70.2K

Verified Solution

Link Copied!

AuroraAurora

Health Foods, Inc., reported the following comparative balance sheets for

20182018

and

20172017

and the income statement for

20182018:

LOADING...

(Click the icon to view the balance sheets.)

LOADING...

(Click the icon to view the income statement.)Assume that

Carlisle EckleyCarlisle Eckley

is considering buying

AuroraAurora.

Carlisle EckleyCarlisle Eckley

requests the following cash flow data for

20182018.

There were no noncash investing and financing activities.

LOADING...

(Click the icon to view the cash flow data requested.)

Provide the requested data. Show your work.

a. Collections from customers.

Rework the basic accounts receivable formula to solve for collections. Begin by selecting the formula. Then, enter the amounts to solve for collections from customers. (Abbreviation used: AR = accounts receivable)

		+		-		=	Collections
		+		-		=

b. Cash payments for inventory.

Rework the basic accounts payable formula to solve for cash payments of inventory. Begin by selecting the formula. Then, enter the amounts to solve for cash payments for inventory. (Abbreviation used: AP = Accounts payable)

		+		-		=	Payments for inventory
		+		-		=

c. Cash payments for other operating expenses.

Select the formula. Then, enter the amounts to solve for other operating expenses.

							Payments for other
		-		+		=	operating expenses
		-		+		=

d. Cash payment for income tax. (Abbreviations used: Beg inc tax payable = Beginning income tax payable; End inc tax payable = Ending income tax payable)

Select the formula. Then, enter the amounts to solve for payments of income tax.

		+		-		=	Payments of income tax
		+		-		=

e. Cash received from the sale of equipment.

AuroraAurora

paid

$ 35 comma 000$35,000

for new equipment during the year.

Complete the calculation of cash received from the sale of equipment. Select the formula. Then, enter the amounts to solve for cash received from the sale of equipment.

		+		=	Cash received from sale
		+		=

f. Issuance of common stock.

Select the formula. Then, enter the amounts to solve for the issuance of common stock.

		-		=	Issuance of common stock
		-		=

g. Issuance of notes payable.

AuroraAurora

paid off

$ 19 comma 000$19,000

during the year. (Abbreviations used: Beg = Beginning; End = Ending)

Rework the basic notes payable formula to solve for the issuance of notes payable. Select the formula. Then, enter the amounts to solve for the issuance of notes payable.

		+		-		=	Issuance of notes payable
		+		-		=

h. Cash dividends. There were no stock dividends. (Abbreviations used: Beg = Beginning; End = Ending)

Rework the basic retained earnings formula to solve for dividends. Select the formula. Then, enter the amounts to solve for dividends.

		+		-		=	Dividends
		+		-		=

Choose from any list or enter any number in the input fields and then continue to the next question.

2018 2017 Cash 47,000 $ Accounts receivable 10,000 Inventories Prepaid expenses Equipment, net 40,000 3,000 82,000 5,000 7,000 19,000 35,000 7,000 76,000 5,000 Intangible assets $ 187,000 $ 149.000 Total assets S Accounts payable Accrued liabilities Income tax payable Notes payable 16,000 $ 19.000 20.400 55.000 11,000 20.000 14.000 54.000 7,000 Prepaid exnenses Equipment, net 3,000 82,000 5,000 187,000 $ 76,000 5,000 Intangible assets $ 149,000 Total assets Accounts payable 16,000 $ 11,000 Accrued liabilities Income tax payable Notes payable Common stock Retained earnings 19.000 20,400 55,000 37,000 61,600 (22,000) 20,000 14,000 54,000 19.000 36.000 (5,000) 149,000 Treasury stock s 187.000 $ Total liabilities and stockholders' equity Aurora Health Foods, Inc. Income Statement Year Ended December 31, 2018 Sales revenue $ 185,000 Gain on sale of equipment 3.000 Total revenue and gains 188,000 Cost of goods sold 84.000 Depreciation expense 15,000 Other operating expenses 31.000 Total expenses 130 000 Income before income tax 58.000 17 400 Income tax expense Net income S 40.600 Cash flow data requested Collections from customers. Cash payments for inventory Cash payments for other operating expenses. Cash payment for income tax. Cash received from the sale of equipment. Aurora paid $35,000 for new equipment during the year. Issuance of common stock. Issuance of notes payable. Aurora paid off $19,000 during the year. Cash dividends. There were no stock dividends Print Done

Answer & Explanation Solved by verified expert

See Answer