Accountants for Johnson, Inc., have assembled the following data for the year ended December 31, 2012

P14-25A Johnson Inc Preparing the statement of cash flows—indirect method

Accountants for Johnson, Inc., have assembled the following data for the year ended December 31, 2012:
December 31,
2012 2011
Current Accounts:
Current assets:
Cash and cash equivalents $ 92,100 $ 17,000
Accounts receivable 64,500 69,200
Inventories 87,000 80,000
Current liabilities:
Accounts payable 57,900 56,200
Income tax payable 14,400 17,100

Transaction Data for 2012:
Issuance of common stock for cash----------------------- $ 40,000
Depreciation expense -------------------------------------- 25,000
Purchase of equipment ------------------------------------- 75,000
Acquisition of land by issuing long-term note payable--- 122,000
Cost basis of building sold---------------------------------- 53,000
Payment of note payable----------------------------------- $48,100
Payment of cash dividends--------------------------------- 54,000
Issuance of note payable to borrow cash----------------- 67,000
Gain on sale of building------------------------------------- 5,500
Net income--------------------------------------------------- 70,500

Requirement
1.Prepare Johnson's statement of cash flows using the indirect method. Include an accompanying schedule of noncash investing and financing activities.


Click here for the solution: Accountants for Johnson, Inc., have assembled the following data for the year ended December 31, 2012

The budget committee of Clipboard Office Supply has assembled the following data

P21-21A Preparing an operating budget

The budget committee of Clipboard Office Supply has assembled the following data. As the business manager, you must prepare the budgeted income statements for May and June 2011.
a. Sales in April were $50,000. You forecast that monthly sales will increase 2.0% in May and 2.4% in June.
b. Clipboard maintains inventory of $9,000 plus 25% of sales revenue budgeted for the following month. Monthly purchases average 50% of sales revenue in that same month. Actual inventory on April 30 is $13,000, sales budgeted for July are $65,000.
c. Monthly salaries amount to $3,000. Sales commissions equal 4% of sales for that month. Combine salaries and commissions into a single figure.
d. Other monthly expenses are as follows:
Rent expense $2,600, paid as incurred
Depreciation expense $ 300
Insurance expense $ 200, expiration of prepaid amount
Income tax 20% of operating income

Requirement:
1. Prepare Clipboard Office Supply's budgeted income statements for May and June. Show cost of goods sold computations. (Round all amounts to the nearest $100. (Round amounts ending in $50 or more upward, and amounts ending in less than downward). For example, budgeted May sales are $51,000 ($50,000 x 1.02), and June sales are $52,200 ($51,000 x 1.024)

Click here for the solution: The budget committee of Clipboard Office Supply has assembled the following data