Ex. 160 Pierce Company reported net income of $200,000 for the current year. Depreciation recorded on buildings and equipment amounted to $80,000 for the year. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows:

End of Year Beginning of Year

Cash. $20,000 $15,000

Accounts receivable 30,000 24,000

Inventories. 50,000 65,000

Prepaid expenses 7,500 5,000

Accounts payable 12,000 18,000

Income taxes payable 1,600 1, 200

Instructions Prepare the cash flows from the operating activities section of the statement of cash flows using the indirect method.

BE 129: On January 1, Hillard Corporation purchased a 15% equity in Lewis Company for $360,000. At December 31, Lewis declared and paid a $40,000 cash dividend and reported net income of $98,000. Prepare the necessary journal entries for Hillard Corporation.

BE 130: Stein Company had the following transactions pertaining to its short-term stock investments. Jan.1Purchased 600 shares of Rice Company stock for $6,700 cash plus brokerage fees of $350. June1Received cash dividends of $0.60 per share on the Rice Company stock.Sept. 15Sold 300 shares of the Rice Company stock for $3,500 less brokerage fees of $200. Instructions Journalize the transactions.

BE 131: On January 1, 2008, Owen Company purchased 5,000 shares of Jen Company stock for $300,000. Owens investment represents 10 percent of the total outstanding shares of Jen. During 2008, Jen paid total dividends of $100,000 and reported net income of $250,000. What revenue does Owen report related to this investment and what is the amount to be reported as an investment in Jen stock at December 31?

BE 132: At January 1, 2008, the trading securities portfolio held by the Darin Corporation consisted of the following investments: 1. 2,000 shares of Stitch common stock purchased for $42 per share. 2. 1,500 shares of Marvel common stock purchased for $50 per share.At December 31, 2008, the fair values per share were Stitch $46 and Marvel $54.Instructions(a) Prepare a schedule showing the cost and fair value of the portfolio at December 31, 2008.(b) Prepare the adjusting entry to report the portfolio at fair value at December 31, 2008.

BE 163: The following items were taken from the financial statements of Horace, Inc., over a three-year period:

Item 2009 2008 2007

NetSales $385,000. $356,000 $300,000

Cost of Goods Sold 214,000, 206,000, 186,000

GrossProfit. $171,00$150,000$114,000

Instructions Compute the following for each of the above time periods.

a. The amount and percentage change from 2007 to 2008 .

b. The amount and percentage change from 2008 to 2009.