Preparing the statement of cash flows—direct method Official Reserve Rare Coins (ORRC) was formed on January 1, 2016. Additional data for the year follow:
a. On January 1, 2016, ORRC issued no par common stock for $450,000.
b. Early in January, ORRC made the following cash payments:
1. For store fixtures, $49,000
2. For merchandise inventory, $280,000
3. For rent expense on a store building, $10,000
c. Later in the year, ORRC purchased merchandise inventory on account for $238,000. Before year-end, ORRC paid $158,000 of this accounts payable.
d. During 2016, ORRC sold 2,900 units of merchandise inventory for $200 each. Before year-end, the company collected 80% of this amount. Cost of goods sold for the year was $340,000, and ending merchandise inventory totaled $178,000.
e. The store employs three people. The combined annual payroll is $88,000, of which ORRC still owes $5,000 at year-end.
f. At the end of the year, ORRC paid income tax of $17,000. There was no income taxes payable.
g. Late in 2016, ORRC paid cash dividends of $38,000.
h. For store fixtures, ORRC uses the straight-line depreciation method, over five years, with zero residual value.
1. Prepare ORRC’s income statement for the year ended December 31, 2016. Use the single-step format, with all revenues listed together and all expenses listed together.
2. Prepare ORRC’s balance sheet at December 31, 2016.
3. Prepare ORRC’s statement of cash flows for the year ended December 31, 2016. Format cash flows from operating activities by the direct method.
The mean yearly rainfall in Sydney, Australia, is about 137 mm and the standard deviation is about 69 mm ("Annual maximums of," 2013). Assume rainfall is normally distrib...Apr 10 2020
For small oscillations, determine the equation of motion and the natural frequency of the rotating pendulum shown in Figure E3.51 that oscillates about the equilibrium po...May 16 2020
E 16-13 Partnership income allocation—Salary allowance, bonus, and additional contributions during the yearKat and Edd formed the K & E partnership several years ago. Cap...Sep 17 2020
Organic Chemistry 3rd Edition by Paula Yurkanis Bruice. Give IUPAC name and common name of this structure.Jun 16 2021
Packages are thrown down an incline at A with a velocity of 4ft/s. The packages slide along the surface ABC to a conveyer beltwhich moves with a velocity of 8ft/s. Knowin...Jun 04 2020
Accounts Receivable and Inventory Analyses for Coca-Cola and PepsiCoThe following information was obtained from the 2006 and 2005 financial statements of CocaColaCompany ...May 03 2020
The rate of interest actually earned by bondholders is called the stated rate. True or False?Jun 09 2021
Find(a) the curl and(b) the divergence of the vector field.Jun 19 2021
Drew Rosen Corp. is considering adding a fourth plant to its three existing plants in Decatur, Minneapolis and Carbondale. Both St. Louis and East St. Louis are being con...Jul 28 2020
Tyler Co. predicts the following unit sales for the next four months: April, 3,000 units; May, 4,000 units; June, 6,000 units; and July, 2,000 units. The company’s policy...Apr 01 2020