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Managerial Accounting 1B
Financial
and Managerial Accounting
Chapter 12Exercise 12-5B Computation of cash flows (direct) L.O. P5

Case A:

Compute cash received from
customers:

Sales

$

510,000

Accounts receivable,
December 31, 2011

25,200

Accounts receivable,
December 31, 2012

34,800

Case B:

Compute cash paid for rent:

Rent expense

$

140,800

Rent payable, December 31,
2011

8,800

Rent payable, December 31,
2012

7,200

Case C:

Compute cash paid for
merchandise:

Cost of goods sold

$

528,000

Merchandise inventory,
December 31, 2011

159,600

Accounts payable, December
31, 2011

67,800

Merchandise inventory,
December 31, 2012

131,400

Accounts payable, December
31, 2012

84,000

For each of the above three
separate cases, use the information provided about the calendar-year 2012
operations of Sahim Company to compute the required cash flow
information. (Omit the “$” sign in
your response.)

Case A:

Cash received from customers

Case B:

Cash paid for rent

Case C:

Cash paid for merchandise

Exercise 12-6 Cash flows from operating activities (indirect)
L.O. P2

BEKHAM
COMPANY
Income Statement
For Year Ended December 31, 2011

Sales

$

1,818,000

Cost of goods sold

891,000

Gross profit

927,000

Operating expenses

Salaries
expense

$

248,535

Depreciation
expense

43,200

Rent
expense

48,600

Amortization
expensesPatents

5,400

Utilities
expense

19,125

364,860

562,140

Gain on sale of
equipment

7,200

Net income

$

569,340

Changes in current asset and
current liability accounts for the year that relate to operations follow.

Accounts receivable

$

40,500

increase

Accounts payable

$

13,500

decrease

Merchandise inventory

27,000

increase

Salaries payable

4,500

decrease

Use the above income statement and
information about changes in noncash current assets and current liabilities
to prepare only the cash flows from operating activities section of the
statement of cash flows using the indirect method.(Amounts to be deducted should be indicated with a minus
sign. Omit the “$” sign in your response)

Exercise 12-7B Cash flows from operating activities (direct)
L.O. P5

Changes in current asset and
current liability accounts for the year that relate to operations follow.

Use the above income statement and
information about changes in noncash current assets and current
liabilities to prepare only the cash provided
or used by operating activities section of the statement of cash flows for
this company using the direct method.(Amounts to be deducted should be indicated with a minus
sign. Omit the “$” sign in your response.)

Exercise 12-10 Preparation of statement of cash flows (indirect)
L.O. P1
[The following
information applies to the questions displayed below.]

Use the
following financial statements and additional information.

Additional Information

a.

A $30,000 note payable
is retired at its $30,000 carrying (book) value in exchange for cash.

b.

The only changes
affecting retained earnings are net income and cash dividends paid.

c.

New equipment is
acquired for $58,600 cash.

d.

Received cash for the
sale of equipment that had cost $48,600, yielding a $2,000 gain.

e.

Prepaid Expenses and
Wages Payable relate to Other Expenses on the income statement.

f.

All purchases and
sales of merchandise inventory are on credit.

Exercise 12-10 Part 1

(1)

Prepare a statement of cash flows
for the year ended June 30, 2011, using the indirect method.(Amounts to be deducted should be indicated with a minus
sign. Omit the “$” sign in your response.)

Exercise 12-10 Part 2

(2)

Compute the company’s cash flow on
total assets ratio for its fiscal year 2011.(Round
your answer to 1 decimal place. Omit the “%” sign in your
response.)

Cash flow on total
assets ratio

Exercise 12-13B Preparation of statement of cash flows (direct)
from Cash T-account L.O. P1
[The following information
applies to the questions displayed below.]

The following
summarized Cash T-account reflects the total debits and total credits to the
Cash account of Texas Corporation for calendar year 2011.

Cash

Balance,
Dec. 31, 2010

135,200

Receipts
from customers

6,000,000

Payments
for merchandise

1,590,000

Receipts
from dividends

208,400

Payments
for wages

550,000

Receipts
from land sale

220,000

Payments
for rent

320,000

Receipts
from machinery sale

710,000

Payments
for interest

218,000

Receipts
from issuing stock

1,540,000

Payments
for taxes

450,000

Receipts
from borrowing

2,600,000

Payments
for machinery

2,236,000

Payments
for long-term investments

2,260,000

Payments
for note payable

386,000

Payments
for dividends

500,000

Payments
for treasury stock

218,000

Balance, Dec. 31, 2011

$

?

6. Exercise 12-13B Part 1

(1)

Use this information to prepare a
complete statement of cash flows for year 2011. The cash provided or used by
operating activities should be reported using the direct method. (Amounts to be deducted should be indicated with a
minus sign. Omit the “$” sign in your response.)

7. Exercise 12-13B Part 2

(2)

Refer to the statement of cash
flows in part 1 to answer the following questions a through d:

a.(i) Which section shows the largest cash inflow?

a.

(i) Which section shows the
largest cash inflow?

(ii) Which section shows the
largest cash outflow?

b.

What is the largest individual
item among the investing cash outflows?

c.

The cash proceeds are larger from

d.

From borrowing activities the
company has

Managerial Accounting 1B
Financial
and Managerial Accounting
Chapter 12Exercise 12-5B Computation of cash flows (direct) L.O. P5
Case A: Compute cash received from
customers: Sales$510,000
Accounts receivable,
December 31, 2011 25,200
Accounts receivable,
December 31, 2012 34,800
Case B: Compute cash paid for rent: Rent expense$140,800
Rent payable, December 31,
2011 8,800
Rent payable, December 31,
2012 7,200
Case C: Compute cash paid for
merchandise: Cost of goods sold$528,000
Merchandise inventory,
December 31, 2011 159,600
Accounts payable, December
31, 2011 67,800
Merchandise inventory,
December 31, 2012 131,400
Accounts payable, December
31, 2012 84,000

For each of the above three
separate cases, use the information provided about the calendar-year 2012
operations of Sahim Company to compute the required cash flow
information. (Omit the “$” sign in
your response.)

Case A: Cash received from customers Case B: Cash paid for rent Case C: Cash paid for merchandise

Exercise 12-6 Cash flows from operating activities (indirect)
L.O. P2
BEKHAM
COMPANY
Income Statement
For Year Ended December 31, 2011 Sales $1,818,000 Cost of goods sold 891,000 Gross profit 927,000 Operating expenses Salaries
expense$248,535 Depreciation
expense 43,200 Rent
expense 48,600 Amortization
expensesPatents 5,400 Utilities
expense 19,125 364,860 562,140 Gain on sale of
equipment 7,200 Net income $569,340

Changes in current asset and
current liability accounts for the year that relate to operations follow.

Accounts receivable$40,500 increase Accounts payable$13,500 decrease Merchandise inventory 27,000 increase Salaries payable 4,500
decrease
Use the above income statement and
information about changes in noncash current assets and current liabilities
to prepare only the cash flows from operating activities section of the
statement of cash flows using the indirect method.(Amounts to be deducted should be indicated with a minus
sign. Omit the “$” sign in your response)
Exercise 12-7B Cash flows from operating activities (direct)
L.O. P5
Changes in current asset and
current liability accounts for the year that relate to operations follow.
Use the above income statement and
information about changes in noncash current assets and current
liabilities to prepare only the cash provided
or used by operating activities section of the statement of cash flows for
this company using the direct method.(Amounts to be deducted should be indicated with a minus
sign. Omit the “$” sign in your response.)
Exercise 12-10 Preparation of statement of cash flows (indirect)
L.O. P1
[The following
information applies to the questions displayed below.]

Use the
following financial statements and additional information.

Additional Information

a.A $30,000 note payable
is retired at its $30,000 carrying (book) value in exchange for cash.b.The only changes
affecting retained earnings are net income and cash dividends paid.c.New equipment is
acquired for $58,600 cash.d.Received cash for the
sale of equipment that had cost $48,600, yielding a $2,000 gain.e.Prepaid Expenses and
Wages Payable relate to Other Expenses on the income statement.f.All purchases and
sales of merchandise inventory are on credit.

Exercise 12-10 Part 1
(1)Prepare a statement of cash flows
for the year ended June 30, 2011, using the indirect method.(Amounts to be deducted should be indicated with a minus
sign. Omit the “$” sign in your response.)
Exercise 12-10 Part 2
(2)Compute the company’s cash flow on
total assets ratio for its fiscal year 2011.(Round
your answer to 1 decimal place. Omit the “%” sign in your
response.)
Cash flow on total
assets ratio
Exercise 12-13B Preparation of statement of cash flows (direct)
from Cash T-account L.O. P1
[The following information
applies to the questions displayed below.]

The following
summarized Cash T-account reflects the total debits and total credits to the
Cash account of Texas Corporation for calendar year 2011.

Cash

Balance,
Dec. 31, 2010 135,200 Receipts
from customers 6,000,000 Payments
for merchandise1,590,000 Receipts
from dividends 208,400 Payments
for wages550,000 Receipts
from land sale 220,000 Payments
for rent320,000 Receipts
from machinery sale 710,000 Payments
for interest218,000 Receipts
from issuing stock 1,540,000 Payments
for taxes450,000 Receipts
from borrowing 2,600,000 Payments
for machinery2,236,000 Payments
for long-term investments2,260,000 Payments
for note payable386,000 Payments
for dividends500,000 Payments
for treasury stock218,000 Balance, Dec. 31, 2011$?
6. Exercise 12-13B Part 1
(1)Use this information to prepare a
complete statement of cash flows for year 2011. The cash provided or used by
operating activities should be reported using the direct method. (Amounts to be deducted should be indicated with a
minus sign. Omit the “$” sign in your response.)

7. Exercise 12-13B Part 2
(2)Refer to the statement of cash
flows in part 1 to answer the following questions a through d:
a.(i) Which section shows the largest cash inflow?
a.(i) Which section shows the
largest cash inflow?
(ii) Which section shows the
largest cash outflow?
b.What is the largest individual
item among the investing cash outflows?

c.The cash proceeds are larger from
d.From borrowing activities the
company has

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