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The income statement of Minerals Plus, Inc., follows:
MINERAL PLUS, INC.
Income Statement
Year Ended September 30, 2012
Revenues:
Service revenue
Expenses:
Cost of goods sold
Salary expense
Depreciation expense
Income tax expense
Net income
$235.000
$97.000
57.000
26.000
4.000
184.000
$51.000
Additional data follows:
a. Acquisition of plant assets is $118,000. Of this amount, $100,000 is paid in cash and $18,000 by signing a note payable.
b. Cash receipt from sale of land totals $28,000. There was no gain or loss.
c. Cash receipt from issuance of common stock total $29,000.
d. Payment of note payable is $18,000.
e. Payment of dividends is $8,000.
f. From the balance sheet:
September 30,
2012
2011
Current Assets:
Cash
Accounts receivable
Inventory
Current Liabilities:
Accounts payable
Accrued liabilities
$30.000
41.000
97.000
$8.000
59.000
93.000
$30.000
11.000
$17.000
24.000
Requirement:
1. Prepare Mineral Plus's statement of cash flows for the year ended September 30, 2012, using the indirect method. Inclu
,000 by signing a note payable.
using the indirect method. Include a separate section for noncash investing and financing activities.
The comparative balance sheet of Jakson Educational Supply at December 31, 2012, reported the following:
December 31,
2012
Current Assets:
Cash and cash equivalents
Accounts receivable
Inventories
Current Liabilities:
Accounts payable
Accrued liabilities
2011
$88.200
14.400
63.600
$22.500
21.700
60.400
$28.600
10.600
$27.100
11.200
Jackson's transactions during 2012 included the following:
Payment of cash dividend
Purchase of equipment
Issuance of long-term note
payable to borrow cash
$17.200 Depreciation expense
54.400 Purchase of building
50.000 Net income
Issuance of common stock for
cash
Requirements:
1. Prepare the statement of cash flows of Jackson Educational Supply for the year ended December 31, 2012. Use the indir
2. Evaluate Jackson's cash flows for the year. Mention all three categories of cash flows and give reason for your evaluatio
3. If Jackson plans similar activity for 2013, what is its expected cash flow?
orted the following:
$16.700
100.000
59.600
106.000
d December 31, 2012. Use the indirect method to report cash flows from operating activities.
and give reason for your evaluation.
The income statement and additional data of Best Corporation follows:
BEST CORPORATION
Income Statement
Year Ended June 30, 2012
Revenues:
Sales revenue
Dividend revenue
Expenses:
Cost of goods sold
Salary expense
Depreciation expense
Advertising expense
Income tax expense
Interest expense
Net income
$231.000
8.000
$102.000
48.000
28.000
13.000
11.000
3.000
$239.000
205.000
$34.000
Additional data follows:
a. Collections from customers are $15,500 more than sales.
b. Dividend revenue, interest expense, and income tax expense equal their cash amounts.
c. Payments to suppliers are the sum of cost of goods sold plus advertising expense.
d. Payments to employees are $1,000 more than salary expense.
e. Acquisition of plant assets is $102,000.
f. Cash receipts from sale of land total $24,000.
g. Cash receipts from issuance of common stock total $32,000.
h. Payment of long-term note payable is $17,000.
i. Payment of dividends is $10,500.
j. Cash balance, June 30, 2011, was $25,000; June 30, 2012 was $28,000.
Requirement:
1. Prepare Best Corporation's statement of cash flows for the year ended June 30, 2012. Use the direct method.
2. Also differentiate between Indirect and Direct method of preparing statements of cash flows.
he direct method.
s.
Summerborn Manufacturing, Co., completed the following transactions during 2012:
Jan 16
Feb 15
Jun 10
Jul 30
Oct 26
Nov 8
Nov 30
Requirement:
1. Record the transactions in Summerborn's general journal.
merborn Manufacturing, Co., completed the following transactions during 2012:
Declared a cash dividend on the 5%, $100 per preferred stock (900 shares outstanding).
Declared a $0.30 per share dividend on the 80,000 shares of common stock outstanding.
The date of record is January 31, and the payment due date is February 15.
Paid the cash dividends.
Split common stock 2 for 1. Before the split, Summerborn had 80,000 shares of $6 par
common stock outstanding.
Distributed a 50% stock dividend on the common stock. The market value of the common
stock was $9 per share.
Purchased 1,000 shares of treasury stock at $13 per share.
Sold 500 shares of treasury stock for $15 per share.
Sold 300 shares of treasury stock for $8 per share.
cord the transactions in Summerborn's general journal.
The capital structure of Blacksmith, Inc., at December 31, 2011, included 18,000 shares of $1 preferred stock and
38,000 shares
of common stock. Common stock outstanding during 2012 totaled 38,000 shares. Income from continuing
operations during
2012 was $108,000. The company discontinued a segment of the business at a gain of $26,000 and also had an
extraordinary
Requirements:
1. Compute Blacksmith's earnings per share for 2012. Start with income from continuing operations. All income and loss amo
2. Show two ways of reporting Blacksmith's retained earnings restriction.
All income and loss amounts are net of income tax.
The following information was taken from the records of Clarkson Motorsports, Inc., at November 30, 2012:
Selling expenses
$125,000
General expenses
134,000
Income from discontinued operations
Retained earnings, beginning
Cost of goods sold
Treasury stock, common (1,000) shares
Net sales revenue
5,000
90,000
430,000
11,000
834,000
Requirement:
1. Prepare a multi-step income statement for Clarkson Motorsports for the fiscal year ended November 30, 2012. Include ear
arkson Motorsports, Inc., at November 30, 2012:
Common stock, $10 par, 21,000 shares authorized and
issued
Preferred stock, $4, no-par 6,000 shares issued
$210,000
240,000
Income tax expense:
Continuing operations
Income from discontinued operations
70,000
2,000
orsports for the fiscal year ended November 30, 2012. Include earnings per share.