MGA 201: Fall 2014 Quiz #12: CH 12

Name ­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­____SOLUTION – Version 1_________________       Recitation Section (req’d) _________

MGA 201: Fall 2014                                                                 Quiz #12:  CH 12

The following information is given for Sunny Corporation, Inc.:

Net income                                                 $45,000

Depreciation expense                                   8,000

Decrease in accounts receivable               3,000

Increase in inventory                                    1,000

Sale of common stock                                50,000

Purchase of equipment                              45,000

Payment of dividends                                   6,000

Decrease in accounts payable                    5,000

The beginning Cash balance is               23,000           

REQUIRED: 

PART I - Fill in the missing data for each of the 22 UNSHADED CELLS for the company’s Statement of Cash Flows below.                                                                                                               

Sunny Corporation, Inc.

Statement of Cash Flows

For the Year Ended December 31, 2014

Part II - Indicate the effect that each of the following transactions has on the cash balance. Use (I) for increase, (D) for decrease, and (N) for no change.

a) _______ Increase in inventory

b) ________ Sale of common stock for cash

c) _______ Payment of dividends

Name ­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­____SOLUTION – Version 2_________________       Recitation Section (req’d) _________

MGA 201: Fall 2014                                                                 Quiz #12:  CH 12

The following information is given for Nevada Times, Inc.:

The beginning Cash balance is            $23,000

Net income                                                   20,000

Depreciation expense                                   4,000

Increase in accounts receivable                 2,000

Decrease in inventory                                   3,000

Sale of common stock                                10,000

Proceeds from sale of equipment               5,000

Loan money to a customer                           4,000

Increase in accounts payable                     1,000

REQUIRED: 

PART I - Fill in the missing data for each of the 22 UNSHADED CELLS for the company’s Statement of Cash Flows below.                                                                                                               

Nevada Times, Inc.

Statement of Cash Flows

For the Year Ended December 31, 2014

Part II - Indicate the effect that each of the following transactions has on the cash balance. Use (I) for increase, (D) for decrease, and (N) for no change.

a) ______ Depreciation expense for the period

b) ______ Payment of long-term debt

c) ______ Purchase of equipment on account

Name ­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­____SOLUTION – Version 3_________________       Recitation Section (req’d) _________

MGA 201: Fall 2014                                                                 Quiz #12:  CH 12

The following information is given for Tripp Company, Inc.:

Net income                                                 $30,000

Depreciation expense                                  3,000

Increase in accounts receivable                 2,000

Purchased a patent                                       7,000

Payment of dividends                                   2,000

Proceeds from sale of equipment               6,000

Increase in accounts payable                     4,000

Increase in inventory                                    3,000

The beginning Cash balance is             31,000 

REQUIRED: 

PART I - Fill in the missing data for each of the 22 UNSHADED CELLS for the company’s Statement of Cash Flows below.

Tripp Company, Inc.

Statement of Cash Flows

For the Year Ended December 31, 2014

Part II - Indicate the effect that each of the following transactions has on the cash balance. Use (I) for increase, (D) for decrease, and (N) for no change.

a) _______ Payment of long-term debt

b) _______ Loan of money to another company

c) _______ Increase in accounts payable