Question : Short Problems 1.Accrued wages payable December 31, 2014 and 2015 $9,000 : 1241764

 

 

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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