In: Accounting
The comparative balance sheet of Canace Products Inc. for December 31, 20Y6 and 20Y5, is as follows: use labels and amounts descriptions provided at the bottom
1 |
Dec. 31, 20Y6 |
Dec. 31, 20Y5 |
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2 |
Assets |
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3 |
Cash |
$643,460.00 |
$679,530.00 |
4 |
Accounts receivable (net) |
566,490.00 |
548,320.00 |
5 |
Inventories |
1,010,720.00 |
982,600.00 |
6 |
Investments |
0.00 |
240,910.00 |
7 |
Land |
519,510.00 |
0.00 |
8 |
Equipment |
879,710.00 |
680,990.00 |
9 |
Accumulated depreciation |
(243,750.00) |
(200,970.00) |
10 |
Total assets |
$3,376,140.00 |
$2,931,380.00 |
11 |
Liabilities and Stockholders’ Equity |
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12 |
Accounts payable (merchandise creditors) |
$772,290.00 |
$748,770.00 |
13 |
Accrued expenses payable (operating expenses) |
63,970.00 |
69,800.00 |
14 |
Dividends payable |
8,000.00 |
7,040.00 |
15 |
Common stock, $2 par |
56,000.00 |
32,000.00 |
16 |
Paid-in capital: Excess of issue price over par—common stock |
408,000.00 |
192,000.00 |
17 |
Retained earnings |
2,067,880.00 |
1,881,770.00 |
18 |
Total liabilities and stockholders’ equity |
$3,376,140.00 |
$2,931,380.00 |
The income statement for the year ended December 31, 20Y6, is as follows:
1 |
Sales |
$5,974,620.00 |
|
2 |
Cost of goods sold |
2,451,470.00 |
|
3 |
Gross profit |
$3,523,150.00 |
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4 |
Operating expenses: |
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5 |
Depreciation expense |
$42,780.00 |
|
6 |
Other operating expenses |
3,099,440.00 |
|
7 |
Total operating expenses |
3,142,220.00 |
|
8 |
Operating income |
$380,930.00 |
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9 |
Other expense: |
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10 |
Loss on sale of investments |
(64,890.00) |
|
11 |
Income before income tax |
$316,040.00 |
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12 |
Income tax expense |
102,160.00 |
|
13 |
Net income |
$213,880.00 |
Additional data obtained from an examination of the accounts in the ledger for 20Y6 are as follows:
a. Equipment and land were acquired for cash. | |
b. There were no disposals of equipment during the year. | |
c. The investments were sold for $176,020 cash | |
d. The common stock was issued for cash. | |
e. There was a $27,770 debit to Retained Earnings for cash dividends declared. |
Prepare a statement of cash flows, using the direct method of presenting cash flows from operating activities. Be sure to complete the heading of the statement. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Enter amounts that represent cash outflows as negative numbers using a minus sign.
X
Statement of Cash Flows
Shaded cells have feedback.
Prepare a statement of cash flows, using the direct method of presenting cash flows from operating activities. Be sure to complete the heading of the statement. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Enter amounts that represent cash outflows as negative numbers using a minus sign.
Score: 10/131
Canace Products Inc. |
Statement of Cash Flows |
1 |
Cash flows from operating activities: |
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2 |
✔ |
✔ |
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8 |
Cash flows from investing activities: |
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10 |
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12 |
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14 |
Cash flows from financing activities: |
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15 |
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16 |
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18 |
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19 |
Cash at the beginning of the year |
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20 |
Cash at the end of the year |
Labels and Amount Descriptions |
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Cash paid for dividends | |
Cash paid for purchase of equipment | |
Cash paid for purchase of land | |
Cash paid for purchase of treasury stock | |
Cash payments for income taxes | |
Cash payments for merchandise | |
Cash payments for operating expenses | |
Cash received from customers | |
Cash received from sale of common stock | |
Cash received from sale of investments | |
Change in cash | |
December 31, 20Y6 | |
Depreciation | |
For the Year Ended December 31, 20Y6 | |
Gain on sale of investments | |
Issuance of common stock for acquisition of land | |
Issuance of common stock for purchase of equipment | |
Loss on sale of investments | |
Net cash flow from financing activities | |
Net cash flow from investing activities | |
Net cash flow from operating activities | |
Net cash flow used for financing activities | |
Net cash flow used for investing activities | |
Net cash flow used for operating activities |
Points:
2.21 / 29
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Canace Products Inc. | Amount $ | Answer a | ||||
Cash Received from sale | Cash Flow Direct Method | Amount $ | Amount $ | |||
Opening Accounts Receivable | 548,320.00 | Cash Receipts from | ||||
Add: Sales | 5,974,620.00 | Cash Received from sale | 5,956,450.00 | See A | ||
Less: Closing Accounts Receivable | 566,490.00 | Total cash inflows | 5,956,450.00 | |||
Cash Received from sale | 5,956,450.00 | A | Cash paid for Inventory purchased | 2,456,070.00 | See C | |
Cash paid for Operating Expense | 3,105,270.00 | See D | ||||
Inventory purchased | Income Tax paid | 102,160.00 | ||||
Cost of goods sold | 2,451,470.00 | Total cash outflows | 5,663,500.00 | |||
Add: Closing Inventory | 1,010,720.00 | Net Cash inflow from operating activities | 292,950.00 | J | ||
Less: Opening Inventory | 982,600.00 | |||||
Inventory purchased | 2,479,590.00 | B | Cash Flow from Investing Activities | |||
Equipment purchased | (198,720.00) | See E | ||||
Cash paid for Inventory purchased | Land purchased | (519,510.00) | See F | |||
Opening Accounts Payable | 748,770.00 | Investments sold | 176,020.00 | |||
Add: Purchases | 2,479,590.00 | See B | Net Cash outflow from Investing Activities | (542,210.00) | K | |
Less: Closing Accounts Payable | 772,290.00 | |||||
Cash paid for Inventory purchased | 2,456,070.00 | C | Cash Flow from Financing Activities | See I | ||
Share capital issued | 240,000.00 | See G | ||||
Cash paid for Other operating expenses | Payment of dividends | (26,810.00) | See H | |||
Other operating expenses | 3,099,440.00 | Net Cash inflow form Financing Activities | 213,190.00 | L | ||
Add: Accrued expenses payable- opening | 69,800.00 | |||||
Less: Accrued expenses payable- closing | 63,970.00 | Net Increase in cash | (36,070.00) | M=J+K+L | ||
Cash paid for Other operating expenses | 3,105,270.00 | D | Add: Beginning Cash Balance | 679,530.00 | N | |
Ending cash Balance | 643,460.00 | O=M+N | ||||
Equipment purchased | ||||||
Closing value | 879,710.00 | |||||
Less: Opening value | 680,990.00 | |||||
Equipment purchased | 198,720.00 | E | ||||
Land purchased | ||||||
Closing value | 519,510.00 | |||||
Less: Opening value | - | |||||
Land purchased | 519,510.00 | F | ||||
Share capital issued | ||||||
Closing balance- Common stock | 56,000.00 | |||||
Closing balance- Paid-in capital: Excess of issue price over par—common stock | 408,000.00 | |||||
Less: Opening balance- Common stock | 32,000.00 | |||||
Less: Opening balance- Paid-in capital: Excess of issue price over par—common stock | 192,000.00 | |||||
Share capital issued | 240,000.00 | G | ||||
Dividend paid | ||||||
Dividend expense for the year | 27,770.00 | |||||
Add: Dividend payable- opening | 7,040.00 | |||||
Less: Dividend payable- closing | 8,000.00 | |||||
Dividend paid | 26,810.00 | H | ||||