Question:Problem 1

CAROLINA CORPORATION

Comparative Statements of Financial Position

December 31

2014 2013

Cash ...................................................... ...... $ 43,000 $ 24,000

Accounts receivable, net ........................... .... 35,000 38,000

Inventory ............................................... 114,000 82,000

Land ...................................................... 120,000 190,000

Building .................................................. 200,000 200,000

Accumulated depreciation ......................... (50,000) (40,000)

Equipment .............................................. 1,030,000 600,000

Accumulated depreciation ......................... (118,000) (94,000)

Total $1,374,000 $1,000,000

Accounts payable....................................... $ 115,000 $ 100,000

4% Bonds payable ................................... 320,000 -0-

Common shares ...................................... 750,000 750,000

Retained earnings .................................... 189,000 150,000

Total $1,374,000 $1,000,000

Additional data:

1. Net income for the year was $84,000.

2. Cash dividends were paid.

3. Land was sold for $80,000.

4. Old equipment was sold for $70,000. This equipment had cost $150,000 and had accumulated depreciation of $60,000 to date of sale. New equipment was purchased to replace it.

Instructions

Prepare a statement of cash flows for calendar 2014, using the indirect method.

Problem 2

TEXAS CORPORATION

Comparative Statements of Financial Position

December 31

2014 2013

Cash ..................................................... $ 43,000 $ 24,000

Accounts receivable, net ......................... 35,000 38,000

Inventory .............................................. 114,000 82,000

Land ..................................................... 120,000 190,000

Building ................................................ 200,000 200,000

Accumulated depreciation ........................ (50,000) (40,000)

Equipment ............................................. 1,030,000 600,000

Accumulated depreciation ........................ (118,000) (94,000)

Total $1,374,000 $1,000,000

Accounts payable (merchandise purchases only) $ 115,000 $ 100,000

Salaries payable ..................................... 20,000 -0-

4% Bonds payable.................................. 300,000 -0-

Common shares ..................................... 750,000 750,000

Retained earnings .................................. 189,000 150,000

Total $1,374,000 $1,000,000

TEXAS CORPORATION

Income Statement

For year ended December 31, 2014

Sales ..................................................... $ 1,075,000

Cost of goods sold ................................... 640,000

Depreciation expense ............................... 94,000

Salaries expense ..................................... 140,000

Rent expense .......................................... 72,000

Other operating expenses, including bond interest 14,000

Net loss on sale of assets ......................... 10,000

Income taxes expense ............................. 21,000

Net income ............................................. $ 84,000

Additional Data:

1. The bonds were sold at par on July 1, 2014.

2. Cash dividends were paid.

3. Land was sold for $80,000.

4. Old equipment was sold for $70,000. This equipment had cost $150,000 and had accumulated depreciation of $60,000 to date of sale. New equipment was purchased to replace it.

Instructions

Prepare a statement of cash flows for calendar 2014, using the direct method.

*Please show work

This question has been posted previously on coursehero and is wrong.

Due tonight 11pm

McMaster University Centre for Continuing Education Intermediate Accounting II 570-417 Unit IV Assignment Jeffrey O'Leary Fall 2014 Instructions When submitting an assignment be sure to prepare and submit the assignment electronically in either Word or Excel Format, however submit only ONE document. When composing paragraphs, double space and use proper grammar and language at all times. Be sure document is formatted in a manner that allows comments to be entered easily. Include your name, course, and assignment number in the file name, eg. JohnDoe_Assign4_IFAII_570417 Submit your completed assignment via A2L no later than the date specified. This assignment consists of 3 problems with 31 marks in total. Please ensure you complete all questions and clearly number each response. Problem 1 (14 Marks) CAROLINA CORPORATION Comparative Statements of Financial Position December 31 2014 2013 Cash ...................................................... $ 43,000 $ 24,000 Accounts receivable, net ........................... 35,000 38,000 Inventory ............................................... 114,000 82,000 Land ...................................................... 120,000 190,000 Building .................................................. 200,000 200,000 Accumulated depreciation ......................... (50,000) (40,000) Equipment .............................................. 1,030,000 600,000 Accumulated depreciation ......................... (118,000) (94,000) $1,374,000 $1,000,000 Accounts payable..................................... $ 115,000 4% Bonds payable ................................... 320,000 Common shares ...................................... 750,000 Retained earnings .................................... 189,000 $1,374,000 Additional data: 1. Net income for the year was $84,000. 2. Cash dividends were paid. 3. Land was sold for $80,000. 4. Old equipment was sold for $70,000. This equipment had and had accumulated depreciation of $60,000 to date equipment was purchased to replace it. $ 100,000 -0750,000 150,000 $1,000,000 cost $150,000 of sale. New Instructions Prepare a statement of cash flows for calendar 2014, using the indirect method. Problem 2 (11 Marks) TEXAS CORPORATION Comparative Statements of Financial Position December 31 2014 Cash ..................................................... $ 43,000 $ Accounts receivable, net ......................... 35,000 Inventory .............................................. 114,000 Land ..................................................... 120,000 2013 24,000 38,000 82,000 190,000 Building ................................................ 200,000 Accumulated depreciation ........................ (50,000) Equipment ............................................. 1,030,000 Accumulated depreciation ........................ (118,000) (94,000) ............................................................ $1,374,000 Accounts payable (merchandise purchases only) $ 100,000 Salaries payable ..................................... 20,000 4% Bonds payable.................................. 300,000 Common shares ..................................... 750,000 Retained earnings .................................. 189,000 ............................................................ $1,374,000 200,000 (40,000) 600,000 $1,000,000 $ 115,000 -0-0750,000 150,000 $1,000,000 TEXAS CORPORATION Income Statement For year ended December 31, 2014 Sales ..................................................... $ 1,075,000 Cost of goods sold ................................... 640,000 Depreciation expense ............................... 94,000 Salaries expense ..................................... 140,000 Rent expense .......................................... 72,000 Other operating expenses, including bond interest Net loss on sale of assets ......................... 10,000 Income taxes expense ............................. 21,000 Net income ............................................. $ 84,000 14,000 Additional Data: 1. The bonds were sold at par on July 1, 2014. 2. Cash dividends were paid. 3. Land was sold for $80,000. 4. Old equipment was sold for $70,000. This equipment had cost $150,000 and had accumulated depreciation of $60,000 to date of sale. New equipment was purchased to replace it. Instructions Prepare a statement of cash flows for calendar 2014, using the direct method. Problem 3 (6 Marks) Utah Ltd. is a diversified corporation which has developed the following information about its five segments: A B C D E Total sales $200,000 $ 850,000 $150,000 $ 160,000$ 290,000 Operating profit (loss)(125,000)240,000 20,000 (150,000) (5,000) Total assets 800,000 2,900,000 600,000 1,700,000 2,800,000 Instructions Identify which segments would be considered as reportable segments by applying the following tests: a. revenue test b. operating profit or loss test c. assets test