(c)
Interest payable balances:
Beginning of year ………………………
$ 7,500
End of year …………………………….
9,200
Interest expense …………………………
35,000
Cash paid for interest ……………………
$______
207)
For each of the following separate cases, use the information provided to calculate the missing cash
inflow or cash outflow using the direct method.
(a)
Accounts receivable balances:
Beginning of year ………………………
$ 60,000
End of year ……………………………..
63,000
Sales revenue (all on credit) ……………..
395,000
Cash received from customers
$_____
(b)
Accounts payable balances:
142
(b)
Accounts payable balances:
Beginning of year ……………………….
$ 42,000
End of year………………………………
31,000
Merchandise inventory balances:
Beginning of year ………………………
50,000
End of year ……………………………..
52,500
Cost of goods sold………………………..
250,000
Cash paid for merchandise inventory…….
$______
__
(c)
Interest payable balances:
Beginning of year ………………………
$ 7,500
End of year …………………………….
8,200
Interest expense …………………………
31,000
Cash paid for interest ……………………
$______
__
208)
Use the following information about the calendar-year cash flows of Park Company to prepare a
statement of cash flows (direct method) and a schedule of noncash investing and financing activities.
Cash and cash equivalents, beginning-year balance
$ 18,000
Cash and cash equivalents, year-end balance
78,750
Cash payments for merchandise inventory
75,750
Cash paid for store equipment
15,750
Cash borrowed on three-month note payable
22,500
Cash dividends paid
12,000
Cash paid for salaries
39,000
Cash payments for other operating expenses
48,000
Building purchased and financed by long-term note payable
78,000
Cash received from customers
220,500
Cash interest received
8,250
145
209)
For each of the following independent cases, use the information provided to calculate the missing
cash inflow or cash outflow using the direct method.
(a.) Interest payable, beginning-year……………………… $4,200
Interest expense………………………………………. 26,700
Interest payable, year-end……………………………. 3,000
Cash paid for interest………………………………… $
(b.) Prepaid insurance, beginning-year…………………… $ 7,000
Insurance expense…………………………………….. 16,800
Prepaid insurance, year-end…………………………… 3,400
Cash paid for insurance……………………………….. $
(c.) Interest receivable, beginning-year…………………… $ 800
Interest revenue……………………………………….. 12,600
Interest receivable, year-end………………………….. 1,200
Cash received for interest…………………………….. $
(d.) Accounts payable, beginning-year……………………. $ 60,000
Cost of goods sold…………………………………….. 244,000
Merchandise inventory, beginning-year………………. 35,000
Merchandise inventory, year-end……………………… 40,500
Accounts payable, year-end…………………………… 64,800
Cash paid for merchandise…………………………….. $
210)
Use the information provided below to calculate the cash paid for interest for the period.
Interest payable, beginning-year………………………
$4,200
Interest expense……………………………………….
26,700
Interest payable, year-end…………………………….
3,000
Cash paid for interest…………………………………
$
211)
Use the information provided to calculate the cash paid for insurance for the period
Prepaid insurance, beginning-year……………………
$ 7,000
Insurance expense……………………………………..
16,800
Prepaid insurance, year-end……………………………
3,400
Cash paid for insurance………………………………..
$
212)
Use the information provided to calculate the missing cash received for interest for the period.
Interest receivable, beginning-year……………………
$ 8
00
Interest revenue………………………………………..
12,600
Interest receivable, year-end…………………………..
1,200
Cash received for interest……………………………..
$
213)
Use the information provided to calculate the missing cash paid for merchandise for the period.
Accounts payable, beginning-year…………………….
$ 60,000
Cost of goods sold……………………………………..
244,000
Merchandise inventory, beginning-year……………….
35,000
Merchandise inventory, year-end………………………
40,500
Accounts payable, year-end……………………………
64,800
Cash paid for merchandise……………………………..
$
214)
Tate Company’s 20X2 income statement and changes in selected balance sheet accounts are given
below. Calculate the company’s net cash provided or used by operating activities using the direct
method.
Tate Company
Income Statement
For Year Ended December 31, 20X2
Sales
$248,000
Cost of goods sold
116,000
Gross profit
$132,000
Operating expenses:
Wages and salaries expense
$44,000
Rent expense
16,000
Depreciation expense
30,000
Amortization expense
12,000
Other expenses
18,000
120,000
Income from operations
$ 12,000
Gain on sale of equipment 150
26,000
Gain on sale of equipment
26,000
Income before taxes
$ 38,000
Income tax expense
13,300
Net Income
$ 24,700
The company also experienced the following during 20X2:
Increase in accounts receivable
$ 4,000
Increase in accounts payable (all accounts
payable transactions are for inventory)
16,000
Increase in income taxes payable
300
Decrease in prepaid expenses
10,000
Decrease in merchandise inventory
14,000
Decrease in long-term notes payable
20,000
Sales
$504,000
Cost of goods sold
327,600
Depreciation
42,000
Other operating expenses
125,500
(495,100
Other gains (losses):
Gain on sale of equipment
7,200
Income before taxes
16,100
Income tax expense
(4,800
Net income
$ 11,300
215)
Based on the information in the following income statement and balance sheet for Monterey
Corporation, determine the cash flows from operating activities using the direct method.
Monterey Corporation
Income Statement
For Year Ended December 31, 20X2
)
)
Monterey Corporation
Balance Sheets
At December 31
20X2
20X1
Cash
$64,650
$55,800
Accounts receivable
21,000
29,000
Inventory 152
58,000
52,100
Inventory
58,000
52,100
Equipment
240,000
222,000
Accumulated depreciation
(106,000
)
(96,000
Total assets
$277,650
$262,900
Liabilities:
Accounts payable
$28,400
$23,700
Income taxes payable
1,050
1,200
Total liabilities
$29,450
$24,900
Equity:
Common stock
$106,000
$106,000
Paid-in Capital in Excess of Par…………
18,000
18,000
Retained earnings
124,200
114,000
Total equity
$248,200
$238,000
Total liabilities and equity
$277,650
$262,900
)
216)
A company reported net income of $132,000, operating cash flows of $87,000, total cash flows of
$112,000, and average total assets of $1,053,000. Calculate its cash flow on total assets ratio.
217)
Keita Co. reported net income of $213.4 million, net cash provided by operating activities of
$151.3 million, total cash flows of $187.7 million, and average total assets of 2,314.8 million at the
end of the year. Calculate the cash flow on total assets ratio for Keita.
218)
Faster Freight Co. reported net cash provided by operating activities of $142.7 million and average
total assets of 1,762.5 million at the end of the year. Calculate the cash flow on total assets ratio for
Faster Freight.
219)
Babson reported assets of $13,362 million at January 1 and $13,369 million as of December 31 of
the current year. Babson’s net cash flows from operations were $2,204 million. Calculate the cash
flow on total assets ratio for Babson.
220)
A company reported operating cash flows in Year 1 of $33,100 and $26,220 in Year 2. Its average
total assets in Year 1 were $262,000 and $313,000 in Year 2. Calculate the cash flow on total
assets ratio for both years. Comment on the results.