Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Refer to the list below for the exact wording of an amount description within your Statement of Cash Flows. Amount Descriptions Cost of goods sold

image text in transcribed

Refer to the list below for the exact wording of an amount description within your Statement of Cash Flows.

Amount Descriptions

Cost of goods sold
Decrease in accounts payable
Decrease in accounts receivable
Depreciation expense
Gain on sale of equipment
Increase in accounts payable
Increase in accounts receivable
Issuance of bonds
Issuance of common stock
Loss on sale of equipment
Net cash from financing activities
Net cash from investing activities
Net cash from operating activities
Net decrease in cash
Net income
Net increase in cash
Operating expenses
Payment of dividends
Purchase of equipment
Purchase of investments
Purchase of land
Retirement of mortgage
Retirement of preferred stock
Revenues
Sale of equipment

image text in transcribed

image text in transcribed

Rosie-Lee Company Comparative Balance Sheets At June 30, 20X1 and 20x2 1 20X1 20X2 Assets 3 Cash $270,000.00 $333,000.00 4 Accounts receivable 126,000.00 144,000.00 5 Investments 0.00 54,000.00 6 Plant and equipment 180,000.00 189,000.00 7 Accumulated depreciation (54,000.00) (57,600.00) 8 Land 36,000.00 54,000.00 Total assets $558,000.00 $716,400.00 10 Liabilities and equity 11 Accounts payable $72,000.00 $90,000.00 108,000.00 0.00 12 Mortgage payable 13 Bonds payable 0.00 90,000.00 14 Preferred stock 36.000.00 15 Common stock 180,000.00 288,000.00 16 Retained earings 162,000.00 248,400.00 17 Total Liabilities and equity $558,000.00 $716,400.00 Rosie-Lee Company Income Statement For the Year Ended June 30, 20X2 1 Sales $920,000.00 2 Cost of goods sold (620,000.00) 3 Gross margin $300,000.00 4 Operating expenses (177,600.00) 5 Net income $122,400.00 dditional transactions were as follows: A. Sold equipment costing $21,600, with accumulated depreciation of $16,200, for $3,600. B. Issued bonds for $90,000 on December 31. C. Paid cash dividends of $36,000. D. Retired mortgage of $108,000 on December 31. Required: 1(a). Prepare a schedule of operating cash flows using the indirect method. 1(b). Prepare a schedule of operating cash flows using the direct method. 2. Prepare a statement of cash flows using the indirect method. 1(b). Prepare a schedule of operating cash flows using the direct method. (Note: Begin by entering the applicable income statement amounts as presented above. In the Adjustments column, if an account has more than one adjustment, enter the total effect of all adjustments in the applicable cell. Rosie-Lee Company Score: 25/63 Schedule of Operating Cash Flows Using the Direct Method Income Adjustments Cash Flows Statement 2 Revenues $902,000.00 602,000.00 602,000.00 Decrease in accounts payable Operating expenses 156,000.00 758,000.00 5 Net cash from operating activities $144,000.00 2. Prepare a statement of cash flows using the indirect method. (Note: Use a minus sign to indicate any decrease Question not attempted. Rosie-Lee Company Score: 0/179 Statement of Cash Flows For the Year Ended June 30, 20X2 1 Cash flows from operating activities: 2 3 Add (deduct) adjusting items: 4 5 6 7 8 9 Cash flows from investing activities: 10 11 12 13 14 15 Cash flows from financing activities: 16 17 18 19 20 21 22

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Sound Investing, Chapter 17 - Off-Balance-Sheet Shams

Authors: Kate Mooney

1st Edition

0071719393, 9780071719391

More Books

Students also viewed these Accounting questions

Question

Describe the importance of global talent management.

Answered: 1 week ago

Question

Summarize the environment of recruitment.

Answered: 1 week ago