ACCOUNTING

Managerial Accounting 1B

Financial and Managerial Accounting

Chapter 12

Exercise 12-5B Computation of cash flows (direct) L.O. P5

       
 Case A:  Compute cash received from customers:    
   Sales $ 510,000
   Accounts receivable, December 31, 2011   25,200
   Accounts receivable, December 31, 2012   34,800
 Case B:  Compute cash paid for rent:    
   Rent expense $ 140,800
   Rent payable, December 31, 2011   8,800
   Rent payable, December 31, 2012   7,200
 Case C:  Compute cash paid for merchandise:    
   Cost of goods sold $ 528,000
   Merchandise inventory, December 31, 2011   159,600
   Accounts payable, December 31, 2011   67,800
   Merchandise inventory, December 31, 2012   131,400
   Accounts payable, December 31, 2012   84,000

 

For each of the above three separate cases, use the information provided about the calendar-year 2012 operations of Sahim Company to compute the required cash flow information. (Omit the “$” sign in your response.)

 

     
  Case A:  Cash received from customers  
  Case B:  Cash paid for rent  
  Case C:  Cash paid for merchandise  

 

Exercise 12-6 Cash flows from operating activities (indirect) L.O. P2

BEKHAM COMPANY
Income Statement
For Year Ended December 31, 2011
  Sales       $ 1,818,000  
  Cost of goods sold         891,000  
       


 
  Gross profit         927,000  
  Operating expenses            
      Salaries expense $ 248,535        
      Depreciation expense   43,200        
      Rent expense   48,600        
      Amortization expenses–Patents   5,400        
      Utilities expense   19,125      364,860  
 


 


 
          562,140  
  Gain on sale of equipment         7,200  
       


 
  Net income       $ 569,340  
       




 

 

Changes in current asset and current liability accounts for the year that relate to operations follow.

 

  Accounts receivable $ 40,500   increase   Accounts payable $ 13,500  decrease
  Merchandise inventory   27,000   increase   Salaries payable   4,500  decrease

 

Use the above income statement and information about changes in noncash current assets and current liabilities to prepare only the cash flows from operating activities section of the statement of cash flows using the indirect method. (Amounts to be deducted should be indicated with a minus sign. Omit the “$” sign in your response)

 

 

Exercise 12-7B Cash flows from operating activities (direct) L.O. P5

BEKHAM COMPANY
Income Statement
For Year Ended December 31, 2011
  Sales       $ 1,818,000  
  Cost of goods sold         891,000  
       


 
  Gross profit         927,000  
  Operating expenses            
      Salaries expense $ 248,535        
      Depreciation expense   43,200        
      Rent expense   48,600        
      Amortization expenses—Patents   5,400        
      Utilities expense   19,125      364,860  
 


 


 
          562,140  
  Gain on sale of equipment         7,200  
       


 
  Net income       $ 569,340  
       




 

 

Changes in current asset and current liability accounts for the year that relate to operations follow.

 

 
  Accounts receivable $ 40,500   increase   Accounts payable $ 13,500  decrease
  Merchandise inventory   27,000   increase   Salaries payable   4,500  decrease

 

Use the above income statement and information about changes in noncash current assets and current liabilities to prepare only the cash provided or used by operating activities section of the statement of cash flows for this company using the direct method(Amounts to be deducted should be indicated with a minus sign. Omit the “$” sign in your response.)

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