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    Also Solve The Problems Provided/mentioned Below:: Assignment

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    Umer Nawaz
    1) Solve assigned problems from the textbook and those provided from the financial statements of ABC Company and Broad Company. 2) Prepare statement of cash flows for Wah Nobel Company for 1997 using indirect and direct methods, using the provided balance sheet and income statement information.

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    Also Solve The Problems Provided/mentioned Below:: Assignment

    Uploaded by

    Umer Nawaz
    257 views5 pages
    1) Solve assigned problems from the textbook and those provided from the financial statements of ABC Company and Broad Company. 2) Prepare statement of cash flows for Wah Nobel Company for 1997 using indirect and direct methods, using the provided balance sheet and income statement information.

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    1) Solve assigned problems from the textbook and those provided from the financial statements of ABC Company and Broad Company. 2) Prepare statement of cash flows for Wah Nobel Company for 1997 using indirect and direct methods, using the provided balance sheet and income statement information.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    257 views5 pages

    Also Solve The Problems Provided/mentioned Below:: Assignment

    Uploaded by

    Umer Nawaz
    1) Solve assigned problems from the textbook and those provided from the financial statements of ABC Company and Broad Company. 2) Prepare statement of cash flows for Wah Nobel Company for 1997 using indirect and direct methods, using the provided balance sheet and income statement information.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 5

    Assignment

    Chapter 3
    Solve Problems No. 1, 2, 3, & 5 from the book of Sondhi and White

    Also solve the problems provided/mentioned below:


    Following are Balance Sheet and Income Statement for ABC Company:

    ABC Company ABC Company


    Balance Sheet Income Statement
    December 31, 2007 and 2008 For the Year Ended December 2008
    Assets 2007 2008 Net sales Rs:145,000
    Cash Rs: 60,000 Rs: 38,000 Cost of sales 108,000
    Net Receivable 65,000 72,000 Gross profit 37,000
    Other
    Inventory 85,000 98,000 expenses 6,000
    Profit before
    Plant assets 180,000 195,000 taxes 31,000
    Accumulated
    Depreciation (35,000) (45,000) Tax expense 12,000
    Total Assets Rs: 355,000 Rs: 358,000 Net income Rs: 19,000

    Liabilities and Stockholders'


    Equity
    Accounts
    payable Rs: 80,000 Rs: 85,000
    Accrued
    liabilities 61,000 44,000
    Mortgage
    payable 0 11,000
    Common stock 174,000 180,000
    Retained
    earnings 40,000 38,000
    Liabilities and
    Stockholders'
    Equity Rs: 355,000 Rs: 358,000

    Other Data:
    1. You can calculate dividend paid and depreciation from the Balance Sheet and Income
    Statement
    2. Depreciation is included in the Cost of sales

    a. Prepare the statement of cash flows for the year ended December 31, 2008, using both the
    direct and the indirect method for the net cash flow from operating activities.
    Broad Company financial data, 2001-2002

    Amounts are in Rupees


    Balance Sheet 2001 2002 Income Statement 2001 2002
    1200 1900
    Cash 2000 2200 Sales 0 0
    1200
    Account Receivable 3000 3500 Cost of goods sold 7200 0
    Depreciation
    Inventory 4000 4200 expense 1200 1500
    Current assets 9000 9900 SG &A expense 700 1000
    Fixed assets at cost 22000 24300 Interest expense 1300 1200
    Accumulated (10500
    depreciation (9000) ) Income before taxes 1600 3300
    Net fixed assets 13000 13800 Income tax expense 700 1440
    Total assets 22000 23700 Net income 900 1860

    Liabilities and Equity


    Accrued expenses 1600 1760
    Accounts payable 2400 2640
    Current liabilities 4000 4400
    Notes payable 11000 11800
    Long term debt 4000 3204
    Common stock 2000 2300
    Retained earnings 1000 1996
    Total liabilities and
    equity 22000 23700
    Wah Nobel Company balance sheet and income statement follow:

    December 31
    1997 1996
    Assets

    Cash Rs. 4,500 4,000


    Marketable Securities 2,500 2,000
    Accounts Receivable 6,800 7,200
    Inventories 7,500 8,000
    Total current assets 21,300 21,200

    Land 11,000 12,000


    Equipment 24,000 20,500
    Accumulated depreciation-equipment (3,800) (3,000)
    Building 70,000 70,000
    Accumulated depreciation-building (14,000) (12,000)
    Total Assets 108,500 108,700
    Liabilities and Stockholders’ Equity

    Accounts Payable 7,800 7,000


    Wages payable 1,050 1,000
    Taxes payable 500 1,500
    Total current liabilities 9,350 9,500
    Bonds payable 30,000 30,000
    Common stock Rs.10 par 32,000 30,000
    Additional paid in capital 21,000 19,200
    Retained earning 16,150 20,000
    Total liabilities and stockholders’ equity 108,500 108,700

    Sales 38,000
    Operating expenses
    Depreciation expense 2,800
    Other operating expenses 35,000 37,800
    Operating income 200
    Gain on sale of land 800
    Income before tax expense 1,000
    Tax expense 500
    Net income 500
    Supplemental information

    Dividend declared and paid 4,350


    Land sold for cash 1,800
    Equipment purchased for cash 3,500
    Common stock sold for cash 3,800
    Required
    (a). Prepare a statement of cash flows for the year ended December 31,1997
    using Indirect Method.
    (b). Prepare a statement of cash flows for the year ended December 31,1997
    using Direct Method for net cash flow from operating activities.

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