Financial Accounting, Student Value Edition (5th Edition)
5th Edition
ISBN: 9780134728520
Author: Robert Kemp, Jeffrey Waybright
Publisher: PEARSON
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Textbook Question
Chapter 11, Problem 30BE
Calculating certain information using the direct method (Learning Objective 4) 20-25 min.
Trudeau’s Marine, Inc., reported the following selected amounts in its financial statements for the year ended December 31, 2018:
Income Statement | |||
2018 | 2017 | ||
Net Sales..................................... | $768,500 | $640,400 | |
Cost of Goods Sold.................. | 459,800 | 384,200 | |
25,200 | 23,600 | ||
Other Operating Expenses.......... | 101,400 | 83,700 | |
Income Tax Expense........... | 44,600 | 37,200 | |
Net Income................................. | 137,500 | 111,700 | |
Balance Sheet | |||
2018 | 2017 | ||
Cash and Cash Equivalents......... | $ 24,600 | $ 15,500 | |
Accounts Receivable.................. | 3,900 | 6,400 | |
Inventories.................................. | 28,700 | 32,600 | |
Property and Equipment. Net .... | 288,100 | 246,500 | |
Accounts Payable....................... | 15,900 | 13,600 | |
Accrued Liabilities....................... | 5,400 | 7,300 | |
Long-Term Liabilities.................. | 190,300 | 160,300 | |
Common Stock........................... | 85,000 | 65,000 | |
48,700 | 54,800 |
Requirement
- 1. Determine the following for Trudeau’s Marine, Inc., during 2018:
- a. Collections from customers
- b. Payments for inventory
- c. Payments of other operating expenses
- d. Acquisitions of property and equipment; no sales were made during 2018
- e. Long-term borrowing, assuming Trudeau’s Marine. Inc., made no payments on long-term liabilities
- f. Proceeds from issuance of common stock
- g. Payment of cash dividends
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Chapter 11 Solutions
Financial Accounting, Student Value Edition (5th Edition)
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