| | | | Ashford University ACC206 |
| | | | Guidance Report |
| | | | Week One |
| | LISTEN TO AUDIO/VIDEO EXPLAINING THE GUIDANCE REPORT |
| | | | | YELLOW INDICATES ACCOUNT AMOUNTS CHANGED |
| | | | | Change Account to: |
| | | | | Based Upon Course Start Date |
| | Exercise/
Problem | Account to
be changed | Original
Amount | Jan-Feb | Mar-Apr | May-Jun | Jul-Aug | Sept-Oct | Nov-Dec |
| | Ch 1 Ex 2 | Net income | 107000 | $ 109,000 | $ 111,000 | $ 113,000 | $ 115,000 | $ 120,000 | $ 121,000 |
| | | Depreciation | 12600 | $ 13,000 | $ 15,000 | $ 16,000 | $ 18,000 | $ 20,000 | $ 21,000 |
| | | Accounts payable | 21000 | $ 22,000 | $ 23,000 | $ 24,000 | $ 25,000 | $ 26,000 | $ 27,000 |
| | | Questions | YOUR ANSWERS BASED UPON COURSE START DATE |
| | | Net Income |
| | | Accounts receivable |
| | | Inventory |
| | | Accounts payable |
| | | Depreciation |
| | | Cash Flow from Operating Activities |
| | | Account to
be changed | Original
Amount | Jan-Feb | Mar-Apr | May-Jun | Jul-Aug | Sept-Oct | Nov-Dec |
| | Ch 1 Ex 3 | Net Income | 110000 | $ 112,000 | $ 114,000 | $ 116,000 | $ 117,000 | $ 118,000 | $ 120,000 |
| | | Trade accounts receivable | 245000 | $ 246,000 | $ 248,000 | $ 249,000 | $ 250,000 | $ 255,000 | $ 256,000 |
| | | Merchandise inventory | 230000 | $ 231,000 | $ 232,000 | $ 232,000 | $ 235,000 | $ 240,000 | $ 241,000 |
| | | Accumulated depreciation: equipment | 120000 | $ 121,000 | $ 122,000 | $ 124,000 | $ 125,000 | $ 130,000 | $ 141,000 |
| | | Accounts payable | 190000 | $ 191,000 | $ 193,000 | $ 194,000 | $ 195,000 | $ 200,000 | $ 201,000 |
| | | Accrued liabilities | 38000 | $ 39,000 | $ 40,000 | $ 41,000 | $ 45,000 | $ 45,000 | $ 46,000 |
| | | Gain on sale of investments | 18000 | $ 18,000 | $ 18,000 | $ 18,000 | $ 18,000 | $ 18,000 | $ 18,000 |
| | | | YOUR ANSWERS BASED UPON COURSE START DATE |
| | | Net Income |
| | | Trade accounts receivable |
| | | Merchandise inventory |
| | | Accumulated depreciation: equipment |
| | | Accounts payable |
| | | Accrued liabilities |
| | | Gain on sale of investments |
| | | Cash Flow from Operating Activities |
| | Ch 1 Ex 6 | Account to
be changed | Original
Amount | Jan-Feb | Mar-Apr | May-Jun | Jul-Aug | Sept-Oct | Nov-Dec |
| | | | Dec. 31, 20X4 |
| | | New equipment purchased | 280000 | $ 290,000 | $ 295,000 | $ 296,000 | $ 297,000 | $ 298,000 | $ 299,000 |
| | | Depreciation expense | 41000 | $ 42,000 | $ 43,000 | $ 44,000 | $ 45,000 | $ 46,000 | $ 47,000 |
| | | | YOUR ANSWERS BASED UPON COURSE START DATE |
| | | Cost of equipment sold |
| | | Accumulated depreciation of sold equipment |
| | | Selling price of equipment sold |
| | | Sale of equipment on cash flow statement |
| | Ch 1 Pb 2 |
| | | Account to
be changed | Original
Amount | Jan-Feb | Mar-Apr | May-Jun | Jul-Aug | Sept-Oct | Nov-Dec |
| | | Accounts payable decreased | 32800 | $ 33,800 | $ 34,800 | $ 35,800 | $ 36,800 | $ 37,800 | $ 38,800 |
| | | Accounts receivable increased | 23700 | $ 24,275 | $ 24,850 | $ 25,425 | $ 26,000 | $ 26,575 | $ 27,150 |
| | | Prepaid expenses increased | 2400 | $ 2,975 | $ 3,550 | $ 4,125 | $ 4,700 | $ 5,275 | $ 5,850 |
| | | wages payable increased | 5600 | $ 6,175 | $ 6,750 | $ 7,325 | $ 7,900 | $ 8,475 | $ 9,050 |
| | | Income taxes payable decreased | 800 | $ 1,375 | $ 1,950 | $ 2,525 | $ 3,100 | $ 3,675 | $ 4,250 |
| | | | YOUR ANSWERS BASED UPON COURSE START DATE |
| | | Direct Method |
| | | Cash collected |
| | | Less cash paid for: |
| | | Inventory |
| | | Selling & administrative |
| | | Interest expense |
| | | Income taxes |
| | | Net cash provided by operating activities |
| | | Indirect Method |
| | | Net income |
| | | Accounts payable decreased |
| | | Accounts receivable increased |
| | | Prepaid expenses increased |
| | | wages payable increased |
| | | Inventory |
| | | Income taxes payable decreased |
| | | Depreciation |
| | | Gain on sale of equipment |
| | | Net cash provided by operating activities |
| | CH 1 Pb 3 | Account to
be changed | Original
Amount | Jan-Feb | Mar-Apr | May-Jun | Jul-Aug | Sept-Oct | Nov-Dec |
| | | Accounts receivable (net) | 83800 | $ 84,800 | $ 85,800 | $ 86,800 | $ 87,800 | $ 88,800 | $ 89,800 |
| | | Inventory | 243400 | $ 244,400 | $ 245,400 | $ 246,400 | $ 247,400 | $ 248,400 | $ 249,400 |
| | | Accounts payable | 123600 | $ 124,600 | $ 125,600 | $ 126,600 | $ 127,600 | $ 128,600 | $ 129,600 |
| | | Taxes payable | 43600 | $ 44,600 | $ 45,600 | $ 46,600 | $ 47,600 | $ 43,600 | $ 43,600 |
| | | Sales | 713800 | $ 718,000 | $ 723,000 | $ 728,000 | $ 733,000 | $ 738,000 | $ 748,000 |
| | | Net income | 145800 | $ 150,000 | $ 155,000 | $ 160,000 | $ 165,000 | $ 170,000 | $ 180,000 |
| | | Long tem investments purchased | 74600 | $ 75,600 | $ 76,600 | $ 77,600 | $ 78,600 | $ 79,600 | $ 80,600 |
| | | Sale of land cash proceeds | 76200 | $ 77,200 | $ 78,200 | $ 79,200 | $ 80,200 | $ 81,200 | $ 82,200 |
| | | Store equipment purchased - short term note | 44000 | $ 45,000 | $ 46,000 | $ 47,000 | $ 48,000 | $ 49,000 | $ 50,000 |
| | | Purchased equipment issue 3000 pref shares | 150000 | $ 151,000 | $ 152,000 | $ 153,000 | $ 154,000 | $ 155,000 | $ 156,000 |
| | | Long term note repaid | 49400 | $ 49,900 | $ 50,400 | $ 50,900 | $ 51,400 | $ 51,900 | $ 52,400 |
| | | Common stock issued - shares | 20000 | 20500 | 21000 | 21500 | 22000 | 22500 | 23000 |
| | | | YOUR ANSWERS BASED UPON COURSE START DATE |
| | | Prepare the operating activities section of the statement of cash flows by using the direct method. |
| | | Cash collected |
| | | Less cash paid for: |
| | | Inventory |
| | | Selling & administrative |
| | | Interest expense |
| | | Income taxes |
| | | Net cash provided by operating activities |
| | | Prepare the operating activities section of the statement of cash flows by using the indirect method. |
| | | Net income |
| | | Accounts receivable |
| | | Inventory |
| | | Prepaid expenses |
| | | Accounts payable |
| | | Taxes payable |
| | | Interest payable |
| | | Accrued liabilities |
| | | Gain on sale of land |
| | | Depreciation |
| | | Net cash provided by operating activities |
| | | Prepare the investing and financing activities sections of the statement of cash flows. |
| | | Cash flows from investing activities |
| | | Purchase of long-term investments |
| | | Proceeds from sale of land |
| | | Net cash provided by investing act. |
| | | Cash flows from financing activities |
| | | Repayment of long-term note |
| | | Issuance of common stock* |
| | | Dividends paid |
| | | Net cash used by financing activities |
| | | * 20,000 shares X $5.19 = $103,800 |
| | | Note: The store equipment and telecommunications system transactions would be reported as noncash investing/ financing activities |
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ACC206GuidanceReportWeekOne.xlsx
