Exercise 4-16 (Algo) Statement of cash flows; directly from transactions [LO4-8] The following transactions occurred during...

Exercise 4-16 (Algo) Statement of cash flows; directly from transactions [LO4-8]

The following transactions occurred during March 2021 for the Wainwright Corporation. The company owns and operates a wholesale warehouse.

1.	Issued 38,000 shares of common stock in exchange for $380,000 in cash.
2.	Purchased equipment at a cost of $56,000. $18,000 cash was paid and a note payable to the seller was signed for the balance owed.
3.	Purchased inventory on account at a cost of $106,000. The company uses the perpetual inventory system.
4.	Credit sales for the month totaled $128,000. The cost of the goods sold was $78,000.
5.	Paid $5,800 in rent on the warehouse building for the month of March.
6.	Paid $6,800 to an insurance company for fire and liability insurance for a one-year period beginning April 1, 2021.
7.	Paid $78,000 on account for the merchandise purchased in 3.
8.	Collected $63,000 from customers on account.
9.	Recorded depreciation expense of $1,800 for the month on the equipment.

Required:

Analyze each transaction by indicating the cash effect and classify each as a financing, investing, and/or operating activity (a transaction can represent more than one type of activity).
Prepare a statement of cash flows, using the direct method to present cash flows from operating activities. Assume the cash balance at the beginning of the month was $48,000

Prepare a statement of cash flows, using the direct method to present cash flows from operating activities. Assume the cash balance at the beginning of the month was $48,000. (Amounts to be deducted should be indicated with a minus sign.)

WAINWRIGHT CORPORATION
Statement of Cash Flows
For the Month Ended March 31, 2021
Cash flows from operating activities:





Net cash flows from operating activities		$0
Cash flows from investing activities:


Net cash flows from investing activities		0
Cash flows from financing activities:


Net cash flows from financing activities		0
Net increase in cash		0
Cash and cash equivalents, March 1
Cash and cash equivalents, March 31		$0

Noncash investing and financing activities:
Cost of equipment
Cash paid
Note issued		$0

Expert Solution

WAINWRIGHT CORPORATION
Statement of Cash Flows
For the Month Ended March 31, 2021
Cash flows from operating activities:
Collections from customers	63,000
Payment to suppliers of merchandise for sale	(78,000)
Payment of rent	(5,800)
Payment of one-year insurance premium	(6,800)

Net cash flows from operating activities		(27,600)
Cash flows from investing activities:
Purchase of equipment	(18,000)

Net cash flows from investing activities		(18,000)
Cash flows from financing activities:
Issuance of common stock	380,000

Net cash flows from financing activities		380,000
Net increase in cash		334,400
Cash and cash equivalents, March 1		48,000
Cash and cash equivalents, March 31		382,400
Noncash investing and financing activities
Cost of equipment	56,000
Cash paid		18,000
Note issued		38,000

ekkarill92 answered 2 years ago

Exercise 4-20 (Algo) Statement of cash flows; indirect method [LO4-8] Presented below is the 2021 income...

Exercise 4-20 (Algo) Statement of cash flows; indirect method [LO4-8] Presented below is the 2021 income statement and comparative balance sheet information for Tiger Enterprises. TIGER ENTERPRISES Income Statement For the Year Ended December 31, 2021 ($ in thousands) Sales revenue $ 10,500 Operating expenses: Cost of goods sold $ 4,100 Depreciation expense 310 Insurance expense 450 General and administrative expense 2,500 Total operating expenses 7,360 Income before income taxes 3,140 Income tax expense (1,256 ) Net income $ 1,884...

Problem 4-9 (Algo) Statement of cash flows [LO4-8] The Diversified Portfolio Corporation provides investment advice to...

Problem 4-9 (Algo) Statement of cash flows [LO4-8] The Diversified Portfolio Corporation provides investment advice to customers. A condensed income statement for the year ended December 31, 2021, appears below: Service revenue $ 1,080,000 Operating expenses 790,000 Income before income taxes 290,000 Income tax expense 72,500 Net income $ 217,500 The following balance sheet information also is available: 12/31/2021 12/31/2020 Cash $ 399,500 $ 79,000 Accounts receivable 138,000 109,000 Accrued liabilities (for operating expenses) 88,000 69,000 Income taxes payable 19,000...

Exercise 4-21 Statement of cash flows; direct method [LO4-8] Presented below is the 2018 income statement...

Exercise 4-21 Statement of cash flows; direct method [LO4-8] Presented below is the 2018 income statement and comparative balance sheet information for Tiger Enterprises. TIGER ENTERPRISES Income Statement For Year Ended December 31, 2018 ($ in thousands) Sales revenue $7,600 Operating expenses: Cost of goods sold $3,460 Depreciation 340 Insurance 200 Administrative and other 1,900 Total operating expenses 5,900 Income before income taxes 1,700 Income tax enpense 700 Net Income $1,000 Balance Sheet Information ($ in thousands) Dec. 31, 2018...

Brief Exercise 4-4 (Algo) Multiple-step income statement [LO4-1, 4-3] The following is a partial year-end adjusted...

Brief Exercise 4-4 (Algo) Multiple-step income statement [LO4-1, 4-3] The following is a partial year-end adjusted trial balance. Account Title Debits Credits Sales revenue $ 460,000 Loss on sale of investments $ 54,000 Interest revenue 6,500 Cost of goods sold 240,000 General and administrative expense 56,000 Restructuring costs 58,000 Selling expense 33,000 Income tax expense ? Income tax expense has not yet been recorded. The income tax rate is 25%. a. Determine the operating income (loss). b. Determine the income...

Ch 8 algo 1 Exercise 8-18 (REV) Cash Flows; Budgeted Income Statement and Balance Sheet [LO8-2,...

Ch 8 algo 1 Exercise 8-18 (REV) Cash Flows; Budgeted Income Statement and Balance Sheet [LO8-2, LO8-3, LO8-9, LO8-10] Wolfpack Company is a merchandising company that is preparing a budget for the month of July. It has provided the following information: Wolfpack Company Balance Sheet June 30 Assets Cash $ 83,600 Accounts receivable 69,600 Inventory 44,200 Buildings and equipment, net of depreciation 158,000 Total assets $ 355,400 Liabilities and Stockholders’ Equity Accounts payable $ 37,400 Common stock 100,000 Retained earnings...

Northbrook Corporation is preparing a statement of cash flows. The following transaction occurred during the year:...

Northbrook Corporation is preparing a statement of cash flows. The following transaction occurred during the year: “Issued $70,000 worth of stock to acquire an airplane” Where would this transaction appear on the statement of cash flows? options: 1) Cash flows from operating activities section. 2) Cash flows from investing activities section. 3) Cash flows from financing activities section. 4) Noncash investing and financing transactions section.

Problem 4-9 Statement of cash flows [LO4-8] The Diversified Portfolio Corporation provides investment advice to customers....

Problem 4-9 Statement of cash flows [LO4-8] The Diversified Portfolio Corporation provides investment advice to customers. A condensed income statement for the year ended December 31, 2018, appears below: Service revenue $ 1,180,000 Operating expenses 840,000 Income before income taxes 340,000 Income tax expense 68,000 Net income $ 272,000 The following balance sheet information also is available: 12/31/18 12/31/17 Cash $ 469,000 $ 84,000 Accounts receivable 148,000 114,000 Accounts payable (operating expenses) 98,000 74,000 Income taxes payable 24,000 43,000 In...

Exercise 18.1 Effects of transactions on statement of cash flows Below is a list of transactions...

Exercise 18.1 Effects of transactions on statement of cash flows Below is a list of transactions completed by Direct Fashion during 2020. Ignore GST. For each transaction, indicate (a) the section (i.e. operating, investing or financing) of the statement of cash flows (SCF) in which the cash effect is reported (if the effect is not reported in any of the sections, place NA on the line); (b) the amount; (c) whether the effect would be an inflow (+) or outflow...

Problem 4-16 (Algo) Comprehensive Problem-Weighted-Average Method [LO4-2, LO4-3, LO4-4, LO4-5] Builder Products, Inc., uses the weighted-average...

Problem 4-16 (Algo) Comprehensive Problem-Weighted-Average Method [LO4-2, LO4-3, LO4-4, LO4-5] Builder Products, Inc., uses the weighted-average method in its process costing system. It manufactures a caulking compound that goes through three processing stages prior to completion. Information on work in the first department, Cooking, is given below for May: Production data: Pounds in process, May 1; materials 100% complete; conversion 90% complete 85,000 Pounds started into production during May 500,000 Pounds completed and transferred out ? Pounds in process, May...

Exercise 21-31 (Algo) Statement of cash flows; indirect method [LO21-4, 21-5, 21-6, 21-8] Appendix 21A Comparative...

Exercise 21-31 (Algo) Statement of cash flows; indirect method [LO21-4, 21-5, 21-6, 21-8] Appendix 21A Comparative balance sheets for 2021 and 2020, a statement of income for 2021, and additional information from the accounting records of Red, Inc., are provided below. RED, INC. Comparative Balance Sheets December 31, 2021 and 2020 ($ in millions) 2021 2020 Assets Cash $ 32 $ 153 Accounts receivable 175 141 Prepaid insurance 9 5 Inventory 300 184 Buildings and equipment 418 359 Less: Accumulated...

Question