Selected data for Kris Corporationâs comparative balance sheetsfor Year 1 and Year 2 are as follows:
Year 1 Year 2 Assets Cash $ 100,000 $ (50,000) Accounts receivable (net) 50,000 100,000 Inventory 100,000 250,000 Equipment (net) 300,000 350,000 Total assets $ 550,000 $ 650,000 Liabilities and Equity Accounts payable $ 150,000 100,000 Income taxes payable 80,000 30,000 Bonds payable 100,000 80,000 Common stock 100,000 200,000 Retained earnings 120,000 240,000 Total liabilities and Equity $ 550,000 $ 650,000
1. The change in the equipment balance would berecorded on the statement of cash flows as:
A) a decrease of $50,000 under investing activities.
B) an increase of $50,000 under investing activities.
C) a decrease of $150,000 under investing activities.
D) an increase of $150,000 under operating activities.
2. The change in the balance of the Bonds Payableaccount would be recorded on the statement of cash flowsas:
A) an increase of $20,000 under financing activities.
B) an increase of $80,000 under investing activities.
C) a decrease of $20,000 under financing activities.
D) a decrease of $80,000 under operating activities.
Selected data for Kris Corporationâs comparative balance sheetsfor Year 1 and Year 2 are as follows:
| Year 1 | Year 2 | |||||||
| Assets | ||||||||
| Cash | $ | 100,000 | $ | (50,000) | ||||
| Accounts receivable (net) | 50,000 | 100,000 | ||||||
| Inventory | 100,000 | 250,000 | ||||||
| Equipment (net) | 300,000 | 350,000 | ||||||
| Total assets | $ | 550,000 | $ | 650,000 | ||||
| Liabilities and Equity | ||||||||
| Accounts payable | $ | 150,000 | 100,000 | |||||
| Income taxes payable | 80,000 | 30,000 | ||||||
| Bonds payable | 100,000 | 80,000 | ||||||
| Common stock | 100,000 | 200,000 | ||||||
| Retained earnings | 120,000 | 240,000 | ||||||
| Total liabilities and Equity | $ | 550,000 | $ | 650,000 | ||||
1. The change in the equipment balance would berecorded on the statement of cash flows as:
A) a decrease of $50,000 under investing activities.
B) an increase of $50,000 under investing activities.
C) a decrease of $150,000 under investing activities.
D) an increase of $150,000 under operating activities.
2. The change in the balance of the Bonds Payableaccount would be recorded on the statement of cash flowsas:
A) an increase of $20,000 under financing activities.
B) an increase of $80,000 under investing activities.
C) a decrease of $20,000 under financing activities.
D) a decrease of $80,000 under operating activities.
Related questions
Use your knowledge of balance sheets to fill in the amounts missing below.
| ASSETS | |||||||||||||||||||||||||||
| Cash | $10,000 | ||||||||||||||||||||||||||
| Accounts receivable | 100,000 | ||||||||||||||||||||||||||
| Inventory | C | ||||||||||||||||||||||||||
| Total current assets | $220,000 | ||||||||||||||||||||||||||
| Gross P&E | 500,000 | ||||||||||||||||||||||||||
| Less accumulated depreciation | C | ||||||||||||||||||||||||||
| Net P&E | $375,000 | ||||||||||||||||||||||||||
| Total assets C
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MG770- Financial Reporting, Financial Statement Analysis, andValuation
Homework Assignment
Week # 3
__________________________________________________________________________
Create the statement of cash-flow with indirectmethod
Interpret the result of the statement of cash flow withpercentage
Instruction:
[1] Please use the balance sheet as follows to classify eachactivity (operating, investing, and financing) from the column ofdifferent.
[2] please create a new statement of cash-flow from yourclassification on balance sheet.
[3] The statement of cash flow will be provided to measure thecompanyâs cash flow situation. Also, you need to interpret theresult of your measurement.
Balance sheet | ||||||
SILVERT CORPORATION | ||||||
Balance Sheet | ||||||
December 31 | ||||||
Different | Operating | Investing | Financing | |||
2012 | 2011 | |||||
ASSET | ||||||
Cash | $ 28,000 | $20,000 | $8,000 | |||
Receivable (net) | 70,000 | 62,000 | $8,000 | |||
Other current assets | 90,000 | 73,000 | $17,000 | |||
Long-term investment | 62,000 | 60,000 | $2,000 | |||
Plant and equipment (net) | 510,000 | 470,000 | $40,000 | |||
Total Assets | $760,000 | $685,000 | $75,000 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
Current liabilities | $75,000 | $70,000 | $5,000 | |||
Long-term debt | 80,000 | 90,000 | ($10,000) | |||
Common stock | 330,000 | 300,000 | $30,000 | |||
Retained earnings | 275,000 | 225,000 | $50,000 | |||
Total liabilities and stockholdersâ equity | 760,000 | 685,000 | $75,000 | |||
]2] Create the statement of cash-flow by using the indirectmethod. Company has net income as starting point of $80,000.
STATEMENT OF CASH FLOW
Operating Activities | |
Net Income | $ 80,000 |
Cashflow from Operations | |
Investing Activities | |
Cashflow from Investing | |
Financing Activities | |
Cashflow from Financing |
Arrange the following items in proper balance sheetpresentation: (Amounts to be deducted should be indicatedwith parentheses or a minus sign.)
| Accumulated depreciation | $ | 391,000 |
| Retained earnings | 35,000 | |
| Cash | 19,000 | |
| Bonds payable | 174,000 | |
| Accounts receivable | 49,000 | |
| Plant and equipmentâoriginal cost | 741,000 | |
| Accounts payable | 37,000 | |
| Allowance for bad debts | 6,000 | |
| Common stock, $1 par, 100,000 shares outstanding | 100,000 | |
| Inventory | 68,000 | |
| Preferred stock, $54 par, 1,000 shares outstanding | 54,000 | |
| Marketable securities | 21,000 | |
| Investments | 27,000 | |
| Notes payable | 36,000 | |
| Capital paid in excess of par (common stock) | 92,000 | |
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