Managerial Accounting 1B Ch12

Managerial Accounting 1B Ch12

Exercise 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 expenses Patents		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

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

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 expenses Patents		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 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.

GECKO INC. Comparative Balance Sheets June 30, 2011 and 2010
	2011				2010
Assets
Cash	$	85,800			$	45,000
Accounts receivable, net		70,000				52,000
Inventory		66,800				96,800
Prepaid expenses		5,400				5,200
Equipment		130,000				120,000
Accum. depreciation Equipment		(28,000	)			(10,000	)
Total assets	$	330,000			$	309,000
Liabilities and Equity
Accounts payable	$	26,000			$	32,000
Wages payable		7,000				16,000
Income taxes payable		2,400				3,600
Notes payable (long term)		40,000				70,000
Common stock, $5 par value		230,000				180,000
Retained earnings		24,600				7,400
Total liabilities and equity	$	330,000			$	309,0

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