Chapter 21 Homework x Summary entries for ca: x Chapter 21 Homework X G The inco

Question

Chapter 21 Homework x Summary entries for ca: x Chapter 21 Homework X G The income statement . cooeztormheducation.com/hm.tpx O points The comparative balance sheetsfor 2016 and 2015 and the statement of income for 2016 are given below for Wright Company. Additional information from Wright's accounting records is provided also. WRIGHT COMPANY Comparative Balance Sheets December 31, 2016 and 2015 (S in 000s) Assets 149 125 170 25 165 126 155 590 (229) (170) Accounts receivable Short-term investment Inventory 167 64 168 Buildings and equipment 785 1,230 $1,060 Liabilities Accounts payable Salaries payable Interest payable Income tax payable Notes payable Bonds payable Shareholders' Equity Common stock Paid-in capital-excess of par Retained earnings s 50 54 368 290 460 219 119 390 195 $1.230 $ 1,060

Explanation / Answer

STATEMENT OF CASH FLOWS Cash flows from operating activities: Cash inflows: From customers (see note below) 683 Cash outflows: To suppliers of goods (see note below) -327 To employees (90+4-3) -91 For interest (11+4-6) -9 For income taxes (97+10-5) -102 Net cash flows from operating activities 154 Cash flows from investing activities: Sale of land (see note below) 26 Purchase of short term investment -39 Purchase of equipment -195 Net cash flows from investing activities -208 Cash flows from financing activities: Repayment of notes payable -39 Sale of bonds payable 78 Sale of common stock 94 Payment of cash dividends -55 Net cash flows from financing activities 78 Net increase in cash 24 Cash balance, January 1 125 Cash balance, December 31 149 WORKINGS: Cash inflows from customers: Beginning balance of accounts receivables 170 Add: Sales 680 Total receivable 850 Less: Ending balance of accounts receivable 167 Cash inflows from customers 683 Cash flows to suppliers of goods: Beginning balance of accounts payable 54 Add: cost of goods sold 320 374 Less: Ending balance of accounts payable 50 324 Add: Ending balance of inventory 168 492 Less: Beginning balance of inventory 165 Cash flows to suppliers of goods 327 Cash inflow from sale of land: Beginning balance of land 155 Less: Ending balance of land 126 Cost of land sold 29 Less: loss on sale 3 Receipts from sale of land 26

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