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Question : 76) Avatar Auto Parts Company uses the indirect method to

76) Avatar Auto Parts Company uses the indirect method to prepare its statement of cash flows. Refer to the following portion of the comparative balance sheet:

Avatar Company

Comparative Balance Sheet

December 31, 2015 and 2014

20152014Increase/decrease

Cash$42,000$36,000$6,000

Accounts Receivable62,00070,000(8,000)

Inventory106,00050,00056,000

PP&E, net240,000180,00060,000

Total assets$450,000$336,000$114,000

Additional information provided by the company includes the following:

Equipment costing $104,000 was purchased for cash.

Equipment with a net asset value of $20,000 was sold for $28,000.

Depreciation Expense of $24,000 was recorded during the year.

Prepare the investing activities section of the statement of cash flows.

77) Lewis Inc. uses the indirect method to prepare its statement of cash flows. Refer to the following portion of the comparative balance sheet:

Lewis Inc.

Comparative Balance Sheet

December 31, 2015 and 2014

20152014Increase/decrease

Cash$42,000$36,000$6,000

Accounts Receivable62,00070,000(8,000)

Inventory106,00050,00056,000

PP&E, net240,000180,00060,000

Total assets$450,000$336,000$114,000

Additional information provided by the company includes the following:

Equipment costing $104,000 was purchased for cash.

Equipment with a net asset value of $20,000 was sold for $28,000.

Depreciation Expense of $24,000 was recorded during the year.

With the help of T-account format, analyze the transactions affecting Property, Plant & Equipment, net.

78) Fashion Fiesta Company uses the indirect method to prepare its statement of cash flows. Refer to the following portion of the comparative balance sheet:

Fashion Fiesta Company

Comparative Balance Sheet

December 31, 2014 and 2013

20142013Increase/decrease

Accounts Payable$6,000$9,000$(3,000)

Accrued Liabilities3,0001,5001,500

Long-Term Notes Payable126,000135,000(9,000)

Total liabilities$135,000$145,500$(10,500)

Additional information provided by the company includes the following:

During 2014, the company repaid $60,000 of Long-Term Notes Payable.

During 2014, the company borrowed $51,000 on a new Long-Term Note Payable.

With the help of T-account format, analyze the transactions affecting the Long-Term Notes Payable account.

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