Exercise 12-1 Putnam Corporation had these transactions during 2014.
Analyze the transactions and indicate whether each transaction resulted in a cash flow from operating activities,
investing activities, financing activities, or noncash investing and financing activities.
Purchased a machine for $30,000, giving a long-term note in
(a)
exchange. Noncash Investing and Financing Activities
(b) Issued $50,000 par value common stock for cash. Financing Activities
Issued $200,000 par value common stock upon conversion of
(c)
bonds having a face value of $200,000. Noncash Investing and Financing Activities
(d) Declared and paid a cash dividend of $13,000. Financing Activities
Sold a long-term investment with a cost of $15,000 for
(e)
$15,000 cash. Investing Activities
(f) Collected $16,000 of accounts receivable. Operating Activities
(g) Paid $18,000 on accounts payable. Operating Activities
IFRS 13-1 Ling Company reports the following information for the year ended December 31, 2014: sales revenue
$1,000,000, cost of goods sold $700,000, operating expenses $200,000, and an unrealized gain on non-trading
securities of $75,000. Prepare a statement of comprehensive income using the one-statement approach.
LING COMPANY
Statement of Comprehensive Income
For the Year Ended December 31, 2014
Sales revenue 1,000,000
$
Cost of goods sold 700,000
Gross profit 300,000
Operating expenses 200,000
Net income 100,000
Other comprehensive income
Unrealized gain on non-trading securities 75,000
Comprehensive income 175,000
$
, Problem 12-9A Condensed financial data of Odgers Inc. follow.
ODGERS INC.
Comparative Balance Sheets
December 31
Assets 2014 2013
Cash $ 200,384 $ 120,032
Accounts receivable 217,744 94,240
Inventory 279,000 255,068
Prepaid expenses 70,432 64,480
Long-term investments 342,240 270,320
Plant assets 706,800 601,400
Accumulated depreciation (124,000 ) (128,960 )
Total $1,692,600 $1,276,580
Liabilities and Stockholders’ Equity
Accounts payable $ 252,960 $ 166,904
Accrued expenses payable 40,920 52,080
Bonds payable 272,800 362,080
Common stock 545,600 434,000
Retained earnings 580,320 261,516
Total $1,692,600 $1,276,580
ODGERS INC.
Income Statement Data
For the Year Ended December 31, 2014
Sales revenue $963,381
Less:
Cost of goods sold $335,941
Operating expenses, excluding depreciation 30,777
Depreciation expense 115,320
Income tax expense 67,654
Interest expense 11,730
Loss on disposal of plant assets 18,600 580,022
Net income $ 383,359
Additional information:
1. New plant assets costing $248,000 were purchased for cash during the year.
Old plant assets having an original cost of $142,600 and accumulated depreciation of $120,280 were sold for
2.
$3,720 cash.
3. Bonds payable matured and were paid off at face value for cash.
4. A cash dividend of $64,555 was declared and paid during the year.
Analyze the transactions and indicate whether each transaction resulted in a cash flow from operating activities,
investing activities, financing activities, or noncash investing and financing activities.
Purchased a machine for $30,000, giving a long-term note in
(a)
exchange. Noncash Investing and Financing Activities
(b) Issued $50,000 par value common stock for cash. Financing Activities
Issued $200,000 par value common stock upon conversion of
(c)
bonds having a face value of $200,000. Noncash Investing and Financing Activities
(d) Declared and paid a cash dividend of $13,000. Financing Activities
Sold a long-term investment with a cost of $15,000 for
(e)
$15,000 cash. Investing Activities
(f) Collected $16,000 of accounts receivable. Operating Activities
(g) Paid $18,000 on accounts payable. Operating Activities
IFRS 13-1 Ling Company reports the following information for the year ended December 31, 2014: sales revenue
$1,000,000, cost of goods sold $700,000, operating expenses $200,000, and an unrealized gain on non-trading
securities of $75,000. Prepare a statement of comprehensive income using the one-statement approach.
LING COMPANY
Statement of Comprehensive Income
For the Year Ended December 31, 2014
Sales revenue 1,000,000
$
Cost of goods sold 700,000
Gross profit 300,000
Operating expenses 200,000
Net income 100,000
Other comprehensive income
Unrealized gain on non-trading securities 75,000
Comprehensive income 175,000
$
, Problem 12-9A Condensed financial data of Odgers Inc. follow.
ODGERS INC.
Comparative Balance Sheets
December 31
Assets 2014 2013
Cash $ 200,384 $ 120,032
Accounts receivable 217,744 94,240
Inventory 279,000 255,068
Prepaid expenses 70,432 64,480
Long-term investments 342,240 270,320
Plant assets 706,800 601,400
Accumulated depreciation (124,000 ) (128,960 )
Total $1,692,600 $1,276,580
Liabilities and Stockholders’ Equity
Accounts payable $ 252,960 $ 166,904
Accrued expenses payable 40,920 52,080
Bonds payable 272,800 362,080
Common stock 545,600 434,000
Retained earnings 580,320 261,516
Total $1,692,600 $1,276,580
ODGERS INC.
Income Statement Data
For the Year Ended December 31, 2014
Sales revenue $963,381
Less:
Cost of goods sold $335,941
Operating expenses, excluding depreciation 30,777
Depreciation expense 115,320
Income tax expense 67,654
Interest expense 11,730
Loss on disposal of plant assets 18,600 580,022
Net income $ 383,359
Additional information:
1. New plant assets costing $248,000 were purchased for cash during the year.
Old plant assets having an original cost of $142,600 and accumulated depreciation of $120,280 were sold for
2.
$3,720 cash.
3. Bonds payable matured and were paid off at face value for cash.
4. A cash dividend of $64,555 was declared and paid during the year.
