Question 1: The accountant for Rimmerex Corporation used a spreadsheet to prepare information needed to prepare the statement of cash flows for the year ending December 31, 20X5. However, the data were accidentally sorted alphabetically into the following listing of items. To compound the problem, the "add" and "subtract" notations for each line item were also deleted. Review the information, and prepare a correct presentation, using the indirect approach. The beginning cash balance was $63,800, and the ending cash balance was $415,000.
| Bought building by issuing common stock |
|
$ 850,000 |
| Decrease in accounts payable |
|
34,000 |
| Decrease in accounts receivable |
|
21,000 |
| Depreciation expense |
|
68,000 |
| Dividends on common |
|
50,000 |
| Gain on sale of land |
|
20,000 |
| Increase in income taxes payable |
|
7,000 |
| Increase in inventory |
|
27,800 |
| Increase in prepaid insurance |
|
3,000 |
| Net income |
|
215,000 |
| Purchase of equipment |
|
75,000 |
| Repayment of long-term note payable |
|
180,000 |
| Sale of land |
|
430,000 |
Question 2: Ashley Corporation provided the following list of cost data related to its manufacturing operations for the month of September 20X4.
| Beginning raw materials inventory |
$ 966,400 |
| Raw materials purchased (net) |
2,345,500 |
| Ending raw materials inventory |
818,200 |
| Direct labor costs |
322,300 |
| Indirect materials |
125,500 |
| Indirect labor |
88,900 |
| Factory utilities and maintenance |
456,000 |
| Factory depreciation |
56,600 |
| Other factory related overhead |
24,400 |
| Beginning work in process |
777,000 |
| Ending work in process |
717,000 |
(a) Arrange the cost data into a statement of cost of goods manufactured.
(b) If Ashley's cost of goods sold for the month was $4,000,000, how much was the increase or decrease in finished goods inventory for the month of September?