Prepare the investing and financing activities sections of

Question

There are five problems that I need help with on the attached excel sheet, Information needed to fill the excel sheet are also in a attached document. the designated numbers to do calculation are labeled January- February. This may seem confusing so feel free to ask questions if you do not understand the assignment.

Chapter 1 Exercise 2: Indirect calculation of operating cash flows

Video Corporation's balance sheet revealed the following account balance information:

Account	Dec. 31, 20X6	Dec. 31, 20X5
Accounts receivable	$52,000	$57,000
Merchandise inventory	75,000	68,000
Accounts payable	21,000	19,500

The accrual-basis net income was $107,000. In computing net income, the company recorded $12,600 of depreciation expense; there were no gains or losses from investing and financing activities.

On the basis of the preceding information, calculate Video's cash flows from operating activities by using the indirect method.

Chapter 1 Exercise 3:Indirect calculation of operating cash flows

Specialty Services Inc. reported a net income of $110,000 for the year just ended, which includes an $18,000 gain on the sale of long-term investments. The following data were obtained from comparative balance sheets:

	Oct. 31, 20X2	Oct. 31, 20X1
Trade accounts receivable	$245,000	$203,000
	230,000	308,000
Accumulated depreciation: equipment	120,000	65,000
Accounts payable	190,000	124,000
Accrued liabilities	38,000	73,000

There were no purchases or disposals of equipment during the year. The long-term investment had a carrying (book) value of $77,000 and was sold for cash on June 15.

On the basis of the preceding information, determine the cash provided by operating activities from November 1, 20X1 through October 31, 20X2. The firm uses the indirect method of statement preparation.

CHAPTER 1 Exercise 6: Equipment transaction and cash flow reporting

The property, plant, and equipment section of ProComp Inc.'s comparative balance sheet follows:

	Dec. 31, 20X4	Dec. 31, 20X3
Property, plant, & equipment
Land	$ 94,000	$ 94,000
Equipment	652,000	527,000
Less: Accumulated depreciation	(316,000)	(341,000)

New equipment purchased during 20X4 totaled $280,000. The 20X4 income statement disclosed equipment depreciation expense of $41,000 and a $9,000 loss on the sale of equipment. 

1. Determine the cost and accumulated depreciation of the equipment sold during 20X4.
2. Determine the selling price of the equipment sold.
3. Show how the sale of equipment would appear on a statement of cash flows prepared by using the indirect method.

CHAPTER 1 PROBLEM 2:Operating activities: Direct and indirect methods
The 20X5 income statement of Office Products Inc. follows:

OFFICE PRODUCTS INC. Income Statement for the Year Ended December 31, 20X5
Net sales		$980,000
Cost of goods sold
Beginning inventory	$235,000
Net purchases	720,000
Goods available for sale	$955,000
Less: Ending inventory	260,000
Cost of goods sold		695,000
Gross profit		$285,000
Expenses
Selling & administrative	$149,000
Depreciation	54,000	203,000
		$ 82,000
Other revenue (expense)
Interest expense	mce_markernbsp;(18,000)
Gain on sale of equipment	26,000	8,000
Income before income taxes		mce_markernbsp;90,000
Income taxes		27,000
Net income		mce_markernbsp;63,000

1. The following additional information was obtained from the general ledger and management personnel:
   1. Accounts payable related to the purchases of merchandise decreased during 20X5 by $32,800. In contrast, accounts receivable increased by $23,700.
   2. Prepaid expenses and wages payable increased throughout 20X5 by $2,400 and $5,600, respectively.
   3. The balance in the income taxes payable account on January 1 was $4,900; the December 31 balance was $4,100.
   4. The company financed a $78,000 equipment purchase by signing a note payable that is due in 20X8.

Instructions

e.                  Prepare the operating activities section of the statement of cash flows by using the direct method.

f.                    Prepare the operating activities section of the statement of cash flows by using the indirect method.

CHAPTER 1 Problem 3:Cash flow information: Direct and indirect methods

The comparative year-end balance sheets of Sign Graphics Inc. revealed the following activity in the company's current accounts:

	20X5	20X4	Increase (decrease)
Current assets
Cash	$ 55,400	$ 35,200	$ 20,200
Accounts receivable (net)	83,800	88,000	(4,200)
Inventory	243,400	233,800	9,600
Prepaid expenses	25,400	24,200	1,200
Current liabilities
Accounts payable	$ 123,600	$140,600	$(17,000)
Taxes payable	43,600	49,200	(5,600)
Interest payable	9,000	6,400	2,600
Accrued liabilities	38,800	60,400	(21,600)
Note payable	44,000	-	44,000

 The accounts payable were for the purchase of merchandise. Prepaid expenses and accrued liabilities relate to the firm's selling and administrative expenses. The company's condensed income statement follows:

SIGN GRAPHICS INC. Income Statement for the Year Ended December 31, 20X5
Sales		$713,800
Less: Cost of goods sold		323,000
Gross profit		$390,800
Less: Selling & administrative expenses	$186,000
Depreciation expense	17,000
Interest expense	27,000	230,000
Add: Gain on sale of land		$160,800
		21,800
Income before taxes		$182,600
Income taxes		36,800
Net income		$145,800

1. Other data:
   1. Long-term investments were purchased for cash at a cost of $74,600.
   2. Cash proceeds from the sale of land totaled $76,200.
   3. Store equipment of $44,000 was purchased by signing a short-term note payable. Also, a $150,000 telecommunications system was acquired by issuing 3,000 shares of preferred stock.
   4. A long-term note of $49,400 was repaid.
   5. Twenty thousand shares of common stock were issued at $5.19 per share.
   6. The company paid cash dividends amounting to $128,600.

Instructions

g. Prepare the operating activities section of the company's statement of cash flows, assuming use of

1) the direct method.

2) the indirect method.

h. Prepare the investing and financing activities sections of the statement of cash flows.