the chief accountant for grandveiw corporation provides you withthe companys 2016 stateent of cash flows and income statement theacountant has asked for your help with some missing figures in thecomopanys comprehensive balance sheets these financial statementsare shown next ($ in millions)
Grandveiw corp
statement of cash flows
for the year ended decemeber 31 2016
cash flows from operating activities
Collection from customer 71
payment to supplier (30)
Payment of general an administrative expenses (18)
payment of income taxes (9)
net cash from operatingactivites 14
cash flows from investing activites:
sale ofinvestments 65
Cash flows from financing activites:
issuance of common stock 10
Payment of divedends (3)
net cash flows from financingactivites 7
net increase incash 86
âGrandveiw corporation
income statement for the year ended dec 31 2016 salesrevenue 80
cogs 32
grossprofit 48
operatingexpenses
General and admin. depreciation 18
Deprec. 10
total operatingexpenses 28
operatingincome 20
other income
gain on sale ofinvest. 15
income b4 taxes 35
income taxexpense 7
netincome 2
grandveiw corp
balance sheets At dec 31 2016 assets 2016 2015
cash 145 ?
a/r ? 84
investments - 50
inventory 60 ?
property plant equipment 150 150
less accumulated dep. (65) ?
total assets? ?
liab. and shareholders equity
accounts payable to suplliers 40 30
payable for selling and admin. expenses 9 9
income tax payable 22 ?
common stock 240 230
retained earnings ? 47
total liabilites and shareholdersequity ? ?
Required:
1. calculate missing amounts
2. Prepare the operating activites section of Grandveiw 2016statement of cash fllows using the indirect method.
Show all your work!
the chief accountant for grandveiw corporation provides you withthe companys 2016 stateent of cash flows and income statement theacountant has asked for your help with some missing figures in thecomopanys comprehensive balance sheets these financial statementsare shown next ($ in millions)
Grandveiw corp
statement of cash flows
for the year ended decemeber 31 2016
cash flows from operating activities
Collection from customer 71
payment to supplier (30)
Payment of general an administrative expenses (18)
payment of income taxes (9)
net cash from operatingactivites 14
cash flows from investing activites:
sale ofinvestments 65
Cash flows from financing activites:
issuance of common stock 10
Payment of divedends (3)
net cash flows from financingactivites 7
net increase incash 86
âGrandveiw corporation
salesrevenue 80
cogs 32
grossprofit 48
operatingexpenses
General and admin. depreciation 18
Deprec. 10
total operatingexpenses 28
operatingincome 20
other income
gain on sale ofinvest. 15
income b4 taxes 35
income taxexpense 7
netincome 2
grandveiw corp
assets 2016 2015
cash 145 ?
a/r ? 84
investments - 50
inventory 60 ?
property plant equipment 150 150
less accumulated dep. (65) ?
total assets? ?
liab. and shareholders equity
accounts payable to suplliers 40 30
payable for selling and admin. expenses 9 9
income tax payable 22 ?
common stock 240 230
retained earnings ? 47
total liabilites and shareholdersequity ? ?
Required:
1. calculate missing amounts
2. Prepare the operating activites section of Grandveiw 2016statement of cash fllows using the indirect method.
Show all your work!
Related questions
| Exercise 12-7 Shown below are comparative balance sheets for IndigoCorporation.
Additional information:
Prepare a statement of cash flows for 2017 using the indirectmethod. (Show amounts that decrease cash flow witheither a - sign e.g. -45,000, or in parenthesis e.g.(45,000)).
IE | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
is this right
Golden Corp., a merchandiser, recently completed its 2017operations. For the year, (1) all sales are credit sales, (2) allcredits to Accounts Receivable reflect cash receipts fromcustomers, (3) all purchases of inventory are on credit, (4) alldebits to Accounts Payable reflect cash payments for inventory, (5)Other Expenses are all cash expenses, and (6) any change in IncomeTaxes Payable reflects the accrual and cash payment of taxes. Thecompanyâs balance sheets and income statement follow.
| GOLDEN CORPORATION Comparative Balance Sheets December 31, 2017 and 2016 | |||||||
| 2017 | 2016 | ||||||
| Assets | |||||||
| Cash | $ | 177,000 | $ | 121,300 | |||
| Accountsreceivable | 102,500 | 84,000 | |||||
| Inventory | 620,500 | 539,000 | |||||
| Total currentassets | 900,000 | 744,300 | |||||
| Equipment | 370,000 | 312,000 | |||||
| Accum.depreciationâEquipment | (164,500 | ) | (110,500 | ) | |||
| Totalassets | $ | 1,105,500 | $ | 945,800 | |||
| Liabilities and Equity | |||||||
| Accountspayable | $ | 113,000 | $ | 84,000 | |||
| Income taxespayable | 41,000 | 31,600 | |||||
| Total currentliabilities | 154,000 | 115,600 | |||||
| Equity | |||||||
| Common stock, $2par value | 618,000 | 581,000 | |||||
| Paid-in capitalin excess of par value, common stock | 209,000 | 179,500 | |||||
| Retainedearnings | 124,500 | 69,700 | |||||
| Totalliabilities and equity | $ | 1,105,500 | $ | 945,800 | |||
| GOLDEN CORPORATION Income Statement For Year Ended December 31, 2017 | |||||
| Sales | $ | 1,857,000 | |||
| Cost of goodssold | 1,099,000 | ||||
| Grossprofit | 758,000 | ||||
| Operatingexpenses | |||||
| Depreciationexpense | $ | 54,000 | |||
| Otherexpenses | 507,000 | 561,000 | |||
| Income beforetaxes | 197,000 | ||||
| Income taxesexpense | 40,200 | ||||
| Net income | $ | 156,800 | |||
| Required: (1) Prepare a complete statement of cash flows; report its cashinflows and cash outflows from operating activities according tothe indirect method. (Amounts to be deductedshould be indicated with a minus sign.) | |||||
(2) Required: | |||||
