question archive The following data are for Ernst Company
The following data are for Ernst Company
Subject:AccountingPrice: Bought3
The following data are for Ernst Company. ??? € Dec. 31, 20132 Dec 31, 2012 ??? ?? ?? ?565,000 STATEMENT OF FINANCIAL POSITION (PARTIAL) Accounts Receivable Inventory Prepaid rent Accounts payable Wages payable $72,000 $54,000 € a12_2 $44,000 $23,000 $41,000 e $8,000 e $52,000+ e ?? ?? ??[a(ii t t e INCOME STATEMENT FOR THE YEAR ENDED 31, DECEMBER 2013– Salese $485,000 € Cost of goods solde ain_2 Wages expense a(iv)_2 Rent expense $22,000 Travel and entertainment expense" $121,000+ $€ e e Net income a(v)_2 ??? ?? t ? ?? OTHER DATA FOR 2013 Cash collected from customerse Cash paid for inventory Inventory purchased on account Cash paid for rent Cash paid for wages Cash paid for other expenses a(vi)_2 a(vii)_2 $230,000 $27,000 $81,000+ $121,000 € ?? t t. ? ?? ?? ? + ?? ? t. t CASH FLOW DATA FOR THE YEAR ENDED 31, DECEMBER 2013 Net income (b) ? +/- Change in accounts receivable ($7,000) +/- Change in inventory ($13,000) +/- Change in accounts payable ($8,000) +/- Change in prepaid rente (b) ? e e +/- Change in wages payable $6,000€ Net cash provided by used by operating activities (b) ? (Continue to next page) ?? t Intermediate Accounting I Chapter 5 Statement of Financial Position and Statement of Cash Flowse The following additional information is provided: 1) All inventories are purchased on account 2) Accounts Payable relates only to the purchase of inventory. 3) Perpetual inventory method is used t t ??? ?? Required: Compute the following: a) 1). The ending balance in the prepaid rent account as at 31 December, 2013. il)The beginning balance in the wages payable account as at 31 December, 2012.- 111) The amount of Cost of Goods Sold for the year ended 2013. iv) The amount of Wages Expense for the year ended 2013.2 v)* The amount of reported Net Income for the year ended 2013. vi) The amount of cash collected from customers during 2013.- vii) The amount of cash paid for inventory during 2013. t ?? t. ?? b) Prepare the cash flows from operating activities section of the statement of cash flows for the year ended 31 December 2013 using indirect method (Assume no noncash items, taxes and interest expense) e
