Bloomfield College Accounting 302 Test 2 Take Home Due March 21 2018 R. D Collmi
ID: 2547371 • Letter: B
Question
Bloomfield College Accounting 302 Test 2 Take Home Due March 21 2018 R. D Collmier Spring 2018 T) Seagate Company had the following information available at the end of 20X2 Seagate Company Comparative Balance Sheet As at 12/31/20X2 and 12/31/20XI 12/31/20X2 S 16,800 12/31/20X1 S 14,400 Accounts Receivable S 2,400 816,480 109,430 27,129 120,000 (21,360) 128,112 28,111 120,000 Prepaid Assets Building Accumulated Depreciation Building Equipment Accumulated Depreciation Equipment (130,000) 220,000 (124,800) (5,200) (4,000) s 71,004 140,000 (28,000) $1,409,643 $ 298,444 310,000 200,197 $ 1,409,643 (24,000) $1,338,639 s 421,400 Total Assets s (122,956) 60,000 11,527 s 71,004 Accounts Payable Salary Payable 61,002 58,569 Common Stock Paid in Capital in Excess of Par Retained Earnings 183,670 Total Liabilities and Equity $1,338,639 Seagate Company Income Statement For the Year Ended December 31, 20x2 $8,791,766 7,488,994 Cost of Goods Sold 1,302,772 940,556 280,338 81,878 Gross Profit Salary Expense Other Operating Expenses (including depreciation) Operating Profit Gain on Sale of Equipment Profit Before Tax 85,878 34,351 51,527 Net Profit The equipment that was sold had a cost of $20,000 with a book value of $14,000. Prepare a statement of cash flows (direct method) with a reconciliation schedule. (50 Points)Explanation / Answer
Bloomfield college
Cash Flow statement
March 21 ,2018
equipment sold [14000book value + 4000gain ]
**collection from receivable = Sales + increase in receivable
= 8791766+21860
= 8813626
**Payment to payables : cost of goods sold +increase in inventory +decrease in payables
7488994+18682 +122956
7630632
**salary paid : 940556 -2433 salary payable increase = 938123
**Depreciation on building : 130000-124800 accumulated dep at beginning = 5200
Depreciation on equipment : [ending accumulated dep +dep on equipment sold -beginning accumulated dep ]
= 28000 + (20000-14000) - 24000
= 28000 +6000-24000
=10000
Total depreciaion : 10000+5200=15200
***operating expense paid : Operating expense +increase in prepaid asset -depreciation
280338 +982 - 15200
266120
Bloomfield college
Cash Flow statement
March 21 ,2018
Cash Flow from operating activity collection from receivable 8813626 less: payment to suppliers (7630632) payment for salary (938123) payment for operating expense (266120) tax (34351) Net cash provided/(used) by operating activity (55600_ cash flow from investing activityequipment sold [14000book value + 4000gain ]
18000 purchase of equipment [220000ending value +20000sold -140000beginning] (100000) net cash used by investing activity (82000) cash flow from financing activity issue of common stock [310000-250000] 60000 paid in capital in excess of par [540000-420000] 120000 dividend paid [beginning Retained earning 188670+51527net income -200197 ending] (40000) net cash provided by financing activity 140000 net increase /(decrease) in cash 2400 Beginning cash 14400 cash balance at end 16800