Directions
In Part I, next to each item listed, you will identify whichstatement the item would appear. You will need to determine whetherit would appear on the income statement (I),balance sheet (B), or statement of cashflows (CF). Then, for each group, explain the differenceamong the items listed. Finally, in Part II, discuss therelationship between the three financial statements.
Part I
Set 1:
_____ Inventory, ending balance
_____ Cost of goods (inventory) sold during the period
_____ Cash paid to suppliers during the period
_____ Accounts payable, ending balance
Difference:
Set 2:
_____ Accounts receivable, ending balance
_____ Cash received from customers
_____ Sales
Difference:
Set 3:
_____ Wage expense for the period
_____ Wages payable, ending balance
_____ Cash paid for wages during the period
Difference:
Set 4:
_____ Property, plant, and equipment, ending balance
_____ Cash paid for property, plant, and equipment during theperiod
_____ Cash received from selling property, plant, and equipmentduring the period
_____ Depreciation expense during theperiod (expense of using property, plant, and equipment during theperiod)
Difference:
Set 5:
_____ Notes payable, endingbalance
_____ Cash received from borrowingmoney during the period
_____ Cash used to pay off notespayable during the period
_____ Interest expense during theperiod (expense of using borrowed money during the period)
Difference:
Part II
Discuss the Relationship between the financial statementsidentified:
Directions
In Part I, next to each item listed, you will identify whichstatement the item would appear. You will need to determine whetherit would appear on the income statement (I),balance sheet (B), or statement of cashflows (CF). Then, for each group, explain the differenceamong the items listed. Finally, in Part II, discuss therelationship between the three financial statements.
Part I
Set 1:
_____ Inventory, ending balance
_____ Cost of goods (inventory) sold during the period
_____ Cash paid to suppliers during the period
_____ Accounts payable, ending balance
Difference:
Set 2:
_____ Accounts receivable, ending balance
_____ Cash received from customers
_____ Sales
Difference:
Set 3:
_____ Wage expense for the period
_____ Wages payable, ending balance
_____ Cash paid for wages during the period
Difference:
Set 4:
_____ Property, plant, and equipment, ending balance
_____ Cash paid for property, plant, and equipment during theperiod
_____ Cash received from selling property, plant, and equipmentduring the period
_____ Depreciation expense during theperiod (expense of using property, plant, and equipment during theperiod)
Difference:
Set 5:
_____ Notes payable, endingbalance
_____ Cash received from borrowingmoney during the period
_____ Cash used to pay off notespayable during the period
_____ Interest expense during theperiod (expense of using borrowed money during the period)
Difference:
Part II
Discuss the Relationship between the financial statementsidentified:
Related questions
Walmouth Corporation's comparative balance sheet and income statement for last year appear below:
| Comparative Balance Sheet | ||
| Ending Balance | Beginning Balance | |
| Cash | $40,000 | $32,000 |
| Accounts receivable | 89,000 | 79,000 |
| Inventory | 48,000 | 55,000 |
| Prepaid expenses | 8,000 | 11,000 |
| Long-term investments | 250,000 | 210,000 |
| Property, plant and equipment | 550,000 | 550,000 |
| Less accumulated depreciation | 264,000 | 239,000 |
| Total assets | $721,000 | $698,000 |
| Accounts payable | $58,000 | $46,000 |
| Accrued liabilities | 15,000 | 19,000 |
| Income taxes payable | 55,000 | 41,000 |
| Bonds payable | 100,000 | 160,000 |
| Common stock | 150,000 | 140,000 |
| Retained earnings | 343,000 | 292,000 |
| Total liabilities and stockholders' equity | $721,000 | $698,000 |
| Income Statement | |
| Sales | $870,000 |
| Cost of goods sold | 450,000 |
| Gross margin | 420,000 |
| Selling and administrative expense | 270,000 |
| Net operating income | 150,000 |
| Income taxes | 45,000 |
| Net income | $105,000 |
The company declared and paid a cash dividend of $54,000 during the year. It did not purchase or dispose of any property, plant, and equipment. It did not issue any bonds or repurchase any of its own common stock. The following questions pertain to the company's statement of cash flows.
The net cash provided by (used in) operating activities last year was:
| $58,000 | ||
| $130,000 | ||
| $152,000 | ||
| $105,000 |
6) MC Qu. 89 Walmouth Corporations comparative ...
Walmouth Corporation's comparative balance sheet and income statement for last year appear below:
| Comparative Balance Sheet | ||
| Ending Balance | Beginning Balance | |
| Cash | $40,000 | $32,000 |
| Accounts receivable | 89,000 | 79,000 |
| Inventory | 48,000 | 55,000 |
| Prepaid expenses | 8,000 | 11,000 |
| Long-term investments | 250,000 | 210,000 |
| Property, plant and equipment | 550,000 | 550,000 |
| Less accumulated depreciation | 264,000 | 239,000 |
| Total assets | $721,000 | $698,000 |
| Accounts payable | $58,000 | $46,000 |
| Accrued liabilities | 15,000 | 19,000 |
| Income taxes payable | 55,000 | 41,000 |
| Bonds payable | 100,000 | 160,000 |
| Common stock | 150,000 | 140,000 |
| Retained earnings | 343,000 | 292,000 |
| Total liabilities and stockholders' equity | $721,000 | $698,000 |
| Income Statement | |
| Sales | $870,000 |
| Cost of goods sold | 450,000 |
| Gross margin | 420,000 |
| Selling and administrative expense | 270,000 |
| Net operating income | 150,000 |
| Income taxes | 45,000 |
| Net income | $105,000 |
The company declared and paid a cash dividend of $54,000 during the year. It did not purchase or dispose of any property, plant, and equipment. It did not issue any bonds or repurchase any of its own common stock. The following questions pertain to the company's statement of cash flows.
The net cash provided by (used in) operating activities last year was:
A)$58,000
B)$130,000
C)$105,000
D)$152,000
