Statement of cash flows (direct and indirect methods).                                                                        The following are comparative balance sheets and an income statement for THE Company.  This information is also contained in the Excel file I provided before the exam.  Using the Excel file/spreadsheet approach is optional.                                                              THE Company has prepared the following comparative balance sheets for 2020 and 2021:   2021 2020 Cash $282,000 $153,000 Accounts receivable 129,000 117,000 Inventory 160,000 180,000 Plant assets 1,295,000 1,050,000 Accumulated depreciation -279,000 -174,000 $1,587,000 $1,326,000 Accounts payable $173,000 $168,000 Operating Expense Payable 40,000 42,000 Mortgage payable 0 450,000 Common Stock (no par) 1,245,000 600,000 Retained Earnings 129,000 66,000 $1,587,000 $1,326,000  >All sales were made on credit                >Accounts payable was only used for the purchase of inventory                >All dividends were paid in Cash                >Old Plant Assets with original cost of $22,000 and accumulated depreciation        of $17,000 were donated to charity                >New plant assets were purchased with cash for $267,000                >Mortgage payable was retired using cash                >There were no stock dividends during the year.  All dividends were paid in cash                The income statement for 2021 is as follows:         Sales revenue $1,980,000 Cost of goods sold 1,089,000 Operating expenses *** (see note) 702,000 Loss on Sale of Plant Assets 5,000 Net income $184,000 NOTE: Operating Expenses includes $122,000 of Depreciation Expense.  The Excel Spreadsheet separates these two amounts out for student convenience.      Required:                                                #1 Prepare a complete statement of cash flows for 2021 using the direct method. You may use the excel spreadsheet that accompanies this exam to complete the statement.                                                 #2 Prepare the operating activities section only of the statement of cash flows for this question using the indirect method                                                Using your statements, answer the 11 questions that follow this essay.  The first 7 questions relate to requirement #1.  The second 4 questions relate to requirement #2                                                You should enter your answers just as they appear on the statement of cash flows.  Answers will possibly include positive amounts, negative amounts, and/or zero (0), as applicable.  Cash inflows/increases are positive amounts.  Cash outflows/decreases are negative amounts.                                                    

During its first year of operations, ABC Co. reported income before taxes of $550,000 and taxable income of $600,000.  The difference was due solely to book depreciation of $250,000 and tax depreciation of $200,000.  The effective tax rate for the current and future years is 25%.  Assuming this is the only temporary or permanent difference in book and taxable income, what amount of Deferred Tax Asset (DTA), or Deferred Tax Liability (DTL), would ABC record at year end?  

Which of the following is the proper placement of dividends received and dividends paid on the statement of cash flows?

Smith, Inc. issued $20,000,000 of its 5% bonds at par. Two weeks later the bonds were trading on the exchange at 102 (102% of face value.)  Which explanation of a change in the market rate between the issue date and two weeks later is most likely?

Which of the following is true of defined contribution (DC) pension plans?

Which statement about the Statement of Cash Flows is incorrect?

Which of the following would be a cash flow from investing activities?

A company reported total Stockholders’ Equity of $540,000 at December 31, 2019, with 120,000 common shares outstanding.  During the year ended December 31, 2020, the company reported the following: 3/31/2020- Issued 10,000 shares of $3 par value common stock at $42 per share. 7/1/2020- Purchased for treasury 1,000 shares of $3 par value common stock at $10 per share. 8/31/2020- Incurred an Other Comprehensive Loss of $12,000. 9/30/2020- Paid a cash dividends of $.50 per common share. Net Income for the year $58,900. What is the amount of Stockholders’ Equity as of December 31, 2020?

XYZ Company provided the following data about its common stock: Par value is $1 per share. 12,000,000 shares are authorized. 3,900,000 shares are outstanding. 4,800,000 shares are issued. How many shares of treasury stock are there?

A company provided the following data: sales, $150,000; sales returns, $8,000; ending inventory, $40,000; net purchases of inventory, $85,000; and gross profit, $37,000. What was the amount of beginning inventory?