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RSB [31]
2 years ago
12

The 2017 and 2016 balance sheets of Rabb Corporation follow. The 2017 income statement is also provided. Rabb had no noncash inv

esting and financing transactions during 2017. During the​ year, the company sold equipment for $15,100​, which had originally cost $13,500 and had a book value of $10,500. The company did not issue any notes payable during the year but did issue common stock for $31,000. The company purchased plant assets and​ long-term investments with cash.
Requirements
1. Prepare the statement of cash flows for RabbRabb Corporation for 20172017 using the indirect method.
2. Evaluate the​ company's cash flows for the year. Discuss each of the categories of cash flows in your response.
Business
1 answer:
sladkih [1.3K]2 years ago
5 0

Answer:

I looked for the missing information (IS & BS) since the information was missing

Statement of cash flows

Cash flows from operating activities:

Net income                            $183,500

Adjustments to new income

Depreciation $5,900

Gain on sale of equipment ($4,600)

Increase in accounts receivable ($3,200)

Decrease in inventory $6,500

Increase in prepaid insurance ($700)

Decrease in account payable ($2,600)

Decrease in wages payable ($4,400)

Increase in interest payable $2,100

Increase in taxes payable $5,400

Decrease in accrued expenses payable ($4,000)

Total cash flow provided by operating activities $183,900

Cash flow from investing activities:

Cash provided by sale of equipment $15,100

Cash paid for investments ($117,000)

Cash paid for P, P & E ($27,500)

Total cash flow from investing activities ($129,400)

Cash flow from financing activities:

Cash paid for long term debt ($34,000)

Dividends paid ($22,300)

Common stocks issued $31,000

Total cash flow from financing activities ($25,300)

Net increase in cash $29,200

Beginning cash balance $20,500

Ending cash balance $49,700

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The investment option that the client should go with to pay the child's college expenses is a. treasury bills.

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With regards to interpretation, what are the important areas that appear on a cvp graph?.
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2 years ago
Terapin Company engages in the following external transactions for November. 1. Purchase equipment in exchange for cash of $23,4
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Answer:

Journal Entries

Journal 1 :

Equipment $23,400 (debit)

Cash $23,400 (credit)

Being Purchase of Equipment

Journal 2 :

Cash  $6,800 (debit)

Service Revenue  $6,800 (credit)

Being Service rendered for Cash

Journal 3 :

Salaries Expense $2,100  (debit)

Cash $2,100 (credit)

Being Salaries expense paid

Explanation:

Narrations have been provided to explain the transaction. Remember to use the account titles provided in accounting for the transactions.

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