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152. The following information is available for Snider Company:
Receipts from customers $180,000
Dividends from stock investments 3,000
Proceeds from sale of equipment 18,000
Proceeds from issuance of stock 90,000
Payments for goods 100,000
Payments for operating expenses 70,000
Interest paid 5,000
Taxes paid 4,000
Dividends paid 20,000
Required: Based on the preceding information, compute the net cash provided by operating activities.
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153. Dolan Company’s income statement showed revenues of $250,000 and operating expenses of $160,000. Accounts
receivable decreased by $60,000 and accounts payable increased by $40,000 during the year.
Required: Compute (A) cash receipts from customers and (B) cash payments for operating expenses using the direct
method.
154. The general ledger of Lopez Company provides the following information:
Beginning
End of Year of Year
Accounts Receivable $ 55,000 $ 94,000
Inventory 350,000 210,000
Accounts Payable 40,000 65,000
Net sales for the year were $2,100,000 and cost of goods sold were $1,500,000.
Required: Compute the following:
A. Cash receipts from customers.
B. Cash payments to suppliers.
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155. The income statement of Stuart Company is shown below:
STUART COMPANY
Income Statement
For the Year Ended December 31, Year 1
Sales $8,200,000
Cost of goods sold 5,400,000
Gross profit $2,800,000
Operating expenses
Selling expenses $500,000
Administrative expense 700,000
Depreciation expense 90,000
Amortization expense 30,000 1,320,000
Net income $1,480,000
Additional information:
1. Accounts receivable increased $400,000 during the year.
2. Inventory increased $250,000 during the year.
3. Prepaid expenses increased $200,000 during the year.
4. Accounts payable to merchandise suppliers increased $100,000 during the year.
5. Accrued expenses payable increased $180,000 during the year.
Required: Prepare the operating activities section of the statement of cash flows for the year ended December 31, Year 1,
for Stuart Company, using the direct method.
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156. The income statement of Bingham Inc. for the year ended December 31, Year 2, reported the following condensed
information:
Service revenue $600,000
Operating expenses 360,000
Income from operations $240,000
Income tax expense 60,000
Net income $180,000
Bingham’s balance sheet contained the following comparative data at December 31:
Year 2 Year 1
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Accounts receivable $50,000 $40,000
Accounts payable 35,000 50,000
Income taxes payable 6,000 3,000
Bingham has no depreciable assets. Accounts payable pertains to operating expenses.
Require: Prepare the operating activities section of the statement of cash flows using the direct method.
157. The income statement of Grimes Company is shown below:
GRIMES COMPANY
Income Statement
For the Year Ended December 31, Year 1
Sales $ 8,000,000
Cost of goods sold 5,400,000
Gross profit $ 2,600,000
Operating expenses
Selling expenses $500,000
Administrative expense 700,000
Depreciation expense 90,000
Amortization expense 30,000 (1,320,000)
Net income $ 1,280,000
Additional information:
1. Accounts receivable increased $500,000 during the year.
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2. Inventory increased $250,000 during the year.
3. Prepaid expenses increased $200,000 during the year.
4. Accounts payable to merchandise suppliers increased $150,000 during the year.
5. Accrued expenses payable increased $180,000 during the year.
Required: Prepare the operating activities section of the statement of cash flows for the year ended
December 31, Year 1, for Grimes Company, using the direct method.
158. Clover Company had the following information for the years Year 2 and Year 1:
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Clover Company
Income Statement
For the Year Ended December 31, Year 2
Sales $4,200,000
Cost of goods sold 2,150,000
Gross profit $2,050,000
Operating expense:
Selling expense $580,000
Administrative expense 440,000
Depreciation expense 40,000 1,060,000
Net income $ 990,000
Clover Company
Balance Sheet
December 31, Year 2
Year 2 Year 1
Assets
Cash $ 16,000 $ 22,000
Accounts receivable 325,000 412,000
Inventory 127,000 205,000
Property, plant and equipment 300,000 300,000
Accumulated depreciation 120,000 100,000
Total assets $888,000 $1,039,000
Liabilities
Accounts payable $ 46,000 $ 59,000
Accrued expenses 65,000 42,000
Stockholders’ equity 777,000 938,000
Total liabilities and equity $888,000 $1,039,000
Required: Prepare the operating activities section of the statement of cash flows using the direct method.
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159. Best Wishes Company had the following information for the year ended December 31, Year 1:
Best Wishes Company
Income Statement
For the Year Ended December 31, Year 1
Sales $470,000
Cost of goods sold 254,000
Gross profit $216,000
Operating expenses
Selling expense $110,000
Administrative expense 73,000
Amortization expense 14,000 197,000
Net income $ 19,000
Additional information:
a. Accounts receivable increased by $12,000.
b. Inventories increased by $28,000.
c. Prepaid expenses increased by $1,200.
d. Accounts payable to merchandise suppliers increased by $19,000.
e. Accrued expenses payable increased by $9,000.
Required: Prepare the operating activities section of the statement of cash flows for the year ended December 31, Year 1,
for Best Wishes Company, using the direct method.
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160. Land is exchanged for common stock
161. Reported profitable operations (Net Income)
162. Issued long-term debt
163. Payment of cash dividends
164. Sold equipment used in the business for cash
165. Payment of Operating Expenses
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166. Collection of Sales Revenue
167. Purchased land for cash
168. Issued Common Stock for cash
169. Paid off long-term debt
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170. Decrease in accounts payable during a period.
171. Declaration and payment of a cash dividend.
172. Loss on sale of land.
173. Decrease in accounts receivable during a period.
174. Redemption of bonds for cash.
175. Proceeds from sale of equipment at book value.
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176. Issuance of common stock for cash.
177. Purchase of a building for cash.
178. Acquisition of land in exchange for common stock.
179. Increase in merchandise inventory during a period.