Managerial Accounting 1B Ch12

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Managerial Accounting 1B

Financial
and Managerial Accounting

Chapter 12

Exercise 12-5B Computation of cash flows (direct) L.O. P5








































































































Case A:



Compute cash received from
customers:









Sales



$



510,000





Accounts receivable,
December 31, 2011





25,200





Accounts receivable,
December 31, 2012





34,800



Case B:



Compute cash paid for rent:









Rent expense



$



140,800





Rent payable, December 31,
2011





8,800





Rent payable, December 31,
2012





7,200



Case C:



Compute cash paid for
merchandise:









Cost of goods sold



$



528,000





Merchandise inventory,
December 31, 2011





159,600





Accounts payable, December
31, 2011





67,800





Merchandise inventory,
December 31, 2012





131,400





Accounts payable, December
31, 2012





84,000











For each of the above three
separate cases, use the information provided about the calendar-year 2012
operations of Sahim Company to compute the required cash flow
information. (Omit the “$” sign in
your response.)

































Case A:



Cash received from customers





Case B:



Cash paid for rent





Case C:



Cash paid for merchandise








Exercise 12-6 Cash flows from operating activities (indirect)
L.O. P2

























































































































































BEKHAM
COMPANY

Income Statement
For Year Ended December 31, 2011



Sales









$



1,818,000





Cost of goods sold











891,000





















Gross profit











927,000





Operating expenses















Salaries
expense



$



248,535











Depreciation
expense





43,200











Rent
expense





48,600











Amortization
expenses–Patents





5,400











Utilities
expense





19,125







364,860

































562,140





Gain on sale of
equipment











7,200





















Net income









$



569,340

































Changes in current asset and
current liability accounts for the year that relate to operations follow.





































Accounts receivable



$



40,500



increase



Accounts payable



$



13,500



decrease



Merchandise inventory





27,000



increase



Salaries payable





4,500



decrease











Use the above income statement and
information about changes in noncash current assets and current liabilities
to prepare only the cash flows from operating activities section of the
statement of cash flows using the indirect method.(Amounts to be deducted should be indicated with a minus
sign. Omit the “$” sign in your response)


Exercise 12-7B Cash flows from operating activities (direct)
L.O. P5






Changes in current asset and
current liability accounts for the year that relate to operations follow.







Use the above income statement and
information about changes in noncash current assets and current
liabilities to prepare only the cash provided
or used by operating activities section of the statement of cash flows for
this company using the direct method.(Amounts to be deducted should be indicated with a minus
sign. Omit the “$” sign in your response.)


Exercise 12-10 Preparation of statement of cash flows (indirect)
L.O. P1

[The following
information applies to the questions displayed below.]






Use the
following financial statements and additional information.







Additional Information




























a.



A $30,000 note payable
is retired at its $30,000 carrying (book) value in exchange for cash.



b.



The only changes
affecting retained earnings are net income and cash dividends paid.



c.



New equipment is
acquired for $58,600 cash.



d.



Received cash for the
sale of equipment that had cost $48,600, yielding a $2,000 gain.



e.



Prepaid Expenses and
Wages Payable relate to Other Expenses on the income statement.



f.



All purchases and
sales of merchandise inventory are on credit.


Exercise 12-10 Part 1







(1)



Prepare a statement of cash flows
for the year ended June 30, 2011, using the indirect method.
(Amounts to be deducted should be indicated with a minus
sign. Omit the “$” sign in your response.)

Exercise 12-10 Part 2







(2)



Compute the company’s cash flow on
total assets ratio for its fiscal year 2011.
(Round
your answer to 1 decimal place. Omit the “%” sign in your
response.)







Cash flow on total
assets ratio



Exercise 12-13B Preparation of statement of cash flows (direct)
from Cash T-account L.O. P1

[The following information
applies to the questions displayed below.]






The following
summarized Cash T-account reflects the total debits and total credits to the
Cash account of Texas Corporation for calendar year 2011.







Cash


















































































































Balance,
Dec. 31, 2010





135,200







Receipts
from customers





6,000,000



Payments
for merchandise



1,590,000



Receipts
from dividends





208,400



Payments
for wages



550,000



Receipts
from land sale





220,000



Payments
for rent



320,000



Receipts
from machinery sale





710,000



Payments
for interest



218,000



Receipts
from issuing stock





1,540,000



Payments
for taxes



450,000



Receipts
from borrowing





2,600,000



Payments
for machinery



2,236,000









Payments
for long-term investments



2,260,000









Payments
for note payable



386,000









Payments
for dividends



500,000









Payments
for treasury stock



218,000









Balance, Dec. 31, 2011



$



?

























6. Exercise 12-13B Part 1







(1)



Use this information to prepare a
complete statement of cash flows for year 2011. The cash provided or used by
operating activities should be reported using the direct method.
(Amounts to be deducted should be indicated with a
minus sign. Omit the “$” sign in your response.)


7. Exercise 12-13B Part 2







(2)



Refer to the statement of cash
flows in part 1 to answer the following questions a through d:


a.

(i) Which section shows the largest cash inflow?



















a.



(i) Which section shows the
largest cash inflow?

































(ii) Which section shows the
largest cash outflow?































b.



What is the largest individual
item among the investing cash outflows?
































c.



The cash proceeds are larger from




























d.



From borrowing activities the
company has











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