Chap021 - Student Name Instructor Class McGraw-Hill/Irwin...

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Student Name: Instructor Class: McGraw-Hill/Irwin Problem 21-02 WRIGHT COMPANY Spreadsheet for the Statement of Cash Flows Dec. 31 Changes Dec. 31 2010 Debits Credits 2011 Balance Sheet Assets: Cash 30 12 42 Accounts receivable 75 2 73 Short-term investment 15 25 40 Inventory 70 5 75 Land 60 10 50 Buildings and equipment 400 150 550 Less: Acc. depreciation (75) 40 (115) 575 715 Liabilities: Accounts payable 35 7 28 Salaries payable 5 3 2 Interest payable 3 2 5 Income tax payable 12 3 9 Notes payable 30 30 - Bonds payable 100 60 160 Shareholders' Equity: Common stock 200 50 250 Paid-in capital - excess of par 100 26 126 Retained earnings 90 35 80 135 575 715 Statement of Income Revenues: Sales revenue 380 380 Expenses: Cost of goods sold 130 (130) Salaries expense 45 (45) Depreciation expense 40 (40) Interest expense 12 (12) Loss on sale of land 3 (3) Income tax expense 70 (70) Net income 80 80
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Student Name: Instructor Class: McGraw-Hill/Irwin Problem 21-02 Statement of Cash Flows Operating activities: Cash inflows: From customers 382 Cash outflows: To suppliers of goods 142 To employees 48 For interest expense 10 For income taxes 73 Net cash flows 109 Investing activities: Sale of land 7 Purchase of ST investment 25 Purchase of equipment 150 Net cash flows (168) Financing activities: Repayment of notes payable 30 Sale of bonds payable 60 Sale of common stock 76 Payment of cash dividends 35 Net cash flows 71 Net increase in cash 12 12 Totals 1,175 1,175 Correct! Correct!
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Student Name: Instructor Class: McGraw-Hill/Irwin Problem 21-02 WRIGHT COMPANY Statement of Cash Flows For year ended December 31, 2011 (in $000) Cash flows from operating activities: Cash inflows: From customers $382 Cash outflows: To suppliers of goods (142) To employees (48) For interest (10) For income taxes (73) Net cash flows from operating activities $109 Correct! Cash flows from investing activities: Sale of land 7 Purchase of short-term investment (25) Purchase of equipment (150) Net cash flows from investing activities (168) Correct! Cash flows from financing activities: Repayment of notes payable (30) Sale of bonds payable 60 Sale of common stock 76 Payment of cash dividends (35) Net cash flows from financing activities 71 Correct! Net increase in cash 12 Cash balance, January 1 30 Cash balance, December 31 $42 Correct!
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Given Data P21-02: WRIGHT COMPANY Balance Sheet and Income Statement data are given in the solution. Additional information: Original land cost $10,000 Land sale $7,000 Common stock purchase $25,000 New equipment cost $150,000 Note payment, 1/1/2011 $30,000 Bond sale, 1/1/2011 $60,000 Common stock sold $76,000 Common stock par $50,000 Net income $80,000 Cash dividends paid $35,000
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Student Name: Instructor Class: McGraw-Hill/Irwin Problem 21-04 DUX COMPANY Spreadsheet for the Statement of Cash Flows ($ in 000s) Dec. 31 Changes Dec. 31 2010 Debits Credits 2011 Balance Sheet Asset: Cash 20 13 33 Accounts receivable 50 2 48 Less: Allowance (3) 1 (4) Dividends receivable 2 1 3 Inventory 50 5 55 Long-term investment 10 5 15 Land 40 30 70 Buildings and equipment 250 15 40 225 Less: Acc. depreciation (50) 30 5 (25) 369 420 Liabilities: Accounts payable 20
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