The comparative balance sheets for 2018 and 2017 and the income statement for 2018 are given below for Arduous Company. Additional information from Arduous’s accounting records is provided also.

   
Additional information from the accounting records:

Investment revenue includes Arduous Company’s $6 million share of the net income of Demur Company, an equity method investee.

Treasury bills were sold during 2018 at a gain of $2 million. Arduous Company classifies its investments in Treasury bills as cash equivalents.

A machine originally costing $70 million that was one-half depreciated was rendered unusable by a flood. Most major components of the machine were unharmed and were sold for $17 million.

Temporary differences between pretax accounting income and taxable income caused the deferred income tax liability to increase by $3 million.

The preferred stock of Tory Corporation was purchased for $25 million as a long-term investment.

Land costing $46 million was acquired by issuing $23 million cash and a 15%, four-year, $23 million note payable to the seller.

The right to use a building was acquired with a 15-year lease agreement; present value of lease payments, $82 million. Annual lease payments of $7 million are paid at the beginning of each year starting January 1, 2018.

$60 million of bonds were retired at maturity.

In February, Arduous issued a 4% stock dividend (4 million shares). The market price of the $5 par value common stock was $7.50 per share at that time.

In April, 1 million shares of common stock were repurchased as treasury stock at a cost of $9 million.

Required:
Prepare the T-accounts for Arduous Company. (Do not round intermediate calculations. Enter your answers in millions (i.e., 10,000,000 should be entered as 10.). Amounts to be deducted should be indicated with a minus sign

Comparative balance sheets for 2018 and 2017 and a statement of income for 2018 are given below for Metagrobolize Industries. Additional information from the accounting records of Metagrobolize also is provided.

Additional information from the accounting records:

Annual payments of $20,000 on the finance lease liability are paid each January 1, beginning in 2018.

During 2018, equipment with a cost of $300,000 (90% depreciated) was sold.

The statement of shareholders’ equity reveals reductions of $225,000 and $450,000 for stock dividends and cash dividends, respectively.

Required:
Prepare the statement of cash flows for Metagrobolize Industries using the indirect method. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands. (i.e., 10,000 should be entered as 10).)

Comparative balance sheets for 2018 and 2017 and a statement of income for 2018 are given below for Metagrobolize Industries. Additional information from the accounting records of Metagrobolize also is provided.

Additional information from the accounting records:

A. Annual payments of $20,000 on the finance lease liability are paid each January 1, beginning in 2018.

B. During 2018, equipment with a cost of $150,000 (90% depreciated) was sold.

C.The statement of shareholders' equity reveals reductions of $150,000 and $445,000 for stock dividends and cash dividends, respectively.

Required:
Prepare the statement of cash flows of Metagrobolize for the year ended December 31, 2018. Present cash flows from operating activities by the direct method. (Enter your answers in thousands (i.e., 5,000 should be entered as 5). Amounts to be deducted should be indicated with a minus sign.)

Comparative balance sheets for 2018 and 2017 and a statement of income for 2018 are given below for Metagrobolize Industries. Additional information from the accounting records of Metagrobolize also is provided.

Additional information from the accounting records:

Annual payments of $20,000 on the finance lease liability are paid each January 1, beginning in 2018.

During 2018, equipment with a cost of $390,000 (90% depreciated) was sold.

The statement of shareholders’ equity reveals reductions of $190,000 and $405,000 for stock dividends and cash dividends, respectively.

Required:
Prepare the statement of cash flows for Metagrobolize Industries using the indirect method. (Enter your answers in thousands. (i.e., 10,000 should be entered as 10).) Amounts to be deducted should be indicated with a minus sign.)

Comparative balance sheets for 2018 and 2017 and a statement of income for 2018 are given below for Metagrobolize Industries. Additional information from the accounting records of Metagrobolize also is provided.

Additional information from the accounting records:

A. Annual payments of $20,000 on the finance lease liability are paid each January 1, beginning in 2018.

B. During 2018, equipment with a cost of $720,000 (90% depreciated) was sold.

C. The statement of shareholders’ equity reveals reductions of $245,000 and $350,000 for stock dividends and cash dividends, respectively.

Required:
Prepare the statement of cash flows for Metagrobolize Industries using the indirect method. (Enter your answers in thousands. (i.e., 10,000 should be entered as 10).) Amounts to be deducted should be indicated with a minus sign.)

The comparative balance sheets for 2018 and 2017 and the income statement for 2018 are given below for Arduous Company. Additional information from Arduous’s accounting records is provided also.

Additional information from the accounting records:

Investment revenue includes Arduous Company’s $15 million share of the net income of Demur Company, an equity method investee.

Treasury bills were sold during 2018 at a gain of $1 million. Arduous Company classifies its investments in Treasury bills as cash equivalents.

A machine originally costing $90 million that was one-half depreciated was rendered unusable by a flood. Most major components of the machine were unharmed and were sold for $20 million.

Temporary differences between pretax accounting income and taxable income caused the deferred income tax liability to increase by $13 million.

The preferred stock of Tory Corporation was purchased for $35 million as a long-term investment.

Land costing $56 million was acquired by issuing $28 million cash and a 10%, four-year, $28 million note payable to the seller.

The right to use a building was acquired with a 15-year lease agreement; present value of lease payments, $92 million. Annual lease payments of $6 million are paid at the beginning of each year starting January 1, 2018.

$70 million of bonds were retired at maturity.

In February, Arduous issued a stock dividend (8.0 million shares). The market price of the $5 par value common stock was $7.50 per share at that time.

In April, 1 million shares of common stock were repurchased as treasury stock at a cost of $19 million.

Required:
Prepare the statement of cash flows for Arduous Company using the indirect method. (Amounts to be deducted should be indicated with a minus sign. Do not round your intermediate calculations. Enter your answers in millions (i.e., 10,000,000 should be entered as 10.).)

The comparative balance sheets for 2018 and 2017 and the income statement for 2018 are given below for Arduous Company. Additional information from Arduous’s accounting records is provided also.

Additional information from the accounting records:

Investment revenue includes Arduous Company’s $10 million share of the net income of Demur Company, an equity method investee.

Treasury bills were sold during 2018 at a gain of $2 million. Arduous Company classifies its investments in Treasury bills as cash equivalents.

A machine originally costing $78 million that was one-half depreciated was rendered unusable by a flood. Most major components of the machine were unharmed and were sold for $13 million.

Temporary differences between pretax accounting income and taxable income caused the deferred income tax liability to increase by $7 million.

The preferred stock of Tory Corporation was purchased for $29 million as a long-term investment.

Land costing $50 million was acquired by issuing $25 million cash and a 10%, four-year, $25 million note payable to the seller.

The right to use a building was acquired with a 15-year lease agreement; present value of lease payments, $86 million. Annual lease payments of $6 million are paid at the beginning of each year starting January 1, 2018.

$64 million of bonds were retired at maturity.

In February, Arduous issued a stock dividend (5.6 million shares). The market price of the $5 par value common stock was $7.50 per share at that time.

In April, 1 million shares of common stock were repurchased as treasury stock at a cost of $13 million.

Required:
Prepare the statement of cash flows for Arduous Company using the indirect method. (Amounts to be deducted should be indicated with a minus sign. Do not round your intermediate calculations. Enter your answers in millions (i.e., 10,000,000 should be entered as 10.).)

The comparative balance sheets for 2018 and 2017 and the income statement for 2018 are given below for Arduous Company. Additional information from Arduous’s accounting records is provided also.

Additional information from the accounting records:

1. Investment revenue includes Arduous Company’s $27 million share of the net income of Demur Company, an equity method investee.
2. Treasury bills were sold during 2018 at a gain of $3 million. Arduous Company classifies its investments in Treasury bills as cash equivalents.
3. A machine originally costing $110 million that was one-half depreciated was rendered unusable by a flood. Most major components of the machine were unharmed and were sold for $22 million.
4. Temporary differences between pretax accounting income and taxable income caused the deferred income tax liability to increase by $23 million.
5. The preferred stock of Tory Corporation was purchased for $45 million as a long-term investment.
6. Land costing $66 million was acquired by issuing $33 million cash and a 15%, four-year, $33 million note payable to the seller.
7. The right to use a building was acquired with a 15-year lease agreement; present value of lease payments, $102 million. Annual lease payments of $7 million are paid at the beginning of each year starting January 1, 2018.
8. $80 million of bonds were retired at maturity.
9. In February, Arduous issued a stock dividend (12.0 million shares). The market price of the $5 par value common stock was $7.50 per share at that time. Also the company paid a cash dividend.
10. In April, 1 million shares of common stock were repurchased as treasury stock at a cost of $29.00 million.

Required:
Prepare the statement of cash flows of Arduous Company for the year ended December 31, 2018. Present cash flows from operating activities by the direct method. (Do not round your intermediate calculations. Enter your answers in millions (i.e., 10,000,000 should be entered as 10.). Amounts to be deducted should be indicated with a minus sign.)

International Co. started 2018 with two assets: Cash of §26,000 (Stickles) and Land that originally cost §72,000 when acquired on April 4, 2015. On May 1, 2018, the company rendered services to a customer for §36,000, an amount immediately paid in cash. On October 1, 2018, the company incurred an operating expense of §22,000 that was immediately paid. No other transactions occurred during the year so an average exchange rate is not necessary. Currency exchange rates were as follows:

Assume International was a foreign subsidiary of a U.S. multinational company and the U.S. dollar was the functional currency of the subsidiary. Prepare a schedule of changes in the net monetary assets of Boerkian for the year 2018 and properly label the resulting gain or loss.

The Rockwell Corporation uses a periodic inventory system and has used the FIFO cost method since inception of the company in 1979. In 2018, the company decided to change to the average cost method. Data for 2018 are as follows:

Beginning inventory, FIFO (5,500 units @ $35.00) $ 192,500
Purchases:
5,500 units @ $41.00 $ 225,500
5,500 units @ $45.00 247,500 473,000
Cost of goods available for sale $ 665,500
Sales for 2018 (9,000 units @ $75.00) $ 675,000

Additional information:

The company's effective income tax rate is 40% for all years.
If the company had used the average cost method prior to 2018, ending inventory for 2017 would have been $170,500.
7,500 units remained in inventory at the end of 2018.

Required:
1. Prepare the journal entry at the beginning of 2018 to record the change in principle.
2. In the 2018–2016 comparative financial statements, what will be the amounts of cost of goods sold and inventory reported for 2018?