Managerial Accounting 1B
Financial
and Managerial Accounting
Chapter 12Exercise 12-5B Computation of cash flows (direct) L.O. P5
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Case A:
Compute cash received from
customers:
Sales
$
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510,000
Accounts receivable,
December 31, 2011
25,200
Accounts receivable,
December 31, 2012
34,800
Case B:
Compute cash paid for rent:
Rent expense
$
140,800
Rent payable, December 31,
2011
8,800
Rent payable, December 31,
2012
7,200
Case C:
Compute cash paid for
merchandise:
Cost of goods sold
$
528,000
Merchandise inventory,
December 31, 2011
159,600
Accounts payable, December
31, 2011
67,800
Merchandise inventory,
December 31, 2012
131,400
Accounts payable, December
31, 2012
84,000
For each of the above three
separate cases, use the information provided about the calendar-year 2012
operations of Sahim Company to compute the required cash flow
information. (Omit the “$” sign in
your response.)
Case A:
Cash received from customers
Case B:
Cash paid for rent
Case C:
Cash paid for merchandise
Exercise 12-6 Cash flows from operating activities (indirect)
L.O. P2
BEKHAM
COMPANY
Income Statement
For Year Ended December 31, 2011
Sales
$
1,818,000
Cost of goods sold
891,000
Gross profit
927,000
Operating expenses
Salaries
expense
$
248,535
Depreciation
expense
43,200
Rent
expense
48,600
Amortization
expensesâPatents
5,400
Utilities
expense
19,125
364,860
562,140
Gain on sale of
equipment
7,200
Net income
$
569,340
Changes in current asset and
current liability accounts for the year that relate to operations follow.
Accounts receivable
$
40,500
increase
Accounts payable
$
13,500
decrease
Merchandise inventory
27,000
increase
Salaries payable
4,500
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 “$” sign in your response)
Exercise 12-7B Cash flows from operating activities (direct)
L.O. P5
Changes in current asset and
current liability accounts for the year that relate to operations follow.
Use the above income statement and
information about changes in noncash current assets and current
liabilities to prepare only the cash provided
or used by operating activities section of the statement of cash flows for
this company using the direct method.(Amounts to be deducted should be indicated with a minus
sign. Omit the “$” sign in your response.)
Exercise 12-10 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.
Additional Information
a.
A $30,000 note payable
is retired at its $30,000 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 $58,600 cash.
d.
Received cash for the
sale of equipment that had cost $48,600, yielding a $2,000 gain.
e.
Prepaid Expenses and
Wages Payable relate to Other Expenses on the income statement.
f.
All purchases and
sales of merchandise inventory are on credit.
Exercise 12-10 Part 1
(1)
Prepare a statement of cash flows
for the year ended June 30, 2011, using the indirect method.(Amounts to be deducted should be indicated with a minus
sign. Omit the “$” sign in your response.)
Exercise 12-10 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
Exercise 12-13B Preparation of statement of cash flows (direct)
from Cash T-account L.O. P1
[The following information
applies to the questions displayed below.]
The following
summarized Cash T-account reflects the total debits and total credits to the
Cash account of Texas Corporation for calendar year 2011.
Cash
Balance,
Dec. 31, 2010
135,200
Receipts
from customers
6,000,000
Payments
for merchandise
1,590,000
Receipts
from dividends
208,400
Payments
for wages
550,000
Receipts
from land sale
220,000
Payments
for rent
320,000
Receipts
from machinery sale
710,000
Payments
for interest
218,000
Receipts
from issuing stock
1,540,000
Payments
for taxes
450,000
Receipts
from borrowing
2,600,000
Payments
for machinery
2,236,000
Payments
for long-term investments
2,260,000
Payments
for note payable
386,000
Payments
for dividends
500,000
Payments
for treasury stock
218,000
Balance, Dec. 31, 2011
$
?
6. Exercise 12-13B Part 1
(1)
Use this information to prepare a
complete statement of cash flows for year 2011. The cash provided or used by
operating activities should be reported using the direct method. (Amounts to be deducted should be indicated with a
minus sign. Omit the “$” sign in your response.)
7. Exercise 12-13B Part 2
(2)
Refer to the statement of cash
flows in part 1 to answer the following questions a through d:
a.(i) Which section shows the largest cash inflow?
a.
(i) Which section shows the
largest cash inflow?
(ii) Which section shows the
largest cash outflow?
b.
What is the largest individual
item among the investing cash outflows?
c.
The cash proceeds are larger from
d.
From borrowing activities the
company has
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