Problem 7 Jerome Whistleton, owner of the Whistle Stop Inn, is confused regarding the calculation of cash flows for the SCF and has requested your assistance. He provides you information and his requests as follows: March 31 20X3 20X4 1. Selected current asset accounts: Accounts receivable $ 120,000 $ 132,000 Food inventory 45,000 40,000 on cash flow of the change in each account and where would each be 210 Chapter 4 What is the impact shown on the SCF? 2. Mortgage accounts: Mortgage payable (current) Mortgage payable (long-term) $ 30,000 800,000 $ -0- 1,000,000 How much cash was borrowed and how much was paid to retire debt during 20X4? Where will these amounts be shown on the SCF? 3. Selected current liability accounts: Accounts payable $ 30,000 $ 50,000 Wages payable 20,000 15,000 What is the impact of the change of each account on cash flow and where will each be shown on the SCF? 4. Dividends and retained earnings: Retained earnings $ 450,000 $600,000 Dividends payable 60,000 40,000 Assume net income for the year was $200,000 and that only net income and dividends declared affect retained earnings. What amount of dividends were paid during 20X4 and where will the amount be shown on the SCF? 5. Equipment: Equipment $ 690,000 $750,000 During 20X4, only a van was sold for $5,000. The van originally cost $25,000 and was depreciated by $22,000 when sold. What was the gain on the sale of the van and where is it shown on the SCF? Where are the proceeds from the sale shown on the SCF? What was the amount of equipment purchased during 20X4 and where will it be shown on the SCF