FINAL EXAM REVIEW Page 1
ACC 255 FINAL EXAM REVIEW PACKET (NEW MATERIAL)
Complete these sample exam problems/objective questions and check your answers with the
solutions at the end of the review file and identify where you need additional study before the exam.
I. Statement of Cash Flows
Using the information below, prepare in good form a Statement of Cash Flows for Savage Corporation on
the following page. Information from the December 31, 2012 and 2011 balance sheets of Savage
Corporation are presented below.
2012 2011
Cash $ 30,000 $ 50,000
Accounts Receivable, net 410,000 460,000
Inventory 300,000 320,000
Prepaid Expenses 20,000 15,000
Long-Term Investments 50,000 25,000
Land 560,000 300,000
Buildings and Equipment 2,000,000 1,900,000
Accumulated Depreciation (800,000) (770,000)
$ 2,570,000 $ 2,300,000
Accounts Payable $ 300,000 $ 120,000
Accrued Liabilities 40,000 50,000
Bonds Payable 500,000 800,000
Long-Term Note Payable 150,000 0
Common Stock, $2 par value 200,000 160,000
Paid-in Capital in Excess of Par Value 710,000 550,000
Retained Earnings 670,000 620,000
$ 2,570,000 $ 2,300,000
Additional information about 2012 transactions and events:
(a) Net income was $110,000.
(b) Depreciation expense on buildings and equipment was $60,000.
(c) Sold equipment with a cost of $50,000 and accumulated depreciation of $30,000 for cash of
$17,000.
(d) Declared and paid cash dividends of $60,000.
(e) Issued a $150,000 long-term note payable for buildings and equipment.
(f) Purchased long-term investments for $25,000.
(g) Paid $300,000 on the bonds payable.
(h) Issued 20,000 shares of $2 par value common stock for $200,000.
(i) Purchased land for $260,000.
, Page 2
SAVAGE CORPORATION
STATEMENT OF CASH FLOWS
complete
the date line
ACC 255 FINAL EXAM REVIEW PACKET (NEW MATERIAL)
Complete these sample exam problems/objective questions and check your answers with the
solutions at the end of the review file and identify where you need additional study before the exam.
I. Statement of Cash Flows
Using the information below, prepare in good form a Statement of Cash Flows for Savage Corporation on
the following page. Information from the December 31, 2012 and 2011 balance sheets of Savage
Corporation are presented below.
2012 2011
Cash $ 30,000 $ 50,000
Accounts Receivable, net 410,000 460,000
Inventory 300,000 320,000
Prepaid Expenses 20,000 15,000
Long-Term Investments 50,000 25,000
Land 560,000 300,000
Buildings and Equipment 2,000,000 1,900,000
Accumulated Depreciation (800,000) (770,000)
$ 2,570,000 $ 2,300,000
Accounts Payable $ 300,000 $ 120,000
Accrued Liabilities 40,000 50,000
Bonds Payable 500,000 800,000
Long-Term Note Payable 150,000 0
Common Stock, $2 par value 200,000 160,000
Paid-in Capital in Excess of Par Value 710,000 550,000
Retained Earnings 670,000 620,000
$ 2,570,000 $ 2,300,000
Additional information about 2012 transactions and events:
(a) Net income was $110,000.
(b) Depreciation expense on buildings and equipment was $60,000.
(c) Sold equipment with a cost of $50,000 and accumulated depreciation of $30,000 for cash of
$17,000.
(d) Declared and paid cash dividends of $60,000.
(e) Issued a $150,000 long-term note payable for buildings and equipment.
(f) Purchased long-term investments for $25,000.
(g) Paid $300,000 on the bonds payable.
(h) Issued 20,000 shares of $2 par value common stock for $200,000.
(i) Purchased land for $260,000.
, Page 2
SAVAGE CORPORATION
STATEMENT OF CASH FLOWS
complete
the date line
