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Please help me solve these problems ACG 2071 Part 2 Final Exam Problem 1. The Dickinson Company reported net income of $155,000 for the current
Please help me solve these problems
ACG 2071 Part 2 Final Exam Problem 1. The Dickinson Company reported net income of $155,000 for the current year. Depreciation recorded on buildings and equipment amounted to $65,000 for the year. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: Cash Accounts receivable Inventories Accounts payable End of Year $20,000 19,000 50,000 12,000 Beginning of Year $15,000 32,000 65,000 18,000 Instructions Prepare the cash flows from the operating activities section of the statement of cash flows using the indirect method. 2. On the basis of the following data for Grant Co. for 2011 and the preceding year ended December 31, 2010, prepare a statement of cash flows. Use the indirect method of reporting cash flows from operating activities. Assume that equipment costing $125,000 was purchased for cash and equipment costing $85,000 with accumulated depreciation of $65,000 was sold for $15,000; that the stock was issued for cash; and that the only entries in the retained earnings account were net income of $56,000 and cash dividends declared of $18,000. Cash Accounts receivable (net) Inventories Equipment Accumulated depreciation Accounts payable (merchandise creditors) Cash dividends payable Common stock, $10 par Paid-in capital in excess of par-common stock Retained earnings Year 2011 $90,000 78,000 106,500 410,000 (150,000) $534,500 Year 2010 $ 78,000 85,000 90,000 370,000 (158,000) $465,000 $ 53,500 5,000 200,000 $ 55,000 4,000 170,000 62,000 214,000 $534,500 60,000 176,000 $465,000Step by Step Solution
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