Question

In: Accounting

Bluebird Corporation uses the direct method to prepare its statement of cash flows. The following comparative...

Bluebird Corporation uses the direct method to prepare its statement of cash flows. The following comparative balance sheet data (in millions) were available for Bluebird at December 31:
Bluebird Corporation
Comparative Balance Sheets
December 31
​ 2017​ 2016
​Cash​ ​$ 7,994 ​ ​$ 4,802
​Accounts Receivable​ 3,791​ ​ 3,173
​Less: Allowance for Uncollectible Accounts (68) (57)
​Inventory​ 4,293​ ​ ​ 2,004
​Prepaid Insurance​ 104​ ​ 111
​Plant and Equipment​ 13,396​ 11,792
​Less: Accumulated Depreciation (5,775)​ (4,321)
​Total Assets​ $23,735​ $17,504
​Accounts Payable (all pertaining to inventory) $ 1,358 $ 1,210
​Income Taxes Payable 985 801
​Bonds Payable​ 4,500​ ​ ​ 3,000
​Premium on Bonds Payable​ 20​ ​ ​ 0
​Common Stock ​ 2,900​ ​ 2,900
​Retained Earnings​ 13,972​ ​ 9,593
​ Total liabilities and
​ Stockholders’ equity​ $23,735​ ​$17,504
The following additional data are assumed to be from either the 2017 income statement or the notes to the financial statements:
​Cash paid for dividends in 2017​$ 778
​Cash paid for plant and equipment purchased during 2017​ 2,061​
​Gain on sale of plant and equipment sold during 2017​ 40​
​Depreciation expense for 2017​ 1,888
​Income tax expense for 2017 ​ ​ 2,217
​Cash collected on accounts receivable during 2017​ 20,097
​Cost of Goods Sold for 2017​ 13,294
​Interest Expense for 2017​ 285​
​Amortization of Premium on Bonds Payable in 2017​ 5
​Cash paid for insurance in 2017​ 196
​Credit sales for 2017​ 20,847
Additional assumptions: 1. All inventory is purchased on account.
​ 2. No bonds payable were retired during the year.
Using the above information, compute the amounts requested below.
​
1. What was insurance expense for 2017? (3 points)​______________
2. What was net income for 2017? (3points) ​______________
3. What was uncollectible accounts expense for 2017? (5 points)​______________
4. How much cash was received from the sale of plant and equipment during 2017?​
​ ________________
​ (5 points)
5. How much cash was paid for income taxes in 2017? (3 points) ​______________
6. How much cash was paid for interest during 2017? (3 points) ​_____________​
7. How much cash was paid for inventory in 2017? (6 points)​______________
Present Value of a Single Amount
n
4%
5%
6%
7%
8%
10%
12%
14%
16%
1
.962
.952
.943
.935
.926
.909
.893
.877
.862
2
.925
.907
.890
.873
.857
.826
.797
.769
.743
3
.889
.864
.840
.816
.794
.751
.712
.675
.641
4
.855
.823
.792
.763
.735
.683
.636
.592
.552
5
.822
.784
.747
.713
.681
.621
.567
.519
.476
6
.790
.746
.705
.666
.630
.564
.507
.456
.410
7
.760
.711
.665
.623
.583
.513
.452
.400
.354
8
.731
.677
.627
.582
.540
.467
.404
.351
.305
9
.703
.645
.592
.544
.500
.424
.361
.308
.263
10
.676
.614
.558
.508
.463
.386
.322
.270
.227
11
.650
.585
.527
.475
.429
.350
.287
.237
.195
12
.625
.557
.497
.444
.397
.319
.257
.208
.168
13
.601
.530
.469
.415
.368
.290
.229
.182
.145
14
.577
.505
.442
.388
.340
.263
.205
.160
.125
15
.555
.481
.417
.362
.315
.239
.183
.140
.108
16
.534
.458
.394
.339
.292
.218
.163
.123
.093
17
.513
.436
.371
.317
.270
.198
.146
.108
.080
18
.494
.416
.350
.296
.250
.180
.130
.095
.069
19
.475
.396
.331
.277
.232
.164
.116
.083
.060
20
.456
.377
.312
.258
.215
.149
.104
.073
.051
Present Value of an Annuity
n
4%
5%
6%
7%
8%
10%
12%
14%
16%
1
.962
.952
.943
.935
.926
.909
.893
.877
.862
2
1.886
1.859
1.833
1.808
1.783
1.736
1.690
1.647
1.605
3
2.775
2.723
2.673
2.624
2.577
2.487
2.402
2.322
2.246
4
3.630
3.546
3.465
3.387
3.312
3.170
3.037
2.914
2.798
5
4.452
4.329
4.212
4.100
3.993
3.791
3.605
3.433
3.274
6
5.242
5.076
4.917
4.767
4.623
4.355
4.111
3.889
3.685
7
6.002
5.786
5.582
5.389
5.206
4.868
4.564
4.288
4.039
8
6.733
6.463
6.210
5.971
5.747
5.335
4.968
4.639
4.344
9
7.435
7.108
6.802
6.515
6.247
5.759
5.328
4.946
4.607
10
8.111
7.722
7.360
7.024
6.710
6.145
5.650
5.216
4.833
11
8.760
8.306
7.887
7.499
7.139
6.495
5.938
5.453
5.029
12
9.385
8.863
8.384
7.943
7.536
6.814
6.194
5.660
5.197
13
9.986
9.394
8.853
8.358
7.904
7.103
6.424
5.842
5.342
14
10.563
9.899
9.295
8.745
8.244
7.367
6.628
6.002
5.468
15
11.118
10.380
9.712
9.108
8.559
7.606
6.811
6.142
5.575
16
11.652
10.838
10.106
9.447
8.851
7.824
6.974
6.265
5.669
17
12.166
11.274
10.477
9.763
9.122
8.022
7.120
6.373
5.749
18
12.659
11.690
10.828
10.059
9.372
8.201
7.250
6.467
5.818
19
13.134
12.085
11.158
10.336
9.604
8.365
7.366
6.550
5.877
20
13.590
12.462
11.470
10.594
9.818
8.514
7.469
6.623
5.929
14

Solutions

Expert Solution

1. Cash paid for insurance in 2017 : $ 203 million

2. Net Income for 2017 : $ 5,157 million

3. Uncollectible account expense for 2017 : $ 143 million

4. Cash received from sale of plant and equipment during 2017 : $ 63 million

5. Cash paid for income taxes in 2017 : $ 2,033 million.

6. Cash paid for interest during 2017 : $ 290 million.

7. Cash paid for inventory in 2017 : $ 15,435 million

Retained Earnings:

Dividends 778 Beg. bal. 9,593
Net Income 5,157
End. bal. 13,972

Plant and Equipment:

Beg. bal. 11,792 Asset Disposal 457
Cash 2,061
End. bal. 13,396

Accumulated Depreciation : Plant and Equipment

Asset Disposal 434 Beg. bal. 4,321
Depreciation Expense 1,888
End. bal. 5,775

Accounts Receivable:

Beg. bal. 3,173 Cash 20,097
Credit Sales 20,847 Allowance for Doubtful Accounts 132
End. bal. 3,791

Allowance for Uncollectible Accounts:

Accounts Receivable 132 Beg. bal. 57
Uncollectible Accounts Expense 143
End. bal. 68

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

age Corp. uses the direct method to prepare its statement of cash flows. Sage trial balances...
age Corp. uses the direct method to prepare its statement of cash flows. Sage trial balances at December 31, 2017 and 2016, are as follows. December 31 Debits 2017 2016 Cash $34,700 $31,700 Accounts receivable 33,100 29,900 Inventory 30,600 46,600 Property, plant, & equipment 100,800 95,700 Unamortized bond discount 4,500 5,000 Cost of goods sold 247,800 380,000 Selling expenses 140,900 171,900 General and administrative expenses 137,300 149,800 Interest expense 4,400 2,600 Income tax expense 20,300 61,800 $754,400 $975,000 Credits Allowance...
Exercise 23-9 Los Lobos Corp. uses the direct method to prepare its statement of cash flows....
Exercise 23-9 Los Lobos Corp. uses the direct method to prepare its statement of cash flows. Relevant balances for Los Lobos at December 31, 2014 and 2013, are as follows. December 31 Debits 2014 2013 Cash $34,760 $32,430 Accounts receivable 32,710 29,640 Inventory 31,330 46,580 Property, plant, & equipment 103,190 94,100 Unamortized bond discount 4,050 5,390 Cost of goods sold 252,660 379,110 Selling expenses 141,890 171,770 General and administrative expenses 137,370 151,410 Interest expense 4,120 2,870 Income tax expense 20,010...
  Manning​ Tint, Inc. uses the indirect method to prepare its statement of cash flows. Refer to...
  Manning​ Tint, Inc. uses the indirect method to prepare its statement of cash flows. Refer to the following portion of the comparative balance​ sheet: Manning​ Tint, Inc. Comparative Balance Sheet December​ 31, 2017 and 2016 2016 2015 ​Increase/(Decrease) Cash ​$28,000 ​$25,000 ​$3,000 Accounts Receivable ​34,000 ​36,000 ​(2,000) Merchandise Inventory ​53,000 ​26,000 ​27,000 Plant and Equipment ​126,000 ​94,000 ​32,000 Accumulated Depreciationminus−Plant and Equipment ​(45,000) ​(44,000) ​(1,000) Total Assets ​$196,000 ​$137,000 ​$59,000 Additional information provided by the company includes the​ following: 1. Equipment was purchased for​ $68,000....
15) Redbird Company uses the indirect method to prepare its statement of cash flows. Using the...
15) Redbird Company uses the indirect method to prepare its statement of cash flows. Using the following information, complete the worksheet for the year ended December 31, 2018. - Net Income for the year ended December 31, 2018 was $49,000 - Depreciation expense for 2018 was $12,000 - During 2018, plant assets with a book value of $10,000 (cost $10,000 and accumulated depreciation $0) were sold for $14,000 - Plant assets were acquired for $52,000 cash - Issued common stock...
Statement of Cash Flows (Direct Method) The Wolff Company's income statement and comparative balance sheets at...
Statement of Cash Flows (Direct Method) The Wolff Company's income statement and comparative balance sheets at December 31 of 2013 and 2012 are shown below: WOLFF COMPANY Income Statement For the Year Ended December 31, 2013 Sales Revenue $698,500 Cost of Goods Sold $473,000 Wages Expense 94,600 Insurance Expense 8,800 Depreciation Expense 18,700 Interest Expense 9,900 Income Tax Expense 31,900        636,900 Net Income                                    $61,600 WOLFF COMPANY Balance Sheets Dec. 31, 2013 Dec. 31, 2012 Assets Cash $12,100 $5,500 Accounts Receivable...
Statement of Cash Flows (Direct Method) The Wolff Company's income statement and comparative balance sheets at...
Statement of Cash Flows (Direct Method) The Wolff Company's income statement and comparative balance sheets at December 31 of 2013 and 2012 are shown below: WOLFF COMPANY Income Statement For the Year Ended December 31, 2013 Sales Revenue $698,500 Cost of Goods Sold $473,000 Wages Expense 94,600 Insurance Expense 8,800 Depreciation Expense 18,700 Interest Expense 9,900 Income Tax Expense 31,900 636,900 Net Income $61,600 WOLFF COMPANY Balance Sheets Dec. 31, 2013 Dec. 31, 2012 Assets Cash $12,100 $5,500 Accounts Receivable...
Statement of Cash Flows (Direct Method) The Wolff Company’s income statement and comparative balance sheets at...
Statement of Cash Flows (Direct Method) The Wolff Company’s income statement and comparative balance sheets at December 31 of 2016 and 2015 are shown below: WOLFF COMPANY Income Statement For the Year Ended December 31, 2016 Sales Revenue $645,000 Cost of Goods Sold $430,000 Wages Expense 86,000 Insurance Expense 12,000 Depreciation Expense 13,000 Interest Expense 12,000 Income Tax Expense 29,000 582,000 Net Income $63,000 WOLFF COMPANY Balance Sheets Dec. 31, 2016 Dec. 31, 2015 Assets Cash $52,000 $8,000 Accounts Receivable...
Statement of Cash Flows (Direct Method) North Company’s income statement and comparative balance sheets as of...
Statement of Cash Flows (Direct Method) North Company’s income statement and comparative balance sheets as of December 31 of 2019 and 2018 follow: NORTH COMPANY Income Statement For the Year Ended December 31, 2019 Sales Revenue $770,000 Cost of Goods Sold $550,000 Wages Expense 195,000 Advertising Expense 31,000 Depreciation Expense 24,000 Interest Expense 20,000 Gain on Sale of Land (25,000) 795,000 Net Loss $(25,000) NORTH COMPANY Balance Sheets Dec. 31, 2019 Dec. 31, 2018 Assets Cash $80,000 $32,000 Accounts Receivable...
Statement of Cash Flows (Direct Method) The Wolff Company's income statement and comparative balance sheets at...
Statement of Cash Flows (Direct Method) The Wolff Company's income statement and comparative balance sheets at December 31 of 2013 and 2012 are shown below: WOLFF COMPANY Income Statement For the Year Ended December 31, 2013 Sales Revenue $825,500 Cost of Goods Sold $559,000 Wages Expense 111,800 Insurance Expense 10,400 Depreciation Expense 22,100 Interest Expense 11,700 Income Tax Expense 37,700 752,700 Net Income $72,800 WOLFF COMPANY Balance Sheets Dec. 31, 2013 Dec. 31, 2012 Assets Cash $14,300 $6,500 Accounts Receivable...
Statement of Cash Flows (Direct Method) The Wolff Company’s income statement and comparative balance sheets at...
Statement of Cash Flows (Direct Method) The Wolff Company’s income statement and comparative balance sheets at December 31 of 2016 and 2015 are shown below: WOLFF COMPANY Income Statement For the Year Ended December 31, 2016 Sales Revenue $645,000 Cost of Goods Sold $430,000 Wages Expense 86,000 Insurance Expense 12,000 Depreciation Expense 13,000 Interest Expense 12,000 Income Tax Expense 29,000 582,000 Net Income $63,000 WOLFF COMPANY Balance Sheets Dec. 31, 2016 Dec. 31, 2015 Assets Cash $52,000 $8,000 Accounts Receivable...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT