ACCT 211 Connect Homework Chapter 12 Problems Liberty University Solution

Question 1

Lansing Company’s 2017 income statement and selected balance sheet data (for current assets and current liabilities) at December 31, 2016 and 2017, follow.

Prepare the cash flows from operating activities section only of the company’s 2017 statement of cash flows using the indirect method. (Amounts to be deducted should be indicated with a minus sign.)

Question 2

Forten Company, a merchandiser, recently completed its calendar-year 2017 operations. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, and (5) Other Expenses are paid in advance and are initially debited to Prepaid Expenses. The company’s income statement and balance sheets follow.

Additional Information on Year 2017 Transactions

a.

The loss on the cash sale of equipment was $9,125 (details in b).

b.

Sold equipment costing $58,875, with accumulated depreciation of $34,125, for $15,625 cash.

c.

Purchased equipment costing $100,375 by paying $38,000 cash and signing a long-term note payable for the balance.

d.

Borrowed $4,400 cash by signing a short-term note payable.

e.

Paid $52,125 cash to reduce the long-term notes payable.

f.

Issued 2,900 shares of common stock for $20 cash per share.

g.

Declared and paid cash dividends of $50,900.

1. Prepare a complete statement of cash flows; report its operating activities using the indirect method. (Amounts to be deducted should be indicated with a minus sign.)

Question 3

Additional Information on Year 2017 Transactions

a.

Net income was $113,375.

b.

Accounts receivable increased.

c.

Inventory increased.

f.

Depreciation expense was $24,750.

g.

Sold equipment costing $58,875, with accumulated depreciation of $34,125, for $15,625 cash. This yielded a loss of $9,125.

h.

Purchased equipment costing $100,375 by paying $38,000 cash and (i.) by signing a long-term note payable for the balance.

i.

Borrowed $4,400 cash by signing a short-term note payable.

j.

Paid $52,125 cash to reduce the long-term notes payable.

k.

Issued 2,900 shares of common stock for $20 cash per share.

l.

Declared and paid cash dividends of $50,900.

Prepare a complete statement of cash flows using a spreadsheet; report its operating activities using the indirect method. (Enter all amounts as positive values.)

Question 4

Golden Corp., a merchandiser, recently completed its 2017 operations. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, (5) Other Expenses are all cash expenses, and (6) any change in Income Taxes Payable reflects the accrual and cash payment of taxes. The company’s balance sheets and income statement follow.

Prepare a complete statement of cash flows; report its cash inflows and cash outflows from operating activities according to the indirect method. (Amounts to be deducted should be indicated with a minus sign.)

Question 5

Prepare a complete statement of cash flows using a spreadsheet; report operating activities under the indirect method. (Enter all amounts as positive values.)