The Following Statements of Financial Position Are Provided for Socrates

question 143

Essay

The following statements of financial position are provided for Socrates Foods
$\begin{array}{lcc}&\text { End of }&\text { Beginning }\\ & \text { Year } & \text { of Year } \\ \text { Cash and cash equivalents... } & \$ 170,000 & \$ 120,000 \\ \text { Accounts receivable } & 80,000 & 65,000 \\\text { Inventory . } & 140,000 & 130,000 \\\text { Property, plant and equipment (net).... } & 130,000 & 80,000 \\ \text { Total assets } & \$ 520,000 & \$ 395,000 \\\\ \text { Accounts payable (for inventory) } & \$ 65,000 & \$ 35,000 \\ \text { Wages payable } & 120,000 & 110,000 \\ \text { Long-term liabilities } & 95,000 & 70,000 \\ \text { Ordinary shares } & 100,000 & 100,000 \\\text { Retained earnings } & 140,000 & 80,000 \\\text { Total liabilities and owners' equity. } & \$ 520,000 & \$ 395,000 \\\end{array}$

$\text { Selected information from Socrates Foods's current year income statement: }$

$\begin{array}{llr} \text {Sales } &\$1,650,000\\ \text { Cost of goods sold} &840,000\\ \text {Wages expense } &260,000\end{array}$


$\begin{array}{llr} \text { (1) Cash receipts from customers during the year } &\$\underline{\quad\quad}\\ \text { (2) Cash payments for inventory during the year } &\$\underline{\quad\quad}\\ \text {(3) Wages paid to employees during the year } &\$\underline{\quad\quad}\\ \text { (4) In Socrates Foods's statement of cash flows, what amount would be reported as the } &\\ \text { net change in cash and cash equivalents? } &\\\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\$\underline{\quad\quad} \text { (increase/decrease) } &\\\end{array}$

b Socrates Foods recorded the sale of equipment as follows:
$\begin{array}{llr} \text { Cash } &25,000\\ \text { Accumulated Depreciation: Equipment} &20,000\\ \text { Loss on Disposal of Equipment } &15,000\\ \text { Equipment } &&60,000\end{array}$
How would this transaction be reported in Socrates Foods’s statement of cash flows? (Assume the direct method is being used.)

---

Definitions:

Performance Expectations

The standards and criteria used to evaluate an employee's job performance, typically set by management or supervisors.

Common Beliefs

Widely held opinions, values, or convictions shared by a group, community, or society.

Observable Culture

Aspects of an organization's culture that can be seen and experienced directly, such as rituals, dress codes, and office layout.

Rites And Rituals

Established ceremonies or actions performed in a prescribed sequence, often significant in cultural or organizational contexts.