Question
In: Accounting
Problem 15-8 Baskin Company's net income last year was $98,000. Changes in the company's balance sheet...
Problem 15-8
Baskin Company's net income last year was $98,000. Changes in the company's balance sheet accounts for the year appear below:
| Increases (Decreases) |
||
| Debit balances: | ||
| Cash | $24,000 | |
| Accounts receivable | 15,000 | |
| Inventory | (18,000) | |
| Prepaid expenses | (6,000) | |
| Long-term investments | 10,000 | |
| Plant and equipment | 40,000 | |
| Credit balances: | ||
| Accumulated depreciation | 32,000 | |
| Accounts payable | (14,000) | |
| Accrued liabilities | 11,000 | |
| Taxes payable | 4,000 | |
| Bonds payable | (40,000) | |
| Common stock | 10,000 | |
| Retained earnings | 62,000 | |
The company declared and paid cash dividends of $36,000 last year.
Required:
A. Prepare the operating activities section of the company's statement of cash flows for the year. (Use the indirect method.) Amounts to be deducted should be indicated by a minus sign.
| Baskin Company | |
| Operating Activities Section | |
| Net income | $ |
| Add (deduct) adjusting items: | |
| Net cash flows from operating activities | $ |
B. Prepare the investing activities section of the company's statement of cash flows for the year. Amounts to be deducted should be indicated by a minus sign.
| Baskin Company | |
| Investing Activities Section | |
| $ | |
| Net cash flows from investing activities | $ |
C. Prepare the financing activities section of the company's statement of cash flows for the year. Amounts to be deducted should be indicated by a minus sign.
| Baskin Company | |
| Financing Activities Section | |
| $ | |
| Net cash flows from financing activities | |
Solutions
Expert Solution
A. Prepare the operating activities section of the company's statement of cash flows for the year. (Use the indirect method.) Amounts to be deducted should be indicated by a minus sign.
| Baskin Company | |
| Operating Activities Section | |
| Net income | $98000 |
| Add (deduct) adjusting items: | |
| Depreciation expense | 32000 |
| Increase account receivable | -15000 |
| Decrease inventory | 18000 |
| Decrease prepaid expense | 6000 |
| Decrease account payable | -14000 |
| Increase accrued liabilities | 11000 |
| Increase income tax payable | 4000 |
| Net cash flows from operating activities | $140000 |
B. Prepare the investing activities section of the company's statement of cash flows for the year. Amounts to be deducted should be indicated by a minus sign.
| Baskin Company | |
| Investing Activities Section | |
| Purchase long term lnvestment | -10000 |
| Purchase property, plant and equipment | -40000 |
| Net cash flows from investing activities | -50000 |
C. Prepare the financing activities section of the company's statement of cash flows for the year. Amounts to be deducted should be indicated by a minus sign.
| Baskin Company | |
| Financing Activities Section | |
| Repaid bonds payable | -40000 |
| Issue common Stock | 10000 |
| Dividend paid | -36000 |
| Net cash flows from financing activities | -66000 |
ekkarill92 answered 2 years agoRelated Solutions
Burns Corporation's net income last year was $92,800. Changes in the company's balance sheet accounts for...
Burns Corporation's net income last year was $92,800. Changes in
the company's balance sheet accounts for the year appear below:
Increases
(Decreases)
Asset and Contra-Asset Accounts:
Cash and cash equivalents
$
21,300
Accounts receivable
$
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Inventory
$
(17,600
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Prepaid expenses
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Long-term investments
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Property, plant, and equipment
$
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Accumulated depreciation
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Liability and Equity Accounts:
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Accrued liabilities
$
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(64,200...
Burns Corporation's net income last year was $98,300. Changes in the company's balance sheet accounts for...
Burns Corporation's net income last year was $98,300. Changes in
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Increases
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Asset and Contra-Asset Accounts:
Cash and cash equivalents
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Accounts receivable
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Inventory
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Prepaid expenses
$
4,100
Long-term investments
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11,000
Property, plant, and equipment
$
72,100
Accumulated depreciation
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Liability and Equity Accounts:
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Accrued liabilities
$
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Bonds payable
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(62,400...
Burns Corporation's net income last year was $96,500. Changes in the company's balance sheet accounts for...
Burns Corporation's net income last year was $96,500. Changes in
the company's balance sheet accounts for the year appear below:
Increases
(Decreases)
Asset and Contra-Asset
Accounts:
Cash and cash equivalents
$
18,600
Accounts receivable
$
13,300
Inventory
$
(16,300
)
Prepaid expenses
$
4,300
Long-term investments
$
10,300
Property, plant, and
equipment
$
74,200
Accumulated depreciation
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31,600
Liability and Equity
Accounts:
Accounts payable
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)
Accrued liabilities
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17,600
Income taxes payable
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4,200
Bonds payable
$
(63,600...
Megan Corporation's net income last year was $101,000. Changes in the company's balance sheet accounts for...
Megan Corporation's net income last year was $101,000. Changes
in the company's balance sheet accounts for the year appear
below:
Increases
(Decreases)
Asset and Contra-Asset
Accounts:
Cash and cash equivalents
$
(5,400
)
Accounts receivable
$
(17,000
)
Inventory
$
4,500
Prepaid expenses
$
(9,100
)
Long-term investments
$
83,000
Property, plant, and
equipment
$
61,000
Accumulated depreciation
$
64,000
Liability and Equity
Accounts:
Accounts payable
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0
Accrued liabilities
$
17,020
Income taxes payable
$
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Bonds payable...
Burns Corporation's net income last year was $94,600. Changes in the company's balance sheet accounts for...
Burns Corporation's net income last year was $94,600. Changes in
the company's balance sheet accounts for the year appear below:
Increases
(Decreases)
Asset and Contra-Asset
Accounts:
Cash and cash equivalents
$
17,000
Accounts receivable
$
13,300
Inventory
$
(16,600
)
Prepaid expenses
$
4,300
Long-term investments
$
10,300
Property, plant, and
equipment
$
73,500
Accumulated depreciation
$
31,600
Liability and Equity
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$
(18,400
)
Accrued liabilities
$
17,100
Income taxes payable
$
4,200
Bonds payable
$
(64,200...
Burns Corporation's net income last year was $97,400. Changes in the company's balance sheet accounts for...
Burns Corporation's net income last year was $97,400. Changes in
the company's balance sheet accounts for the year appear below:
Increases
(Decreases)
Asset and Contra-Asset Accounts:
Cash and cash equivalents
$
22,700
Accounts receivable
$
13,800
Inventory
$
(16,800
)
Prepaid expenses
$
4,400
Long-term investments
$
10,400
Property, plant, and equipment
$
71,400
Accumulated depreciation
$
32,600
Liability and Equity Accounts:
Accounts payable
$
(19,400
)
Accrued liabilities
$
17,100
Income taxes payable
$
4,100
Bonds payable
$
(64,800...
Burns Corporation's net income last year was $96,500. Changes in the company's balance sheet accounts for...
Burns Corporation's net income last year was $96,500. Changes in
the company's balance sheet accounts for the year appear below:
Increases
(Decreases)
Asset and Contra-Asset Accounts:
Cash and cash equivalents
$
18,600
Accounts receivable
$
13,300
Inventory
$
(16,300
)
Prepaid expenses
$
4,300
Long-term investments
$
10,300
Property, plant, and equipment
$
74,200
Accumulated depreciation
$
31,600
Liability and Equity Accounts:
Accounts payable
$
(19,400
)
Accrued liabilities
$
17,600
Income taxes payable
$
4,200
Bonds payable
$...
Burns Corporation's net income last year was $99,200. Changes in the company's balance sheet accounts for...
Burns Corporation's net income last year was $99,200. Changes in
the company's balance sheet accounts for the year appear below:
Increases
(Decreases)
Asset and Contra-Asset Accounts:
Cash and cash equivalents
$
21,900
Accounts receivable
$
13,500
Inventory
$
(16,800
)
Prepaid expenses
$
4,100
Long-term investments
$
10,200
Property, plant, and equipment
$
77,000
Accumulated depreciation
$
33,200
Liability and Equity Accounts:
Accounts payable
$
(19,600
)
Accrued liabilities
$
16,800
Income taxes payable
$
4,200
Bonds payable
$
(61,200...
Burns Corporation's net income last year was $97,400. Changes in the company's balance sheet accounts for the year appear below:
Burns Corporation's net income last year was $97,400. Changes in
the company's balance sheet accounts for the year appear below:Increases(Decreases)Asset and Contra-Asset Accounts:Cash and cash equivalents$19,300Accounts receivable$13,500Inventory$(16,800)Prepaid expenses$4,400Long-term investments$10,500Property, plant, and equipment$75,600Accumulated depreciation$32,200Liability and Equity Accounts:Accounts payable$(19,600)Accrued liabilities$16,800Income taxes payable$4,300Bonds payable$(61,200)Common stock$40,800Retained earnings$93,200The company did not dispose of any property, plant, and
equipment, sell any long-term investments, issue any bonds payable,
or repurchase any of its own common stock during the year. The
company declared and paid a cash dividend...
The net changes in the balance sheet accounts of KMD, Inc. for the year 2018 are...
The net changes in the balance sheet accounts of KMD,
Inc. for the year 2018 are shown below:
Account
Debit
Credit
Cash
$ 130,000
Accounts
receivable
$ 14,000
Allowance for doubtful
accounts
4,000
Inventory
80,000
Prepaid
expenses
10,000
Held-to-Maturity
Securities
100,000
Available-for-Sale
Securities
300,000
Equipment
700,000
Accumulated depreciation:
Equipment
0
0
Goodwill
10,000
Accounts
payable
105,000
Notes
payable
325,000
Common
stock
100,000
Additional paid-in
capital—common
120,000
Retained
earnings
_________
450,000
$1,224,000
$1,224,000...
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