Week 4 Written Assignment - Problems and Exercises

profileSharpguy
chapter_13_-_p5.xls
Home>Business & Finance homework help>Accounting homework help>Week 4 Written Assignment - Problems and Exercises

Template

P-13-05 Name:
Section:
Enter the appropriate amount or item in the shaded cells. Use the drop-down lists when available.
An asterisk (*) will appear next to an incorrect entry in the outlined cells.
Enter any cash outflows and deductible values with minus sign.
1. Yong Company
Statement of Cash Flows
For the Year Ended December 31, 2014
Cash flows from operating activities: Cash at beginning of year Cash at beginning of year Depreciation, equipment Amortization, patent
0 0 Net income Depreciation Purchase of equipment Issue of notes payable
Adjustments to reconcile net income to net Payment of dividends Issue of notes payable Sale of equipment Issue of mortgage for land
cash flows from operating activities: Sale of furniture and fixtures Sale of furniture and fixtures Payment of dividends Purchase of patent
0 0 Gain on sale of furniture and fixtures Decrease in accounts receivable Increase in accounts receivable
0 0 Issue of notes payable Increase in accounts receivable Decrease in merchandise inventory
Changes in current assets and current liabilities: Payment of dividends Issue of notes payable Depreciation
0 0 Sale of furniture and fixtures Sale of furniture and fixtures Purchase of furniture and fixtures
0 0 Decrease in prepaid rent Decrease in accounts payable Decrease in income taxes payable
0 0 Issue of notes payable Increase in accounts payable Increase in accounts payable
0 0 Repayment of notes payable Issue of notes payable Issue of notes payable
0 0 0 Payment of dividends Repayment of notes payable Sale of furniture and fixtures
Net cash flows from operating activities 0
Gain on sale of furniture and fixtures Decrease in accounts receivable Gain on sale of equipment
Cash flows from investing activities: Issue of notes payable Gain on sale of furniture and fixtures Issue of notes payable
0 0 Payment of dividends Repayment of notes payable Payment of dividends
0 0 Sale of furniture and fixtures Purchase of furniture and fixtures Purchase of patent
Net cash flows from investing activities 0
Cash at beginning of year Decrease in prepaid rent Depreciation
Cash flows from financing activities: Decrease in accounts receivable Depreciation Net income
0 0 Decrease in income taxes payable Issue of notes payable Payment of dividends
0 0 Repayment of notes payable Sale of furniture and fixtures Purchase of furniture and fixtures
0 0
Net cash flows from financing activities 0
Net 0 in cash 0 Cash at beginning of year Cash at end of year
0 0 Conversion of bonds into common stock Gain on sale of furniture and fixtures
0 0 Net income Issue of notes payable
Repayment of notes payable Payment of dividends
Schedule of Noncash Investing and Financing Transactions
0 0
3.
Conversion of bonds into com. stock
Cash Flow Yield = Depreciation
0 0 0 = 0 times Repayment of notes payable
Payment of dividends
Free Cash Flow = 0
Round your answer to one decimal place.

Solution

P-13-05_Sol Name: SOLUTION
Section:
Enter the appropriate amount or item in the shaded cells. Use the drop-down lists when available.
An asterisk (*) will appear next to an incorrect entry in the outlined cells.
Enter any cash outflows and deductible values with minus sign.
1. Yong Company
Statement of Cash Flows
For the Year Ended December 31, 2014
Cash flows from operating activities: Cash at beginning of year Cash at beginning of year Depreciation, equipment Amortization, patent
Net income $ 11,000 Net income Depreciation Purchase of equipment Issue of notes payable
Adjustments to reconcile net income to net Payment of dividends Issue of notes payable Sale of equipment Issue of mortgage for land
cash flows from operating activities: Sale of furniture and fixtures Sale of furniture and fixtures Payment of dividends Purchase of patent
Depreciation $ 46,800 Gain on sale of furniture and fixtures Decrease in accounts receivable Increase in accounts receivable
Gain on sale of furniture and fixtures (7,000) Issue of notes payable Increase in accounts receivable Decrease in merchandise inventory
Changes in current assets and current liabilities: Payment of dividends Issue of notes payable Depreciation
Decrease in accounts receivable 34,800 Sale of furniture and fixtures Sale of furniture and fixtures Purchase of furniture and fixtures
Decrease in merchandise inventory 100,000 Decrease in prepaid rent Decrease in accounts payable Decrease in income taxes payable
Decrease in prepaid rent 1,000 Issue of notes payable Increase in accounts payable Increase in accounts payable
Decrease in accounts payable (57,000) Repayment of notes payable Issue of notes payable Issue of notes payable
Decrease in income taxes payable (3,000) 115,600 Payment of dividends Repayment of notes payable Sale of furniture and fixtures
Net cash flows from operating activities $ 126,600
Gain on sale of furniture and fixtures Decrease in accounts receivable Gain on sale of equipment
Cash flows from investing activities: Issue of notes payable Gain on sale of furniture and fixtures Issue of notes payable
Sale of furniture and fixtures $ 13,800 Payment of dividends Repayment of notes payable Payment of dividends
Purchase of furniture and fixtures (39,600) Sale of furniture and fixtures Purchase of furniture and fixtures Purchase of patent
Net cash flows from investing activities (25,800)
Cash at beginning of year Decrease in prepaid rent Depreciation
Cash flows from financing activities: Decrease in accounts receivable Depreciation Net income
Repayment of notes payable $ (20,000) Decrease in income taxes payable Issue of notes payable Payment of dividends
Issue of notes payable 40,000 Repayment of notes payable Sale of furniture and fixtures Purchase of furniture and fixtures
Payment of dividends (6,000)
Net cash flows from financing activities 14,000
Net increase in cash $ 114,800 Cash at beginning of year Cash at end of year
Cash at beginning of year 50,000 Conversion of bonds into common stock Gain on sale of furniture and fixtures
Cash at end of year $ 164,800 Net income Issue of notes payable
Repayment of notes payable Payment of dividends
Schedule of Noncash Investing and Financing Transactions
Conversion of bonds into com. stock $ 100,000
3.
Conversion of bonds into com. stock
Cash Flow Yield = Depreciation
$ 126,600 / $ 11,000 = 11.5 times Repayment of notes payable
Payment of dividends
Free Cash Flow = $ 94,800
Round your answer to one decimal place.