Question :
147. For each of the following independent cases, use the information : 1256423
147. For each of the following independent cases, use the information provided to calculate the missing cash inflow or cash outflow:(a.)
Interest payable, beginning-year
$ 4,200
Interest expense
26,700
Interest payable, year-end
3,000
Cash paid for interest
$________
(b.)
Prepaid insurance, beginning of year
$ 7,000
Insurance expense
16,800
Prepaid insurance, year-end
3,400
Cash paid for insurance
$________
(c.)
Interest receivable, beginning of year
$ 800
Interest revenue
12,600
Interest receivable, year-end
1,200
Cash received for interest
$________
(d.)
Accounts payable, beginning of year
$ 60,000
Cost of goods sold
244,000
Merchandise inventory, beginning of year
35,000
Merchandise inventory, year-end
40,500
Accounts payable, year-end
64,800
Cash paid for merchandise
$_______
148. Based on the following income statement and balance sheet for Rashid Corporation, determine the cash flows from operating activities using the indirect method.
RASHID CORPORATION
Income Statement
For Year Ended December 31, 2013
Sales
$504,000
Cost of goods sold
$327,600
Depreciation expense
42,000
Other operating expenses
125,500
(495,100)
Other gains (losses):
Gain on sale of equipment
7,200
Income before taxes
$ 16,100
Income tax expense
(4,800)
Net income
$ 11,300
RASHID CORPORATION
Balance Sheets
At December 31
2013
2012
Assets
Cash
$ 64,650
$ 55,800
Accounts receivable
21,000
29,000
Inventory
58,000
52,100
Equipment
240,000
222,000
Accumulated depreciation
(106,000)
( 96,000)
Total assets
$277,650
$262,900
Liabilities:
Accounts payable
$ 28,400
$ 23,700
Income taxes payable
1,050
1,200
Total liabilities
$ 29,450
$ 24,900
Equity
Common stock
$106,000
$106,000
Contributed Capital in excess of par value
18,000
18,000
Retained earnings
124,200
114,000
Total equity
$248,200
$238,000
Total liabilities and equity
$277,650
$262,900
149. Martin, Inc.’s, income statement is shown below. Based on this income statement and the other information provided, calculate the net cash provided by operations using the indirect method.
MARTIN, INC.
Income Statement
For Year Ended December 31, 2013
Sales
$248,000
Cost of goods sold
116,000
Gross profit
$132,000
Operating expenses:
Wages and salaries expense
$ 44,000
Rent expense
16,000
Depreciation expense
30,000
Other operating expenses
18,000
108,000
Income from operations
$ 24,000
Gain on sale of equipment
26,000
Income before income taxes
$ 50,000
Income taxes expense
17,500
Net income
$ 32,500
Additional information:
Increase in accounts receivable
$ 4,000
Increase in accounts payable
16,000
Increase in income taxes payable
300
Decrease in prepaid expenses
10,000
Decrease in merchandise inventory
14,000
Decrease in long-term notes payable
20,000
