- Problem 13a 5 Algo Prepare And Interpret A Statement Of Cash Flows Lo13 1 Lo13 4 Mary Walker President Of Rusco Co 1 (94.92 KiB) Viewed 60 times
- Problem 13a 5 Algo Prepare And Interpret A Statement Of Cash Flows Lo13 1 Lo13 4 Mary Walker President Of Rusco Co 2 (39.97 KiB) Viewed 60 times
- Problem 13a 5 Algo Prepare And Interpret A Statement Of Cash Flows Lo13 1 Lo13 4 Mary Walker President Of Rusco Co 3 (19.77 KiB) Viewed 60 times
Problem 13A-5 (Algo) Prepare and Interpret a
Statement of Cash Flows [LO13-1, LO13-4) Mary Walker, president of Rusco
Company.considers $29,000 to be the minimum cash balance for operating purposes. As can be seen from the following statements, only $24.000 in cash was available at the end of this year. Since the
company reported a large net Income for the year, and also issued both bonds and common stock, the sharp decline in cash is puzzling to Ms. Walker. Rusco
Company Comparative Balance Sheet at July 31 This Year Last Year Assets Current assets: Cash $ 24,000 $ 43,888 Accounts receivable 219,800 221,700 Inventory 258, 100 281, 480 Prepaid expenses 13,300 25,888 Total current assets 586, 200 492,700 Long-term investments 117,600 165,000 Plant and equipment 878,888 759,600 Less accumulated depreciation 214,500 192,780 Net plant and equipment 663,500 566,300 Total assets $ 1,286,700 $ 1,224,000 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 183,100 $ 239,900 Accrued liabilities 8.900 16,800 Income taxes payable 49,200 43, see Total current liabilities 241,200 300,200 Bonds payable 227,000 118,eee Total liabilities 468, 200 418, 200 Stockholders' equity: Connon stock 669,500 645, eee Retained earnings 149,000 160,800 Total stockholders' equity 818,500 885,800 Total liabilities and stockholders' equity $ 1,286,700 $ 1,224,000 Rusco
Company Income Stateme For This Year Ended July 31 Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Nonoperating itens: Gain on sale of investments Loss on sale of equipment Income before taxes Income taxes Net income $ 988,eee 612,5ee 367,5ee 262,150 1e5, 350 $ 24,560 (7,880) 16,700 122,50 36,578 $ 85,480 The following additional Information is available for this year. a. The
company declared and paid a cash dividend. b. Equipment was sold during the year for $51,200. The equipment originally cost $108.000 and had accumulated depreciation of $49.000 c. Long-term Investments that cost $48.000 were sold during the year for $72,500. d. The
company did not retire any bonds payable or repurchase any of its common stock. Because the Cash account decreased so dramatically during this year, the
company's executive committee is anxious to see how the Income
statement would appear on a cash basis. Required: 1. Using the direct method, adjust the
company's Income
statement for this year to a cash basis. 2 Using the data from (1) above, and other data from the problem as needed. prepare a
statement of cash flows for this year.
The following additional Information is available for this year. a. The
company declared and paid a cash dividend. b. Equipment was sold during the year for $51,200. The equipment originally cost $108.000 and had accumulated depreciation of $49.000 c. Long-term Investments that cost $48.000 were sold during the year for $72,500. d. The
company did not retire any bonds payable or repurchase any of its common stock. Because the Cash account decreased so dramatically during this year, the
company's executive committee is anxious to see how the Income
statement would appear on a cash basis. Required: 1. Using the direct method, adjust the
company's Income
statement for this year to a cash basis. 2. Using the data from (1) above, and other data from the problem as needed, prepare a
statement of cash flows for this year. Complete this
question by entering your answers in the tabs below. Required 1 Required 2 Using the direct method, adjust the
company's income
statement for this year to a cash basis. (Adjustment amounts that are to be deducted should be indicated with a minus sign.) Rusco
Company Direct Method of Determining the Net Cash flows from Operating activities Adjustments to a cash basis: Adjustments to a cash basis: Selling and administrative expenses Adjustments to a cash basis: Income taxes Adjustments to a cash basis: < Required 1 Required 2 >
Required 1 Required 2 Using the data from (1) above, and other data from the problem as needed, prepare a
statement of cash flows for this year. (Cash outflows and amounts to be deducted should be indicated with a minus sign.) Rusco
Company Statement of Cash Flows For This Year Ended July 31 Operating activities: Cash received from customers Less cash disbursements for Total cash disbursements Investing activities Financing activities Beginning cash and cash equivalents Ending cash and cash equivalents < Required 1 Required 2