ACC 206 week 1 assignment

Please complete the following 5 exercises below in either Excel or a word document (but must be single document). You must show your work where appropriate (leaving the calculations within Excel cells is acceptable). Save the document, and submit it in the appropriate week using the Assignment Submission button.1. Critical Thinking Question:Answer the following questions:Why are noncash transactions, such as the exchange of common stock for a building for example, included on a statement of cash flows? How are these noncash transactions disclosed?2. Classification of activitiesClassify each of the following transactions as arising from an operating (O), investing (I), financing (F), or noncash investing/financing (N) activity.a. ________ Received $80,000 from the sale of land.b. ________ Received $3,200 from cash sales.c. ________ Paid a $5,000 dividend.d. ________ Purchased $8,800 of merchandise for cash.e. ________ Received $100,000 from the issuance of common stock.f. ________ Paid $1,200 of interest on a note payable.g. ________ Acquired a new laser printer by paying $650.h. ________ Acquired a $400,000 building by signing a $400,000 mortgage note.3. Overview of direct and indirect methodsEvaluate the comments that follow as being True or False. If the comment is false, briefly explain why.a. Both the direct and indirect methods will produce the same cash flow from operating activities. (True)b. Depreciation expense is added back to net income when the indirect method is used. (True)c. One of the advantages of using the direct method rather than the indirect method is that larger cash flows from financing activities will be reported.d. The cash paid to suppliers is normally disclosed on the statement of cash flows when the indirect method of statement preparation is employed.e. The dollar change in the Merchandise Inventory account appears on the statement of cash flows only when the direct method of statement preparation is used.4. Equipment transaction and cash flow reportingDec. 31, 20X4 Dec. 31, 20X3Property, Plant & Equipment:Land$94,000$94,000Equipment 652,000 527,000Less: Accumulated depreciation -316,000 -341,000New equipment purchased during 20×4 totaled $280,000. The 20×4 income statement disclosed equipment depreciation expense of $41,000 and a $9,000 loss on the sale of equipment.a. Determine the cost and accumulated depreciation of the equipment sold during 20X4.b. Determine the selling price of the equipment sold.c. Show how the sale of equipment would appear on a statement of cash flows prepared by using the indirect method.5. Cash flow information: Direct and indirect methodsThe comparative year-end balance sheets of Sign Graphics, Inc., revealed the following activity in the company’s current accounts:20X5 20X4 Increase / Decrease)Current assetsCash $55,400 $35,200 $20,200Accounts receivable (net) 83,800 88,000 -4,200Inventory 243,400 233,800 9,600Prepaid expenses 25,400 24,200 1,200Current liabilitiesAccounts payable $123,600 $140,600 ($17,000)Taxes payable 43,600 49,200 -5,600Interest payable 9,000 6,400 2,600Accrued liabilities 38,800 60,400 -21,600Note payable 44,000 — 44,000The 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 Statementfor the Year Ended December 31, 20x5Sales $713,800Less: Cost of goods sold 323,000 Gross profit $390,800Less: Selling & administrative expenses $186,000Depreciation expense 17,000 Interest expense 27,000 230,000 Add: gain on sale of land $160,80021,800 Income before taxes $182,600Income taxes 36,800 Net income $145,800Other 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:a. Prepare the operating activities section of the company’s statement of cash flows, assuming use of:1. The direct method.2. The indirect method.b. Prepare the investing and financing activities sections of the statement of cash flows.

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more