Accounting Chapter 12 6 Property, plant, and equipment 374,000354,000 Less accumulated 

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subject Words 2342
subject Authors Peter Brewer

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12221
12222
98.
Krech Corporation’s comparative balance sheet appears below:
Ending Balance
Beginning Balance
Assets:
Current assets:
Cash and cash equivalents
$31,000
$28,000
Accounts receivable
18,000
20,000
Inventory
58,000
56,000
Prepaid expenses
12,000
10,000
Total current assets
119,000
114,000
Property, plant, and equipment
374,000
354,000
Less accumulated depreciation
190,000
165,000
Net property, plant, and equipment
184,000
189,000
Total assets
$303,000
$303,000
Liabilities and Stockholders’ Equity:
Current liabilities:
Accounts payable
$13,000
$9,000
Accrued liabilities
52,000
53,000
Income taxes payable
67,000
69,000
Total current liabilities
132,000
131,000
Bonds payable
76,000
73,000
Total liabilities
208,000
204,000
Stockholders’ equity:
Common stock
28,000
26,000
Retained earnings
67,000
73,000
Total stockholders’ equity
95,000
99,000
Total liabilities and stockholders’ equity
$303,000
$303,000
The company’s net income (loss) for the year was ($3,000) and its cash dividends were
$3,000. It did not sell or retire any property, plant, and equipment during the year. The
company uses the indirect method to determine the net cash provided by operating
activities.
The company’s net cash provided by operating activities is:
12223
12224
99.
Krech Corporation’s comparative balance sheet appears below:
Ending Balance
Beginning Balance
Assets:
Current assets:
Cash and cash equivalents
$31,000
$28,000
Accounts receivable
18,000
20,000
Inventory
58,000
56,000
Prepaid expenses
12,000
10,000
Total current assets
119,000
114,000
Property, plant, and equipment
374,000
354,000
Less accumulated depreciation
190,000
165,000
Net property, plant, and equipment
184,000
189,000
Total assets
$303,000
$303,000
Liabilities and Stockholders’ Equity:
Current liabilities:
Accounts payable
$13,000
$9,000
Accrued liabilities
52,000
53,000
Income taxes payable
67,000
69,000
Total current liabilities
132,000
131,000
Bonds payable
76,000
73,000
Total liabilities
208,000
204,000
Stockholders’ equity:
Common stock
28,000
26,000
Retained earnings
67,000
73,000
Total stockholders’ equity
95,000
99,000
Total liabilities and stockholders’ equity
$303,000
$303,000
The company’s net income (loss) for the year was ($3,000) and its cash dividends were
$3,000. It did not sell or retire any property, plant, and equipment during the year. The
company uses the indirect method to determine the net cash provided by operating
activities.
The company’s net cash used in investing activities is:
12225
12226
100.
Salsedo Corporation’s balance sheet and income statement appear below:
Comparative Balance Sheet
Ending Balance
Beginning Balance
Assets:
Cash and cash equivalents
$31
$33
Accounts receivable
24
30
Inventory
53
47
Property, plant and equipment
461
390
Less accumulated depreciation
306
256
Total assets
$263
$244
Liabilities and stockholders’ equity:
Accounts payable
$42
$49
Accrued liabilities
16
17
Income taxes payable
39
40
Bonds payable
75
90
Common stock
53
50
Retained earnings
38
(2)
Total liabilities and stockholders’ equity
$263
$244
Income Statement
Sales
$634
Cost of goods sold
400
Gross margin
234
Selling and administrative expense
174
Net operating income
60
Gain on sale of equipment
10
Income before taxes
70
Income taxes
21
Net income
$49
Cash dividends were $9. The company sold equipment for $15 that was originally
12227
purchased for $10 and that had accumulated depreciation of $5. It did not issue any bonds
payable or repurchase any of its own common stock.
The net cash provided by (used in) operating activities for the year was:
12228
101.
Salsedo Corporation’s balance sheet and income statement appear below:
Comparative Balance Sheet
Ending Balance
Beginning Balance
Assets:
Cash and cash equivalents
$31
$33
Accounts receivable
24
30
Inventory
53
47
Property, plant and equipment
461
390
Less accumulated depreciation
306
256
Total assets
$263
$244
Liabilities and stockholders’ equity:
Accounts payable
$42
$49
Accrued liabilities
16
17
Income taxes payable
39
40
Bonds payable
75
90
Common stock
53
50
Retained earnings
38
(2)
Total liabilities and stockholders’ equity
$263
$244
Income Statement
Sales
$634
Cost of goods sold
400
Gross margin
234
Selling and administrative expense
174
Net operating income
60
Gain on sale of equipment
10
Income before taxes
70
Income taxes
21
Net income
$49
Cash dividends were $9. The company sold equipment for $15 that was originally
purchased for $10 and that had accumulated depreciation of $5. It did not issue any bonds
payable or repurchase any of its own common stock.
12229
The net cash provided by (used in) investing activities for the year was:
12230
102.
Salsedo Corporation’s balance sheet and income statement appear below:
Comparative Balance Sheet
Ending Balance
Beginning Balance
Assets:
Cash and cash equivalents
$31
$33
Accounts receivable
24
30
Inventory
53
47
Property, plant and equipment
461
390
Less accumulated depreciation
306
256
Total assets
$263
$244
Liabilities and stockholders’ equity:
Accounts payable
$42
$49
Accrued liabilities
16
17
Income taxes payable
39
40
Bonds payable
75
90
Common stock
53
50
Retained earnings
38
(2)
Total liabilities and stockholders’ equity
$263
$244
Income Statement
Sales
$634
Cost of goods sold
400
Gross margin
234
Selling and administrative expense
174
Net operating income
60
Gain on sale of equipment
10
Income before taxes
70
Income taxes
21
Net income
$49
Cash dividends were $9. The company sold equipment for $15 that was originally
purchased for $10 and that had accumulated depreciation of $5. It did not issue any bonds
payable or repurchase any of its own common stock.
The net cash provided by (used in) financing activities for the year was:
12231
12232
103.
The most recent balance sheet and income statement of Penaloza Corporation appear
below:
Comparative Balance Sheet
Ending Balance
Beginning Balance
Assets:
Cash and cash equivalents
$47
$39
Accounts receivable
49
55
Inventory
36
39
Property, plant and equipment
474
370
Less accumulated depreciation
250
218
Total assets
$356
$285
Liabilities and stockholders’ equity:
Accounts payable
$36
$35
Accrued liabilities
27
25
Income taxes payable
36
44
Bonds payable
88
80
Common stock
45
40
Retained earnings
124
61
Total liabilities and equity
$356
$285
Income Statement
Sales
$773
Cost of goods sold
468
Gross margin
305
Selling and administrative expense
189
Net operating income
116
Income taxes
35
Net income
$81
The company paid a cash dividend of $18. It did not dispose of any property, plant, and
equipment. The company did not retire any bonds payable or repurchase any of its own
common stock. The following questions pertain to the company’s statement of cash flows.
12233
The net cash provided by (used in) operating activities for the year was:
12234
104.
The most recent balance sheet and income statement of Penaloza Corporation appear
below:
Comparative Balance Sheet
Ending Balance
Beginning Balance
Assets:
Cash and cash equivalents
$47
$39
Accounts receivable
49
55
Inventory
36
39
Property, plant and equipment
474
370
Less accumulated depreciation
250
218
Total assets
$356
$285
Liabilities and stockholders’ equity:
Accounts payable
$36
$35
Accrued liabilities
27
25
Income taxes payable
36
44
Bonds payable
88
80
Common stock
45
40
Retained earnings
124
61
Total liabilities and equity
$356
$285
Income Statement
Sales
$773
Cost of goods sold
468
Gross margin
305
Selling and administrative expense
189
Net operating income
116
Income taxes
35
Net income
$81
The company paid a cash dividend of $18. It did not dispose of any property, plant, and
equipment. The company did not retire any bonds payable or repurchase any of its own
common stock. The following questions pertain to the company’s statement of cash flows.
The net cash provided by (used in) investing activities for the year was:
12235
12236
105.
The most recent balance sheet and income statement of Penaloza Corporation appear
below:
Comparative Balance Sheet
Ending Balance
Beginning Balance
Assets:
Cash and cash equivalents
$47
$39
Accounts receivable
49
55
Inventory
36
39
Property, plant and equipment
474
370
Less accumulated depreciation
250
218
Total assets
$356
$285
Liabilities and stockholders’ equity:
Accounts payable
$36
$35
Accrued liabilities
27
25
Income taxes payable
36
44
Bonds payable
88
80
Common stock
45
40
Retained earnings
124
61
Total liabilities and equity
$356
$285
Income Statement
Sales
$773
Cost of goods sold
468
Gross margin
305
Selling and administrative expense
189
Net operating income
116
Income taxes
35
Net income
$81
The company paid a cash dividend of $18. It did not dispose of any property, plant, and
equipment. The company did not retire any bonds payable or repurchase any of its own
common stock. The following questions pertain to the company’s statement of cash flows.
The net cash provided by (used in) financing activities for the year was:
12237
12238
106.
Financial statements of Rukavina Corporation follow:
Comparative Balance Sheet
Ending Balance
Beginning Balance
Assets:
Cash and cash equivalents
$36
$38
Accounts receivable
39
44
Inventory
34
35
Property, plant and equipment
386
360
Less accumulated depreciation
202
191
Total assets
$293
$286
Liabilities and stockholders’ equity:
Accounts payable
$71
$61
Bonds payable
176
220
Common stock
81
80
Retained earnings
(35)
(75)
Total liabilities and equity
$293
$286
Income Statement
Sales
$518
Cost of goods sold
336
Gross margin
182
Selling and administrative expense
113
Net operating income
69
Income taxes
21
Net income
$48
Cash dividends were $8. The company did not dispose of any property, plant, and
equipment. It did not issue any bonds payable or repurchase any of its own common stock.
The following questions pertain to the company’s statement of cash flows.
The net cash provided by (used in) operating activities for the year was:
12239
12240
107.
Financial statements of Rukavina Corporation follow:
Comparative Balance Sheet
Ending Balance
Beginning Balance
Assets:
Cash and cash equivalents
$36
$38
Accounts receivable
39
44
Inventory
34
35
Property, plant and equipment
386
360
Less accumulated depreciation
202
191
Total assets
$293
$286
Liabilities and stockholders’ equity:
Accounts payable
$71
$61
Bonds payable
176
220
Common stock
81
80
Retained earnings
(35)
(75)
Total liabilities and equity
$293
$286
Income Statement
Sales
$518
Cost of goods sold
336
Gross margin
182
Selling and administrative expense
113
Net operating income
69
Income taxes
21
Net income
$48
Cash dividends were $8. The company did not dispose of any property, plant, and
equipment. It did not issue any bonds payable or repurchase any of its own common stock.
The following questions pertain to the company’s statement of cash flows.
The net cash provided by (used in) investing activities for the year was:

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