5 Balance Sheet and Statement of Cash Flows PROBLEMS 5
PROBLEMS
P5-1 (L03) (Preparation of a Classified Balance Sheet, Periodic Inventory) Presented below is a list of accounts in alphabetical order.
Instructions
Prepare a classified balance sheet in good form. (No monetary amounts are to be shown.)
P5-2 (L03) EXCEL (Balance Sheet Preparation) Presented below are a number of balance sheet items for Montoya, Inc., for the current year, 2017.
Instructions
Prepare a classified balance sheet in good form. Common stock authorized was 400,000 shares, and preferred stock authorized was 20,000 shares. Assume that notes receivable and notes payable are short-term, unless stated otherwise. Cost and fair value of equity investments (trading) are the same.
P5-3 (L03) (Balance Sheet Adjustment and Preparation) The adjusted trial balance of Eastwood Company and other related information for the year 2017 are presented as follows…
Instructions
Prepare a balance sheet as of December 31, 2017, so that all important information is fully disclosed.
P5-4 (L03) GROUPWORK (Preparation of a Corrected Balance Sheet) The balance sheet of Kishwaukee Corporation as of December 31, 2017, is as follows.
…
Instructions
Prepare a corrected classified balance sheet in good form. The notes above are for information only.
P5-5 (L03) GROUPWORK (Balance Sheet Adjustment and Preparation) Presented below is the balance sheet of Sargent Corporation for the current year, 2017…
Instructions
Prepare a balance sheet in good form, adjusting the amounts in each balance sheet classification as affected by the information given above.
P5-6 (L03,5,6) EXCEL (Preparation of a Statement of Cash Flows and a Balance Sheet) Lansbury Inc. had the following balance sheet at December 31, 2016…
Instructions
(a) Prepare a statement of cash flows for 2017.
(b) Prepare an unclassified balance sheet as it would appear at December 31, 2017.
(c) How might the statement of cash flows help the user of the financial statements? Compute two cash flow ratios.
P5-7 (L01,3,5,6) GROUPWORK (Preparation of a Statement of Cash Flows and Balance Sheet) Aero Inc. had the following balance sheet at December 31, 2016…
Instructions
(a) Prepare a statement of cash flows for the year 2017 for Aero.
(b) Prepare the unclassified balance sheet as it would appear at December 31, 2017.
(c) Compute Aero’s free cash flow and current cash debt coverage for 2017.
(d) Use the analysis of Aero to illustrate how information in the balance sheet and statement of cash flows helps the user of the financial statements.
