Balance SheetDecember 31, 20X6(with comparative figures for 20X5)20X6$ 25,00032,00048,00015,00020X5$ -24,00060,0008,000150,00030,000$ 245,000 $ 212,000CashAccounts receivableInventoryLong term investmentsProperty, plant, & equipmentLess: accumulated depreciation170,00045,000Total Assets$ 8,00016,00035,00030,000123,000$ 245,000 $ 212,000Bank overdraft$24,000Accounts payableNotes payableCommon shares30,00030,000161,000Retained earningsTotal liabilities and equityGiven the balance sheet above, prepare a statement of cash flows for CompanionEnterprises Ltd. using the indirect method. Net income for 20X6 was $88,000.There were no disposals of capital assets or long-terminvestments.

In the indirect method of cashflow statement, we start with net profit for the year and then compute…

Balance Sheet December 31, 20X6 (with comparative figures for 20X5) 20X6 20X5 $ - $ 25,000 32,000 48,000 15,000 170,000 45,000 $ 245,000 $ 212,000 Cash 24,000 60,000 8,000 150,000 30,000 Accounts receivable Inventory Long term investments Property, plant, & equipment Less: accumulated depreciation Total Assets $ 8,000 16,000 35,000 30,000 123,000 Bank overdraft $ 24,000 30,000 30,000 161,000 $ 245,000 $ 212,000 Accounts payable Notes payable Common shares Retained earnings Total liabilities and equity Given the balance sheet above, prepare a statement of cash flows for Companion Enterprises Ltd. using the indirect method. Net income for 20X6 was $88,000. There were no disposals of capital assets or long-terminvestments.

Balance Sheet December 31, 20X6 (with comparative figures for 20X5) 20X6 20X5 $ - $ 25,000 32,000 48,000 15,000 170,000 45,000 $ 245,000 $ 212,000 Cash 24,000 60,000 8,000 150,000 30,000 Accounts receivable Inventory Long term investments Property, plant, & equipment Less: accumulated depreciation Total Assets $ 8,000 16,000 35,000 30,000 123,000 Bank overdraft $ 24,000 30,000 30,000 161,000 $ 245,000 $ 212,000 Accounts payable Notes payable Common shares Retained earnings Total liabilities and equity Given the balance sheet above, prepare a statement of cash flows for Companion Enterprises Ltd. using the indirect method. Net income for 20X6 was $88,000. There were no disposals of capital assets or long-terminvestments.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Refer to the following data of OCT2023CPACompany: Assets to be realized 1,375,000Assets acquired 825,000 Liabilities liquidated 1,875,000Assets realized 1,200,000Liabilities not liquidated 1,700,000 Assets not realized 1,375,000Llabilities assumed 1,625,000Llabilities to be liquidated 2,250,000 Supplementary charges 3,125,000 Supplementary credits 2,800,000 Compute the beginning cash balance assuming that the ending balance of ordinary share and retained earnings are P1,200,000 and (400,000), respectively
TBB Corp. has the following information regarding three of its assets: Estimated Book Value Cash Flows Fair Value Equipment $ 35,000 $ 36,000 $ 30,000 Building $ 68,000 $ 70,000 $ 65,000 Patent $ 30,000 $ 28,000 $ 26,000 What amount of loss should be recorded by TBB due to asset impairment? Select one: a. $4,000 b. $7,000 c. $12,000 d. $10,000 e. $6,000
Dr.Cr.(GH₵)(GH₵)Stated capital310Income surplus at 1 January 2017456Inventory at 1 January 2017236Turnover1,468Purchases856Salaries46Directors salaries (admin expense)116Land & building at cost550Plant & equipment at cost578Land & building- accumulated depreciation as at 1 January 2017154Plant & equipment –accumulated depreciation as at 1 January 2017266Bank interest received6Sundry expenses56Trade receivables110Trade payables122Accruals42Cash at bank43Dividends paid36Administrative expenses183Interest paid142,8242,824The following information is also relevant:(1) Inventory at 31st December 2017 is GH₵256(2) The tax liability for the year is estimated to be 20% of the profit before tax.4(3) The original cost of land and buildings is made up of GH₵100 land and GH₵450 buildings. Buildings are used in administration and depreciation is charged on a straight line basis over the estimated useful life of 50 years.(4) Plant & equipment are used in distribution and…
The comparative statement of financial position for Moose Jaw Ltd. is as follows:Moose Jaw Ltd.Comparative Statement of Financial PositionAs at December 312021 2020Cash $20,500 $12,500Accounts receivable 34,000 25,500Inventories 20,000 30,000Prepaid insurance 2,500 2,000Equipment 102,000 90,000Accumulated depreciation - equipment (22,500) (12,500)Total assets $156,500 $147,500Accounts payable $23,000 $20,000Interest payable 2,000 3,000Wages payable 4,000 2,000Income taxes payable 4,000 5,000Long-term note payable 30,000 34,500Common shares 65,000 65,000Retained earnings 28,500 18,000Total liabilities and equity $156,500 $147,500More information about Moose Jaw’s operations for 2021:• A machine which the company paid $10,000 for was sold for a gain of$1,000. The equipment’s accumulated depreciation was $7,000.• The company had net income for of $13,500.RequiredConstruct the operating activities section of Moose Jaw Ltd.’s statement of cashflows using the indirect method. Use proper…
The comparative balance sheet of Merrick Equipment Co. for December 31, 20Y9 and 20Y8, is as follows:Dec 31 20Y9 Dec 31 20Y8ASSETSCash $ 70,720 $ 47,940Accounts Receivable 207,230 188,190Inventories 298,520 289,850Investments - 102,000Land 295,800 -Equipment 438,600 358,020Accumulated Depreciation-Equipment (99,110) (84,320)Total Assets $ 1,211,760 $ 901,680LIABILITIES AND STOCKHOLDERS' EQUITYAccounts Payable $ 205,700 $ 194,140Accrued Expenses Payable (operating expenses) 30,600 26,860Dividends Payable 25,500 20,400Common Stock, $1 par 202,000 102,000Paid-in Capital; Excess of issue price over par-common stock 354,000 204,000Retained Earnings 393,960 354,280Total Liabilities and Stockholders Equity: $ 1,211,760 $ 901,680Additional data obtained from an examination of the accounts in the ledger for 20Y9 are as follows:A. Equipment and land were acquired for cashB. There were no disposals of equipment during the year.C. The investments were sold for $91,800 cash.D. The common stock was…
Refer to the following data of SG Company: Assets to be realized1,375,000Liabilities liquidated1,875,000Assets acquired825,000Liabilities not liquidated1,700,000Assets realized1,200,000Liabilities to be liquidated2,250,000Assets not realized1,375,000Supplementary charges3,125,000Liabilities assumed1,625,000Supplementary credits2,800,000Compute the beginning cash balance assuming that the ending balance of ordinary share and retained earnings are P1,200,000 and (400,000), respectively.
PQ16.08 Equipment that cost $144,000 and on which $120,000 of accumulated depreciation has been recorded was disposed of for $36,000 cash. The entry to record this event would include ??
The following statements was extracted from the books of ShafNita Sdn. Bhd. at 31 December2019 and 2020. ShafNita Sdn. Bhd. Statement of Financial Position as at 31 December2019 2020RM RM RM RM Non Current AssetsBuilding 100,000 100,000Fixtures less accumulated depreciation 3,600 4,000Van less accumulated depreciation 7,840 14,800111,440 118,800 Current AssetInventory 11,200 24,800Trade account receivable 12,800 16,400Bank 1,800 -Cash 440 400 26,240 41,600Total assets 137,680 160,400Finance by:Capital account:Balance at 1 January 74,080 105,080Add: Net profit for the year 70,400 42,320Cash introduced - 20,000144,480 167,400Less: Drawings (39,400) (43,200)105,080 124,200 Non Current LiabilitiesLoan (repayable in 10 years time) 20,000 30,000Current LiablitiesAccount Payable 12,600 6,012Bank overdraft - 188Retained earnings 32,600 36,200Total liabilities and equity 137,680 160,400 Additional information at 31 December 2020:  Fixtures bought in 2020 cost RM800. Van bought in 2020 cost…
Presented below is information related to Wolfie Corp.’s equipment on 12/31/2022: Description Amount Capitalized cost $900,000 Accumulated depreciation to date 750,000 Estimated residual value 40,000 Expected future cash flows 125,000 Estimated Fair value 100,000 The amount of the impairment loss, if any, that Wolfie Corp. should record on 12/31/22 is: $45,000 $50,000 $10,000 $20,000 $25,000 There is no impairment.
1. The following information is from Direct to You Corp.’s (DYC) financial records for its year ended December 31, 2020: Select statement of financial position information: 2020 2019 Investments in financial assets (at fair value through profit or loss [FVPL]) 12,000 10,000 Inventory 575,000 498,000 Property, plant, and equipment (PPE) 1,984,000 1,396,000 Less: accumulated depreciation (650,400) (487,000) Copyright 126,000 135,000 Patents 564,000 417,000 Select statement of comprehensive income information: Depreciation of property, plant, and equipment (334,400) Amortization of patents (65,000) Interest expense (75,000) Impairment loss — copyright (9,000) Gain on sale of PPE 23,000 Additional information: PPE that originally cost $570,000 was sold during the year. 100,000 common shares were issued in 2020 to acquire $450,000 of property, plant, and equipment. DYC is subject to IFRS. What amount of net cash used…
Problem 6Four, Inc. provided the following balances at the end of the current year:Wasting asset, at cost P20,000,000Accumulated depletion 2,500,000Share capital 50,000,000Capital liquidated 1,800,000Retained earnings 1,500,000Depletion based on 50,000 units at P20 per unit 1,000,000Inventory of resource deposit 100,000Required:a. Compute the maximum dividend that can be declared.b. Prepare the journal entry to record the declaration of P2,000,000 dividend.
Myla Company has current assets of P75,000 and total assets ofP375,000. The company's sales are P900,000. Myla’s fixed asset turnoveris?

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