Question 1

Kinney reported cost of goods sold of $168,114,150 in its fiscal 2008 income statement. Compute its net inventory purchases during the year.

Accepted Answer

The answer of Kinney reported cost of goods sold of...

Question 2

Following are the income statement and some additional information for Carolina Consulting Company.
All sales were on credit and accounts receivable decreased by $900 this year compared to last year. Merchandise purchases were on credit with a decrease in accounts payable of $700 during the year. Ending inventory was $500 larger than beginning inventory. Income taxes payable increased $300 during the year. All operating expenses were paid for in cash.
Required:
Prepare the cash flows from operating activities section of the statement of cash flows using the direct method.

Accepted Answer

The answer of Following are the income statement and some...

Question 3

Which type of activity (operating, investing, financing) was most responsible for the net change in cash and cash equivalents experienced by Henchman & Co. during 2008?

Accepted Answer

The answer of Which type of activity (operating, investing, financing)...

Question 4

Prepare the summary entries necessary to determine the amount of cash paid to suppliers for each of the four independent situations below.
 $$\begin{array} { c c c c c } 
\text { Situation } & \begin{array} { c } 
\text { Cost of } \
\text { goods sold }
\end{array} & \begin{array} { c } 
\text { Inventory } \
\text { inc (dec) }
\end{array} & \begin{array} { c } 
\text { Account } \
\text { payable } \
\text { inc (dec) }
\end{array} & \begin{array} { c } 
\text { Cash paid } \
\text { to suppliers }
\end{array} \
1 & 400,000 & 6,000 & 0 & \
2 & 400,000 & 0 & 7,000 & \
3 & 100,000 & 6,000 & 7,000 & \
4 & 100,000 & ( 6,000 ) & ( 7,000 ) &
\end{array}$$

Accepted Answer

The answer of Prepare the summary entries necessary to determine...

Question 5

What method (direct or indirect) does Henchman & Co. use to present its Statement of Cash Flows? Explain how you can tell.

Accepted Answer

The answer of What method (direct or indirect) does Henchman...

Question 6

Kinney reported cost of goods sold of $168,114,150 in its fiscal 2008 income statement. Assuming that Kinney uses accounts payable strictly for inventory purchases and that all such purchases are on credit, how much cash did Kinney pay during the year for inventories:
(a) to inventory suppliers?
(b) to employees?

Accepted Answer

The answer of Kinney reported cost of goods sold of...

Question 7

Determine the amount of cash paid to suppliers for each of the four independent situations below.
 $$\begin{array} { c c c c c } 
\text { Situation } & \begin{array} { c } 
\text { Cost of } \
\text { goods sold }
\end{array} & \text { Inventory } & \begin{array} { c } 
\text { Accounts } \
\text { payable }
\end{array} & \text { Cash paid to suppliers } \
1 & \$ 300,000 & \$ 6,000 & \$ \quad 0 & \$ \
2 & 300,000 & 0 & 7,000 & \$ \
3 & 400,000 & 6,000 & 7,000 & \$ \
4 & 400,000 & ( 6,000 ) & ( 7,000 ) & \$
\end{array}$$

Accepted Answer

The answer of Determine the amount of cash paid to...

Question 8

What was most responsible for the positive cash flow from financing activities during 2008? What amount was received?

Accepted Answer

The answer of What was most responsible for the positive...

Question 9

Assuming the decrease in accrued expenses during fiscal year 2008 included a $20,000 reduction due to taxes, compute the income tax expense for Kinney in that year.

Accepted Answer

The answer of Assuming the decrease in accrued expenses during...

Question 10

Determine the amount of cash received from customers for each of the four independent situations below.

Accepted Answer

The answer of Determine the amount of cash received from...

Question 11

Partial balance sheets and additional information are listed below for Monaco Company.
Additional information for 2009:
Net income was $270,000.
Depreciation expense was $30,000.
Sales totaled $800,000.
Cost of goods sold totaled $305,000.
Required:
Calculate the amount of cash paid to merchandise suppliers during 2009.
 Monaco Company
Partial Balance Sheets
as of December 31
$\begin{array} { l r r } \text { Assets } & \mathbf { 2 0 0 9 } & \mathbf { 2 0 0 8 } \ \text { Cash } & \$ 40,000 & \$ 20,000 \ \text { Accounts receivable } & 60,000 & 90,000 \ \text { Inventory } & 25,000 & 40,000 \ \text { Liabilities } & & \ \text { Accounts payable } & \$ 60,000 & \$ 72,000 \end{array}$

Accepted Answer

The answer of Partial balance sheets and additional information are...

Question 12

What was most responsible for the negative cash flow from financing activities during 2007? What amount was paid?

Accepted Answer

The answer of What was most responsible for the negative...

Question 13

Partial balance sheets and additional information are listed below for Sowell Company.
Additional information for 2009:
Net income was $88,000.
Depreciation expense was $19,000.
Required:
Prepare the operating activities section of the statement of cash flows for 2009 using the indirect method.
 Sowell Company
Partial Balance Sheets as of December 31
$\begin{array} { l r r } \text { Assets } & \mathbf { 2 0 0 9 } & \mathbf { 2 0 0 8 } \ \text { Cash } & \$ 40,000 & \$ 20,000 \ \text { Accounts receivable } & 70,000 & 85,000 \ \text { Inventory } & 40,000 & 35,000 \ \text { Liabilities } & & \ \text { Accounts payable } & \$ 54,000 & \$ 62,000 \end{array}$

Accepted Answer

The answer of Partial balance sheets and additional information are...

Question 14

What was the net change in cash and cash equivalents experienced by Henchman & Co. during 2008? Was it positive or negative?

Accepted Answer

The answer of What was the net change in cash...

Question 15

(a.) What is the most significant change in operating cash outflow activity in 2008 relative to
2007?
(b.) What balance sheet accounts would likely have changed during 2008 in relation to the
cash flow change that you identify in (a)?

Accepted Answer

The answer of (a.) What is the most significant change...

Question 16

Prepare the summary entries necessary to determine the amount of cash received from customers for each of the four independent situations below.
 $$\begin{array} { c c c c c c } 
\text { Situation } & \begin{array} { c } 
\text { Sales } \
\text { revenue }
\end{array} & \begin{array} { c } 
\text { Accounts } \
\text { receivable } \
\text { inc (dec) }
\end{array} & \begin{array} { c } 
\text { Bad debt } \
\text { expense } \
\text { inc (dec) }
\end{array} & \begin{array} { c } 
\text { Allowance for } \
\text { uncollectible } \
\text { Accounts inc }
\end{array} & \begin{array} { c } 
\text { Cash received } \
\text { from customers }
\end{array} \
\hline 1 & 200,000 & 10,000 & 0 & 0 & \
2 & 200,000 & ( 10,000 ) & 0 & 0 & \
3 & 200,000 & ( 10,000 ) & 2,000 & 1,000 & \
4 & 200,000 & 10,000 & 2,000 & ( 1,000 ) &
\end{array}$$

Accepted Answer

The answer of Prepare the summary entries necessary to determine...

Question 17

Partial balance sheets and additional information are listed below for Ensign Company.
Additional information for 2009:
Net income was $170,000.
Depreciation expense was $30,000.
Sales totaled $400,000.
Cost of goods sold totaled $145,000.
Required:
Calculate the amount of cash paid to merchandise suppliers during 2009.
 Ensign Company
Partial Balance Sheets
as of December 31
$\begin{array} { l r r } \text { Assets } & \mathbf { 2 0 0 9 } & \mathbf { 2 0 0 8 } \ \text { Cash } & \$ 20,000 & \$ 40,000 \ \text { Accounts receivable } & 90,000 & 60,000 \ \text { Inventory } & 20,000 & 25,000 \ \text { Liabilities } & & \ \text { Accounts payable } & \$ 72,000 & \$ 58,000 \end{array}$

Accepted Answer

The answer of Partial balance sheets and additional information are...

Question 18

Partial balance sheets and additional information are listed below for Julius Company.
Additional information for 2009:
Net income was $70,000.
Depreciation expense was $30,000.
Sales totaled $600,000.
Cost of goods sold totaled $325,000.
Required:
Calculate the amount of cash received from customers during 2009.
 Julius Company
Partial Balance Sheets
as of December 31
$\begin{array} { l r r } \text { Assets } & \mathbf { 2 0 0 9 } & \mathbf { 2 0 0 8 } \ \text { Cash } & \$ 20,000 & \$ 40,000 \ \text { Accounts receivable } & 90,000 & 60,000 \ \text { Inventory } & 40,000 & 25,000 \ \text { Liabilities } & & \ \text { Accounts payable } & \$ 72,000 & \$ 58,000 \end{array}$

Accepted Answer

The answer of Partial balance sheets and additional information are...

Question 19

Partial balance sheets and additional information are listed below for Funk Company.
Additional information for 2009:
Net income was $170,000.
Depreciation expense was $30,000.
Sales totaled $800,000.
Cost of goods sold totaled $325,000.
Required:
Calculate the amount of cash received from customers during 2009.
 Funk Company
Partial Balance Sheets
as of December 31
$\begin{array} { l r r } \text { Assets } & \mathbf { 2 0 0 9 } & \mathbf { 2 0 0 8 } \ \text { Cash } & \$ 40,000 & \$ 20,000 \ \text { Accounts receivable } & 94,000 & 90,000 \ \text { Inventory } & 25,000 & 40,000 \ \text { Liabilities } & & \ \text { Accounts payable } & \$ 58,000 & \$ 72,000 \end{array}$

Accepted Answer

The answer of Partial balance sheets and additional information are...

Question 20

Assuming the decrease in accrued expenses during fiscal year 2008 included a $14,000 reduction due to interest on debt, compute the interest expense (net) for Kinney in that year.

Accepted Answer

The answer of Assuming the decrease in accrued expenses during...

Quiz 21: The Statement of Cash Flows

Kinney reported cost of goods sold of $168,114,150 in its fiscal 2008 income statement. Compute its net inventory purchases during the year.

Which type of activity (operating, investing, financing) was most responsible for the net change in cash and cash equivalents experienced by Henchman & Co. during 2008?

What method (direct or indirect) does Henchman & Co. use to present its Statement of Cash Flows? Explain how you can tell.

What was most responsible for the positive cash flow from financing activities during 2008? What amount was received?

Assuming the decrease in accrued expenses during fiscal year 2008 included a $20,000 reduction due to taxes, compute the income tax expense for Kinney in that year.

Determine the amount of cash received from customers for each of the four independent situations below.

What was most responsible for the negative cash flow from financing activities during 2007? What amount was paid?

What was the net change in cash and cash equivalents experienced by Henchman & Co. during 2008? Was it positive or negative?

(a.) What is the most significant change in operating cash outflow activity in 2008 relative to 2007? (b.) What balance sheet accounts would likely have changed during 2008 in relation to the cash flow change that you identify in (a)?

Assuming the decrease in accrued expenses during fiscal year 2008 included a $14,000 reduction due to interest on debt, compute the interest expense (net) for Kinney in that year.