Week 5 Assignment Wiley

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E13-1
Pioneer Corporation had these transactions during 2011.
(a) Issued $50,000 par value common stock for cash.
(b) Purchased a machine for $30,000, giving a long-term note in exchange. (c) Issued $200,000 par value common stock upon conversion of bonds having a face value of $200,000.
(d) Declared and paid a cash dividend of $18,000.
(e) Sold a long-term investment with a cost of $15,000 for $15,000 cash. (f) Collected $16,000 of accounts receivable.
(g) Paid $18,000 on accounts payable.
Instructions
Analyze the transactions and indicate whether each transaction resulted in a cash flow from operating activities, investing activities, financing activities, or noncash investing and financing activities

(a)Issued $50,000 par value common stock for cash. 
Cash inflow; financing activities

(b) Purchased a machine for $30,000, giving a long-term note in exchange. noncash investing and financing activities

(c) Issued $200,000 par value common stock upon conversion of bonds having a face value of $200,000. noncash financing activities (converting one form of financing to another)

(d) Declared and paid a cash dividend of $18,000.
Cash outflow; financing activities

(e) Sold a long-term investment with a cost of $15,000 for $15,000 cash. Cash inflow; investing activities

(f) Collected $16,000 of accounts receivable.
Cash inflow; operating activities

(g) Paid $18,000 on accounts payable.
Cash outflow; operating activities

E13-8

Here are comparative balance sheets for Taguchi Company.

TAGUCHI COMPANY
Comparative Balance Sheets
December 31
Assets 2011 2010
Cash $ 73,000 $ 22,000
Accounts receivable 85,000 76,000
Inventories 170,000 189,000
Land 75,000 100,000
Equipment 260,000 200,000
Accumulated depreciation (66,000) (32,000)
Total $597,000 $555,000
Liabilities and Stockholders’ Equity
Accounts payable $ 39,000 $ 47,000
Bonds payable 150,000 200,000
Common stock ($1 par) 216,000 174,000
Retained earnings 192,000 134,000
Total $597,000 $555,000
Additional information:
1. Net income for 2011 was $103,000.
2. Cash dividends of $45,000 were declared and paid.
3. Bonds payable amounting to $50,000 were redeemed for cash $50,000. 4. Common stock was issued for $42,000 cash.
5. No equipment was sold during 2011, but land was sold at cost. Instructions
Prepare a statement of cash flows for 2011 using the indirect method.

TAGUCHI COMPANY

Statement of Cash Flows

For the Year Ended December 31, 2011

Cash flows from operating activities

Net income............................................................ $103,000)

Adjustments to reconcile net income

to net cash provided by operating

activities

Depreciation expense .............................. $34,000)

Decrease in inventory.............................. 19,000)

Decrease in accounts payable.............. (8,000) )

Increase in accounts receivable........... (9,000) 36,000

Net cash provided by operating

activities................................................... 139,000)

Cash flows from investing activities

Sale of land........................................................... 25,000)

Purchase of equipment.................................... (60,000)

Net cash used by investing

activities................................................... (35,000)

Cash flows from financing activities

Issuance of ordinary shares........................... 42,000)

Payment of cash dividends............................. (45,000)

Redemption of bonds ....................................... (50,000)

Net cash used by financing

activities................................................... (53,000)

Net increase in cash................................................... 51,000)

Cash at beginning of...
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