Prepare partial Statement of Cash Flows for Somerset Company

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Reference no: EM132677639

Questions -

Q1) The following are selected accounts for the Wicomico Company after all Fiscal Year December 31, 2018, adjusting entries & closing entries have been posted. All balances are normal.

Account Amount

Common Stock, $10 par $260,000

Treasury Stock, at cost $16 per share 32,000

Dividends Payable 13,000

Paid in Capital in excess of par, Common Stock 52,000

Accounts Receivable 24,500

Retained Earnings 217,000

Bonds Payable 150,000

Preferred Stock, $100 par, 4% cumulative 100,000

Prepare only the Stockholder's Equity section of the Classified Balance Sheet for the year end. Be sure to use a good format, dollar signs and single underlines were required. There are a few extra lines in the formatted input answer form to allow for acceptable balance sheet format variations.

Q2) The following financial information is for Chesapeake Corporation are for the fiscal years ending 2018 & 2017 (all balances are normal):

Item/Account 2018 2017

Cash $35,000 $24,000

Accounts Receivable 56,000 52,000

Inventory 42,000 48,000

Current Liabilities 76,000 42,000

Net Sales (all credit) 550,000 485,000

Cost of Goods Sold 320,000 265,000

Use this information to determine the number of days in inventory for 2018: (Use a 365 day year. Round & enter your answers to one decimal place and enter the value.)

Q3) The following financial information is for Chesapeake Corporation are for the fiscal years ending 2018 & 2017 (all balances are normal):

Item/Account 2018 2017

Cash 21,000 $24,000

Accounts Receivable 58,000 52,000

Inventory 60,000 48,000

Current Liabilities 80,000 42,000

Net Sales (all credit) 550,000 485,000

Cost of Goods Sold 288,000 265,000

Use this information to determine the number of current ratio as of December 31, 2018: (Round & enter your answers to one decimal place and enter the value.)

Q4) The following information is related to Towson Company's fiscal year 2018.

Income Statement:

Net Income $3,100,000

Depreciation Expense 600,000

Loss on Sale of Plant Assets 60,000

Interest Expense 5,000

Balance Sheet - 12/31/17: Increase (Decrease)

Accounts Payable decrease 20,000

Plant Assets - Purchased 250,000

Plant Assets - Disposals (100,000)

Additional Information:

Common Stock exchanged for outstanding Long Term Notes Payable of $125,000

Dividends paid were $30,000

Use this information to determine Towson Company's Net Cash Flows from Operating Activities. If the amount is an outflow then enclose the amount with dollar sign inside of brackets ( ).

Q5) The following information is related to Somerset Company's fiscal year 2018.

Income Statement:

Net Income $4,000,000

Depreciation Expense 650,000

Gain on Sale of Plant Assets 50,000

Interest Expense 5,000

Balance Sheet - 12/31/17: Increase (Decrease)

Accounts Receivable ($45,000)

Plant Assets - Purchased 250,000

Plant Assets - Disposals (100,000)

Additional Information:

Common Stock exchanged for outstanding Long Term Notes Payable of $150,000

Dividends paid were $35,000

Use this information to prepare a partial Statement of Cash Flows for Somerset Company. Prepare only the section related to Cash Flows from Operating Activities.

Reference no: EM132677639

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