BA225 Managerial Accounting: Unit 8 Assignment (Conard Corp and Leach Inc.)

BA225 Managerial Accounting
Unit 8 Assignment

Problem 1
An analysis of comparative balance sheets, the current year's income statement, and the general ledger accounts of Conard Corp. uncovered the following items. Assume all items involve cash unless there is information to the contrary.
Indicate how each item should be classified in the statement of cash flows using these four major classifications: operating activity (indirect method), investing activity, financing activity and significant noncash investing and financing activity.
a. Payment of interest on notes payable
b. Exchange of land patent
c. Sale of building at book value
d. Payment of dividends
e. Depreciation
f. Receipt of dividends on investment stock
g. Receipt of interest on receivable
h. Issuance of capital stock
i. Amortization of patent
j. Issuance of bonds for land
k. Purchase of Land
l. Conversion of bonds into common stock
m. Loss on sale of land
n. Retirement of bonds

Problem 2
The current sections of Leach Inc.'s balance sheets at December 31, 2010 and 2011, are presented here.
Leach's net income for 2011 was $152,990. Depreciation expense was $24,030.
2011 2010
Current assets
Cash 104,980 99,290
Accounts receivable 109,930 88,630
Inventory 157,840 172,260
Prepaid expenses 27,250 21,740
Total current assets 400,000 381,920

Current liabilities
Accrued expenses payable 14,910 5,140
Accounts payable 85,320 92,490
Total current liabilities 100,230 97,630

Prepare the net cash provided by operating activities section of the company's statement of cash flows for the year ended December 31, 2011, using the indirect method. (List amounts from largest positive to smallest positive followed by most negative to least negative, e.g. 15, 14, 10, -17, -5, -1. If amount decreases cash flow, use either a negative sign preceding the number eg. -45 or parentheses eg (45).)
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