ACC 305 Week 2 Assignment 2

Topics: Generally Accepted Accounting Principles, Cash flow statement, Dividend Pages: 7 (536 words) Published: November 8, 2014
Week 2 Assignment 2
ACC Intermediate Accounting I

E4-16
Bluebonnet Bakers
Statement of Cash Flows
For the Year Ended December 31, 2011
($ in thousands)

Cash Flows from Operating Activities
Collections from customers$380
Interest on note receivable6
Purchase of inventory(160)
Interest on note payable(5)
Salaries to employees (90)
Net cash flows from operating activities$131
Cash Flows from Investing Activities
Principal on note receivable50
Sale of investments30
Purchase of equipment(85)
Net cash flows from investing activites(5)
Cash Flows from Financing Activities
Proceeds from note payable100
Principle on note payable(25)
Payment of dividends to shareholders(20)
Net cash flows from financing activities 55
Net increase in cash181
Cash, January 1 17
Cash, December 31$198

E4-19
FinancingInvestingOperating
1.X $300,000
2.XX ($10,000)
3.X
4.X
5.X ($5,000)
6.X ($6,000)
7.X ($70,000)
8.X $55,000
9.X

Wainwright Corporation
Statement of Cash Flows
For March 2011
($ in thousands)

Cash Flows from Operating Activities
Collections from customers$55
Payment for inventory purchased on account(70)
Payment for warehouse rent(5)
Payment for insurance (6)
Net cash flows from operating activities$(26)
Cash Flows from Investing Activities
Purchase of equipment(10)
Cash Flows from Financing Activities
Issuance of stock 300
Net increase in cash264
Cash, March 1 40
Cash, March 31$304

E4-22
Tiger Enterprises
Statement of Cash Flows
For the Year Ended December 31, 2011
($ in thousands)

Cash Flows from Operating Activities
Net income$900
Adjustment for noncash effects
Depreciation Expense240
Changes in operating assets and liabilities
Decrease in receivables80
Increase in inventory(40)
Increase in prepaid insurance(30)
Decrease in payables(60)
Decrease in admin and other payables(100)
Increase in taxes payable50
Net cash flows from operating activities1040
Cash Flows from Investing Activities
Cash paid for plant and equipment(300)
Cash Flows from Financing Activities
Increase in note payable200
Sale of common stack100
Payment of dividends to shareholders(940)
Net cash flows from financing activities (640)
Net increase in cash100
Cash, January 1 200
Cash, December 31$300
Dividend payment (540+900=1440-500)
4-9
SituationTreatmentStatement Presentation
1. bCO
2. cRE
3. fCO
4. gCO
5. aBC
6.bCO
7.eBC
8.dRE

E5-3
Make Installment Sale:
2011
Installment receivables……………………...360,000
Inventory…………………………………………….234,000
Deferred gross profit………………………………...126,000 To record installment sale

Collect Cash
2011
Cash………………………………………...150,000
Installment receivables…………………...………….150,000 To record cash collection from installment sales

Deferred gross profit......................................52,500
Realized gross profit…………………………………52,500 To record cash collection from installment sales
(360,000-234,000=126,000) (126,000/360,000=35% gross profit) Make Installment Sale:
2012
Installment receivables……………………...350,000
Inventory…………………………………………….245,000
Deferred gross profit………………………………...105,000 To record installment sale

Collect Cash
2012
Cash………………………………………...220,000
Installment receivable (2011 sale)……...………...….100,000
Installment receivable (2012 sale)……………..…….120,000 To record cash collection from installment sales

Deferred gross profit......................................71,000
Realized gross profit (2011 sale)………………..…...35,000
Realized gross profit (2012 sale)………………….....36,000 To record cash collection from installment sales
(350,000-245,000=105,000) (105,000/350,000=30% gross profit) E3-10
1. 201120122013
Contract Price220220220
Construction costs:
Actual incurred during year408050
Actual...

References: Spiceland, J. D., Sepe, J. F., & Nelson, M. W. (2011). Intermediate Accounting, Sixth Edition. Boston: McGraw-Hill.
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