CHAPTER 2 - BASIC FINANCIAL STATEMENTS 36 Chapter 1 E1-23A (Learning Objective 5: Construct a statement of cash flows) Glass, Inc., began 2012 with $83.000 in cash. During 2012, Glass earned not income of $430,000, and adjustments to reconcile net income to net cash provided by operations totaled $75,000, a positive amount. Investing activi- ties used cash of $420,000, and financing activities provided cash of $11,006. Glasa ended 2012 with total assets of $580,000 and total liabilities of $230,000. Requirement 1. Prepare Glass, Inc's statement of cash flows for the year ended December 31, 2012. Identify the darkfeems given that do not appear on the starement of cash flows. Also identify the fiancial statement that reports the unused items. E1-24A (Learning Objective S: Construct an income statentent and a statement of retained Seniorgo) Assume the Dogan Copy Center ended the month of July 2012 with these data: $460,000 4.700 20 Payments of cash: Acquisition of equipment Dividends...... Retained earnings July 1, 2012 Retained carnings July 31, 2012... Utilities expense Adjustments to reconcile net income to net cash proviced by operations 105.300 Cash balance. Jlv 1, 2012... 3 Cash belance, July 31, 2012... 10,300 Gaish receipt Issuance isale) of stock so owners Rent expenses 2.700 Common stock 105,300 Equipment 460,000 Office supplies $14,700 Accounts payable 17,400 Service revenue... 540,200 10,300 Salary expense. 2,700 160,000 Requirement 1. Prepare the income statement and the statement of retained carnings of Dogan Copy Center, Inc., for the month ended July 31, 2012 E1-25A (Learning Objective 5: Construct a balance sheet) Refer to the data in Exercise 1-24A. Requirement 1. Prepare the balance sheet of Dogan Copy Center, Inc.. for July 31, 2012. E1-26A Learning Objective 5: Construct a statensent of cash flows) Refer to the data in Exercises 1-24A and 1-25A Requirement 1. Prepare the statement of cash flows of Dogan Copy Center, Inc., for the month ended July 31, 2012. Using Exhibir l-11 as a model, show with arrows the relationships among the income statement, statement of retained carnings, balance sheet, and starement of cash flows. E1-27A PLearning Objective 4: Evaluate business operations through the financial stetements) This exercise should be used in conjunction with Exercises 1-24A through 1-26A. The owner of Dogan Copy Cester seeks your advice as to whether he should cease operations or continue the business. Complete the report giving him your opinion of net income, dividends, financial position, and cash flows during his first month of operations. Cite specifics from the financial statements to support your opinion. Conclude your memo with advice on whether to stay in business or cease operations. CHAPTER 2 - BASIC FINANCIAL STATEMENTS 36 Chapter 1 E1-23A (Learning Objective 5: Construct a statement of cash flows) Glass, Inc., began 2012 with $83.000 in cash. During 2012, Glass earned not income of $430,000, and adjustments to reconcile net income to net cash provided by operations totaled $75,000, a positive amount. Investing activi- ties used cash of $420,000, and financing activities provided cash of $11,006. Glasa ended 2012 with total assets of $580,000 and total liabilities of $230,000. Requirement 1. Prepare Glass, Inc's statement of cash flows for the year ended December 31, 2012. Identify the darkfeems given that do not appear on the starement of cash flows. Also identify the fiancial statement that reports the unused items. E1-24A (Learning Objective S: Construct an income statentent and a statement of retained Seniorgo) Assume the Dogan Copy Center ended the month of July 2012 with these data: $460,000 4.700 20 Payments of cash: Acquisition of equipment Dividends...... Retained earnings July 1, 2012 Retained carnings July 31, 2012... Utilities expense Adjustments to reconcile net income to net cash proviced by operations 105.300 Cash balance. Jlv 1, 2012... 3 Cash belance, July 31, 2012... 10,300 Gaish receipt Issuance isale) of stock so owners Rent expenses 2.700 Common stock 105,300 Equipment 460,000 Office supplies $14,700 Accounts payable 17,400 Service revenue... 540,200 10,300 Salary expense. 2,700 160,000 Requirement 1. Prepare the income statement and the statement of retained carnings of Dogan Copy Center, Inc., for the month ended July 31, 2012 E1-25A (Learning Objective 5: Construct a balance sheet) Refer to the data in Exercise 1-24A. Requirement 1. Prepare the balance sheet of Dogan Copy Center, Inc.. for July 31, 2012. E1-26A Learning Objective 5: Construct a statensent of cash flows) Refer to the data in Exercises 1-24A and 1-25A Requirement 1. Prepare the statement of cash flows of Dogan Copy Center, Inc., for the month ended July 31, 2012. Using Exhibir l-11 as a model, show with arrows the relationships among the income statement, statement of retained carnings, balance sheet, and starement of cash flows. E1-27A PLearning Objective 4: Evaluate business operations through the financial stetements) This exercise should be used in conjunction with Exercises 1-24A through 1-26A. The owner of Dogan Copy Cester seeks your advice as to whether he should cease operations or continue the business. Complete the report giving him your opinion of net income, dividends, financial position, and cash flows during his first month of operations. Cite specifics from the financial statements to support your opinion. Conclude your memo with advice on whether to stay in business or cease operations
