Exercise #2Cookie Company provided the following partial comparative balance sheets and income statement for2014:Balance Sheet20142013Current assetsAccounts receivableInventoriesCurrent liabilitiesWages payable582,500320,000750,000300,000515,000700,000Income StatementRevenuesGain on sale of equipmentLess: Cost of goods soldLess: Depreciation expenseLess: Interest expense3,000,000100,0001,920,000270,00010,000Net IncomeP 900,000Required:Compute operating cash flows using the indirect method. FM 121 – Financial Analysis & ReportingStatement of Cash FlowsExercise #1During the last 2 years of operations, Harrison Company had the following transactions:Identify each transaction either as a source or use of cash.a. Purchased a new plant for P5,000,000c. Issued bonds with a 6-year maturity datefor P6,000,000e. Reported profits of P7,000,000 for themost recent yearg. Sold equipment for P500,000i. Paid cash dividends of P2,000,000b. Sold a 30% interest in a companyd. Retired a long-term note payablef. Reported a loss for the year P500,000h. Issued common stock for P1,000,000

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Exercise #1 During the last 2 years of operations, Harrison Company had the following transactions: Identify each transaction either as a source or use of cash. a. Purchased a new plant for P5,000,000 c. Issued bonds with a 6-year maturity date for P6,000,000 e. Reported profits of P7,000,000 for the most recent year g. Sold equipment for P500,000 i. Paid cash dividends of P2,000,000 b. Sold a 30% interest in a company d. Retired a long-term note payable f. Reported a loss for the year P500,000 h. Issued common stock for P1,000,000

Exercise #1 During the last 2 years of operations, Harrison Company had the following transactions: Identify each transaction either as a source or use of cash. a. Purchased a new plant for P5,000,000 c. Issued bonds with a 6-year maturity date for P6,000,000 e. Reported profits of P7,000,000 for the most recent year g. Sold equipment for P500,000 i. Paid cash dividends of P2,000,000 b. Sold a 30% interest in a company d. Retired a long-term note payable f. Reported a loss for the year P500,000 h. Issued common stock for P1,000,000

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 32BE

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