ACG2021 (16e) - Comprehensive Exam 2 (V.2)

Statement of Cash FlowsIndirect Method (Ch. 13, Obj. 2, 3, 4, 5)

The comparative balance sheet of Ranger Equipment Co. for December 31, 20Y2, and 20Y3 is as follows:

	Dec. 31, 20Y3	Dec. 31, 20Y2
Assets
Cash	$ 75,720	$ 47,940
Account receivable (net)	207,230	188,190
Inventories	298,520	289,850
Investments	0	102,000
Land	295,800	0
Equipment	438,600	358,020
Accumulated depreciation - equipment	(99,110)	(84,320)
Total assets	$1,216,760	$ 901,680

Liabilities and Stockholders Equity
Accounts payable (merchandise creditors)	$ 205,700	$ 194,140
Accrued expenses payable (operating expenses)	30,600	26,860
Dividends payable	25,500	20,400
Common Stock, $1 par	202,000	102,000
Paid-in capital in excess of par-common stock	354,000	204,000
Retained earnings	398,960	354,280
Total liabilities and stockholders equity	$1,216,760	$ 901,680

Additional data obtained from an examination of the accounts in the ledger for 20Y3 are as follows:

1. Equipment and land were acquired for cash.
2. There were no disposals of equipment during the year.
3. The investments were sold for $91,800 cash.
4. The common stock was issued for cash.
5. There was a $151,680 credit to Retained Earnings for net income.
6. There was a $107,000 debit to Retained Earnings for cash dividends declared.

REQUIRED:

Prepare in the proper format a Statement of Cash Flows using the Indirect Method of presenting cash flows from (used for) operating activities.

INSTRUCTIONS:

1. The exam must be submitted using an EXCEL WORKSHEET. The exam will receive a zero grade if submitted in any other format.
2. Ten (10) possible extra points will be awarded for neatness, organization, and clarity, and you must perform all necessary computations using Excel.
3. Only on-time submissions will qualify for the bonus points.

Grading RUBRIC:

A comprehensive grading will be performed of each section as follows:

Cash flows from (used for) operating activities are worth 50 points.

Cash flows from (used for) investing activities are worth 20 points.

Cash flows from (used for) financing activities are worth 15 points.

The ending part is worth 15 points.

Total points: 100

Note: Use the proper format when doing the Statement of Cash Flows using the Indirect Method.