# ACCT122 â€“ Spring 2014_National Brands Corporation_Cash Flow

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ACCT122 â€“ Spring 2014

Due March 8, 2014 Project #2

Preparation of a Statement of Cash Flows â€“ Indirect Method

Using the provided information for National Brands Corporation, answer the following questions:

a. What is the book value of the equipment sold?

b. What is the book value of the building sold?

c. Prepare a statement of stockholdersâ€™ equity

d. Prepare a statement of cash flows using the indirect method.

Your answer may be submitted using Excel or Word; please make sure it is in the proper format.

Plant assets:

? Acquisitions for the year were \$47,000 cash.

? Depreciation expense – \$4,100

Common stock was issued for \$88,000.

Equipment:

? Acquisitions for the year were \$20,000 by executing a note payable.

? Sold equipment for \$35,000 cash. Calculate the gain/loss (analyze the t-account).

? Depreciation expense – \$4,000

Buildings:

? Sold a building for \$31,700 cash. Calculate the gain/loss (analyze the t-account).

? Depreciation expense – \$6,000

Treasury stock was sold for \$45,000 cash.

Cash dividends of \$15,000 were paid.

Net income/ (loss) for the year is calculated from the activity in Retained Earnings.

National Brands Corporation

Comparative Balance Sheet

December 31, 2013

December 31, 2013 December 31, 2012

Cash \$180,200 \$15,000

Accounts Receivable 15,000 28,600

Inventory 23,800 17,000

Prepaid expenses 3,000 5,700

Equipment 16,000 36,400

Plant assets 52,900 10,000

Building 84,000 114,500

\$374,900 \$227,200

Accounts payable (merchandise) \$37,400 \$16,000

Salary payable 5,500 4,000

Accrued liabilities 15,000 19,300

Income tax payable 3,800 3,000

Notes payable 117,000 97,000

Common stock 138,000 50,000

Treasury stock 0 (45,000)

Retained earnings 58,200 82,900

\$374,900 \$227,200

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# ACCT122 â€“ Spring 2014_National Brands Corporation_Cash Flow

\$17.00

Category:

## Description

ACCT122
â€“ Spring 2014

Due
March 8, 2014 Project #2

Preparation
of a Statement of Cash Flows â€“ Indirect Method

Using
the provided information for National Brands Corporation, answer the following
questions:

a.
What is the book value of the equipment sold?

b.
What is the book value of the building sold?

c.
Prepare a statement of stockholdersâ€™ equity

d.
Prepare a statement of cash flows using the indirect method.

Your
answer may be submitted using Excel or Word; please make sure it is in the
proper format.

Plant
assets:

?
Acquisitions for the year were \$47,000 cash.

?
Depreciation expense – \$4,100

Common
stock was issued for \$88,000.

Equipment:

?
Acquisitions for the year were \$20,000 by executing a note payable.

?
Sold equipment for \$35,000 cash. Calculate the gain/loss (analyze the
t-account).

?
Depreciation expense – \$4,000

Buildings:

?
Sold a building for \$31,700 cash. Calculate the gain/loss (analyze the
t-account).

?
Depreciation expense – \$6,000

Treasury
stock was sold for \$45,000 cash.

Cash
dividends of \$15,000 were paid.

Net income/ (loss) for the year is calculated
from the activity in Retained Earnings.

National
Brands Corporation

Comparative
Balance Sheet

December
31, 2013

December
31, 2013 December 31, 2012

Cash
\$180,200
\$15,000

Accounts
Receivable 15,000 28,600

Inventory
23,800 17,000

Prepaid
expenses 3,000 5,700

Equipment
16,000 36,400

Plant
assets 52,900 10,000

Building
84,000 114,500

\$374,900 \$227,200

Accounts
payable (merchandise) \$37,400
\$16,000

Salary
payable 5,500 4,000

Accrued
liabilities 15,000 19,300

Income
tax payable 3,800 3,000

Notes
payable 117,000
97,000

Common
stock 138,000
50,000

Treasury
stock 0 (45,000)

Retained
earnings
58,200 82,900

\$374,900
\$227,200

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