You are on page 1of 25

LISTEN TO AUDIO/VIDEO EXPLAINING THE GUIDANCE REPORT

VIDEOS ARE LOCATED IN THE ASSIGNMENT TAB

Exercise/
Problem
Ch 1 Ex 2

VIDEOS ARE LOCATED IN THE ASSIGNMENT TAB

Ch 1 Ex 3

Ch 1 Ex 6

Ch 1 Pb 2

CH 1 Pb 3

Ashford
Gu

N TO AUDIO/VIDEO EXPLAINING THE GUIDANCE REPORT

ED IN THE ASSIGNMENT TAB

Account to
be changed
Net income
Depreciation
Accounts payable

Original
Amount
12600
21000

ED IN THE ASSIGNMENT TAB

Questions

YOUR ANSWERS
BASED UPON
COURSE START
DATE (Mar-Apr)

Net Income
Accounts receivable
Inventory
Accounts payable
Depreciation
Cash Flow from Operating Activities

Account to
be changed
Net Income
Trade accounts receivable
Merchandise inventory
Accumulated depreciation: equipment
Accounts payable
Accrued liabilities
Gain on sale of investments

Original
Amount
110000
18000
230000
120000
190000
38000
18000

YOUR ANSWERS
BASED UPON
COURSE START
DATE
Net Income
Trade accounts receivable
Merchandise inventory
Accumulated depreciation: equipment
Accounts payable
Accrued liabilities
Gain on sale of investments
Cash Flow from Operating Activities
Account to
be changed
New equipment purchased
Depreciation expense

Original
Amount
Dec. 31, 20X4
280000
41000

YOUR ANSWERS
BASED UPON
COURSE START
DATE
Cost of equipment sold
Accumulated depreciation of sold equipment
Selling price of equipment sold
Sale of equipment on cash flow statement

Account to
be changed
Accounts payable decreased
Accounts receivable increased
Prepaid expenses increased
wages payable increased
Income taxes payable decreased

Original
Amount
32800
23700
2400
5600
800

YOUR ANSWERS
BASED UPON
COURSE START
DATE

Direct Method
Cash collected
Less cash paid for:
Inventory
Selling & administrative
Interest expense
Income taxes
Net cash provided by operating activities
Indirect Method
Net income
Accounts payable decreased
Accounts receivable increased
Prepaid expenses increased
wages payable increased
Inventory
Income taxes payable decreased
Depreciation
Gain on sale of equipment
Net cash provided by operating activities

Account to
be changed
Accounts receivable (net)
Inventory
Accounts payable
Taxes payable
Sales
Net income
Long tem investments purchased
Sale of land cash proceeds
Store equipment purchased - short term note
Purchased equipment issue 3000 pref shares
Long term note repaid
Common stock issued - shares

Original
Amount
83800
243400
123600
43600
713800
145800
74600
76200
44000
150000
49400
20000

YOUR ANSWERS
BASED UPON
COURSE START
DATE

Prepare the operating activities section of the


statement of cash flows by using the direct method.
Cash collected
Less cash paid for:
Inventory
Selling & administrative
Interest expense
Income taxes
Net cash provided by operating activities
Prepare the operating activities section of the
statement of cash flows by using the indirect
method.
Net income
Accounts receivable
Inventory
Prepaid expenses
Accounts payable
Taxes payable
Interest payable
Accrued liabilities
Gain on sale of land
Depreciation
Net cash provided by operating activities

Prepare the investing and financing activities


sections of the statement of cash flows.
Cash flows from investing activities
Purchase of long-term investments
Proceeds from sale of land
Net cash provided by investing act.
Cash flows from financing activities
Repayment of long-term note
Issuance of common stock*
Dividends paid
Net cash used by financing activities
* 20,000 shares X $5.19 = $103,800

Note: The store equipment and telecommunications


system transactions would be reported as noncash
investing/ financing activities

Ashford University ACC206


Guidance Report
Week One

YELLOW INDICATES ACCOUNT AMOUNTS CHANGED


Change Account to:
Based Upon Course Start Date
Jan-Feb
Mar-Apr
$
109,000 $
111,000
$
13,000 $
15,000
$
22,000 $
23,000
Not sure which of these columns to use.

May-Jun
Jul-Aug
$
113,000 $
115,000
$
16,000 $
18,000
$
24,000 $
25,000
Enter the month (1-12) that you started this class in the colum

Jan-Feb
$
$
$
$
$
$
$

May-Jun
$
$
$
$
$
$
$

112,000
246,000
231,000
121,000
191,000
39,000
18,000

Mar-Apr
$
$
$
$
$
$
$

114,000
248,000
232,000
122,000
193,000
40,000
18,000

116,000
249,000
232,000
124,000
194,000
41,000
18,000

Jul-Aug
$
$
$
$
$
$
$

117,000
250,000
235,000
125,000
195,000
45,000
18,000

Jan-Feb
$
$

Jan-Feb
$
$
$
$
$

Mar-Apr
290,000
42,000

33,800
24,275
2,975
6,175
1,375

$
$

Mar-Apr
$
$
$
$
$

May-Jun
295,000
43,000

34,800
24,850
3,550
6,750
1,950

$
$

May-Jun
$
$
$
$
$

Jul-Aug
296,000
44,000

35,800
25,425
4,125
7,325
2,525

$
$

Jul-Aug
$
$
$
$
$

297,000
45,000

36,800
26,000
4,700
7,900
3,100

Jan-Feb
$
$
$
$
$
$
$
$
$
$
$

84,800
244,400
124,600
44,600
718,000
150,000

75,600
77,200
45,000
151,000
49,900
20500

Mar-Apr
$
$
$
$
$
$
$
$
$
$
$

85,800
245,400
125,600
45,600
723,000
155,000

76,600
78,200
46,000
152,000
50,400
21000

May-Jun
$
$
$
$
$
$
$
$
$
$
$

86,800
246,400
126,600
46,600
728,000
160,000

77,600
79,200
47,000
153,000
50,900
21500

Jul-Aug
$
$
$
$
$
$
$
$
$
$
$

87,800
247,400
127,600
47,600
733,000
165,000

78,600
80,200
48,000
154,000
51,400
22000

ate

Sept-Oct
Nov-Dec
$
120,000 $
121,000
$
20,000 $
21,000
$
26,000 $
27,000
u started this class in the column to the right.

Sept-Oct
$
$
$
$
$
$
$

118,000
255,000
240,000
130,000
200,000
45,000
18,000

Nov-Dec
$
120,000
$
256,000
$
241,000
$
141,000
$
201,000
$
46,000
###

Sept-Oct
$
$

Sept-Oct
$
$
$
$
$

Nov-Dec
298,000
46,000

37,800
26,575
5,275
8,475
3,675

$
$

299,000
47,000

Nov-Dec
$
38,800
$
27,150
$
5,850
$
9,050
$
4,250

Sept-Oct
$
$
$
$
$
$
$
$
$
$
$

Nov-Dec
$
89,800
$
249,400
$
129,600
###
$
748,000
$
180,000
79,600 $
80,600
81,200 $
82,200
49,000 $
50,000
155,000 $
156,000
51,900 $
52,400
22500
23000

88,800
248,400
128,600
43,600
738,000
170,000