ACCOUNTING-ACCT460-1204A-01 Professional Accounting
by ella | Aug 20, 2025 | Business
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ACCT460-1204A-01 Professional Accounting
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Assignment Name:
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Unit 2 Individual Project
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Deliverable Length:
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500–1,000 words
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Details:
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The SCQ Corporation manufactures specialty medical tools
ranging from $10,000 to$15,000 per unit. The tools are used in hospitals,
clinics, and the home hospitality market. SCQ Corporation has contracted
with YOUCPA to assist in creating its cash flow statement. In the past,
its income statement and balance sheet have been prepared by the internal
accountant.
It would like you to assist in preparing the cash flows
using both the direct and indirect method. Sales and balance sheet
information for the years 2009–2010 are below:
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Balance Sheet
SCQ Corporation
For period ending 12/31/2010
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Assets
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2010
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2009
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Liabilities
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2010
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2009
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Cash
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150
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100
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Account receivable
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600
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400
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Accounts payable
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400
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300
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Inventory
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750
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500
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Accrued taxes payable
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200
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100
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Current assets
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1,500
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1,000
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Current liabilities
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600
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400
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Land
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50
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50
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Equipment
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1,300
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1,200
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Note payable
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330
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300
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Less: Acc. depreciation
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700
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600
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Deferred taxes
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35
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20
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Net fixed assets
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600
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600
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Equity:
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Total fixed assets
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650
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650
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Common stock
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640
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500
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Paid-in capital
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80
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80
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Retain earnings
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465
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350
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Total equity
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1,185
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930
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Total assets
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2,150
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1,650
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Total equity and liabilities
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2,150
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1,650
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Income Statement
SCQ Corporation
For period ending 12/31/ 2010
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Items
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2010
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2009
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Revenue
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1,000
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900
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Cost of goods sold
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400
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350
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Gross profit
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600
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550
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Wages expense
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110
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100
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Interest expense
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50
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40
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Depreciation expense
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100
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90
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Insurance expense
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50
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50
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Other misc. expenses
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90
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80
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Total expenses
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400
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360
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Operating income
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200
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190
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Taxes:
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Deferred taxes
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15
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20
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Taxes expense
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70
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67
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Net income after taxes
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115
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103
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Additions to retains earnings
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115
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103
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The information below can be used to complete the direct
method of cash flow:
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Cash flows from operating activities
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2010
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Cash receipts
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Received from sales of goods
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930
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Paid for inventory
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400
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Paid for employees
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110
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Paid for interest
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50
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Paid for taxes
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70
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Paid for other expenses
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320
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Cash paid for equipment
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100
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Cash received for common stock
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120
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Cash received from note payable
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30
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Assignment Guidelines:
- Indirect
method cash flow/cash flow statement:
- What
is the operational cash flow?
- What
is the investing cash flow?
- What
is the financing cash flow?
- Direct
method cash flow:
- What
is the operational cash flow?
- What
is the investing cash flow?
- What
is the financing cash flow?
- What
are the differences in the cash flow concepts and procedures between the
direct and indirect methods?
Please submit your assignment.
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Grading Criteria
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33%
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11% What is the indirect operational cash flow?
11% What is the indirect investing cash flow?
11% What is the indirect financing cash flow?
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33%
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11% What is the direct operational cash flow?
11% What is the direct investing cash flow?
11% What is the direct financing cash flow?
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34%
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What are the differences in the cash flow concepts and
procedures between the direct and indirect methods?
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Objective:
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Develop a thorough understanding of accounting standards
and principles.
Fulfill the core accounting educational requirement to
sit for the CPA exam.
Prepare to practice in public and private accounting
position.
Advance to a higher professional
level.
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