ACC 202 intermediate Accounting

Preparation of a Statement of Cash Flows and a Balance SheetFicus Inc. had the following balance sheet at December 31, 2024.
Assets
Cash
Accounts receivable
Investments
Plant assets (net)
Land
$
$
FICUS Inc.
Balance Sheet
December 31, 2024
Liabilities and Stockholders’ Equity
31,000
Accounts payable
$ 61,000
56,800
Notes payable (long-term)
76,000
86,000
Common stock
200,000
138,500
Retained earnings
41,300
66,000
$ 378,300
378,300
During 2025, the following occurred.
1. Ficus liquidated its available-for-sale investment portfolio at a gain of $15,000.
2. A tract of land was purchased for $61,000 cash.
3. An additional $15,200 in common stock was issued at par.
4. Dividends totaling $41,000 were declared and paid to stockholders.
5. Net income for 2025 was $46,000, including $8,000 in depreciation expense.
6. Land was purchased through the issuance of $195,000 in additional notes payable.
7. At December 31, 2025, Cash was $68,000, Accounts Receivable was $84,000, and
Accounts Payable was $72,000.
Instructions
(a) Prepare a statement of cash flows for 2025.
FICUS INC.
Statement of Cash Flows
For the Year Ended December 31, 2025
Cash flows from operating activities
Type item here
Adjustments to reconcile net income to net cash provided by
operating activities:
Type item here
Type item here
Type item here
Type item here
Net Cash provided (used) by operating activities
Cash flows from investing activities
Type item here
Type item here
Net cash provided (used) by investing activities
Cash flows from financing activities
Type item here
Type item here
Net cash provided (used) by financing activities
Net increase in cash
Cash at beginning of year
Cash at end of year
Noncash investing and financing activities
Type item here
(b) Prepare an unclassified balance sheet as it would appear at December 31, 2025.
Show Calculation of the following balance sheet amounts:
Plant assets:
Land:
Notes payable:
Common stock:
Retained earnings:
Assets
Type item here
Type item here
Type item here
Type item here
FICUS INC.
Balance Sheet
December 31, 2025
Liabilities and Stockholders’ Equity
Type item here
Type item here
Type item here
Type item here
–
(c) Compute Ficus’ free cash flow and the current cash debt coverage ratio for 2025.
–
Free Cash Flow Analysis
Type item here
Type item here
Type item here
Free cash flow
Current Cash Debt Coverage Ratio
Type item here
Type item here
(d) Use the analysis of Ficus to illustrate how information in the balance sheet and statement of cash flows helps the user of the financial statements.
(e) Briefly explain what would be different if the Balance Sheet and Statement of Cash Flows were prepared under IFRS.
NOTE:
NOTE:
Enter all subtractions as negative
numbers (displayed in parenthesis)
GRADING
Statement of Cash Flows:
Cell Ref
Correct/Incorrect
Points awarded
0
J42
INCORRECT
0
J48
INCORRECT
0
J54
INCORRECT
0
J58
INCORRECT
0
J60
INCORRECT
Total for part (a)
0
GRADING
Balance Sheet
Cell Ref
Correct/Incorrect
Points awarded
0.0
E100
INCORRECT
0.0
E101
INCORRECT
0.0
E102
INCORRECT
0.0
E103
INCORRECT
0.0
E104
INCORRECT
J100
INCORRECT
0.0
0.0
J101
INCORRECT
0.0
J102
INCORRECT
0.0
J103
INCORRECT
0.0
J104
INCORRECT
Total for part (b)
0.0
GRADING
Free Cash Analysis
Cell Ref
Correct/Incorrect
Points awarded
0.0
J112
INCORRECT
J113
INCORRECT
0.0
0.0
J114
INCORRECT
0.0
J115
INCORRECT
0.0
Cash Debt Coverage Ratio
J119
INCORRECT
J120
INCORRECT
J121
INCORRECT
Total for part (c)
0.0
0.0
0.0
0.0
0.0
Assignment #1: Balance Sheet, Statement of Cash Flows, and Disclosures
Due: Sunday, Week 4
Points: 75
I. Ficus Inc. had the following balance sheet at December 31, 2024.
During 2025, the following occurred.
1. Ficus liquidated its available-for-sale investment portfolio at a gain of $15,000.
2. A tract of land was purchased for $61,000 cash.
3. An additional $15,200 in common stock was issued at par.
4. Dividends totaling $41,000 were declared and paid to stockholders.
5. Net income for 2025 was $46,000, including $8,000 in depreciation expense.
6. Land was purchased through the issuance of $195,000 in additional notes payable.
7. At December 31, 2025, Cash was $68,000, Accounts Receivable was $84,000, and Accounts
Payable was $72,000.
Instructions:
(a) Prepare a statement of cash flows for the year 2025 for Ficus.
(b) Prepare the balance sheet as it would appear at December 31, 2025.
(c) Compute Ficus’ free cash flow and the current cash debt coverage ratio for 2025.
(d) Use the analysis of Ficus to illustrate how information in the balance sheet and statement of
cash flows helps the user of the financial statements.
(e) Briefly explain what would be different if the Balance Sheet and Statement of Cash Flows
were prepared under IFRS.
II. Codification Research
Instructions:
In light of the full disclosure principle, investors and creditors need to know the balances for
assets, liabilities, and equity as well as the accounting policies adopted by management to
measure the items reported in the balance sheet.
Go to: http://www2.aaahq.org/ascLogin.cfm to log in and prepare responses to the following.
Provide Codification references for your responses. (The username and password to log in is
located under Course Information in Blackboard.)
(a) Identify the literature that addresses the disclosure of accounting policies.
(b) How are accounting policies defined in the literature?
(c) What are the three scenarios that would result in detailed disclosure of the accounting
methods used?
(d) What are some examples of common disclosures that are required under this statement?
ADDITONAL INSTRUCTIONS:
● Complete Part I using the provided Excel template.
o Use cell references and cell formulas as applicable.
o Any references should be cited in-text in APA format and also include the full
APA formatted citation in the document.
● Complete Part II using Word.
o Support each answer by showing where your answer came from. Example:
(Assets > 310 Receivables > 10 Overall > 05-4)
● You must upload all your files at one time (you cannot upload one file and then come
back later and upload another.)
RUBRICS:
Evaluation Criteria for:
Balance
Sheet/SCF
Assignment
Part I
EXEMPLARY
PROFICIENT
DEVELOPING
50 Points
44 Points
35 Points
Provides correct
balances for
operating, investing,
and financing
activities
Provides correct
balances for 2 out
of the three
sections: operating,
investing, and
financing activities
Provides correct
balances for 1 out
of the three
sections:
operating,
investing, and
financing
activities
EMERGING
Less than 35
Points
50 Points
(a) Prepare a statement
of cash flows for the
year 2017 for Ficus.
(15%)
Includes all
necessary
information on the
statement
Includes most
necessary
Balances for all 3
sections are
incorrect.
Information missing
from the statement.
Improperly
formatted.
Properly formatted
Uses formulas within
cells for numbers
that involve
calculations
information on the
statement
Properly formatted
Uses formulas
within cells for
numbers that
involve calculations
Does not included
all necessary
information on the
statement.
Does not use any
formulas within cells
for numbers that
involve calculations.
Improvement
needed in
formatting
Does not use
formulas within
cells for numbers
that involve
calculations
(b) Prepare the balance
sheet as it would appear
at December 31, 2017.
(15%)
(c) Compute Ficus’ free
cash flow and the
current cash debt
coverage ratio for 2017.
(10%)
Provides correct
balances for assets,
liabilities/equity
accounts
Provides correct
balances for most of
the balance sheet
accounts.
Includes all
necessary
information on the
statement
Includes most
necessary
information on the
statement
Properly formatted
Properly formatted
Uses formulas within
cells for numbers
that involve
calculations
Uses formulas
within cells for
numbers that
involve calculations
Both Free Cash Flow
and Cash Debt
Coverage ratio are
presented and
correct.
Both Free Cash
Flow and Cash
Debt Coverage ratio
are presented but
one is incorrect.
Formatted to show to
show how the
answers were
calculated (use
labels and formulas
within the cells)
Formatted to show
to show how the
answers were
calculated (use
labels and formulas
within the cells)
Provides correct
balances for less
than half of the
balance sheet
accounts
Information missing
from the statement.
Does not included
all necessary
information on the
statement.
Does not use any
formulas within cells
for numbers that
involve calculations.
Improperly
formatted.
Improvement
needed in
formatting
Does not use
formulas within
cells for numbers
that involve
calculations
Both Free Cash
Flow and Cash
Debt Coverage
ratio are
presented but
neither is
incorrect.
Neither Free Cash
Flow nor Cash Debt
Coverage ratio are
presented and both
are incorrect
Formatted to
show to show
how the answers
were calculated
(use labels and
Formatting needs
improvement and it
is unclear how
numbers were
calculated.
formulas within
the cells)
(d) Use the analysis of
Ficus to illustrate how
information in the
balance sheet and
statement of cash flows
helps the user of the
financial statements.
(5%)
(e) Briefly explain what
would be different if the
Balance Sheet and
Statement of Cash
Flows were prepared
under IFRS.
Response
completely answers
the question and is
accurate.
Clearly uses proper
grammar, APA for in
text citations and for
all references.
Response
completely answers
the question and is
accurate.
Clearly uses proper
grammar, APA for in
text citations and for
all references.
(5%)
Response answers
the question but
lacks specificity.
More information is
needed for a more
well-rounded
answer.
Has no more than
two errors in APA,
grammar and or
punctuation.
Response answers
the question but
lacks specificity.
More information is
needed for a more
well-rounded
answer.
Has no more than
two errors in APA,
grammar and or
punctuation.
Response
partially answers
the question.
Information
provided is
accurate.
Response is
missing or
Information given is
not accurate.
Has four or more
errors in APA,
grammar and or
punctuation.
Has no more than
three errors in
APA, grammar
and or
punctuation.
Response
partially answers
the question.
Information
provided is
accurate.
Has no more than
three errors in
APA, grammar
and or
punctuation.
Response is
missing or
Information given is
not accurate.
Has four or more
errors in APA,
grammar and or
punctuation.
Evaluation Criteria for:
Balance
Sheet/SCF
Assignment
Part II
EXEMPLARY
PROFICIENT
25 Points
20 Points
Clearly and fully
addresses the
questions and
responds directly
and clearly using
Generally,
addresses the
questions and
responds with
answers that are
DEVELOPING
EMERGING
17 Points
Less than 17
Points
Generally,
addresses the
questions and
responds with
answers that are
Does not respond
substantively to the
questions or does
not respond to the
assignment
25 Points
Content/Accuracy
(80%)
20 points
research findings.
Connects to
concepts presented
in the textbook.
mostly correct but
that lack specificity.
Some responses
are connected to
concepts presented
in the textbook.
partially correct or
incomplete. Some
responses are
connected to
concepts
presented in the
textbook.
requirements. No
connection is made
to concepts
presented in the
textbook.
Grammar, Speech
Patterns, Punctuation,
and APA (20%).
(20%)
Clearly uses proper
grammar, Answers
are supported by
proper citations.
Has no more than
two errors in
citations, grammar
and or punctuation.
Has no more than
three errors in
citations,
grammar and or
punctuation.
Has four or more
errors in citations,
grammar and or
punctuation.
5 points