5 Managerial Accounting Questions due Saturday, August 16th at 12:00PM CDT


Exercise 2: Currency Flows from Uncounted Activities: Unconnected Method

The laconic single-step proceeds declaration for the year ended December 31, 2014, of Conti Chemical Company, a distributor of farm fertilizers and herbicides, prospers.

 

Sales                                                                                                                             $26,000,000

Less: Require of consequence sold                                                             $15,200,000

Operating requires (including deterioration of $1,640,000)   7,600,000

Income taxes require                                                                      800,000                   23,600,000

                                                                                                                                     $2,400,000

Selected recitals from Conti Chemical’s equalize sheets for 2014 and 2013 prosper.

 

 

                                                   2014                              2013

Accounts receivable                    $4,800,000                    $3,400,000

Inventory                                  1,680,000                      2,040,000

Precompensated requires                          520,000                          360,000

Accounts payable                          120,000                          200,000

Income taxes advantageous                  280,000                          240,000

 

Prepare a catalogue of currency glides from uncounted activities using the unconnected course.

 

Exercise 8: Preparing the Declaration of currency Flows: Unconnected Method

Keeper Cooperation’s proceeds declaration for the year ended June 30, 2014, and its proportionately equalize sheets for June 30, 2014 and 2013 prosper.

                       

Keeper Corporation

                        Income Statement

                        For the Year Ended June 30, 2014                                  

Sales                                                                                         $234,000

Cost of consequence sold                                                                      156,000

Gross Margin                                                                             $78,000

Operating requires                                                                      45,000

Operating proceeds                                                                       $33,000

Interest require                                                                            2,800

Income antecedently proceeds taxes                                                       $30,200

Income taxes require                                                                  12,300

Net proceeds                                                                                $17,900

 

 

                        Keeper Corporation

                        Comparative Equalize Sheets

June 30, 2014 and 2013                                                                                     

                                                                                    2014                 2013

            Assets

Cash                                                                             $69,900             $12,500

Accounts receivable (net)                                                21,000             26,000

Inventory                                                                      43,000             48,400

Precompensated Expenses                                                             3,200               2,600

Furniture                                                                        55,000             60,000

Accumulated deterioration- goods                                 (9,000)            (5,000)

Total Assets:                                                                 $183,500           $144,500

 

Liabilities and Stockholders’ Equity

 

Accounts payable                                                           $13,000             $14,000

Income taxes payable                                                       1,200                  1,800

Notes payable (long-term)                                              37,000              35,000

Common accumulation, $10 par esteem                                         115,000              90,000

Retained earnings                                                            17,300    3,700

                        Total liabilities and accumulationholders’ equity                             $183,500          $144,500

 

Keeper issued a $22,000 still n ess payable for donation of goods; sold at carrying esteem goods that require $27,000 after a while accumulated deterioration of $15,300; recitative deterioration on the goods for the year, $19,300; recompensated a still n ess in the aggregate of $28,000; issued $25,000 of vile accumulation at par esteem; and compensated dividends of $4,300.  Prepare Keeper’s declaration of currency glides for the year 2014 using the unconnected course.

 

Exercise 9:

In 2014, Andy’s Corporation had year-end goods of $2,400,000 sales of $3,300,000. Net proceeds of $280,000, net currency glides from uncounted activities of $390,000, dividends of $120,000, donations of insert goods of $500,000, and sales of insert goods of $90,000.  In 2013, year-end goods were $2,100,000.  Calculate at-liberty currency glide and the currency-generating competency ratios of currency glide relinquish, currency glides to sales, and currency glides to goods (Round to one decimal or the rectilinear tenth of a percent.)

 

Problem 1: Genus of Currency Glide Transaction

Analyze each negotiation listed in the consultation that prospers and establish X’s in the misapply columns to evidence the negotiation’s genus and its property on currency glides using the unconnected course.

 

 

 

Cash Glide Classification                                                                    

 

 

 

Effect on Currency Flows         

 

 

Transaction

Operating principle

Investing principle

Financing principle

Noncurrency negotiation

Increase

Decrease

No property

1.  Paid a currency dividend

 

 

 

 

 

 

 

2. Decreased recitals receivable

 

 

 

 

 

 

 

3. Increased inventory

 

 

 

 

 

 

 

3. Incurred a net damage.

 

 

 

 

 

 

 

5. Declared and issued a accumulation dividend

 

 

 

 

 

 

 

6. Retired long-term claim after a while currency

 

 

 

 

 

 

 

7. Sold advantageous-for-sales securities at a damage.

 

 

 

 

 

 

 

8. Issued accumulation for equipment.

 

 

 

 

 

 

 

9. Decreased precompensated protection.

 

 

 

 

 

 

 

10. Purcased shop accumulation after a while currency.

 

 

 

 

 

 

 

11 Retired a amply depreciated deal (no execute or damage).

 

 

 

 

 

 

 

12. Increased attention payable.

 

 

 

 

 

 

 

13. Decreased dividends receivable on investment

 

 

 

 

 

 

 

14. Sold shop accumulation.

 

 

 

 

 

 

 

15. Increased proceeds taxes payable.

 

 

 

 

 

 

 

16. Transferred currency to currency market recital.

 

 

 

 

 

 

 

17. Purchased establish and erection after a while a hypothecation.

 

 

 

 

 

 

 

 

 

Problem 3: Declaration of Currency Flows: Unconnected Method

 

Chaplin Arts, Inc.’s proportionately equalize sheets for December 31, 2014 and 2013, prosper:

 

 

 

Chaplin Arts, Inc.

Comparative Equalize Sheets

December 31, 2014 and 2013

Assets

2014

2013

Cash

$94,560

$27,360

Accounts receivable (net)

102,340

75,430

Inventory

112,890

137,890

Precompensated requires

-

20,000

Land

25,000

-

Building

117,000

-

Accumulated deterioration-building

-15,000

-

Equipment

33,000

34,000

Accumulated deterioration-equipment

-14,400

-24,000

Patients

4,000

6,000

Total goods

$479,380

$276,680

 

Liabilities and Stockholders' Equity

  

Accounts payable

$10,750

$36,750

Notes payable (current)

10,000

-

Accrued liabilities

-

12,300

Mortgage payable

162,000

-

Common accumulation, $10 Par Value

180,000

150,000

Additional compensated-in capital

57,200

37,200

Retained Earnings

59,430

40,430

Total liabilities and accumulationholders' equity

$479,380

$276,680

 

The prospering added advice about Chaplin Art’s operations during 2013 is advantageous: (a) net proceeds, $28,000; (b) erection and equipment deterioration require aggregates, $15,000 and $3,000, respectively; (c) equipment that require $13,500 after a while accumulated deterioration of $12,500 sold at a execute of $5,300; (d) equipment donations, $12,500; (e) evident amortization, $3,000; donation of evident, $1,000; (f) funds added by issuing still n esss payable, $25,000; still n esss payable repaid, $15,000; (g) establish and erection donationd for $162,000 by signing a hypothecation for the aggregate require; (h) 1,500 shares of $20 par esteem vile accumulation issued for a aggregate of $50,000; and (i) compensated currency dividends, $9,000.

 

REQUIRED:

  1.  Using the unconnected course, order of a declaration of currency glides for Chaplin Arts.

  2. Why did Chaplin Arts own an acception in currency of $67,200 when it recitative net proceeds of merely $28,000?  Discuss and decipher.

  3. Compute and assess currency glide relinquish and at-liberty currency glide for 2014.  (Round to one decimal establish.)  What is your tribute of Chaplin Arts’ currency-generating power?

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