventory;19,975;increase;Salaries;payable;5,650;Decrease;Use the;above income statement and information about changes in noncash current;assets and current liabilities to prepare only the cash flows from operating;activities section of the statement of cash flows using the indirect method. (Amounts to be deducted should be indicated with a minus;sign. Omit the "$" sign in your response);4.;award:0.80 out of;1.00 point;Exercise 16-8 Cash flows from investing activities L.O. P3;a.;Sold;land costing $325,000 for $410,000 cash, yielding a gain of $85,000.;b.;Paid;$112,000 cash for a new truck.;c.;Equipment;with a book value of $81,000 and an original cost of $170,000 was sold at a;loss of $32,000.;d.;Long-term;investments in stock were sold for $94,200 cash, yielding a gain of $14,750.;Use the;above information to determine this company's cash flows from investing;activities.(Amounts;to be deducted should be indicated with a minus sign. Omit the "$;sign in your response.);5.;award:1 out of;1.00 point;Exercise 16-9 Cash flows from financing activities L.O. P3;a.;Net;income was $474,000.;b.;Issued common;stock for $72,000 cash.;c.;Paid;cash dividend of $11,000.;d.;Paid;$100,000 cash to settle a note payable at its $100,000 maturity value.;e.;Paid;$118,000 cash to acquire its treasury stock.;f.;Purchased;equipment for $86,000 cash.;Use the;above information to determine this company's cash flows from financing;activities.(Amounts;to be deducted should be indicated with a minus sign. Omit the "$;sign in your response.);Exercise 16-10 Preparation of statement of cash flows (indirect) L.O. P1;[The following information applies to;the questions displayed below.];Use the;following financial statements and additional information.;GECKO INC.;Comparative Balance Sheets;June 30, 2011 and 2010;2011;2010;Assets;Cash;$;114,000;$;56,900;Accounts;receivable, net;69,800;51,200;Inventory;66,500;95,800;Prepaid;expenses;5,900;4,500;Equipment;129,600;119,000;Accum.;depreciation?Equipment;(28,400;(10,500;Total;assets;$;357,400;$;316,900;Liabilities;and Equity;Accounts;payable;$;26,400;$;32,200;Wages;payable;7,500;16,100;Income;taxes payable;2,100;4,300;Notes;payable (long term);56,000;76,000;Common;stock, $5 par value;240,000;180,000;Retained;earnings;25,400;8,300;Total;liabilities and equity;$;357,400;$;316,900;GECKO INC.;Income Statement;For Year Ended June 30, 2011;Sales;$;672,000;Cost;of goods sold;410,000;Gross;profit;262,000;Operating;expenses;Depreciation;expense;$;58,500;Other;expenses;66,100;Total;operating expenses;124,600;137,400;Other;gains (losses);Gain;on sale of equipment;2,200;Income;before taxes;139,600;Income;taxes expense;55,840;Net;income;$;83,760;Additional;Information;a.;A $20,000;note payable is retired at its $20,000 carrying (book) value in exchange for;cash.;b.;The;only changes affecting retained earnings are net income and cash dividends;paid.;c.;New;equipment is acquired for $59,600 cash.;d.;Received;cash for the sale of equipment that had cost $49,000, yielding a $2,200 gain.;e.;Prepaid;Expenses and Wages Payable relate to Other Expenses on the income statement.;f.;All;purchases and sales of merchandise inventory are on credit.;Section Break;Exercise 16-10 Preparation of statement of cash flows (indirect) L.O.;P1;6.;award:2.64 out of;4.00 points;Exercise 16-10 Part 1;1.;Prepare;a statement of cash flows for the year ended June 30, 2011, using the indirect;method.(Amounts to be deducted should be;indicated with a minus sign. Omit the "$" sign in your response.);GECKO, INC.;Statement of Cash Flows;For Year Ended June 30, 2011;Cash;flows from operating activities;Net;income;$ 83,760;Adjustments;to reconcile net income to net cash;provided by operating;activities;Increase;in accounts receivable;Decrease;in merchandise inventory;Increase;in prepaid expenses;Decrease;in accounts payable;Decrease;in wages payable;Decrease;in income taxes payable;Depreciation;expense;Gain;on sale of plant assets;Net;cash provided by by operating activities;$ 49,000;Cash;flows from investing activities;Cash;paid for dividends;Cash;received from stock issuance;Net;cash used in in investing activities;40,000;Cash;flows from financing activities;Cash;paid for equipment;Cash;paid to retire notes;Cash;received from sale of equipment;Net;cash used in in financing activities;-28,400;Net;increase in cash;$ 65,000;Cash;balance at beginning of year;56,900;Cash;balance at end of year;$ 121,900;eBook LinkView Hint #1;Worksheet;Difficulty: Hard;Exercise 16-10 Part 1;Learning Objective: 16-P1 Prepare a statement of cash flows.;7.;award:0 out of;1.00 point;Exercise 16-10 Part 2;2.;Compute;the company's cash flow on total assets ratio for its fiscal year 2011. (Round your answer to 1 decimal place. Omit the;%" sign in your response.);Cash;flow on total assets ratio;31.9 %;8.;award:2 out of;2.00 points;Exercise 16-14 Reporting cash flows from operations (indirect) L.O. P2;Harold;Company reports the following information for its recent calendar year.;Sales;$;73,000;Expenses;Cost;of goods sold;41,000;Salaries;expense;12,000;Depreciation;expense;8,000;Net;income;$;12,000;Accounts;receivable increase;$;5,000;Inventory;decrease;2,000;Salaries;payable increase;900;Required;Prepare;the operating activities section of the statement of cash flows for Harold;Company using the indirect method.(Amounts to be deducted should be indicated with a minus;sign. Omit the "$" sign in your response.);9.;award:2 out of;2.00 points;Exercise 16-15 Reporting and interpreting cash flows from operations;(indirect) L.O. P2;Oregon;Company disclosed the following information for its recent calendar year.;Revenues;$;95,000;Expenses;Salaries;expense;74,000;Utilities;expense;28,000;Depreciation;expense;31,400;Other;expenses;9,000;Net;loss;$;(47,400;Accounts;receivable decrease;$;28,000;Purchased;a machine;21,000;Salaries;payable increase;28,000;Other;accrued liabilities decrease;13,000;Required;1.;Prepare;the operating activities section of the statement of cash flows using the;indirect method. (Amounts to be deducted and;loss amounts should be indicated with a minus sign. Omit the "$;sign in your response.);10.;award:2.59 out of;3.00 points;Exercise 16-17 Cash flows spreadsheet (indirect method) L.O. P4;a.;Net;income for the year was $40,000.;b.;Dividends;of $10,000 cash were declared and paid.;c.;Stylish's;only noncash expense was $65,000 of depreciation.;d.;The;company purchased plant assets for $60,000 cash.;e.;Notes;payable of $60,000 were issued for $60,000 cash.;Complete;the following spreadsheet in preparation of the statement of cash flows.;Report operating activities under the indirect method. (Leave no cells blank - be certain to enter "0";wherever required. Omit the "$" sign in your response.);11.;award:3 out of;3.00 points;Exercise 16-18 Statement of cash flows under IFRS (indirect) L.O. P1;Peugeot;S.A. reports the following financial information for the year ended December;31, 2008 (euros in millions).;Net;loss;?;480;Cash;from sales of treasury stock and other;?;846;Depreciation;and amortization;3,875;Cash;paid for dividends;362;Gains;on disposals and other;(368;Cash;from disposal of plant assets and intangibles;68;Net;increase in current assets;(413;Cash;paid for plant assets and intangibles;(3,530;Net;decrease in current liabilities;(2,228;Cash;and cash equivalents, December 31, 2007;5,991;Prepare;its statement of cash flows under the indirect method.(Enter your answers in millions. Amounts to be deducted and;loss amounts should be indicated with a minus sign. Omit the;?" sign in your response.)

 

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