ACIS+3115+Chapter+5+Homework+Solutions

ACIS+3115+Chapter+5+Homework+Solutions - EXERCISE 5-6 (3035...

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EXERCISE 5-6 (30–35 minutes) GARFIELD COMPANY Balance Sheet July 31, 2012 Assets Current assets Cash. ....................................................... $66,000* Accounts receivable. ............................ $46,700** Less: Allowance for doubtful accounts. .............................. 3,500 43,200 Inventory. ............................................... 65,300 *** Total current assets. ....................... $174,500 Long-term investments Bond sinking fund. ................................ 12,000 Property, plant, and equipment Equipment. ............................................. 112,000 Less: Accumulated depreciation— equipment. ............................. 28,000 84,000 Intangible assets Patents. .................................................. 21,000 Total assets. ................................... $291,500 *($69,000 – $12,000 + $9,000) **($52,000 – $5,300) ***($60,000 + $5,300)
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EXERCISE 5-6 (Continued) Liabilities and Stockholders’ Equity Current liabilities Notes and accounts payable. ........................ $ 52,000**** Taxes payable. ................................................ 9,000 Total current liabilities. ............................ $ 61,000 Long-term liabilities ............................................. 75,000 Total liabilities. .......................................... 136,000 Stockholders’ equity ............................................ 155,500 Total liabilities and stockholders’ equity. .................................................. $291,500 ****($44,000 + $8,000) EXERCISE 5-13 (15–20 minutes) (a) 4. (f) 1. (k) 1. (b) 3. (g) 5. (l) 2. (c) 4. (h) 4. (m) 2. (d) 3. (i) 5. (e) 1. (j) 4.
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EXERCISE 5-14 (25–35 minutes) CONNECTICUT INC. Statement of Cash Flows For the Year Ended December 31, 2012 Cash flows from operating activities Net income. .......................................................... $34,000 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation expense. .................................. $ 6,000 Increase in accounts receivable. ................. (3,000) Increase in accounts payable. ..................... 5,000 8,000 Net cash provided by operating activities. ....... 42,000 Cash flows from investing activities Purchase of equipment. ..................................... (17,000) Cash flows from financing activities Issuance of common stock. ............................... 20,000 Payment of cash dividends. ............................... (13,000 ) Net cash provided by financing activities. ....... 7,000 Net increase in cash. ................................................ 32,000 Cash at beginning of year. ....................................... 13,000 Cash at end of year. .................................................. $45,000
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PROBLEM 5-1 COMPANY NAME Balance Sheet December 31, 20XX Assets Current assets Cash on hand (including petty cash). ............ $XXX Cash in bank. .................................................... XXX $XXX Debt investments (trading). ............................ XXX
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This note was uploaded on 03/01/2012 for the course FIN 3154 taught by Professor Jceasterwood during the Spring '08 term at Virginia Tech.

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ACIS+3115+Chapter+5+Homework+Solutions - EXERCISE 5-6 (3035...

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