# Increase in cash 233 cash january 1 2012 100 cash 333

• Homework Help
• briguyflyhigh
• 20
• 95% (81) 77 out of 81 people found this document helpful

This preview shows page 15 - 20 out of 20 pages.

Increase in cash \$233 Cash, January 1, 2012 100 Cash, December 31, 2012 \$333 (a) Sales \$3,800 Deduct ending accounts receivable (780) 3,020 Add beginning accounts receivable 500 Cash receipts (collections from customers) \$3,520 (b) Cost of goods sold \$1,200 Add ending inventory 720 Goods available for sale 1,920 Deduct beginning inventory (560) Purchases 1,360 Deduct ending accounts payable (420) 940 Add beginning accounts payable 330 Cash purchases (payments for merchandise) \$1,270 (c) Income taxes \$818 Deduct ending taxes payables (40) 778 Add beginning taxes payable 30 Income taxes (cash) \$808 Prepare a statement of cash flows using the direct method. Changes in accounts receivable and in accounts payable relate to sales and cost of sales. Do not prepare a reconciliation schedule.
725c69c87130b4a067334155137a75e66e219ff1.xlsx, Problem 23-3 Solution, Page 16 of 20, 02/26/2017, 02:06:23 Name: Solution Date: Instructor: Course:
725c69c87130b4a067334155137a75e66e219ff1.xlsx, Problem 23-3, Page 17 of 20, 02/26/2017, 02:06:23 Name: Date: Instructor: Course: MORTONSON COMPANY Statement of Income and Retained Earnings For The Year Ended December 31, 2012 (\$000 Omitted) Sales \$3,800 Expenses Cost of goods sold \$1,200 Salaries and benefits 725 Heat, light, and power 75 Depreciation 80 Property taxes 19 Patent amortization 25 Miscellaneous expenses 10 Interest 30 2,164 Income before income taxes 1,636 Income taxes 818 Net income 818 Retained earnings - January 1, 2012 310 1,128 Stock dividend declared and issued 600 Retained earnings - December 31, 2012 \$528 P23-3 (SCF—Direct Method) Mortonson Company has not yet prepared a formal statement of cash flows for the 2012 fiscal year. Comparative balance sheets as of December 31, 2011, and 2012, and a statement of income and retained earnings for the year ended December 31, 2012, are presented below. Intermediate Accounting , 14 th Edition by Kieso, Weygandt, and Warfield Primer on Using Excel in Accounting by Rex A Schildhouse
725c69c87130b4a067334155137a75e66e219ff1.xlsx, Problem 23-3, Page 18 of 20, 02/26/2017, 02:06:23 Name: Date: Instructor: Course: MORTONSON COMPANY Comparative Balance Sheet December 31 (\$000 Omitted) Assets 2012 2011 Current assets Cash \$333 \$100 U.S. Treasury notes (Available-for-sale) 10 50 Accounts receivable 780 500 Inventory 720 560 Total current assets 1,843 1,210 Long-term assets Land 150 70 Buildings and equipment 910 600 Accumulated depreciation (200) (120) Patents (less amortization) 105 130 Total long-term assets 965 680 Total assets \$2,808 \$1,890 Liabilities and Stockholders' Equity Current liabilities Accounts payable \$420 \$330 Income taxes payable 40 30 Notes payable 320 320 Total current liabilities 780 680 Long-term notes payable - due 2014 200 200 Total liabilities 980 880 Stockholders' equity Common stock outstanding 1,300 700 Retained earnings 528 310 Total stockholders' equity 1,828 1,010 Total liabilities and stockholders' equity \$2,808 \$1,890
725c69c87130b4a067334155137a75e66e219ff1.xlsx, Problem 23-3, Page 19 of 20, 02/26/2017, 02:06:23 Name: Date: Instructor: Course: Instructions: MORTONSON COMPANY Statement of Cash Flows For The Year Ended December 31, 2012 (\$000 omitted) Cash flows from operating activities Title Amount Title Amount Title Amount Title Amount Title Amount Title Amount Title Amount Title Amount Formula Net cash provided by operating activities Formula Cash flows from investing activities Title Amount Title Amount Title Amount