ACC 421 W4 Individual Text assignment
WileyPLUS Assignment Week Four
ACC/421
Question 1
Your answer is partially correct. Springsteen Co. had the following activity in its most recent year of operations.
Classify the items as (1) operating—add to net income; (2) operating—deduct from net income; (3) investing; (4) financing; or (5) significant noncash investing and financing activities. Use the indirect method. Items
(a) Pension expense exceeds amount funded.
(b) Redemption of bonds payable.
(c) Sale of building at book value.
(d) Depreciation.
(e) Exchange of equipment for furniture.
(f) Issuance of capital stock.
(g) Amortization of intangible assets.
(h) Purchase of treasury stock.
(i) Issuance of bonds for land.
(j) Payment of dividends.
(k) Increase in interest receivable on notes receivable.
(l) Purchase of equipment.
Question 2
Your answer is correct. The income statement of Rodriquez Company is shown below.
RODRIQUEZ COMPANY
INCOME STATEMENT
FOR THE YEAR ENDED DECEMBER 31, 2012
Sales $6,966,530
Cost of goods sold Beginning inventory $1,893,090 Purchases 4,413,640 Goods available for sale 6,306,730 Ending inventory 1,605,940 Cost of goods sold 4,700,790
Gross profit 2,265,740
Operating expenses Selling expenses 443,080 Administrative expenses 700,550 1,143,630
Net income $1,122,110
Additional information:
1. Accounts receivable decreased $317,480 during the year.
2. Prepaid expenses increased $164,510 during the year.
3. Accounts payable to suppliers of merchandise decreased $281,240 during the year.
4. Accrued expenses payable decreased $127,050 during the year.
5. Administrative expenses include depreciation expense of $61,950.
Prepare the operating activities section of the statement of cash flows using the direct method.
RODRIQUEZ COMPANY
ACC/421
Question 1
Your answer is partially correct. Springsteen Co. had the following activity in its most recent year of operations.
Classify the items as (1) operating—add to net income; (2) operating—deduct from net income; (3) investing; (4) financing; or (5) significant noncash investing and financing activities. Use the indirect method. Items
(a) Pension expense exceeds amount funded.
(b) Redemption of bonds payable.
(c) Sale of building at book value.
(d) Depreciation.
(e) Exchange of equipment for furniture.
(f) Issuance of capital stock.
(g) Amortization of intangible assets.
(h) Purchase of treasury stock.
(i) Issuance of bonds for land.
(j) Payment of dividends.
(k) Increase in interest receivable on notes receivable.
(l) Purchase of equipment.
Question 2
Your answer is correct. The income statement of Rodriquez Company is shown below.
RODRIQUEZ COMPANY
INCOME STATEMENT
FOR THE YEAR ENDED DECEMBER 31, 2012
Sales $6,966,530
Cost of goods sold Beginning inventory $1,893,090 Purchases 4,413,640 Goods available for sale 6,306,730 Ending inventory 1,605,940 Cost of goods sold 4,700,790
Gross profit 2,265,740
Operating expenses Selling expenses 443,080 Administrative expenses 700,550 1,143,630
Net income $1,122,110
Additional information:
1. Accounts receivable decreased $317,480 during the year.
2. Prepaid expenses increased $164,510 during the year.
3. Accounts payable to suppliers of merchandise decreased $281,240 during the year.
4. Accrued expenses payable decreased $127,050 during the year.
5. Administrative expenses include depreciation expense of $61,950.
Prepare the operating activities section of the statement of cash flows using the direct method.
RODRIQUEZ COMPANY