ACCOUNTING WILEY PLUS 23-4,23-7,23-11,23-12

RODRIQUEZ COMPANYINCOME STATEMENTFOR THE YEAR ENDED DECEMBER 31, 2012
Sales$6,884,420
Cost of goods soldBeginning inventory$1,897,410
Purchases4,478,260
Goods available for sale6,375,670
Ending inventory1,601,260
Cost of goods sold4,774,410
Gross profit2,110,010
Operating expensesSelling expenses448,740
Administrative expenses695,660
1,144,400
Net income$965,610

Additional information:

1. Accounts receivable decreased $317,330 during the year.2. Prepaid expenses increased $160,690 during the year.3. Accounts payable to suppliers of merchandise decreased $281,450 during the year.4. Accrued expenses payable decreased $127,540 during the year.5. Administrative expenses include depreciation expense of $56,710.
Prepare the operating activities section of the statement of cash flows using the direct method.

Situation A:Chenowith Co. reports revenues of $191,900 and operating expenses of $111,340 in its first year of operations, 2012. Accounts receivable and accounts payable at year-end were $82,360 and $37,200, respectively. Assume that the accounts payable related to operating expenses. Ignore income taxes.
Using the direct method, compute net cash provided (used) by operating activities. (If an amount reduces the account balance then enter with negative sign.)

Net cashprovidedusedby operating activities$
Situation B:The income statement for Edgebrook Company shows cost of goods sold $310,820 and operating expenses (exclusive of depreciation) $227,710. The comparative balance sheet for the year shows that inventory increased $23,390, prepaid expenses decreased $8,240, accounts payable (related to merchandise) decreased $18,620, and accrued expenses payable increased $11,740.
Compute (a) cash payments to suppliers and (b) cash payments for operating expenses.

(a) Cash payments to suppliers$

(b) Cash payments for operating expenses$
Condensed financial data of Fairchild Company for 2012 and 2011 are presented below.
FAIRCHILD COMPANYCOMPARATIVE BALANCE SHEETAS OF DECEMBER 31, 2012 AND 2011

2012
2011
Cash$1,807
$1,095
Receivables1,750
1,294
Inventory1,593
1,902
Plant assets1,897
1,703
Accumulated depreciation(1,203
)
(1,169
)
Long-term investments (held-to-maturity)1,301
1,465

$7,145
$6,290

Accounts payable$1,216
$791
Accrued liabilities200
230
Bonds payable1,406
1,649
Common stock1,900
1,692
Retained earnings2,423
1,928

$7,145
$6,290

FAIRCHILD COMPANYINCOME STATEMENTFOR THE YEAR ENDED DECEMBER 31, 2012
Sales$6,812
Cost of goods sold4,692
Gross margin2,120
Selling and administrative expenses920
Income from operations1,200
Other revenues and gainsGain on sale of investments90
Income before tax1,290
Income tax expense531
Net income$759

Additional information:
During the year, $64 of common stock was issued in exchange for plant assets. No plant assets were sold in 2012. Cash dividends were $264.
Prepare a statement of cash flows using the indirect method. (If an amount reduces the account balance then enter with negative sign.)
Condensed financial data of Fairchild Company for 2012 and 2011 are presented below.
FAIRCHILD COMPANYCOMPARATIVE BALANCE SHEETAS OF DECEMBER 31, 2012 AND 2011

2012
2011
Cash$1,805
$1,096
Receivables1,742
1,299
Inventory1,585
1,905
Plant assets1,894
1,700
Accumulated depreciation(1,206
)
(1,178
)
Long-term investments (held-to-maturity)1,294
1,469

$7,114
$6,291

Accounts payable$1,209
$793
Accrued liabilities210
236
Bonds payable1,401
1,648
Common stock1,891
1,703
Retained earnings2,403
1,911

$7,114
$6,291

FAIRCHILD COMPANYINCOME STATEMENTFOR THE YEAR ENDED DECEMBER 31, 2012
Sales$6,854
Cost of goods sold4,702
Gross margin2,152
Selling and administrative expenses939
Income from operations1,213
Other revenues and gainsGain on sale of investments83
Income before tax1,296
Income tax expense534
Net income$762

Additional information:
During the year, $73 of common stock was issued in exchange for plant assets. No plant assets were sold in 2012. Cash dividends were $270.
Prepare a statement of cash flows using the direct method. (If an amount reduces the account balance then enter with negative sign.)