Concept explainers
Financial statements, including statement of cash flows
Pendray Systems Corporation began operations on January 1, 20Y5 as an online retailer of computer software and hardware. The following financial statement data were taken from Pcndrays records at the end of its first year of operations. December 31, 20Y5.
Instructions
Prepare a statement of cash flows for the year ended December 31, 20Y5.
Trending nowThis is a popular solution!
Chapter 1 Solutions
Survey of Accounting (Accounting I)
Additional Business Textbook Solutions
Advanced Financial Accounting
Principles Of Taxation For Business And Investment Planning 2020 Edition
PRINCIPLES OF TAXATION F/BUS.+INVEST.
Horngren's Financial & Managerial Accounting, The Financial Chapters (Book & Access Card)
Managerial Accounting (5th Edition)
Principles of Accounting Volume 1
- CASH DIVIDENDS AND INCOME TAXES During the year ended December 31, 20-2, Tatu Company completed the following selected transactions: REQUIRED Prepare journal entries for the transactions.arrow_forwardThe financial statements for Romeo and Company follow. Assume that the additional investment and the withdrawals were in the form of cash. Required Prepare a statement of cash flows for the year ended December 31, 2018. Check Figure Net cash flows from operating activities, 172,000arrow_forwardFinancial statements, including statement of cash flows Cassandra Corporation began operations on January 1, Year 1, as an online retailer of computer software and hardware. The following financial statement data were taken from Cassandra's records at the end of its first year of operations, December 31, Year 1. Accounts payable Accounts receivable Capital stock Cash Cash payments for operating activities Cash receipts from operating activities Cost of sales Dividends Income tax expense Income taxes payable Interest expense Inventories Note payable (due in ten years) Property, plant, and equipment Retained earnings Sales Selling and administrative expenses $ 20,000 110,000 252,000 ? 657,000 690,000 435,000 30,000 53,000 8,000 2,000 115,000 50,000 265,000 ? 800,000 80,000 Instructions 1. Prepare an income statement for the year ended December 31, Year 1.arrow_forward
- Use the following information about Ferron Company to prepare a complete statement of cash flows (direct method) for the current year ended December 31. Use a note disclosure for any noncash investing and financing activities. Cash and cash equivalents, P5 Dec. 31 prior year-end $ 40,000 Cash and cash equivalents, Dec. 31 current year-end 148,000 Cash received as interest 3,500 Cash paid for salaries 76,500 Bonds payable retired by issuing common stock (no gain or loss on retirement) . 185,500 Cash paid to retire long-term notes payable . 100,000 Cash received from sale of equipment . 60,250 Cash received in exchange for six-month note payable $ 35,000 Land purchased by issuing long-term note payable 105,250 Cash paid for store equipment 24,750 Cash dividends paid . 10,000 Cash paid for other expenses 20,000 Cash received from customers 495,000 Cash paid for inventory 254,500arrow_forwardSelect the images below to enlarge. Balance Sheet Murawski Company Balance Sheet December 31 Current Assets Investments Cash and cash equivalents Accounts receivable (net) Current liabilities Property, plant, and equipment Intangibles and other assets Total assets Prepaid expenses Total current assets Sales Revenue $330 $360 470 400 Inventory 460 390 120 160 1,380 1,310 Murawski Company Income Statement For the Years Ended December 31 Costs and expenses Cost of goods sold Selling and Administrative expenses 2022 Income Statement Interest expense Total costs and expenses Income before income taxes Long-term liabilities Stockholder's equity - common 1,030 1,040 Total liabilities and stockholder's equity $2,340 $2,210 10 420 530 $2,340 Income tax expense Net Income $900 410 2022 $3,800 2021 955 2,400 25 3,380 420 126 $294 10 380 510 $2,210 $790 380 2021 $3,460 890 2,330 20 3,240 220 66 $154 Calculate the 2022 Inventory Turnover ratio. Use whole numbers rounded to 2 decimal places, if…arrow_forwardThe income statement for Rhino Company for the current year ended June 30 and balances of selected accounts at the beginning and the end of the year are as follows: Please see the attachment for details: Prepare the Cash flows from operating activities section of the statement of cash flows, using the direct method.arrow_forward
- Ratio of Cash to Monthly Cash Expenses Financial data for Bonita Company follows: For Year EndedDecember 31 Cash on December 31 $187,180 Cash flow from operations (458,400) a. Compute the ratio of cash to monthly cash expenses. Round your answer to one decimal place.fill in the blank 1 months b. Interpret the results computed in (a).arrow_forwardSalus Mea Inc., is developing its annual financial statements at December 31, current year. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized as follows: Balance sheet at December 31 Cash Accounts receivable Merchandise inventory Property and equipment Less: Accumulated depreciation Accounts payable Wages payable Note payable, long-term Common stock and additional paid-in capital Retained earnings Income statement for current year Sales Cost of goods sold Depreciation expense Other expenses Net income Additional Data: 1. Bought equipment for cash, $48,900. 2. Paid $14,700 on the long-term note payable. Current Year $ 73,250 15,250 23,450 209,250 (57.450) $263,750 $ 16,500 2,000 56,300 103,950 $5,000 $263.750 $205,000 (123,500) (11,700) (4),000) $26.800 3. Issued new shares of stock for $38,050 cash. 4. Dividends of S650 were declared and paid. 5. Other expenses all relate to wages. 6.…arrow_forwardStatement of financial position balances as at 31 December 20X8 and 20X9 are provided below for Laurel Inc. As at 31 December Assets Cash Short-term investments Accounts receivable Inventories Long-term investments Equipment Accumulated depreciation . Patent, net Total assets Liabilities and Shareholders' Equity Accounts payable Short-term bank debt Common shares Retained earnings Total liabilities and shareholders' equity $ Operating activities: 20X9 Laurel Inc. Statement of Cash Flows For the year ended 31 December 20X9 258,500 333,500 547,000 723,500 208,500 1,717,000 (467,000) 93,500 20X8 103,000 533,500 643,500 317,000 1,017,000 (458,500) 117,000 $ 3,414,500 $ 2,272,500 $ 823,500 $ 357,000 Laurel Inc. additional information: .Net earnings for 20x9 were $720,500. Equipment with an original cost of $417,000 and a NBV of $158,500 was sold for $158,500 during the year. Long-term investments were sold for $143,500 during the year. . • Short-term investments acquired are treasury bills…arrow_forward
- Determining Selected Amounts for Cash Flows from (Used for) Operating Activities-Direct Method Selected data taken from the accounting records of Ginis Inc. for the current year ended December 31 are as follows: Balance, December 31 Balance, January 1 Accrued expenses payable (operating expenses) $6,100 $6,670 Accounts payable (merchandise creditors) 37,580 41,480 Inventories 71,190 77,380 During the current year, the cost of merchandise sold was $400,400, and the operating expenses other than depreciation were $81,800. The direct method is used for presenting the cash flows from operating activities on the statement of cash flows. a. Determine the amount reported on the statement of cash flows for cash paid for merchandise. b. Determine the amount reported on the statement of cash flows for cash paid for operating expenses. $arrow_forwardHuluduey Corporation’s comparative balance sheet for current assets and liabilities was as follows: Dec. 31, Year 2 Dec. 31, Year 1 Accounts receivable $31,340 $27,670 Inventory 17,180 16,090 Accounts payable 16,510 14,340 Dividends payable 51,850 49,250 Adjust net income of $211,930 for changes in operating assets and liabilities to arrive at net cash flow from operating activities. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. Use the minus sign to indicate cash outflows, cash payments, decreases in cash and for any adjustments, if required. Amount Descriptions Cash paid for dividends Decrease in accounts payable Decrease in accounts receivable Decrease in dividends payable Decrease in inventory Increase in accounts payable Increase in accounts receivable Increase in dividends payable Increase in inventory Net cash flow from operating…arrow_forwardBlooming Flower Company was started in Year 1 when it acquired $61,400 cash from the issue of common stock. The following data summarize the company's first three years' operating activities. Assume that all transactions were cash transactions. Purchases of inventory Sales Cost of goods sold Selling and administrative expenses Income Statements Balance Sheets Assets Cash Required Prepare an income statement (use multistep format) and balance sheet for each fiscal year. (Hint: Record the transaction data for each accounting period in the accounting equation before preparing the statements for that year.) Merchandise inventory Complete this question by entering your answers in the tabs below. Total assets Liabilities Stockholders' equity Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity Year 1 $22,300 26,500 12,400 5,310 $ 60,290 9,900 Prepare a balance sheet for each fiscal year. (Hint: Record the transaction data for each accounting…arrow_forward
- College Accounting (Book Only): A Career ApproachAccountingISBN:9781337280570Author:Scott, Cathy J.Publisher:South-Western College PubManagerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College Pub
- Financial Accounting: The Impact on Decision Make...AccountingISBN:9781305654174Author:Gary A. Porter, Curtis L. NortonPublisher:Cengage LearningCollege Accounting, Chapters 1-27 (New in Account...AccountingISBN:9781305666160Author:James A. Heintz, Robert W. ParryPublisher:Cengage LearningCollege Accounting, Chapters 1-27AccountingISBN:9781337794756Author:HEINTZ, James A.Publisher:Cengage Learning,