Answered step by step
Verified Expert Solution
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
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 |
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
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started