Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Below are balance sheet and income statement data for Howard Bannister Company. Note:For the balance sheet data, theend-of-yearinformation is in theleft column . Balance Sheet

Below are balance sheet and income statement data for Howard Bannister Company.Note:For the balance sheet data, theend-of-yearinformation is in theleft column.

Balance Sheet Data

20X220X1

AccountsPayable................................................................................................95.............................................................165

AccumulatedDepreciation................................................................................520...........................................................339

Cash................................................................................................................130..........................................................100

CommonStock..............................................................................................1,000.........................................................700

DIVIDENDSPAYABLE.........................................................................................40............................................................25

Equipment.........................................................................................................2,395.......................................................2,700

Income TaxPayable..........................................................................................100............................................................135

Inventory..........................................................................................................1,120...........................................................890

MortgagePayable..............................................................................................900.........................................................1,500

Prepaid GeneralExpenses...............................................................................300.............................................................350

Retained Earnings (ending balance, afterclosing)......................................1,240......................................................1,098

Unearned SalesRevenue..................................................................................50............................................................78

Income Statement Data (for 20X2)

Sales...................................................................................................................................10,000

Cost of GoodsSold.............................................6,000

GeneralExpenses...............................................2,000

DepreciationExpense...........................................330

Loss on Sale ofPPE................................................100

Income TaxExpense.............................................700

TotalExpenses9,130

NetIncome...............................................................................................................................870

Additional Information:

a.Equipment with a (net) book value of $300 was sold during 20X2.

b.All accounts payable relate to inventory purchases.

c.Equipment costing $60 was purchased with a mortgage during 20X2. This fact is already reflected in the balance sheet numbers reported above. All other purchases of Equipment in 20X2 were cash transactions.

Part 1:Compute the amount of Cash Paid for Inventory Purchases in 20X2.

Part 2:Compute thetotalCASH FROMOPERATINGACTIVITIES in 20X2.

Part 3:Compute thetotalCASH FROMINVESTINGACTIVITIES in 20X2.

Part 4:Compute the CASH PAID FORDIVIDENDSin 20X2.

For each question, write the dollar amount of your answer.(Do not write the dollar sign.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Payroll Accounting 2019

Authors: Jeanette Landin, Paulette Schirmer

5th edition

125991707X, 978-1259917073

More Books

Students also viewed these Accounting questions