Question: Muscateer Corp. reported the following revenues and

> Why might a spreadsheet be helpful when completing the statement of cash flows?

> The 2018 comparative balance sheet and income statement of Attleboro Group, Inc. follow. Attleboro disposed of a plant asset at book value in 2018. Prepare the spreadsheet for the 2018 statement of cash flows. Format cash flows from operating activitie

> Use the Sweet Valley data from Problem P14-41B. Problem P14-41B.: The 2018 income statement and comparative balance sheet of Sweet Valley, Inc. follow: Additionally, Sweet Valley purchased land of $20,900 by financing it 100% with longterm notes paya

> Diversion Rare Coins (DRC) was formed on January 1, 2018. Additional data for the year follow: a. On January 1, 2018, DRC issued no par common stock for $450,000. b. Early in January, DRC made the following cash payments: 1. For store fixtures, $46,000

> The comparative balance sheet of Robeson Educational Supply at December 31, 2018, reported the following: Robeson’s transactions during 2018 included the following: Requirements: 1. Prepare the statement of cash flows of Robeson Edu

> The 2018 income statement and comparative balance sheet of Sweet Valley, Inc. follow: Additionally, Sweet Valley purchased land of $20,900 by financing it 100% with longterm notes payable during 2018. During the year, there were no sales of land, no re

> Accountants for Benson, Inc. have assembled the following data for the year ended December 31, 2018: Prepare Benson’s statement of cash flows using the indirect method. Include an accompanying schedule of non-cash investing and financ

> What types of transactions are reported in the non-cash investing and financing activities section of the statement of cash flows?

> Classic Rare Coins (CRC) was formed on January 1, 2018. Additional data for the year follow: a. On January 1, 2018, CRC issued no par common stock for $525,000. b. Early in January, CRC made the following cash payments: 1. For store fixtures, $51,000 2.

> The 2018 comparative balance sheet and income statement of Appleton Group, Inc. follow. Appleton disposed of a plant asset at book value during 2018. Prepare the spreadsheet for the 2018 statement of cash flows. Format cash flows from operating activ

> Use the Rolling Hills, Inc. data from Problem P14-34A. Problem P14-34A: The 2018 income statement and comparative balance sheet of Rolling Hills, Inc. follow: Additionally, Rolling Hills purchased land of $21,100 by financing it 100% with longterm n

> Boundary Rare Coins (BRC) was formed on January 1, 2018. Additional data for the year follow: a. On January 1, 2018, BRC issued no par common stock for $475,000. b. Early in January, BRC made the following cash payments: 1. For store fixtures, $53,000 2

> The comparative balance sheet of Jackson Educational Supply at December 31, 2018, reported the following: Jackson’s transactions during 2018 included the following: Requirements: 1. Prepare the statement of cash flows of Jackson Edu

> The 2018 income statement and comparative balance sheet of Rolling Hills, Inc. follow: Additionally, Rolling Hills purchased land of $21,100 by financing it 100% with longterm notes payable during 2018. During the year, there were no sales of land, no

> Accountants for Morganson, Inc. have assembled the following data for the year ended December 31, 2018: Prepare Morganson’s statement of cash flows using the indirect method. Include an accompanying schedule of non-cash investing and

> American Rare Coins (ARC) was formed on January 1, 2018. Additional data for the year follow: a. On January 1, 2018, ARC issued no par common stock for $450,000. b. Early in January, ARC made the following cash payments: 1. For store fixtures, $53,000 2

> Use the Boost Plus, Inc. data in Exercise E14-21 to prepare the spreadsheet for the 2018 statement of cash flows. Format cash flows from operating activities by the indirect method.

> A-One Mobile Homes reported the following in its financial statements for the year ended December 31, 2018: Requirements: 1. Compute the collections from customers. 2. Compute payments for merchandise inventory. 3. Compute payments of other operating e

> Details about a company’s cash flows appear in a number of places in the annual report. Use Target Corporation’s Fiscal 2015 Annual Report to answer the following questions. Visit http://www.pearsonhighered.com/Horngren to view a link to Target Corporati

> Consider the following facts: a. Beginning and ending Accounts Receivable are $24,000 and $20,000, respectively. Credit sales for the period total $68,000. b. Cost of goods sold is $77,000. c. Beginning Merchandise Inventory balance is $29,000, and endin

> The income statement and additional data of Value Corporation follow: a. Collections from customers are $13,000 more than sales. b. Dividend revenue, interest expense, and income tax expense equal their cash amounts. c. Payments to suppliers are the su

> The accounting records of Four Seasons Parts reveal the following: Compute cash flows from operating activities using the direct method for the year ended December 31, 2018. Payment of salaries and wages $ 34,000 Net income $ 21,000 Depreciation ex

> Use the Rouse Exercise Equipment data in Exercises E14-23 and E14-24. Rouse plans to purchase a truck for $23,000 and a forklift for $125,000 next year. In addition, it plans to pay cash dividends of $3,500. Assuming Rouse plans similar activity for 2019

> Dirt bikes, Inc. identified the following selected transactions that occurred during the year ended December 31, 2018: a. Issued 750 shares of $3 par common stock for cash of $17,000. b. Issued 5,100 shares of $3 par common stock for a building with a f

> Use the Rouse Exercise Equipment data in Exercise E14-23. Prepare the company’s statement of cash flows—indirect method—for the year ended December 31, 2018. Assume investments are purchased with cash

> Rouse Exercise Equipment, Inc. reported the following financial statements for 2018: Requirements: 1. Compute the amount of Rouse Exercise’s acquisition of plant assets. Assume the acquisition was for cash. Rouse Exercise disposed of

> Consider the following facts for Java Jolt: a. Beginning and ending Retained Earnings are $45,000 and $70,000, respectively. Net income for the period is $60,000. b. Beginning and ending Plant Assets are $124,500 and $134,500, respectively. c. Beginning

> The income statement of Boost Plus, Inc. follows: Additional data follow: a. Acquisition of plant assets is $124,000. Of this amount, $108,000 is paid in cash and $16,000 by signing a note payable. b. Cash receipt from sale of land totals $20,000. Ther

> The accounting records of CD Sales, Inc. include the following accounts: Compute CD’s net cash provided by (used for) operating activities during July 2018. Use the indirect method. Account Beginning Balance Ending Balance Cash $

> Moss Exports is having a bad year. Net income is only $60,000. Also, two important overseas customers are falling behind in their payments to Moss, and Moss’s accounts receivable are ballooning. The company desperately needs a loan. The Moss Exports Boar

> The records of Vintage Color Engraving reveal the following: Compute cash flows from operating activities by the indirect method for year ended December 31, 2018. $ 36,000 Depreciation expense $ 5,000 Net income Sales revenue 53,000 Decrease in cur

> The statement of cash flows categorizes like transactions for optimal reporting. Identify each item as a (n): • Operating activity—addition to net income (O+) or subtraction from net income (O-) • Investing activity—cash inflow (I+) or cash outflow (I-)

> Consider the following transactions: Identify the category of the statement of cash flows, indirect method, in which each transaction would be reported. Date Accounts and Explanation Debit Credit a. Cash 72,000 Common Stock 72,000 b. Treasury Stock

> Consider the following transactions: a. Purchased equipment for $130,000 cash. b. Issued $14 par preferred stock for cash. c. Cash received from sales to customers of $35,000. d. Cash paid to vendors, $17,000. e. Sold building for $19,000 gain for cash.

> How does the direct method differ from the indirect method when preparing the operating activities section of the statement of cash flows?

> What is free cash flow, and how is it calculated?

> What should the net change in cash section of the statement of cash flows always reconcile with?

> What accounts on the balance sheet must be evaluated when completing the financing activities section of the statement of cash flows?

> Old Mills’s income statement appears as follows (amounts in thousands): Use the following ratio data to complete Old Mills’s income statement: 1. Inventory turnover is 3.70 (beginning Merchandise Inventory was $810;

> Accel’s Companies, a home improvement store chain, reported the following summarized figures: Accel’s has 10,000 common shares outstanding during 2018. Requirements: 1. Compute earnings per share (EPS) for 2018 for

> Accel’s Companies, a home improvement store chain, reported the following summarized figures: Accel’s has 10,000 common shares outstanding during 2018. Requirements: 1. Compute the profit margin ratio for Accel&acir

> Accel’s Companies, a home improvement store chain, reported the following summarized figures: Accel’s has 10,000 common shares outstanding during 2018. Requirements: 1. Compute the debt ratio and the debt to equity

> Accel’s Companies, a home improvement store chain, reported the following summarized figures: Accel’s has 10,000 common shares outstanding during 2018. Requirements: 1. Compute the inventory turnover, daysâ&#1

> Caleb King is interested in investing in Orange Corporation. What types of tools should Caleb use to evaluate the company?

> Traditional Mills’s balance sheet appears as follows (amounts in thousands): Use the following ratio data to complete Traditional Mills’s balance sheet. 1. Current ratio is 0.72. 2. Acid-test ratio is 0.36. TRADI

> Accel’s Companies, a home improvement store chain, reported the following summarized figures: Accel’s has 10,000 common shares outstanding during 2018. Requirements: 1. Compute Accel’s Companies&ac

> Data for Connor, Inc. and Alto Corp. follow: Requirements: 1. Prepare common-size income statements. 2. Which company earns more net income? 3. Which company’s net income is a higher percentage of its net sales revenue? Connor Alt

> Great Value Optical Company reported the following amounts on its balance sheet at December 31, 2018 and 2017: Prepare a vertical analysis of Great Value’s assets for 2018 and 2017. 2018 2017 Cash and Receivables $ 80,640 $ 80,575

> What accounts on the balance sheet must be evaluated when completing the investing activities section of the statement of cash flows?

> Verifine Corp. reported the following on its comparative income statement: Prepare a horizontal analysis of revenues and gross profit—both in dollar amounts and in percentages—for 2019 and 2018. (In millions) 201

> Briefly describe the ratios that can be used to evaluate a company’s stock as an investment.

> Briefly describe the ratios that can be used to evaluate a company’s profitability.

> Briefly describe the ratios that can be used to evaluate a company’s ability to pay longterm debt.

> Briefly describe the ratios that can be used to evaluate a company’s ability to sell merchandise inventory and collect receivables.

> Briefly describe the ratios that can be used to evaluate a company’s ability to pay current liabilities.

> What is vertical analysis? What item is used as the base for the income statement? What item is used as the base for the balance sheet?

> What is an annual report? Briefly describe the key parts of the annual report.

> What are some common red flags in financial statement analysis?

> If current liabilities increase, what is the effect on cash? What about a decrease in current liabilities?

> Theater by Design and Show Cinemas are asking you to recommend their stock to your clients. Because Theater by Design and Show Cinemas earn about the same net income and have similar financial positions, your decision depends on their statement of cash f

> What is separation of duties?

> What is internal control?

> The October 31 bank statement of Wyndham’s Healthcare has just arrived from State Bank. To prepare the bank reconciliation, you gather the following data: a. The October 31 bank balance is $6,290. b. The bank statement includes two cha

> The May cash records of Donald Insurance follow: Donald’s Cash account shows a balance of $17,750 at May 31. On May 31, Donald Insurance received the following bank statement: Additional data for the bank reconciliation follow: a. The

> Suppose that on September 1, Cool Gyrations, a disc jockey service, creates a petty cash fund with an imprest balance of $350. During September, Ruth Mangan, fund custodian, signs the following petty cash tickets: On September 30, prior to replenishmen

> On September 1, Party Salad Dressings creates a petty cash fund with an imprest balance of $600. During September, Michael Martell, the fund custodian, signs the following petty cash tickets: On September 30, prior to replenishment, the fund contains t

> Each of the following situations has an internal control weakness. a. Jade Applications has decided that one way to cut costs in the upcoming year is to fire the external auditor. The business believes that the internal auditor should be able to efficie

> Pendley Productions makes all sales on credit. Cash receipts arrive by mail. Larry Chipello, the mailroom clerk, opens envelopes and separates the checks from the accompanying remittance advices. Chipello forwards the checks to another employee, who make

> The August 31 bank statement of Well Healthcare has just arrived from United Bank. To prepare the bank reconciliation, you gather the following data: a. The August 31 bank balance is $4,540. b. The bank statement includes two charges for NSF checks from

> The December cash records of Davidson Insurance follow: Davidson’s Cash account shows a balance of $17,450 at December 31. On December 31, Davidson Insurance received the following bank statement: Additional data for the bank reconc

> How does preferred stock differ from common stock?

> During periods of rising costs, which inventory costing method produces the highest gross profit?

> Suppose that on June 1, Rockin’ Gyrations, a disc jockey service, creates a petty cash fund with an imprest balance of $300. During June, Michael Martell, fund custodian, signs the following petty cash tickets: On June 30, prior to rep

> On June 1, Fab Salad Dressings creates a petty cash fund with an imprest balance of $300. During June, Al Franklin, the fund custodian, signs the following petty cash tickets: On June 30, prior to replenishment, the fund contains these tickets plus cas

> Each of the following situations has an internal control weakness. a. Upside-Down Applications develops custom programs to customer’s specifications. Recently, development of a new program stopped while the programmers redesigned Upside-Down’s accounting

> Seawind Productions makes all sales on credit. Cash receipts arrive by mail. Justin Broadway, the mailroom clerk, opens envelopes and separates the checks from the accompanying remittance advices. Broadway forwards the checks to another employee, who mak

> Levon Helm was a kind of one-man mortgage broker. He would drive around Tennessee looking for homes that had second mortgages, and if the criteria were favorable, he would offer to buy the second mortgage for “cash on the barrelhead.” Helm bought low and

> Visit http://www.pearsonhighered.com/Horngren to view a link to Target Corporation’s 2015 Fiscal Year Annual Report. Study the audit opinion (labeled Report of Independent Registered Public Accounting Firm) of Target Corporation and the Target Corporatio

> Hardy Photography’s checkbook lists the following: Hardy’s November bank statement shows the following: Requirements: 1. Prepare Hardy Photography’s bank reconciliation at November 30, 2018. 2. Ho

> The following items could appear on a bank reconciliation: a. Outstanding checks, $670. b. Deposits in transit, $1,500. c. NSF check from customer, no. 548, for $175. d. Bank collection of note receivable of $800, and interest of $80. e. Interest earned

> Marathon Running Shoes reports the following: Journalize all entries required for Marathon Running Shoes. 2018 Recorded National Express credit card sales for of $96,000, processor fee of 1%. Ignore Cost of Goods Sold. Sep. 1 net of 15 Recorded Val

> How does authorized stock differ from outstanding stock?

> Just Hangin’ Night Club maintains an imprest petty cash fund of $150, which is under the control of Sandra Morgan. At March 31, the fund holds $14 cash and petty cash tickets for office supplies, $128, and delivery expense, $15. Requirements: 1. Explain

> When using a perpetual inventory system and the weighted-average inventory costing method, when does the business compute a new weighted-average cost per unit?

> Jackie’s Dance Studio created a $220 imprest petty cash fund. During the month, the fund custodian authorized and signed petty cash tickets as follows: Requirements: 1. Make the general journal entry to create the petty cash fund. Inc

> Gary’s Great Cars purchases high-performance auto parts from a Nebraska vendor. Dave Simon, the accountant for Gary’s, verifies receipt of merchandise and then prepares, signs, and mails the check to the vendor. Requirements: 1. Identify the internal co

> Dogtopia sells pet supplies and food and handles all sales with a cash register. The cash register displays the amount of the sale. It also shows the cash received and any change returned to the customer. The register also produces a customer receipt but

> The following situations suggest a strength or a weakness in internal control. a. Top managers delegate all internal control procedures to the accounting department. b. Accounting department staff (or the bookkeeper) orders merchandise and approves invo

> Jim Root Corporation operates four bowling alleys. The business just received the October 31, 2018, bank statement from City National Bank, and the statement shows an ending balance of $910. Listed on the statement are an EFT rent collection of $440, a s

> Match the following terms with their definitions. 1. Internal control a. Two or more people working together to overcome internal controls. 2. Control procedures b. Part of internal control that ensures resources are not 3. Firewalls wasted. 4. Encr

> Consider each situation separately. Identify the missing internal control procedure from these characteristics: • Assignment of responsibilities • Separation of duties • Audits • Electronic devices • Other controls (specify) a. While reviewing the recor

> This case is based on an actual situation. Centennial Construction Company, headquartered in Dallas, Texas, built a Rodeway Motel 35 miles north of Dallas. The construction foreman, whose name was Slim Chance, hired the 40 workers needed to complete the

> What is a corporation?

> Canyon Canoe Company has decided to open a new checking account at River Nations Bank during March 2019. Canyon Canoe Company’s March Cash T-account for the new cash account from its general ledger is as follows: Canyon Canoe Company&

> In 100 words or fewer, explain why there may be a difference between the bank statement ending cash balance and the ending balance in the Cash account. Give at least two examples each of adjustments to the bank balance and to the book balance.

> Under a perpetual inventory system, what are the four inventory costing methods and how does each method determine ending merchandise inventory and cost of goods sold?

> Dick’s Sporting Goods, Inc. is headquartered in Pennsylvania and is a leading sporting goods retailer. Dick’s offers a variety of high-quality sports equipment, apparel, footwear and accessories. The company sells inventory in their stores (Dick’s Sporti

> The periodic inventory records of Flexon Prosthetics indicate the following for the month of July: At July 31, Flexon counts four units of merchandise inventory on hand. Compute ending merchandise inventory and cost of goods sold for Flexon using the

> The periodic inventory records of Flexon Prosthetics indicate the following for the month of July: At July 31, Flexon counts four units of merchandise inventory on hand. Compute ending merchandise inventory and cost of goods sold for Flexon using the

> Broadway Communications reported the following figures in its annual financial statements: Cost of Goods Sold ………………………………………………………………………………… $ 18,400 Beginning Merchandise Inventory …………………………………………………………560 Ending Merchandise Inventory ………………………………………