(1). For each of the three independent situations below pr

(1). For each of the three independent situations below prepare journal entries that summarize the selling and collection activities for the reporting period in order to determine the amount of cash received from customers and to explain the change in each account shown. All dollars are in millions. (If no entry is required for a transaction/event select No journal entry required in the first account field. Enter your answers in millions (i.e. 10000000 should be entered as 10).) In preparation for developing its statement of cash flows for the year ended December 31 2016 Rapid Pac Inc. collected the following information: ($ in millions)Fair value of shares issued in a stock dividend$48.0 Payment for the early extinguishment of long-term bonds (book value: $76.0 million) 81.0 Proceeds from the sale of treasury stock (cost: $12.0 million) 17.0 Gain on sale of land 2.1 Proceeds from sale of land 6.3 Purchase of Microsoft common stock 132.0 Declaration of cash dividends 46.0 Distribution of cash dividends declared in 2015 42.0 Required:1. In Rapid Pacs statement of cash flows what were net cash inflows (or outflows) from investing activities for 2016? (Amounts to be deducted should be indicated with a minus sign. Enter your answers in millions rounded to 1 decimal place (i.e. 5500000 should be entered as 5.5).) 2. In Rapid Pacs statement of cash flows what were net cash inflows (or outflows) from financing activities for 2016? (Amounts to be deducted should be indicated with a minus sign. Enter your answers in millions rounded to 1 decimal place (i.e. 5500000 should be entered as 5.5).) (3) Comparative balance sheets for 2016 and 2015 and a statement of income for 2016 are given below for Metagrobolize Industries. Additional information from the accounting records of Metagrobolize also is provided. METAGROBOLIZE INDUSTRIES Comparative Balance Sheets December 31 2016 and 2015 ($ in 000s) 2016 2015Assets Cash$460 $190 Accounts receivable 470 250Inventory 620 380Land 625 575Building 800 800 Less: Accumulated depreciation (200) (170)Equipment 2800 2510 Less: Accumulated depreciation (451) (420)Patent 1600 1800 $6724 $5915 Liabilities Accounts payable$720 $470 Accrued expenses payable 210 165 Lease liabilityland 150 0 Shareholders’ Equity Common stock 2650 2500Paid-in capitalexcess of par 500 470Retained earnings 2494 2310 $6724 $5915 METAGROBOLIZE INDUSTRIES Income Statement For the Year Ended December 31 2016 ($ in 000s)Revenues Sales revenue$2807 Gain on sale of land 60$2867 Expenses Cost of goods sold$920 Depreciation expensebuilding 30 Depreciation expenseequipment 328 Loss on sale of equipment 10 Amortization of patent 200 Operating expenses 600 2088 Net income $779 Additional information from the accounting records:a.During 2016 equipment with a cost of $330000 (90% depreciated) was sold.b. The statement of shareholders’ equity reveals reductions of $180000 and $415000 for stock dividends and cash dividends respectively. Required: Prepare the statement of cash flows of Metagrobolize for the year ended December 31 2016. Present cash flows from operating activities by the direct method. (Enter your answers in thousands (i.e. 5000 should be entered as 5). Amounts to be deducted should be indicated with a minus sign.) Portions of the financial statements for Parnell Company are provided below. PARNELL COMPANY Income Statement For the Year Ended December 31 2016 ($ in 000s)Revenues and gains: Sales$720 Gain on sale of buildings11 $731 Expenses and loss: Cost of goods sold$260 Salaries112 Insurance32 Depreciation115 Interest expense42 Loss on sale of machinery10 571 Income before tax 160 Income tax expense 80 Net income $80 PARNELL COMPANY Selected Accounts from Comparative Balance Sheets December 31 2016 and 2015 ($ in 000s) Year 20162015ChangeCash$126 $108 $18 Accounts receivable316 224 92 Inventory329 417 (88) Prepaid insurance69 80 (11) Accounts payable202 125 77 Salaries payable118 101 17 Deferred income tax liability76 60 16 Bond discount180 208 (28) Required:1. Prepare the cash flows from operating activities section of the statement of cash flows for Parnell Company using the direct method. (Enter your answers in thousands (i.e. 5000 should be entered as 5).Amounts to be deducted should be indicated with a minus sign.) Comparative balance sheets for 2016 and 2015 and a statement of income for 2016 are given below for Metagrobolize Industries. Additional information from the accounting records of Metagrobolize also is provided. METAGROBOLIZE INDUSTRIES Comparative Balance Sheets December 31 2016 and 2015 ($ in 000s) 2016 2015Assets Cash$530 $265 Accounts receivable 610 320Inventory 760 415Land 600 525Building 700 700 Less: Accumulated depreciation (250) (220)Equipment 3150 2930 Less: Accumulated depreciation (418) (380)Patent 1300 1600 $6982 $6155 Liabilities Accounts payable$860 $710 Accrued expenses payable 280 235 Lease liabilityland 150 0 Shareholders’ Equity Common stock 3650 3500Paid-in capitalexcess of par 550 485Retained earnings 1492 1225 $6982 $6155 METAGROBOLIZE INDUSTRIES Income Statement For the Year Ended December 31 2016 ($ in 000s)Revenues Sales revenue$3101 Gain on sale of land 95$3196 Expenses Cost of goods sold$1060 Depreciation expensebuilding 30 Depreciation expenseequipment 524 Loss on sale of equipment 20 Amortization of patent 300 Operating expenses$400 2334 Net income $862 Additional information from the accounting records:a.During 2016 equipment with a cost of $540000 (90% depreciated) was sold.b. The statement of shareholders equity reveals reductions of $215000 and $380000 for stock dividends and cash dividends respectively. Required: Prepare the statement of cash flows for Metagrobolize Industries using the indirect method. (Enter your answers in thousands. (i.e. 10000 should be entered as 10).) Amounts to be deducted should be indicated with a minus sign.)

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