Short Problems
1.Accrued wages payable on December 31, 2014 and 2015 are $9,000 and $4,000, respectively. During 2015, wages expense is $36,000. Calculate the amount of cash paid for wages during 2015.
2.Graham, Inc. experienced the following changes in its cash balance during the current calendar year:
Increases in Cash:
From customers
$6,000
Sale of investments
3,000
Collection of interest
800
Issue of common stock
3,000
Decreases in Cash:
Payment to suppliers
$3,000
Wages
1,000
Purchase of building
3,000
Payment of interest
400
Retirement of long-term debt
600
Payment of dividends
500
Payment of salespersons’ commissions
200
Prepare, in good form, a cash flow statement for the current year.
3.Beginning and ending balances for relevant balance sheet accounts are as follows:
12/31/15
1/01/15
Merchandise inventory
$32,000
$21,000
Accounts payable
15,000
8,000
During 2015, cost of goods sold was $102,000. Calculate the amount of cash paid to suppliers of merchandise inventory.
4.The following is the cash ledger account for Jensen Corp., which summarizes events that impacted the cash account during 2015.
CASH
Balance 1/02/15
15,000
Interest payments
4,000
Receivable collections
26,000
Fixed asset purchases
56,000
Cash sales
59,000
Wages
12,000
Sale of land
48,000
Dividend payments
7,000
Issue of common stock
31,000
Accounts payable payments
36,000
Interest collections
3,000
Using the information contained in the cash ledger, complete the following cash flow statement.
Cash provided by operations:
Amounts
Add:
Less:
Cash inflows (outflows) from operations
Cash flows from investment activities:
Cash flows from financing activities:
Net increase (decrease) cash
5.Richards Inc. presented its comparative financial data and other data as follows:
Dec. 31, 2015
Dec. 31, 2014
Cash
$ 16,000
$ 9,000
Accounts receivable
22,000
16,000
Prepaid expenses
3,800
3,000
Investment in stock (no fair value)
8,000
21,000
Building and equipment
103,200
80,000
Accumulated depreciation
(60,000)
(51,000)
$ 93,000
$ 78,000
Accounts payable
$ 9,000
$ 6,000
Notes payable (used for operations)
6,000
8,000
Accrued expenses
13,000
7,000
Mortgage payable
25,000
31,000
Common stock
9,000
5,000
Additional paid-in capital
21,000
16,000
Retained earnings
10,000
5,000
$ 93,000
$78,000
Additional information:
1. Equipment was purchased for $43,200 and was paid in cash. Other equipment was sold at a $3,000 gain and was 50% depreciated at the time of sale.
2. During 2015, Richards Inc. declared and paid cash dividends.
3.Part of the investment in the stock portfolio was sold at book value. The stock is closely-held so no fair value adjustments are made.
4.Net income was $49,000.
Prepare a statement of cash flows using the indirect method for 2010. You may omit the heading.
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