cash flows in Tripp Company, business and finance homework

Anonymous
timer Asked: Jan 17th, 2016
account_balance_wallet $15

Question description

1. The following information is given for Tripp Company, which uses the indirect method.

 Net income  - $20,000 

Depreciation expense - $3,000 

Increase in accounts receivable - $2,000 

Payment of dividends - $2,000 

Proceeds from sale of equipment - $6,000 

Increase in accounts payable - $4,000 

Decrease in inventory - $3,000 

From the information provided, answer the following questions: 

The cash flow from operating activities is ________. 

The cash flow from investing activities is ________. 

The cash flow from financing activities is ________. 




2. Selected data for Stick’s Design are given as of December 31, Year 1 and Year 2 (rounded to the nearest hundredth). 

                                        Year 2                                   Year 1 

Net Credit Sales              $25,000                                $30,000 

Cost of Goods Sold         16,000                                  18,000 

Net Income                       2,000                                    2,800 

Cash                                 5,000                                    900 

Accounts Receivable       3,000                                    2,000

 Inventory                         2,000                                    3,600 

Current Liabilities             6,000                                    5,000 


Compute the following: 

Current ratio for Year 2 

 Acid-test ratio for Year 2 

 Accounts receivable turnover for Year 2 

Average collection period for Year 2 

 Inventory turnover for Year 2




3. Prepare an income statement showing departmental contribution margin based on the following: 

                                         Dept. X                     Dept. Y                          Rent Expense 

Space (square feet)        17,500                                                             35,000 

Net Sales                         $60,000                  $40,000 

Cost of Goods Sold        $18,000                                                            $16,000

Rent Expense (allocated based on square feet)                                    $2,700




4. From the following transactions, prepare the appropriate general journal entries for the month of April. 

1. Raw materials costing $60,000 were issued from the storeroom. 

2. Direct labor of $53,000 was charged to production. 

3. Indirect labor costs of $17,000 were incurred. 

4. Overhead was applied at the rate of 40% of direct labor dollars. 

5. Completed products costing $42,000 were transferred to finished goods. 

6. Products costing $32,000 were sold.

Tutor Answer

UT Austin

flag Report DMCA
Review

Anonymous
Totally impressed with results!! :-)

Similar Questions
Hot Questions
Related Tags

Brown University





1271 Tutors

California Institute of Technology




2131 Tutors

Carnegie Mellon University




982 Tutors

Columbia University





1256 Tutors

Dartmouth University





2113 Tutors

Emory University





2279 Tutors

Harvard University





599 Tutors

Massachusetts Institute of Technology



2319 Tutors

New York University





1645 Tutors

Notre Dam University





1911 Tutors

Oklahoma University





2122 Tutors

Pennsylvania State University





932 Tutors

Princeton University





1211 Tutors

Stanford University





983 Tutors

University of California





1282 Tutors

Oxford University





123 Tutors

Yale University





2325 Tutors