Park University - AC 202Chapter 12 Homework: All Solutions Worked and Reviewed. 100%.

Kiley Corporation had these transactions during 2017. Analyze the transactions and indicate whether each transaction is an operating activity, investing activity, financing activity, or noncash investing and financing ...

Kiley Corporation had these transactions during 2017. Analyze the transactions and indicate whether each transaction is an operating activity, investing activity, financing activity, or noncash investing and financing activity. (a) Purchased a machine for $30,000, giving a long-term note in exchange. (b) Issued $50,000 par value common stock for cash. (c) Issued $200,000 par value common stock upon conversion of bonds having a face value of $200,000. (d) Declared and paid a cash dividend of $13,000. (e) Sold a long-term investment with a cost of $15,000 for $15,000 cash. (f) Collected $16,000 from sale of goods. (g) Paid $18,000 to suppliers. An analysis of comparative balance sheets, the current year’s income statement, and the general ledger accounts of Hailey Corp. uncovered the following items. Assume all items involve cash unless there is information to the contrary. Indicate how each item should be classified in the statement of cash flows using these four major classifications: operating activity (that is, the item would be listed among the adjustments to net income to determine net cash provided by operating activities under the indirect method), investing activity, financing activity, and significant noncash investing and financing activity. (a) Payment of interest on notes payable. (b) Exchange of land for patent. (c) Sale of building at book value. (d) Payment of dividends. (e) Depreciation. (f) Conversion of bonds into common stock. (g) Receipt of interest on notes receivable. (h) Issuance of capital stock. (i) Amortization of patent. (j) Issuance of bonds for land. (k) Purchase of land. (l) Receipt of dividends on investment in stock. (m) Loss on disposal of plant assets. (n) Retirement of bonds. Exercise 12-4 – YOUR ANSWER IS CORRECT. The current sections of Ivanhoe Company’s balance sheets at December 31, 2016 and 2017, are presented here. Ivanhoe Company’s net income for 2017 was $153,918. Depreciation expense was $27,162. The current sections of Ivanhoe Company’s balance sheets at December 31, 2016 and 2017, are presented here. Ivanhoe Company’s net income for 2017 was $153,918. Depreciation expense was $27,162. 2017 2016 Current assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Current liabilities Accrued expenses payable Accounts payable Total current liabilities Prepare the net cash provided (used) by operating activities section of the company’s statement of cash flows for the year ended December 31, 2017, using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) Ivanhoe Company Partial Statement of Cash Flows $ Adjustments to reconcile net income to Exercise 12-5 Your answer is correct. The following information is available for Bonita Industries for the year ended December 31, 2017. Beginning cash balance $ 45,855 Accounts payable decrease 3,770 Depreciation expense 165,078 Accounts receivable increase 8,356 Inventory increase 11,209 Net income 289,498 Cash received for sale of land at book value 35,665 Cash dividends paid 12,228 Income taxes payable increase 4,789 Cash used to purchase building 294,491 Cash used to purchase treasury stock 26,494 Cash received from issuing bonds 203,800 Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) Bonita Industries Statement of Cash Flows—Indirect Method $ Adjustments to reconcile net income to $ $ Brief Exercise 12-10 Your answer is correct. Marin Inc. reported net cash provided by operating activities of $436,200, net cash used by investing activities of $231,400, and net cash provided by financing activities of $75,000. In addition, cash spent for capital assets during the period was $217,500. No dividends were paid. Calculate free cash flow. (Show a negative free cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) Free cash flow $ Problem 12-7A (Part Level Submission) Presented below are the financial statements of Oriole Company. Oriole Company Comparative Balance Sheets December 31 Problem 12-7A (Part Level Submission) Presented below are the financial statements of Oriole Company. Oriole Company Comparative Balance Sheets December 31 Assets 2017 2016 Cash Accounts receivable Inventory Property, plant, and equipment Accumulated depreciation Total Liabilities and Stockholders’ Equity Accounts payable Income taxes payable Bonds payable Common stock Retained earnings Total Oriole Company Income Statement For the Year Ended December 31, 2017 Sales revenue Cost of goods sold Gross profit Selling expenses Administrative expenses Income from operations Interest expense Income before income taxes Income tax expense Net income Additional data: 1. Depreciation expense was $40,600. 2. Dividends declared and paid were $46,400. 3. During the year equipment was sold for $19,720 cash. This equipment cost $41,760 originally and had accumulated depreciation of $22,040 at the time of sale. (a) Your answer is correct. Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) Oriole Company Statement of Cash Flows $ Adjustments to reconcile net income to $ $ (b) Your answer is correct. Compute free cash flow. (Show a negative free cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) Free cash flow $ Brief Exercise 12-7 Your answer is correct. The T-accounts for Equipment and the related Accumulated Depreciation—Equipment for Swifty Corporation at the end of 2017 are shown here. Equipment Beg. bal. 195,440 Disposals 53,746 Acquisitions 101,629 End. bal. 243,323 Accum. Depr.—Equipment Disposals 12,459 Beg. bal. 108,714 Depr. exp. 29,316 End. bal. 125,571 In addition, Swifty Corporation’s income statement reported a loss on the disposal of plant assets of $8,551. What amount was reported on the statement of cash flows as “cash flow from sale of equipment”? (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) Cash flow from sale of equipment $ Problem 12-9A Your answer is correct. Condensed financial data of Kingbird, Inc. follow. Kingbird, Inc. Comparative Balance Sheets December 31 Sales revenue Less: Cost of goods sold Operating expenses, excluding depreciation Depreciation expense Income tax expense Interest expense Loss on disposal of plant assets Net income Additional information: 1. New plant assets costing $146,000 were purchased for cash during the year. 2. Old plant assets having an original cost of $83,950 and accumulated depreciation of $70,810 were sold for $2,190 cash. 3. Bonds payable matured and were paid off at face value for cash. 4. A cash dividend of $38,003 was declared and paid during the year. Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) Kingbird, Inc. Statement of Cash Flows $ Adjustments to reconcile net income to $ $