Question :
158. The comparative balance sheet of Colson Company, for 2011 and : 1226774
158. The comparative balance sheet of Colson Company, for 2011 and the preceding year ended December 31, 2010 appears below in condensed form:
Year
Year
2011
2010
Cash
$ 45,000
$ 53,500
Accounts receivable (net)
51,300
58,000
Inventories
147,200
135,000
Investments
0
60,000
Equipment
493,000
375,000
Accumulated depreciation-equipment
(113,700)
(128,000)
$622,800
$553,500
Accounts payable
$ 61,500
$ 42,600
Bonds payable, due 2014
0
100,000
Common stock, $10 par
250,000
200,000
Paid-in capital in excess of par–
common stock
75,000
50,000
Retained earnings
236,300
160,900
$622,800
$553,500
The income statement for the current year is as follows:
Sales
$623,000
Cost of merchandise sold
348,500
Gross profit
$274,500
Operating expenses:
Depreciation expense
$24,700
Other operating expenses
75,300
100,000
Income from operations
$174,500
Other income:
Gain on sale of investment
$ 5,000
Other expense:
Interest expense
12,000
(7,000)
Income before income tax
$167,500
Income tax
64,100
Net income
$103,400
Additional data for the current year are as follows:
(a)
Fully depreciated equipment costing $39,000 was scrapped, no salvage, and equipment was purchased for $157,000.
(b)
Bonds payable for $100,000 were retired by payment at their face amount.
(c)
5,000 shares of common stock were issued at $15 for cash.
(d)
Cash dividends declared were paid $28,000.
(e)
All sales are on account.
Prepare a statement of cash flows, using the direct method of reporting cash flows from operating activities.
159. The cash flows from operating activities are reported by the direct method on the statement of cash flows. Determine the following:
(a)
If sales for the current year were $475,000 and accounts receivable increased by $39,000 during the year, what was the amount of cash received from customers?
(b)
If income tax for the current year was $39,000 and income tax payable decreased by $11,000 during the year, what was the amount of cash payments for income tax?
160. Selected data for the current year ended December 31 are as follows:
Balance
Balance
December 31
January 1
Accrued expenses (operating expenses)
$29,500
$ 22,000
Accounts payable (merchandise creditors)
90,000
135,000
Inventories
42,500
68,000
Prepaid expenses
23,000
20,000
During the current year, the cost of merchandise sold was $620,000 and the operating expenses other than depreciation were $142,000. The direct method is used for presenting the cash flows from operating activities on the statement of cash flows.Determine the amount reported on the statement of cash flows for (a) cash payments for merchandise and (b) cash payments for operating expenses.
