Question

In: Accounting

Exercise 13-8 Here are comparative balance sheets for Velo Company. VELO COMPANY Comparative Balance Sheets December...

Exercise 13-8

Here are comparative balance sheets for Velo Company.

VELO COMPANY
Comparative Balance Sheets
December 31
Assets
2017
2016
Cash
$ 73,000
$ 33,400
Accounts receivable
85,600
70,900
Inventory
170,000
186,900
Land
73,000
101,700
Equipment
260,700
200,800
Accumulated depreciation—equipment
(66,000
)
(33,700
)
   Total
$596,300

$560,000

Liabilities and Stockholders’ Equity
Accounts payable
$ 35,300
$ 47,100
Bonds payable
149,000
203,200
Common stock ($1 par)
216,300
172,000
Retained earnings
195,700

137,700

   Total
$596,300

$560,000


Additional information:

1. Net income for 2017 was $104,300.
2. Cash dividends of $46,300 were declared and paid.
3. Bonds payable amounting to $54,200 were redeemed for cash $54,200.
4. Common stock was issued for $44,300 cash.
5. No equipment was sold during 2017, but land was sold at cost.


Prepare a statement of cash flows for 2017 using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000, or in parenthesis e.g. (15,000).)

VELO COMPANY
Statement of Cash Flows

December 31, 2017
For the Year Ended December 31, 2017
For the Month Ended December 31, 2017

Cash at Beginning of Period
Cash at End of Period
Cash Flows from Financing Activities
Cash Flows from Investing Activities
Cash Flows from Operating Activities
Net Cash Provided by Financing Activities
Net Cash Provided by Investing Activities
Net Cash Provided by Operating Activities
Net Cash Used by Financing Activities
Net Cash Used by Investing Activities
Net Cash Used by Operating Activities
Net Decrease in Cash
Net Increase in Cash
    
Decrease in Accounts Payable    
Payment of Cash Dividends    
Redemption of Bonds    
Purchase of Equipment    
Increase in Accounts Payable    
Sale of Land    
Issuance of Common Stock    
Depreciation Expense    
Net Income    
Decrease in Inventory    
Increase in Inventory    
Increase in Accounts Receivable    
Decrease in Accounts Receivable    
$
Adjustments to reconcile net income to

Cash at Beginning of Period
Cash at End of Period
Cash Flows from Financing Activities
Cash Flows from Investing Activities
Cash Flows from Operating Activities
Net Cash Provided by Financing Activities
Net Cash Provided by Investing Activities
Net Cash Provided by Operating Activities
Net Cash Used by Financing Activities
Net Cash Used by Investing Activities
Net Cash Used by Operating Activities
Net Decrease in Cash
Net Increase in Cash
    
Payment of Cash Dividends    
Increase in Accounts Payable    
Sale of Land    
Purchase of Equipment    
Issuance of Common Stock    
Redemption of Bonds    
Net Income    
Decrease in Accounts Payable    
Depreciation Expense    
Decrease in Inventory    
Increase in Inventory    
Increase in Accounts Receivable    
Decrease in Accounts Receivable    
$
    
Decrease in Accounts Receivable    
Decrease in Accounts Payable    
Increase in Inventory    
Decrease in Inventory    
Redemption of Bonds    
Purchase of Equipment    
Issuance of Common Stock    
Payment of Cash Dividends    
Increase in Accounts Payable    
Net Income    
Depreciation Expense    
Increase in Accounts Receivable    
Sale of Land    
    
Increase in Accounts Receivable    
Increase in Inventory    
Depreciation Expense    
Decrease in Accounts Receivable    
Decrease in Accounts Payable    
Net Income    
Increase in Accounts Payable    
Sale of Land    
Decrease in Inventory    
Purchase of Equipment    
Issuance of Common Stock    
Payment of Cash Dividends    
Redemption of Bonds    
    
Decrease in Inventory    
Decrease in Accounts Payable    
Depreciation Expense    
Increase in Inventory    
Decrease in Accounts Receivable    
Increase in Accounts Receivable    
Redemption of Bonds    
Net Income    
Increase in Accounts Payable    
Purchase of Equipment    
Sale of Land    
Payment of Cash Dividends    
Issuance of Common Stock    
    
Cash at Beginning of Period    
Cash at End of Period    
Cash Flows from Financing Activities    
Cash Flows from Investing Activities    
Cash Flows from Operating Activities    
Net Cash Provided by Financing Activities    
Net Cash Provided by Investing Activities    
Net Cash Provided by Operating Activities    
Net Cash Used by Financing Activities    
Net Cash Used by Investing Activities    
Net Cash Used by Operating Activities    
Net Decrease in Cash    
Net Increase in Cash    

Cash at Beginning of Period
Cash at End of Period
Cash Flows from Financing Activities
Cash Flows from Investing Activities
Cash Flows from Operating Activities
Net Cash Provided by Financing Activities
Net Cash Provided by Investing Activities
Net Cash Provided by Operating Activities
Net Cash Used by Financing Activities
Net Cash Used by Investing Activities
Net Cash Used by Operating Activities
Net Decrease in Cash
Net Increase in Cash
    
Decrease in Inventory    
Purchase of Equipment    
Sale of Land    
Net Income    
Depreciation Expense    
Increase in Inventory    
Increase in Accounts Payable    
Increase in Accounts Receivable    
Decrease in Accounts Receivable    
Decrease in Accounts Payable    
Issuance of Common Stock    
Payment of Cash Dividends    
Redemption of Bonds    
    
Redemption of Bonds    
Decrease in Inventory    
Payment of Cash Dividends    
Decrease in Accounts Receivable    
Purchase of Equipment    
Issuance of Common Stock    
Net Income    
Increase in Accounts Receivable    
Depreciation Expense    
Increase in Inventory    
Sale of Land    
Decrease in Accounts Payable    
Increase in Accounts Payable    
    
Cash at Beginning of Period    
Cash at End of Period    
Cash Flows from Financing Activities    
Cash Flows from Investing Activities    
Cash Flows from Operating Activities    
Net Cash Provided by Financing Activities    
Net Cash Provided by Investing Activities    
Net Cash Provided by Operating Activities    
Net Cash Used by Financing Activities    
Net Cash Used by Investing Activities    
Net Cash Used by Operating Activities    
Net Decrease in Cash    
Net Increase in Cash    

Cash at Beginning of Period
Cash at End of Period
Cash Flows from Financing Activities
Cash Flows from Investing Activities
Cash Flows from Operating Activities
Net Cash Provided by Financing Activities
Net Cash Provided by Investing Activities
Net Cash Provided by Operating Activities
Net Cash Used by Financing Activities
Net Cash Used by Investing Activities
Net Cash Used by Operating Activities
Net Decrease in Cash
Net Increase in Cash
    
Decrease in Accounts Receivable    
Decrease in Inventory    
Increase in Accounts Receivable    
Issuance of Common Stock    
Increase in Inventory    
Decrease in Accounts Payable    
Increase in Accounts Payable    
Sale of Land    
Purchase of Equipment    
Depreciation Expense    
Payment of Cash Dividends    
Redemption of Bonds    
Net Income    
    
Decrease in Accounts Payable    
Net Income    
Payment of Cash Dividends    
Redemption of Bonds    
Depreciation Expense    
Increase in Accounts Receivable    
Decrease in Inventory    
Increase in Accounts Payable    
Decrease in Accounts Receivable    
Sale of Land    
Increase in Inventory    
Purchase of Equipment    
Issuance of Common Stock    
    
Decrease in Inventory    
Decrease in Accounts Payable    
Net Income    
Decrease in Accounts Receivable    
Increase in Accounts Receivable    
Depreciation Expense    
Increase in Inventory    
Increase in Accounts Payable    
Sale of Land    
Purchase of Equipment    
Issuance of Common Stock    
Redemption of Bonds    
Payment of Cash Dividends    
    
Cash at Beginning of Period    
Cash at End of Period    
Cash Flows from Financing Activities    
Cash Flows from Investing Activities    
Cash Flows from Operating Activities    
Net Cash Provided by Financing Activities    
Net Cash Provided by Investing Activities    
Net Cash Provided by Operating Activities    
Net Cash Used by Financing Activities    
Net Cash Used by Investing Activities    
Net Cash Used by Operating Activities    
Net Decrease in Cash    
Net Increase in Cash    

Cash at Beginning of Period
Cash at End of Period
Cash Flows from Financing Activities
Cash Flows from Investing Activities
Cash Flows from Operating Activities
Net Cash Provided by Financing Activities
Net Cash Provided by Investing Activities
Net Cash Provided by Operating Activities
Net Cash Used by Financing Activities
Net Cash Used by Investing Activities
Net Cash Used by Operating Activities
Net Decrease in Cash
Net Increase in Cash

Cash at Beginning of Period
Cash at End of Period
Cash Flows from Financing Activities
Cash Flows from Investing Activities
Cash Flows from Operating Activities
Net Cash Provided by Financing Activities
Net Cash Provided by Investing Activities
Net Cash Provided by Operating Activities
Net Cash Used by Financing Activities
Net Cash Used by Investing Activities
Net Cash Used by Operating Activities
Net Decrease in Cash
Net Increase in Cash

Cash at Beginning of Period
Cash at End of Period
Cash Flows from Financing Activities
Cash Flows from Investing Activities
Cash Flows from Operating Activities
Net Cash Provided by Financing Activities
Net Cash Provided by Investing Activities
Net Cash Provided by Operating Activities
Net Cash Used by Financing Activities
Net Cash Used by Investing Activities
Net Cash Used by Operating Activities
Net Decrease in Cash
Net Increase in Cash
$

Solutions

Expert Solution

Solution:

Velo Company
Statement of Cash Flows
For year ended December 31, 2017
Particulars Details Amount
Cash Flow from Operating Activities:
Net Income $104,300.00
Adjustments to reconcile net income to net cash provided by operations:
Depreciation Expense ($66,000 - $33,700) $32,300.00
Increase in accounts receivables ($85,600 - $70,900) -$14,700.00
Decrease in inventory ($186,900 - $170,000) $16,900.00
Decrease in accounts payable ($47,100 - $35,300) -$11,800.00
Net Cash provided by operating activities $127,000.00
Cash Flow from Investing Activities:
Purchase of Equipment ($260,700 - $200,800) -$59,900.00
Cash received from sale of land ($101,700 - $73,000) $28,700.00
Net Cash used in Investing activities -$31,200.00
Cash Flow from Financing Activities:
Proceed from issue of common stock $44,300.00
Dividend Paid -$46,300.00
Cash paid for bond redemption -$54,200.00
Net Cash used in financing activities -$56,200.00
Net Increase / (Decrease) in Cash $39,600.00
Cash balance at beginning of year $33,400.00
Cash balance at end of year $73,000.00

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

Exercise 13-7 Rojas Corporation’s comparative balance sheets are presented below. ROJAS CORPORATION Comparative Balance Sheets December...
Exercise 13-7 Rojas Corporation’s comparative balance sheets are presented below. ROJAS CORPORATION Comparative Balance Sheets December 31 2017 2016 Cash $ 15,000 $ 10,200 Accounts receivable 21,400 23,800 Land 19,800 26,400 Buildings 70,100 70,100 Accumulated depreciation—buildings (15,300 ) (10,800 )    Total $111,000 $119,700 Accounts payable $ 12,800 $ 27,800 Common stock 74,600 73,400 Retained earnings 23,600 18,500    Total $111,000 $119,700 Additional information: 1. Net income was $22,800. Dividends declared and paid were $17,700. 2. No noncash investing and financing activities...
Shown below are comparative balance sheets for Schmitt Company. SCHMITT COMPANY Comparative Balance Sheets December 31...
Shown below are comparative balance sheets for Schmitt Company. SCHMITT COMPANY Comparative Balance Sheets December 31 Assets 2014 2013 Cash $ 72,080 $ 23,320 Accounts receivable 93,280 80,560 Inventory 177,020 200,340 Land 84,800 106,000 Equipment 275,600 212,000 Accumulated depreciation—equipment (69,960 ) (33,920 ) Total $632,820 $588,300 Liabilities and Stockholders’ Equity Accounts payable $ 41,340 $ 45,580 Bonds payable 159,000 212,000 Common stock ($1 par) 228,960 184,440 Retained earnings 203,520 146,280 Total $632,820 $588,300 Additional information: 1. Net income for 2014...
Exercise 17-7 Rojas Corporation’s comparative balance sheets are presented below. ROJAS CORPORATION Comparative Balance Sheets December...
Exercise 17-7 Rojas Corporation’s comparative balance sheets are presented below. ROJAS CORPORATION Comparative Balance Sheets December 31 2017 2016 Cash $15,100 $10,300 Accounts receivable 21,700 23,900 Land 20,200 26,300 Buildings 70,300 70,300 Accumulated depreciation—buildings (14,600 ) (10,000 )    Total $112,700 $120,800 Accounts payable $12,700 $28,600 Common stock 74,400 73,300 Retained earnings 25,600 18,900    Total $112,700 $120,800 Additional information: 1. Net income was $23,000. Dividends declared and paid were $16,300. 2. No noncash investing and financing activities occurred during 2017 3....
The comparative balance sheets and income statements for Gypsy Company follow. Balance Sheets As of December...
The comparative balance sheets and income statements for Gypsy Company follow. Balance Sheets As of December 31 Year 2 Year 1 Assets Cash $ 25,779 $ 2,523 Accounts receivable 2,158 1,295 Inventory 6,559 6,149 Equipment 18,948 43,638 Accumulated depreciation—equipment (7,717 ) (17,493 ) Land 19,647 9,607 Total assets $ 65,374 $ 45,719 Liabilities and equity Accounts payable (inventory) $ 2,552 $ 4,122 Long-term debt 2,728 6,236 Common stock 24,100 10,000 Retained earnings 35,994 25,361 Total liabilities and equity $ 65,374...
The comparative balance sheets and income statements for Gypsy Company follow. Balance Sheets As of December...
The comparative balance sheets and income statements for Gypsy Company follow. Balance Sheets As of December 31 2017 2016   Assets      Cash $ 23,243 $ 2,651      Accounts receivable 2,237 1,342      Inventory 6,202 5,814      Equipment 22,837 44,607      Accumulated depreciation—equipment (9,806 ) (16,588 )      Land 14,214 8,184   Total assets $ 58,927 $ 46,010   Liabilities and equity      Accounts payable (inventory) $ 2,671 $ 4,315      Long-term debt 2,695 6,160      Common stock 20,700 10,500      Retained earnings 32,861 25,035   Total liabilities and equity $ 58,927 $ 46,010...
The comparative balance sheets and income statements for Munoz Company follow: Balance Sheets As of December...
The comparative balance sheets and income statements for Munoz Company follow: Balance Sheets As of December 31 Year 2 Year 1 Assets Cash $ 22,554 $ 2,987 Accounts receivable 1,813 1,088 Inventory 6,503 6,097 Equipment 19,699 43,369 Accumulated depreciation—equipment (5,974 ) (15,475 ) Land 19,269 9,039 Total assets $ 63,864 $ 47,105 Liabilities and equity Accounts payable (inventory) $ 2,738 $ 4,423 Long-term debt 2,860 6,538 Common stock 25,200 11,500 Retained earnings 33,066 24,644 Total liabilities and equity $ 63,864...
Suppose the comparative balance sheets of Nike, Inc. are presented here. Nike, Inc. Comparative Balance Sheets...
Suppose the comparative balance sheets of Nike, Inc. are presented here. Nike, Inc. Comparative Balance Sheets May 31 ($ in millions) 2020 2019 Assets Current assets $ 9,379 $ 8,300 Property, plant, and equipment (net) 1,836 1,700 Other assets 1,536 1,600 Total assets $12,751 $11,600 Liabilities and Stockholders’ Equity Current liabilities $ 3,267 $ 3,300 Long-term liabilities 1,358 1,400 Stockholders’ equity 8,126 6,900 Total liabilities and stockholders’ equity $12,751 $11,600 (a) Prepare a horizontal analysis of the balance sheet data...
Presented here are the comparative balance sheets of Hames Inc. at December 31, 2020 and 2019....
Presented here are the comparative balance sheets of Hames Inc. at December 31, 2020 and 2019. Sales for the year ended December 31, 2020, totaled $1,700,000. HAMES INC. Balance Sheets December 31, 2020 and 2019 2020 2019 Assets Cash $ 63,000 $ 57,000 Accounts receivable 285,000 266,000 Merchandise inventory 261,000 247,000 Total current assets $ 609,000 $ 570,000 Land 109,000 82,000 Plant and equipment 375,000 330,000 Less: Accumulated depreciation (195,000 ) (180,000 ) Total assets $ 898,000 $ 802,000 Liabilities...
Presented here are the comparative balance sheets of Hames, Inc., at December 31, 2017 and 2016....
Presented here are the comparative balance sheets of Hames, Inc., at December 31, 2017 and 2016. Sales for the year ended December 31, 2017, totaled $640,000. HAMES, INC., Balance Sheets December 31, 2017 and 2016 2017 2016 Assets Cash $ 19,000 $ 20,000 Accounts receivable 78,000 72,000 Merchandise inventory 103,000 99,000 Total current assets $ 200,000 $ 191,000 Land 50,000 40,000 Plant and equipment 125,000 110,000 Less: Accumulated depreciation (65,000 ) (60,000 ) Total assets $ 310,000 $ 281,000 Liabilities...
Presented here are the comparative balance sheets of Hames, Inc., at December 31, 2017 and 2016....
Presented here are the comparative balance sheets of Hames, Inc., at December 31, 2017 and 2016. Sales for the year ended December 31, 2017, totaled $670,000. HAMES, INC., Balance Sheets December 31, 2017 and 2016 2017 2016 Assets Cash $ 20,000 $ 20,000 Accounts receivable 78,000 72,000 Merchandise inventory 103,000 99,000 Total current assets $ 201,000 $ 191,000 Land 50,000 40,000 Plant and equipment 125,000 110,000 Less: Accumulated depreciation (65,000 ) (60,000 ) Total assets $ 311,000 $ 281,000 Liabilities...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT