Karla Company provided the following information for the

current year:

Purchases

Purchase returns and allowances

Rental income

Selling expenses:

Freight out

Salesmen's commission Depreciation-store equipment

Merchandise inventory, January 1 Merchandise inventory, December 31

Sales

Sales returns and allowances

Sales discounts

Administrative expenses:
Officers' salaries

Depreciation office equipment

Freight in

Income tax

Loss on sale of equipment

Purchase discounts

Dividend revenue

Loes on sale of investment

Required:

5,250,000

150,000

250,000
175,000

650,000

125,000

1,500,000

7,850,000

140,000

10,000

250,000

50,000

150,000

50,000

a. Prepare an income statement for the year using the "functional" method with supporting notes.

b. Prepare an income statement for the year using the "natural" method with supporting notes.
Star Company provided the following data for the preparation of statement of cash flows for the current
year:

Cash balance, beginning Cash paid to purchase inventory

Cash received from sale of trading securities

Cash paid for interest on bank loan

Cash paid to repay principal amount of bank loan Cash collected from customers

Cash received from issuance of ordinary shares Cash paid for dividend

Cash paid for income taxes Cash paid to purchase trading securities

1,500,000

7,800,000

2,500,000

450,000

1,200,000
1,350,000

1. What is the net cash provided by operating activities?

a. 1,900,000

b. 2,900,000

c. 2,350,000

d. 400,000

2. What is the net cash used in financing activites?

a. 3,000,000

b. 2,000,000

c. 1,800,000

d. 4,200,000

3. What is the cash balance at year-end?

a. 3,400,000
b. 1,600,000

c. 1,400,000

d. 2,400,000

Fraulein Company had the following cash flows during the

current year:

Cash receipte from issuance of ordinary shares Cash receipts from customers

Cash receipta from dividends on long-term investmente Cash receipte from repayment of loan made to

another entity

Cash payments for wages and other operating expenses Cash payments for insurance

Cash payment for dividends

Cash payments for taxes Cash payment to purchase land

Cash balance-beginning
1,200,000

3,500,000

1. What in the net cash provided by operating activities?

a. 600,000

b. 400,000

e. 300,000

d. 200,000

2. What is the net cash provided by investing activities?

a. 2,200,000

b. 1,400,000

c. 3,000,000

d. 800,000

3. What is the net cash provided by financing activities?

a. 4,000,000

b. 6,000,000

c. 3,800,000

d. 6,200,000

4. What is the cash balance at year-end?

n. 3,500,000

b. 9,300,000

c. 5,500,000

d. 5,800,000

Problem 9-2 (IAA)

Masay Company provided the following information for the

current year:
Sales

Inventories-January 1:

Raw materials

Goods in process

Finished goods

Inventories-December 31:

Raw materials

Goods in process

Finished goods

Purchases

Direct labor

Indirect labor

Superintendence
Light, heat and power

Rent-factory building

Repair and maintenance - machinery

Factory supplies used Sales salaries

Advertising

Depreciation-store equipment

Office salaries

Depreciation office equipment

Depreciation machinery

Sales returns and allowances

Interest income

Gain on sale of equipment

Delivery expenses

Accounting and legal fees

Office expenses

Earthquake loss

Gain from expropriation of asset Income tax expense

Required:

a. Statement of cost of goods manufactured

b. Income statement using the "cost of goods sold" method c. Income statement using the "nature of
expense" method

(IAA)

Exemplar Company provided the following account balances

on December 31, 2020:

Accounts receivable Advances to officers-not currently

Sinking fund Building

Long-term refundable deposit Cash and cash equivalents Cash surrender value

Equipment

Patent

Accrued interest on notes receivable

Inventories

Land

Land held for speculation Notes receivable

Computer software Prepaid expenses

Trading securities Unearned rent income

Retained earnings (deficit) Share premium - preference Premium on bonds payable

Preference share capital Share premium - ordinary

Notes payable SSS payable Accounts payable

Accrued salaries Accumulated depreciation-building

Accumulated depreciation-equipment Allowance for doubtful accounts Bonds payable

Dividends payable Ordinary share capital

Withholding tax payable Preference share redemption fund

Required:

collectible

50,000

60,000

10,000

1,300,000

1,500,000

250,000

3,250,000 70,000
280,000

40,000

(1,800,000)

10,000

20,000

120,000

30,000 350,000

Prepare a properly classified statement of financial position on December 31, 2020.

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