Type
Solution Manual
Book Title
Financial Accounting Fundamentals 5th Edition
ISBN 13
978-0078025754

978-0078025754 Chapter 12 Solution Manual Part 3

March 26, 2020
Problem 12-4AA (60 minutes)
FORTEN COMPANY
Spreadsheet for Statement of Cash Flows
For Year Ended December 31, 2015
December
31, 2014
Analysis of Changes
December
31, 2015
Debit
Credit
Balance sheetdebits
Cash ..........................................................
$ 49,800
Accounts receivable ..............................
(b)
$15,185
65,810
Inventory ..................................................
(c)
23,856
275,656
Balance sheet--credits
Accum. depreciationEquip. ..............
(g)
30,125
(f)
20,750
$ 36,625
Accounts payable ................................
(e)
61,534
53,141
Operating activities
Decrease in accounts payable .............
(e)
61,534
Depreciation expense ............................
(f)
20,750
Payment to purchase equipment ........
(h)
30,000
Financing activities
Borrowed on short-term note...............
(j)
4,000
Noncash investing and
financing activities
Purchase of equip. financed
Problem 12-4AA (Concluded)
FORTEN COMPANY
Statement of Cash Flows
For Year Ended December 31, 2015
Cash flows from operating activities
Net income ..........................................................................................
$114,975
Adjustments to reconcile net income to net
cash provided by operating activities:
Problem 12-5AB (40 minutes)
FORTEN COMPANY
Statement of Cash Flows
For Year Ended December 31, 2015
Cash flows from operating activities
Cash received from customers (Note 1) ....................
$567,315
Cash paid for inventory (Note 2) ................................
(370,390)
Cash paid for other expenses (Note 3) ......................
(131,775)
Cash paid for income taxes .......................................
(24,250)
Net cash provided by operating activities ................
$ 40,900
Noncash investing and financing activities
Supporting calculations
(1) Sales - Increase in receivables = $582,500 - ($65,810 - $50,625) = $567,315
(2) Cost of Increase in Decrease in
+
+
Problem 12-6A (35 minutes)
GOLDEN CORPORATION
Statement of Cash Flows
For Year Ended December 31, 2015
Cash flows from operating activities
Net income ...................................................................................
$136,000
Adjustments to reconcile net income to net
cash provided by operating activities
Problem 12-7AA (50 minutes)
GOLDEN CORPORATION
Spreadsheet for Statement of Cash Flows
For Year Ended December 31, 2015
December
31, 2014
Analysis of Changes
December
31, 2015
Debit
Credit
Balance sheet--debits
Cash ..........................................................
$ 107,000
$ 164,000
Accounts receivable ..............................
71,000
(b)
$ 12,000
83,000
Balance sheet--credits
Statement of cash flows
Operating activities
Net income ...............................................
(a)
136,000
Increase in accounts receivable .........
(b)
12,000
Increase in merch. inventory ................
(c)
75,000
Problem 12-7AA (Concluded)
GOLDEN CORPORATION
Statement of Cash Flows
For Year Ended December 31, 2015
Cash flows from operating activities
Net income ...................................................................................
$136,000
Adjustments to reconcile net income to net
cash provided by operating activities
Income statement items not affecting cash
Problem 12-8AB (35 minutes)
GOLDEN CORPORATION
Statement of Cash Flows
For Year Ended December 31, 2015
Cash flows from operating activities
Cash received from customers (Note 1) .................
$1,780,000
Cash paid for inventory (Note 2) ............................
(1,145,000)
Supporting calculations
PROBLEM SET B
Problem 12-1B (35 minutes)
SALT LAKE COMPANY
Cash Flows from Operating ActivitiesIndirect Method
For Year Ended December 31, 2015
Cash flows from operating activities
Net income ...............................................................................
$ 20,000
Adjustments to reconcile net income to net cash
provided by operating activities
Problem 12-2BB (35 minutes)
SALT LAKE COMPANY
Cash Flows from Operating ActivitiesDirect Method
For Year Ended December 31, 2015
Cash flows from operating activities
Cash receipts from customers (1) ........................................................
$ 155,400
Cash payments to suppliers (2) ............................................................
(72,080
)
Supporting calculations
Problem 12-3B (40 minutes)
Part 1
GAZELLE CORPORATION
Statement of Cash Flows
For Year Ended December 31, 2015
Cash flows from operating activities
Net income ..........................................................................................
$158,100
Adjustments to reconcile net income to net
cash provided by operating activities
Problem 12-3B (Continued)
Part 2
Gazelle Corporation's dividend payments of $53,600 represent 34% of the
$158,100 net income for the year, and 41% of cash inflow provided by
Problem 12-4BA (60 minutes)
GAZELLE CORPORATION
Spreadsheet for Statement of Cash Flows
For Year Ended December 31, 2015
December
31, 2014
Analysis of Changes
December
31, 2015
Debit
Credit
Balance sheet--debits
Cash ..........................................................
$ 61,550
$123,450
(b)
Balance sheet--credits
Accum. depreciationEquip. ..............
$ 95,000
(g)
22,850
(f)
38,600
$110,750
Accounts payable ...................................
102,000
(e)
84,250
17,750
Statement of cash flows
Operating activities
Net income ...............................................
(a)
158,100
Decrease in accounts receivable .........
(b)
3,650
(c)
Problem 12-4BA (Concluded)
GAZELLE CORPORATION
Statement of Cash Flows
For Year Ended December 31, 2015
Cash flows from operating activities
Net income ..........................................................................................
$158,100
Adjustments to reconcile net income to net
cash provided by operating activities
Income statement items not affecting cash
Cash flows from investing activities
Cash flows from financing activities
Problem 12-5BB (40 minutes)
GAZELLE CORPORATION
Statement of Cash Flows
For Year Ended December 31, 2015
Cash flows from operating activities
Cash received from customers (Note 1) .....................
$1,188,650
Cash paid for inventory (Note 2) ................................
(669,150)
Cash paid for other expenses (Note 3) .......................
(360,950)
(2) Cost of Decrease in Decrease in
-
+
Problem 12-6B (35 minutes)
SATU COMPANY
Statement of Cash Flows
For Year Ended December 31, 2015
Cash flows from operating activities
Net income ................................................................................
$202,767
Adjustments to reconcile net income to net
cash provided by operating activities
Income statement items not affecting cash

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