The comparative balance sheet of Canace Products Inc. for December 31, 20Y6 and 20Y5, is shown...

70.2K

Verified Solution

Question

Accounting

The comparative balance sheet of Canace Products Inc. forDecember 31, 20Y6 and 20Y5, is shown as follows:
1
Dec. 31, 20Y6
Dec. 31, 20Y5
2
Assets
3
Cash
$643,460.00
$679,530.00
4
Accounts receivable (net)
566,490.00
548,320.00
5
Inventories
1,010,720.00
982,600.00
6
Investments
0.00
240,910.00
7
Land
519,510.00
0.00
8
Equipment
879,710.00
680,990.00
9
Accumulated depreciation-equipment
(243,750.00)
(200,970.00)
10
Total assets
$3,376,140.00
$2,931,380.00
11
Liabilities and Stockholders’ Equity
12
Accounts payable
$772,290.00
$748,770.00
13
Accrued expenses payable
63,970.00
69,800.00
14
Dividends payable
8,000.00
7,040.00
15
Common stock, $2 par
56,000.00
32,000.00
16
Paid-in capital: Excess of issue price over par—common stock
408,000.00
192,000.00
17
Retained earnings
2,067,880.00
1,881,770.00
18
Total liabilities and stockholders’ equity
$3,376,140.00
$2,931,380.00
The income statement for the year ended December 31, 20Y6, is asfollows:
1
Sales
$5,974,620.00
2
Cost of merchandise sold
2,451,470.00
3
Gross profit
$3,523,150.00
4
Operating expenses:
5
Depreciation expense
$42,780.00
6
Other operating expenses
3,099,440.00
7
Total operating expenses
3,142,220.00
8
Operating income
$380,930.00
9
Other expense:
10
Loss on sale of investments
(64,890.00)
11
Income before income tax
$316,040.00
12
Income tax expense
102,160.00
13
Net income
$213,880.00
Additional data obtained from an examination of the accounts inthe ledger for 20Y6 are as follows:
A. Equipment and land were acquired for cash.
B. There were no disposals of equipment during the year.
C. The investments were sold for $176,020 cash
D. The common stock was issued for cash.
E. There was a $27,770 debit to Retained Earnings for cashdividends declared.
Prepare a statement of cash flows, using the direct method ofpresenting cash flows from operating activities. Be sure tocomplete the heading of the statement. Refer to the Labels andAmount Descriptions list provided for the exact wording of theanswer choices for text entries. Use a minus sign to indicate adecrease in cash.
Prepare a statement of cash flows, using the direct method ofpresenting cash flows from operating activities. Be sure tocomplete the heading of the statement. Refer to the Labels andAmount Descriptions list provided for the exact wording of theanswer choices for text entries. Use a minus sign to indicate adecrease in cash.
Canace Products Inc.
Statement of Cash Flows
1
Cash flows from operating activities:
2
3
4
5
6
7
8
Cash flows from (used for) investing activities:
9
10
11
12
13
14
Cash flows from (used for) financing activities:
15
16
17
18
19
Cash at the beginning of the year
20
Cash at the end of the year

Answer & Explanation Solved by verified expert

4.2 Ratings (838 Votes)

Cance Products Inc For Current Years Ended December 31 2006 Particulars Amount Amount Cash flow from Operating Activities Cash received from customers 595645000 Cash paid to merchandise 245607000 Cash paid towards operating expenses 310527000 Cash generated from operations before tax and extra ordinary items 39511000 Less Income Tax 10216000 Net cash from Operating Activities 29295000 Cash flow from Investing Activities Purchase of equipment 19872000 Sale See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member

1		Dec. 31, 20Y6	Dec. 31, 20Y5
2	Assets
3	Cash	$643,460.00	$679,530.00
4	Accounts receivable (net)	566,490.00	548,320.00
5	Inventories	1,010,720.00	982,600.00
6	Investments	0.00	240,910.00
7	Land	519,510.00	0.00
8	Equipment	879,710.00	680,990.00
9	Accumulated depreciation-equipment	(243,750.00)	(200,970.00)
10	Total assets	$3,376,140.00	$2,931,380.00
11	Liabilities and Stockholders’ Equity
12	Accounts payable	$772,290.00	$748,770.00
13	Accrued expenses payable	63,970.00	69,800.00
14	Dividends payable	8,000.00	7,040.00
15	Common stock, $2 par	56,000.00	32,000.00
16	Paid-in capital: Excess of issue price over par—common stock	408,000.00	192,000.00
17	Retained earnings	2,067,880.00	1,881,770.00
18	Total liabilities and stockholders’ equity	$3,376,140.00	$2,931,380.00

1	Sales		$5,974,620.00
2	Cost of merchandise sold		2,451,470.00
3	Gross profit		$3,523,150.00
4	Operating expenses:
5	Depreciation expense	$42,780.00
6	Other operating expenses	3,099,440.00
7	Total operating expenses		3,142,220.00
8	Operating income		$380,930.00
9	Other expense:
10	Loss on sale of investments		(64,890.00)
11	Income before income tax		$316,040.00
12	Income tax expense		102,160.00
13	Net income		$213,880.00

A.	Equipment and land were acquired for cash.
B.	There were no disposals of equipment during the year.
C.	The investments were sold for $176,020 cash
D.	The common stock was issued for cash.
E.	There was a $27,770 debit to Retained Earnings for cashdividends declared.

1	Cash flows from operating activities:
2
3
4
5
6
7
8	Cash flows from (used for) investing activities:
9
10
11
12
13
14	Cash flows from (used for) financing activities:
15
16
17
18
19	Cash at the beginning of the year
20	Cash at the end of the year