151. Mary Kay Cosmetics
Selected data and additional information from the company’s records are presented below:
Balance Sheet Data
2014
2013
Cash
$235,000
246,000
Accounts receivable
$120,000
$150,000
Inventories
56,000
50,000
Accounts payable
38,000
70,000
Salaries payable
10,000
5,000
Equipment
110,000
70,000
Accumulated depreciation
28,000
32,000
Bonds payable
100,000
200,000
Common stock
300,000
200,000
Retained earnings
76,000
40,000
Income Statement Data
2014
Net sales
$920,000
Cost of goods sold
700,000
Operating expenses (excluding depreciation expense)
160,000
Net income (Includes depreciation expense and gain)
56,000
Gain on sale of equipment
4,000
Additional information:
1.
Equipment with a cost of $30,000 and a book value of $18,000 was sold for $22,000 during 2014.
2.
Common stock was issued to retire bonds payable during 2014.
3.
The only items affecting retained earnings in 2014 were net income and dividends declared and paid.
Refer to Mary Kay Cosmetics. How would the transaction to acquire a building by signing a 20-year mortgage note payable be reported on the
statement of cash flows for 2014?
152. Mary Kay Cosmetics
Selected data and additional information from the company’s records are presented below:
Balance Sheet Data
2014
2013
Cash
$235,000
246,000
Accounts receivable
$120,000
$150,000
Inventories
56,000
50,000
Accounts payable
38,000
70,000
Salaries payable
10,000
5,000
Equipment
110,000
70,000
Accumulated depreciation
28,000
32,000
Bonds payable
100,000
200,000
Common stock
300,000
200,000
Retained earnings
76,000
40,000
Income Statement Data
2014
Net sales
$920,000
Cost of goods sold
700,000
Operating expenses (excluding depreciation expense)
160,000
Net income (Includes depreciation expense and gain)
56,000
Gain on sale of equipment
4,000
Additional information:
1.
Equipment with a cost of $30,000 and a book value of $18,000 was sold for $22,000 during 2014.
2.
Common stock was issued to retire bonds payable during 2014.
3.
The only items affecting retained earnings in 2014 were net income and dividends declared and paid.
Refer to Mary Kay Cosmetics. Prepare the operating activities section of the statement of cash flows for 2014 assuming the direct method is used to
determine net cash flow from operating activities.
Collections from customers
$ 950,000
Payments for merchandise
(738,000)
Payments for operating expenses
(155,000)
Net cash inflow from operating activities
$ 57,000
153. Mary Kay Cosmetics
Selected data and additional information from the company’s records are presented below:
Balance Sheet Data
2014
2013
Cash
$235,000
246,000
Accounts receivable
$120,000
$150,000
Inventories
56,000
50,000
Accounts payable
38,000
70,000
Salaries payable
10,000
5,000
Equipment
110,000
70,000
Accumulated depreciation
28,000
32,000
Bonds payable
100,000
200,000
Common stock
300,000
200,000
Retained earnings
76,000
40,000
Income Statement Data
2014
Net sales
$920,000
Cost of goods sold
700,000
Operating expenses (excluding depreciation expense)
160,000
Net income (Includes depreciation expense and gain)
56,000
Gain on sale of equipment
4,000
Additional information:
1.
Equipment with a cost of $30,000 and a book value of $18,000 was sold for $22,000 during 2014.
2.
Common stock was issued to retire bonds payable during 2014.
3.
The only items affecting retained earnings in 2014 were net income and dividends declared and paid.
Refer to Mary Kay Cosmetics. Prepare the investing activities section of the company’s statement of cash flows for 2014.
Investing activities:
Proceeds from selling equipment
$ 22,000
Purchase of equipment
(70,000)
Net cash used by for investing activities
($48,000)
154. Mary Kay Cosmetics
Selected data and additional information from the company’s records are presented below:
Balance Sheet Data
2014
2013
Cash
$235,000
246,000
Accounts receivable
$120,000
$150,000
Inventories
56,000
50,000
Accounts payable
38,000
70,000
Salaries payable
10,000
5,000
Equipment
110,000
70,000
Accumulated depreciation
28,000
32,000
Bonds payable
100,000
200,000
Common stock
300,000
200,000
Retained earnings
76,000
40,000
Income Statement Data
2014
Net sales
$920,000
Cost of goods sold
700,000
Operating expenses (excluding depreciation expense)
160,000
Net income (Includes depreciation expense and gain)
56,000
Gain on sale of equipment
4,000
Additional information:
1.
Equipment with a cost of $30,000 and a book value of $18,000 was sold for $22,000 during 2014.
2.
Common stock was issued to retire bonds payable during 2014.
3.
The only items affecting retained earnings in 2014 were net income and dividends declared and paid.
Refer to Mary Kay Cosmetics. Prepare the financing activities section of the company’s statement of cash flows for 2014.
Financing activities:
Paid Dividends
$(20,000)
Cash paid for financing activities
$(20,000)
155. Mary Kay Cosmetics
Selected data and additional information from the company’s records are presented below:
Balance Sheet Data
2014
2013
Cash
$235,000
246,000
Accounts receivable
$120,000
$150,000
Inventories
56,000
50,000
Accounts payable
38,000
70,000
Salaries payable
10,000
5,000
Equipment
110,000
70,000
Accumulated depreciation
28,000
32,000
Bonds payable
100,000
200,000
Common stock
300,000
200,000
Retained earnings
76,000
40,000
Income Statement Data
2014
Net sales
$920,000
Cost of goods sold
700,000
Operating expenses (excluding depreciation expense)
160,000
Net income (Includes depreciation expense and gain)
56,000
Gain on sale of equipment
4,000
Additional information:
1.
Equipment with a cost of $30,000 and a book value of $18,000 was sold for $22,000 during 2014.
2.
Common stock was issued to retire bonds payable during 2014.
3.
The only items affecting retained earnings in 2014 were net income and dividends declared and paid.
Refer to Mary Kay Cosmetics. Prepare the operating activities section of a statement of cash flows for 2014 assuming the use of the indirect method
of determining net cash flow from operating activities.
Net income
$ 56,000
Adjustments to net income:
Add:
Less:
Calculations:
Decrease in accounts receivable ($150,000 – $120,000)
$ 30,000
Increase in salaries payable ($5,000 – $10,000)
$ 5,000
Gain on sale of equipment ($22,000 – $18,000)
$ 4,000
Increase in inventories ($56,000 – $50,000)
$ 6,000
Decrease in accounts payable ($70,000 – $38,000)
$ 32,000
156. Mary Kay Cosmetics
Selected data and additional information from the company’s records are presented below:
Balance Sheet Data
2014
2013
Cash
$235,000
246,000
Accounts receivable
$120,000
$150,000
Inventories
56,000
50,000
Accounts payable
38,000
70,000
Salaries payable
10,000
5,000
Equipment
110,000
70,000
Accumulated depreciation
28,000
32,000
Bonds payable
100,000
200,000
Common stock
300,000
200,000
Retained earnings
76,000
40,000
Income Statement Data
2014
Net sales
$920,000
Cost of goods sold
700,000
Operating expenses (excluding depreciation expense)
160,000
Net income (Includes depreciation expense and gain)
56,000
Gain on sale of equipment
4,000
Additional information:
1.
Equipment with a cost of $30,000 and a book value of $18,000 was sold for $22,000 during 2014.
2.
Common stock was issued to retire bonds payable during 2014.
3.
The only items affecting retained earnings in 2014 were net income and dividends declared and paid.
Refer to Mary Kay Cosmetics. Prepare the company’s statement of cash flows for the year ended December 31, 2014. Use the indirect method of
determining net cash flows from operating activities.
157. Selected data from the financial statements of Mars & Venus Counseling Center for the years ended
December 31, 2014 and 2013, are presented below:
(In thousands)
2014
2013
Cash and cash equivalents
$ ?
$ 4,500
Total current assets (except cash)
180,000
150,000
Income taxes paid
5,000
2,000
Interest paid
5,100
7,200
Net cash provided by operating activities
9,500
6,400
Net cash used by investing activities
5,100
6,300
Net cash provided by financing activities
1,500
7,400
Depreciation and amortization
7,000
5,000
Total stockholders’ equity
115,000
105,000
Net income
4,000
2,000
What is the amount of cash and cash equivalents at the end of 2014?
Net cash provided by operating activities
$ 9,500
Net cash used by investing activities
(5,100)
Net cash used by financing activities
1,500
Net increase in cash
$5,900
Cash & cash equivalents—beginning of year
4,500
Cash & cash equivalents—end of year
$10,400
158. Maritime Marine Services
Selected data from the financial statements for the years ended December 31, 2014 and 2013, are presented
below:
(In millions)
2014
2013
Property, plant and equipment
$14,100
$12,200
Accumulated depreciation
4,900
4,700
Investments
450
240
Short-term debt
55
57
Long-term debt
1,500
1,200
Common stock
597
567
Treasury—common stock
(21)
(21)
Retained earnings
3,522
3,426
Net income
770
713
The following additional information was obtained from the company’s records:
1.
Cash additions to property, plant, and equipment during 2014 were $2,300. An additional $250 of plant assets were acquired through debt
in a noncash transaction. Depreciation expense for 2014 was $400. Gains on disposals of property, plant and equipment during 2014 were
$40.
2.
The cash proceeds from the sale of investments in 2014 was $120. There was a $30 gain on the sale of the investments.
3.
Proceeds from long-term debt issued during 2014 was $200.
4.
The issuance of common stock totaled $30 in 2014.
Refer to Maritime Marine Services. What was the cost of the property, plant and equipment which was disposed of during 2014?
159. Maritime Marine Services
Selected data from the financial statements for the years ended December 31, 2014 and 2013, are presented
below:
(In millions)
2014
2013
Property, plant and equipment
$14,100
$12,200
Accumulated depreciation
4,900
4,700
Investments
450
240
Short-term debt
55
57
Long-term debt
1,500
1,200
Common stock
597
567
Treasury—common stock
(21)
(21)
Retained earnings
3,522
3,426
Net income
770
713
The following additional information was obtained from the company’s records:
1.
Cash additions to property, plant, and equipment during 2014 were $2,300. An additional $250 of plant assets were acquired through debt
in a noncash transaction. Depreciation expense for 2014 was $400. Gains on disposals of property, plant and equipment during 2014 were
$40.
2.
The cash proceeds from the sale of investments in 2014 was $120. There was a $30 gain on the sale of the investments.
3.
Proceeds from long-term debt issued during 2014 was $200.
4.
The issuance of common stock totaled $30 in 2014.
Refer to Maritime Marine Services. What was the amount of accumulated depreciation on the property, plant and equipment disposed of during
2014?
160. Maritime Marine Services
Selected data from the financial statements for the years ended December 31, 2014 and 2013, are presented
below:
(In millions)
2014
2013
Property, plant and equipment
$14,100
$12,200
Accumulated depreciation
4,900
4,700
Investments
450
240
Short-term debt
55
57
Long-term debt
1,500
1,200
Common stock
597
567
Treasury—common stock
(21)
(21)
Retained earnings
3,522
3,426
Net income
770
713
The following additional information was obtained from the company’s records:
1.
Cash additions to property, plant, and equipment during 2014 were $2,300. An additional $250 of plant assets were acquired through debt
in a noncash transaction. Depreciation expense for 2014 was $400. Gains on disposals of property, plant and equipment during 2014 were
$40.
2.
The cash proceeds from the sale of investments in 2014 was $120. There was a $30 gain on the sale of the investments.
3.
Proceeds from long-term debt issued during 2014 was $200.
4.
The issuance of common stock totaled $30 in 2014.
Refer to Maritime Marine Services. Assuming that the book value of the property, plant and equipment disposed of during 2014 was $90, what were
the cash proceeds from the disposal?
161. Maritime Marine Services
Selected data from the financial statements for the years ended December 31, 2014 and 2013, are presented
below:
(In millions)
2014
2013
Property, plant and equipment
$14,100
$12,200
Accumulated depreciation
4,900
4,700
Investments
450
240
Short-term debt
55
57
Long-term debt
1,500
1,200
Common stock
597
567
Treasury—common stock
(21)
(21)
Retained earnings
3,522
3,426
Net income
770
713
The following additional information was obtained from the company’s records:
1.
Cash additions to property, plant, and equipment during 2014 were $2,300. An additional $250 of plant assets were acquired through debt
in a noncash transaction. Depreciation expense for 2014 was $400. Gains on disposals of property, plant and equipment during 2014 were
$40.
2.
The cash proceeds from the sale of investments in 2014 was $120. There was a $30 gain on the sale of the investments.
3.
Proceeds from long-term debt issued during 2014 was $200.
4.
The issuance of common stock totaled $30 in 2014.
Refer to Maritime Marine Services. What was the cost of investments purchased during 2014?
162. Maritime Marine Services
Selected data from the financial statements for the years ended December 31, 2014 and 2013, are presented
below:
(In millions)
2014
2013
Property, plant and equipment
$14,100
$12,200
Accumulated depreciation
4,900
4,700
Investments
450
240
Short-term debt
55
57
Long-term debt
1,500
1,200
Common stock
597
567
Treasury—common stock
(21)
(21)
Retained earnings
3,522
3,426
Net income
770
713
The following additional information was obtained from the company’s records:
1.
Cash additions to property, plant, and equipment during 2014 were $2,300. An additional $250 of plant assets were acquired through debt
in a noncash transaction. Depreciation expense for 2014 was $400. Gains on disposals of property, plant and equipment during 2014 were
$40.
2.
The cash proceeds from the sale of investments in 2014 was $120. There was a $30 gain on the sale of the investments.
3.
Proceeds from long-term debt issued during 2014 was $200.
4.
The issuance of common stock totaled $30 in 2014.
Refer to Maritime Marine Services. What was the amount paid to retire long-term debt during 2014?