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1) During 2015, Gardner Home Center sold 800 power washers for$350 each. The power

washers carry a 2-year warranty for repairs. Estimates indicatethat repair costs will average 2% of sales. How much warrantyexpense should be accrued as a result of the 2015 sales of thisproduct?

Select one:

a. $0

b. $2,800

c. $8,400

d. $5,600

2)

Front Corporation issues its bonds at a premium. Amortization ofthe premium will

Select one:

a. decrease the carrying value of the bonds on the balancesheet.

b. be reported as a loss on the income statement.

c. increase bond interest expense.

d. decrease bond interest expense.

3)

A corporation reported net income of $60,000, declared and paidcash dividends of $80,000,

andissued 3,000 shares of $2 par common stock at $15 per share duringthe year. What total effects would these transactions have on thefollowing stockholders' equity accounts?

Select one:

a. decrease retained earnings and increase common stock

b. decrease retained earnings and decrease common stock

c. increase retained earnings and decrease common stock

d. increase retained earnings and increase common stock

4)

Barr Motors, Inc. issued 50,000 shares of $1 par common stockand 10,000 shares of 4%, $5 par cumulative, preferred stock at thebeginning of 2008. Barr did not pay any cash dividend for the years2012, 2013 and 2014.On December 31, 2015, the company paid a totaldividend of $10,000. How much of this dividend went to the commonshareholders?

Select one:

a. $2,000

b. $8,000

c. $4,000

d. $10,000

5)

The statement of stockholders' equity shows an $8,000 increasein the common stock account, a $22,000 increase in the paid-incapital in excess of par--common stock account, and a $100,000increase in retained earnings. If the common stock has a par valueof $3 and dividends of $10,000 were declared and paid during theyear, what is the amount of net income for the year?

Select one:

a. $110,000

b. $100,000

c. $140,000

d. $90,000

6)

In a common size balance sheet, the 100 percent figure is

Select one:

a. total liabilities.

b. total current assets.

c. total assets

d. total property, plant and equipment.

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Deanna Hettinger
Deanna HettingerLv2
28 Sep 2019

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"Ozark Corporation reported net income of $100,000 for 2015. Theincome statement revealed sales of $1,000,000; gross profit of$520,000; selling and administrative costs of $340,000; interestexpense of $20,000; and income taxes of $60,000.

The selling and administrative expenses included $25,000 fordepreciation. No equipment was sold during the year. Equipmentpurchases were made with cash. Prepaid insurance included in thebalance sheet related to administrative costs. All accounts payableincluded in the balance sheet relate to inventory purchases. Thechange in retained earnings is attributable to net income anddividends. The increase in common stock and additional paid-incapital is due to issuing additional shares for cash.

"

Using the indirect approach, prepare a statement of cash flows forOzark for the year ending December 31, 2015. Comparative balancesheets for Ozark follow.

OZARK CORPORATION
Balance Sheet
December 31, 2014 and 2015


ASSETS 2015 $2,014
Cash $458,700 $471,450
Accounts receivable 199,250 171,500
Inventories 248,600 278,800
Prepaid insurance 13,000 11,000
Land 250,000 250,000
Building and equipment 1,500,000 1,300,000
Less: Accumulated depreciation (205,000) (180,000)
Total assets $2,464,550 $2,302,750

LIABILITIES
Accounts payable $85,700 $93,400
Interest payable 10,500 15,000
Income taxes payable 22,000 8,000
STOCKHOLDERS' EQUITY
Common stock 710,000 700,000
Paid in capital in excess of par 990,000 900,000
Retained earnings 646,350 586,350
Total liabilities and equity $2,464,550 $2,302,750

This below is what i am needing
OZARK CORPORATION
Statement of Cash Flows(Indirect Approach)
For the year ending December31, 2015
Cash flows from operatingactivities:
Net income $ -
Add (deduct) noncash effects on operatingincome
Depreciation expense $ -
Increase in accounts receivable -
Decrease in inventory -
Increase in prepaid insurance -
Decrease in accounts payable -
Decrease in interest payble -
Increase in income taxes payable - -
Net cash provided by operating activities $ -
Cash flows from investingactivities:
Purchase of equipment $ -
Net cash used by investing activities -
Cash flows from financingactivities:
Proceeds from issuing stock $ -
Dividends on common -
Net cash provided by financing activities -
Net decrease in cash $ -
Cash balance at January 1,20X5 -
Cash balance at December 31,20X5 $ -

The Winkel Company had Retained Earnings of $10,000 on 1/1/15.The only paid-in capital account existing was due to Common Stockissued. The company properly recorded these transactions in2015:

1. 10% Stock dividend (Total Market Value of dividend $1,500, ParValue $1,000)
2. Sale of Treasury Stock for $4,000 above Cost
3. Net Income $3,800

Winkel 12/31/15 Retained Earnings is:

Select one:
a. $12,800
b. $12,300
c. $13,800
d . $16,300
e. $9,800

Which accounts are closed at the end of an accountingperiod?

Select one:
a. Both Asset Retirement Obligation and Sales Tax Payable
b. Neither Asset Retirement Obligation nor Sales Tax Payable
c. Asset Retirement Obligation, but not Sales Tax Payable
d. Sales Tax Payable, but not Asset Retirement Obligation

Landon Corporation issued 2,000 shares of $5 par value commonstock and 400 shares of $40 par value preferred stock for a lumpsum of $72,000 cash. What is the credit to Additional Paid- in-Capital-Preferred when the market value of the common shares is $30each and market value of the preferred stock is $50 each? (Round tonearest dollar)

Select one:
a. $20,000
b. $18,000
c. $4,000
d. $2,000
e. $44,000

How does the declaration of a cash dividend that is entirelyliquidating affect Retained Earnings and Current Liabilities,respectively?

Select one:
a. No effect, No effect
b. Increase, Decrease
c. Decrease, Increase
d. Decrease, No effect
e. No effect, Increase

Problem 13-23 Kate Petusky prepared Addison Controls’ balancesheet and income statement for 2013. Before she could complete thestatement of cash flows, she had to leave town to attend to afamily emergency. Because the full set of statements must beprovided to the auditors today, Addison’s president, Lance Meyers,has asked you to prepare the statement of cash flows. Meyers hasprovided you with the balance sheets and income statement thatPetusky prepared, as well as some notes she made: Addison ControlsIncome Statement For the Year Ended December 31, 2013 Sales revenue$ 128,900 Cost of goods sold 70,870 Gross margin 58,030 Sellingexpense $13,440 Administrative expense 8,330 Salaries expense20,380 Depreciation expense 1,900 Interest expense 4,470 48,520Income before gain and taxes 9,510 Gain on sale of Land 919 Incometax expense 850 Net income $ 9,579 Addison Controls ComparativeBalance Sheets As of December 31 2013 2012 Cash $ 5,330 $ 4,250Accounts receivable, net 6,360 5,550 Inventory 31,970 34,370 Totalcurrent assets 43,660 44,170 Property, plant, & equipment, net211,630 215,420 Total Assets $ 255,290 $ 259,590 Accounts payable $3,480 $ 6,140 Accrued expenses 2,510 2,490 Taxes payable 2,1702,870 Bonds payable 60,070 50,070 Total liabilities 68,230 61,570Common stock 125,370 125,370 Retained earnings 61,690 72,650 Totalstockholders’ equity 187,060 198,020 Total liabilities &stockholders’ equity $ 255,290 $ 259,590 • Equipment with anoriginal cost of $35,110 was sold for $20,369. The book value ofthe equipment was $19,450. • On June 1, 2013, the company purchasednew equipment for cash at a cost of $17,560. • At the end of theyear the company issued bonds payable for $10,000 cash. The bondswill mature on December 31, 2017. • The company paid $20,539 incash dividends for the year. Using the indirect method, prepareAddison Controls' statement of cash flows for 2013. (If an amountdecreases cash flow then enter with a negative sign preceding thenumber or parenthesis, e.g. -15,000 or (15,000).) Addison ControlStatement of Cash Flows For the Year Ended December 31, 2013 Changein cashCash flows from financing activitiesCash flows fromoperating activitiesAdjustments to net incomeCash flows frominvesting activitiesCash, beginning balanceCash, ending balanceIncrease in accounts payableIncrease in accrued expensesDecrease inincome taxes payableDecrease in inventoriesSale of equipmentIssuebondsIncrease in income taxes payableDecrease in accountsreceivablePurchase of equipmentCash dividends on common stockNetincome / (loss)DepreciationGain on sale of landIncrease in accountsreceivableIncrease in inventoriesDecrease in accountspayableDecrease in accrued expenses $ Change in cashCash, beginningbalanceAdjustments to net incomeCash flows from investingactivitiesCash, ending balanceCash flows from operatingactivitiesCash flows from financing activities Purchase ofequipment Issue bonds Increase in accounts payable Decrease inaccounts receivable Increase in accrued expenses Decrease inaccrued expenses Cash dividends on common stock Decrease in incometaxes payable Decrease in inventories Increase in income taxespayable Net income / (loss) Sale of equipment Increase ininventories Depreciation Gain on sale of land Increase in accountsreceivable Decrease in accounts payable $ Sale of equipmentDecrease in accrued expenses Decrease in accounts payable Decreasein income taxes payable Increase in accounts receivable Increase inincome taxes payable Increase in accounts payable Purchase ofequipment Increase in accrued expenses Net income / (loss) Issuebonds Cash dividends on common stock Depreciation Gain on sale ofland Decrease in accounts receivable Increase in inventoriesDecrease in inventories Issue bonds Gain on sale of land Net income/ (loss) Sale of equipment Cash dividends on common stock Increasein accounts payable Decrease in accrued expenses Purchase ofequipment Increase in inventories Decrease in income taxes payableDepreciation Increase in accounts receivable Decrease in accountspayable Decrease in inventories Decrease in accounts receivableIncrease in income taxes payable Increase in accrued expensesDecrease in accrued expenses Sale of equipment Increase ininventories Decrease in accounts receivable Purchase of equipmentIncrease in accrued expenses Decrease in income taxes payable Issuebonds Depreciation Gain on sale of land Cash dividends on commonstock Increase in accounts receivable Decrease in inventories Netincome / (loss) Decrease in accounts payable Increase in accountspayable Increase in income taxes payable Increase in accruedexpenses Purchase of equipment Issue bonds Sale of equipmentDecrease in accounts payable Cash dividends on common stock Gain onsale of land Net income / (loss) Decrease in accrued expensesDepreciation Increase in accounts receivable Decrease in accountsreceivable Decrease in inventories Increase in inventories Decreasein income taxes payable Increase in accounts payable Increase inincome taxes payable Purchase of equipment Increase in income taxespayable Sale of equipment Issue bonds Cash dividends on commonstock Decrease in accounts receivable Gain on sale of land Decreasein inventories Net income / (loss) Depreciation Increase inaccounts receivable Increase in inventories Decrease in accountspayable Increase in accounts payable Decrease in income taxespayable Increase in accrued expenses Decrease in accrued expensesGain on sale of land Issue bonds Increase in inventories Increasein income taxes payable Decrease in accounts payable Cash dividendson common stock Decrease in inventories Increase in accruedexpenses Increase in accounts payable Net income / (loss) Decreasein accrued expenses Purchase of equipment Decrease in income taxespayable Depreciation Increase in accounts receivable Sale ofequipment Decrease in accounts receivable Net cash usedprovided byinvestingfinancingoperating activities Cash flows from operatingactivitiesCash flows from financing activitiesCash flows frominvesting activitiesCash, ending balanceChange in cashAdjustmentsto net incomeCash, beginning balance Decrease in inventoriesDecrease in accounts payable Gain on sale of land Decrease inaccounts receivable Issue bonds Cash dividends on common stockIncrease in accounts receivable Increase in inventoriesDepreciation Net income / (loss) Purchase of equipment Increase inaccounts payable Increase in accrued expenses Decrease in accruedexpenses Decrease in income taxes payable Increase in income taxespayable Sale of equipment Increase in accrued expenses Issue bondsDecrease in accounts receivable Sale of equipment Decrease inaccrued expenses Decrease in inventories Gain on sale of landDecrease in income taxes payable Increase in income taxes payableDecrease in accounts payable Increase in accounts payableDepreciation Cash dividends on common stock Purchase of equipmentNet income / (loss) Increase in inventories Increase in accountsreceivable Net cash providedused by operatinginvestingfinancingactivities Change in cashAdjustments to net incomeCash, beginningbalanceCash, ending balanceCash flows from financing activitiesCashflows from operating activitiesCash flows from investing activitiesIncrease in income taxes payable Purchase of equipment Decrease inaccounts payable Issue bonds Decrease in inventories Cash dividendson common stock Net income / (loss) Depreciation Increase ininventories Increase in accounts receivable Sale of equipmentDecrease in income taxes payable Increase in accounts payable Gainon sale of land Increase in accrued expenses Decrease in accruedexpenses Decrease in accounts receivable Decrease in accountspayable Net income / (loss) Sale of equipment Increase in incometaxes payable Increase in accounts receivable Decrease in accruedexpenses Increase in inventories Decrease in accounts receivableCash dividends on common stock Increase in accrued expensesDecrease in income taxes payable Decrease in inventories Increasein accounts payable Purchase of equipment Depreciation Issue bondsGain on sale of land Net cash usedprovided byoperatinginvestingfinancing activities Cash flows from investingactivitiesCash flows from financing activitiesChange in cashCash,ending balanceCash flows from operating activitiesCash, beginningbalanceAdjustments to net income Cash, ending balanceCash flowsfrom operating activitiesCash flows from investing activitiesCashflows from financing activitiesAdjustments to net incomeChange incashCash, beginning balance Change in cashCash flows from investingactivitiesCash flows from financing activitiesCash, beginningbalanceCash flows from operating activitiesCash, endingbalanceAdjustments to net income $

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