Q1: Let’s assume EMERSON CORPORATION received cash from customers of

$3,000,000 and make payments to the suppliers and employees of $1,530,000. Firm
paid income taxes of $300,000. Firm receives some cash amount of $750,000 through
sale of land and purchases some equipment of $150,000. Firm repays its long-term
loans of $900,000. Firm also paid interest of $100,000 and other operating expenses
of $270,000. Firm receives some cash from issuing stocks of $80,000 and paid some
dividends on common stocks of $50,000. Prepare Cash flow Statement from Direct
Method for EMERSON CORPORATION from the following data for the Year ended
31st of December 2018.
Q2 Let’s suppose PAUL’S GULTAR SHOP purchase some property and equipment
of $101,000 and paid some income taxes and interest of $1,500 and $500 respectively.
Paul Gultar shop receives some financing from long-term debt of $109,500. Shop
received cash from the customers of $51,300 and made some payments to the
suppliers and employees of $25,000. Prepare Cash flow Statement from Direct
Method for PAUL’S GULTAR SHOP from the following data for the Year ended 31 st
of December 2018.
Q3: PROPENSITY COMPANY makes some payments of Notes payable of $10,000
and payments of dividends of $440. Company has paid to suppliers for inventory of
$157,300, made payments of $42,200 to the employees. Company has some
proceedings from sale of land of $14,800 and cost of new Plant assets of $40,000.
Company got finance from issuing common stocks of $45,000. Company also makes
some payments for insurance, interest, income taxes and for other operating expenses
of $12,700, $3,500, $1,860 and $11,100 respectively. Company collected some cash
from customers of $242,500 also. Prepare Cash flow Statement from Direct Method
for PROPENSITY COMPANY from the following data for the Year ended 31 st of
December 2018.
Q4 Suppose a Company XYZ received some cash from sale of land and from
customers of $200 and $800 respectively and make some payments for Common
share Dividends of $200 and for the purchase of equipment of $300 and paid some
cash to the suppliers of $150. Company makes some payments on long-term debts of
$300 and provides compensations to the employees of $200 and bears some other
operating expenses of $250. Prepare Cash flow Statement from Direct Method for
Company XYZ from the following data for the Year ended 31st of December 2018.
Q5 Prepare Income Statement for a company with the name of INNOVATIVE
PRODUCTS, INC. for the year ended December 31, 2018, which is having sales of
$50,00,000. Company is bearing manufacturing cost of $25,00,000 under sub-
headings of materials, labor and factory overhead of amounts $8,00,000, $11,00,000
and $6,00,000 respectively. Company bears some selling expenses of $9,00,000,
administrative expenses of $6,00,000 and depreciation of $5,00,000. Company also
have some other expenses and income, which includes interest revenues of $2,50,000
and interest expenses of $1,50,000. Company must have to pay 35% income tax on
income before tax.
Q6 A company XYZ is having some Revenue and Gains under sub categories of sales
revenues $100,000, interest revenues $5,000 and gain on sales of assets $3000.
Company is also having some Expenses and Losses which includes cost of goods sold
of $75,000, commission expenses of $5,000, office supplies expenses $3,500, office
equipment expenses of $2,500, advertising expenses of $2,000, interest expenses of
$500 and loss from lawsuit of $1,500. Prepare Income Statement for Company XYZ
from the following data for the Year ended 31st of December 2018.
Q7. Prepare a Balance Sheet of NAUTILUS HOSTING, for the Year ended 31 st of
December 2018 which is having retained earnings of $142,834.35, long term
liabilities of $13,560.00, long term assets of $0.00, current liabilities of $5,083.56,
other current assets of $37,510.80 and cash in hand of $123,967.11.
Q8 Prepare a Balance Sheet of SHARMA CORPORATION, for the Year ended 31 st
of December 2018 which is having long term investments of Rs.1,110, patents and
trademarks of Rs.403, goodwill of Rs.663, property, Plant and equipment cost of
Rs.26,946, and accumulated depreciation of property, plant and equipment is of
Rs.13,534. Corporation is also having marketable securities of Rs.246, cash is of Rs.
1,449, inventories of Rs.10,623, and account receivables of Rs.10,333. Corporation is
also having retained earnings of Rs.13,640 and Company also issued some common
stock of Rs.12,256. Company also have account payable, bank loan payable and taxes
payable of Rs.5,602, Rs.1,876 and Rs.2,041 respectively. Company is also having
some long-term liabilities of Rs.2,824.