Harris Foods' 2021 income statement reported total revenues of $625,000 and total expenses of $485,000 (including $30,000 of depreciation). The 2021 comparative balance sheet reported the following: cash- beginning balance, $60,000 and ending balance, $85,000; accounts receivable- beginning balance, $50,000 and ending balance $35,000; inventory- beginning balance, $45,000 and ending balance, $55,000; Equipment- beginning balance, $225,000 and ending balance, $200,000; accounts payable- beginning balance, $65,000 and ending balance $60,000. In addition to this information, Harris Foods also reported a $5,000 gain on the sale of equipment. Therefore, based only on this information, 2021 net cash inflow from operating activities was:
Q: The following data represents the summarized transactions of XYZ Trading for the year 20CY, its…
A: Cash basis of accounting: It is the method of accounting in which only the transactions which…
Q: wants to buy a car when sne graduates from Oniversity o years from now. She belleve that she W buy…
A: The present value formula is PV=FV/(1+i)n, which divides the future value FV by a factor of 1 + I…
Q: X corporation produces a decorative pillow. In 2020, it produced 2,000 units a 1,750 at an average…
A: The income statement can be prepared using various methods as variable costing and absorption…
Q: Which of the following would not be a correct form for an adjusting entry? a. A debit to a revenue…
A: Adjusting entries are prepared by management to ensure the accrual basis accounting system. It is…
Q: . Which of the following is not one among the limitations of EOQ? a. All the related components…
A: The question is related to Economic Order Quantity. It is that level of inventory at which holding…
Q: Nelsie Corporation has an outstanding 60- day 6% note receivable armounting to P 15,000 dated…
A: Accrued interest on December 31 should be credited to the interest income and 9 should be debited.…
Q: As a rule, when the substitute obligation is lost prior to substitution, the obligation becomes a…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: At the end of the financial year ending 30 June 2022, the following adjustments are required.…
A: The adjustment entries are prepared to adjust the revenue and expenses at the year end. The…
Q: A limited partnership differs from an ordinary partnership by O having a limited number of partners.…
A: "Limited" in limited partnership is used for the liability of the partners.
Q: P Co. issued 6,000 shares of its common stock, valued at $300,000, to the former shareholders of S…
A: Basic accounting concept of issue of shares
Q: be reported by ML partnership in 2020 assuming the company opted to report income from improvement…
A: As per the given data, It is indicated that the leasehold improvement was constructed by the lessor…
Q: P5,000 UF P5,000 F P2,000 UF P2,000 F а. C. b. d.
A: Introduction:- First we need to calculate standard rate as follows:- Direct Labor Efficiency…
Q: The general standards in the generally accepted auditing standards include all of the following…
A: Audit in general term to check whether the financial health of the company is shown correct or not.…
Q: journalize. Completed services that were paid for six months earlier, S3,700
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
Q: Why an INTERNATIONAL BUSINESS AND TRADE ORGANISATION is crucial in different countries.
A: International Business An international business refers to the carrying out of business activities…
Q: SHOUOL ST aE 0707 DUE 1707 DOUDwa IS JE DOnisod KGOTSO CO INCOME STATEMENT FOR THE YEAR ENDED 31…
A: The question is related to Cash Flow Statement. Cash Flow Statement is summary of cash receipts and…
Q: 1. How many units are in ending inventory? 2. Without preparing an income statement, indicate what…
A: Variable costing income statement is the statement in which the cost of goods which has been sold by…
Q: I. X, taxi operator, with gross receipts of 2M only, can avail the 8% optional income tax rate. II.…
A: Taxation Optional Scheme to Pay 8% on Gross Receipt Mode of Tax Payment
Q: Everything else held constant, would it be better to depreciate a project with DDB depreciation or…
A: Working capital, also known as net cash flow (NWC), is the difference between a company's current…
Q: 3. Via Corp is to be liquidated. All creditors, both secured and unsecured, are owed P1,500,000.…
A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: Meester Corporation has an activity-based costing system with three activity cost pools--Machining,…
A: The assignment of indirect expenses to manufactured commodities is known as overhead allocation. It…
Q: Net income was $466,000. Issued common stock for $72,000 cash. Paid cash dividend of $18,000. Paid…
A: Cash Flow Statement (Partial) Amount (In $) Amount (In $) Cash Flow from Financing…
Q: units Number o
A: Depreciation can be charged by various methods like straight line method, declining balance method…
Q: What is the taxable income if the taxpayer had chosen itemized deduction? A domestic corporation had…
A: Calculation of taxable Income of Domestic Corporation
Q: How can we determine the interest rate of a company from the annual report ? provide examples
A: Interest Expenses It is important for the business entity to calculate the interest cost which are…
Q: Hodge Co. owns 90 percent of the voting common shares of Bison Co. During 2022, Hodge had sales of…
A: Introduction Intercompany upstream sale of inventory occurs, the effect of this transaction is…
Q: Calculate the net pay for emp The overtime rate is time-ar A. $670.15 B. $622.96
A: Introduction Net pay means gross pay less payroll tax and deduction. Net pay is amount which is…
Q: Assets Liabilities Capital 1. 8.000 5,000
A: Formula: Accounting equation: Assets = Liabilities + Capital
Q: David Davis died in 2019 and left an estate valued at $13,900,000 after the payment of his debts.…
A: Given : David Davis died in 2019 and left an estate valued at $13,900,000 after the payment of his…
Q: The fair value is the value of an asset as it appears on the balance sheet. O True O False
A: The balance sheet is one of the financial statements of the business, which represents the financial…
Q: Determine the amount of any depreciation recapture (DR), capital gain (CG), or capital loss…
A: The answer is stated below:
Q: Compute the NPV for Project M if the appropriate cost of capital is 8 percent. (Do not round…
A: Net present value (NPV) refers to the difference of present value of cash inflows and present value…
Q: What are examples of various types of business-type funds used in governmental units? How are…
A: Business-type funds used in governmental units are the activities grouped by the government entities…
Q: Required information A land development company is considering the purchase of earth-moving…
A: To decide upon various alternatives available to purchase the assets or renting or leasing out the…
Q: a. Prepare an income statement according to the absorption costing concept. Gallatin County Motors…
A: Variable costing treats all fixed costs as period coats, so it only uses the variable manufacturing…
Q: Based on the following selected account balances appearing in the trial balance of Midway Repar…
A: Introduction: Trial balance: All the final ledger account balances are posted in Trial balance to…
Q: On January 1of the current year, the furniture account had a balance of P 24.000 with accumulated…
A: Net book value of the assets = Total cost of the assets - Accumulated depreciation where,…
Q: Compute the discounted payback statistic for Project C if the appropriate cost of capital is 8…
A: The question is based on the concept of Financial Management. Discounted payback period is the term…
Q: Triple-F Health Club (Family, Fitness, and Fun) is a not-for-profit, family-oriented health club.…
A: Cash budget is the one which includes the quantitative estimates for the payments and receipts of…
Q: ANSWER ALL 1. which of the following journal entries can be eleminated? a. correcting entry b…
A: According to this question, we explain those topics to support the correct answer. Question-1)…
Q: What is operating income using variable costing? A) $52,500 B) $78,750 C) $65,750
A: The variable costing assumes only variable manufacturing costs in the product cost. The…
Q: Force Corporation has one temporary difference at the end of 2020 that will reverse and cause…
A: A journal entry is the first step—and an essential function—of the accounting process. Journal…
Q: Absorption and Variable Costing with Over- and Underapplied Overhead Flaherty, Inc., has just…
A: A variable costing income statement where all variable expenses are deducted from revenue to arrive…
Q: Variable Costing, Value of Ending Inventory, Operating Income Pattison Products, Inc., began…
A: The income statement is prepared to record revenue and expenses for the current period to find net…
Q: chool work in information systems, mpany called eSys Answers. During year 1, the sets Purchase Date
A: Assets refer to the type of resources bought by an entity in order to evaluate some value out it in…
Q: ENCHANTRESS CORP. is applying overhead with direct labor hours as its basis. Four direct labor hours…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: The owner's equity is computed as follows: Cash inflows less cash outflows Revenues less expenses…
A: Formula: Accounting equation: Assets = Liabilities + Owners equity
Q: A plant asset acquired on October 1, 2022 at a cost of $1,008,000 has an estimated useful life of 10…
A: The question is based on the concept of Depreciation Accounting. Depreciation is the reduction in…
Q: U Bee docs.google.com @ P Corporation issued 10,000 shares of common stock with a fair value of $25…
A: The difference between purchase consideration and net assets leads to goodwill. In the given case,…
Q: On June 30 201 8 Darent Company sold some land to its subsidiary for $2
A: As parent company sold its land to subsidiry for a gian of 120,000…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Brandt Corporation had sales revenue of 500,000 for the current year. For the year, its cost of goods sold was 240,000, its operating expenses were 50,000, its interest revenue was 2,000, and its interest expense was 12,000. Brandts income tax rate is 30%. Prepare Brandts multiple-step income statement for the current year.Juroe Company provided the following income statement for last year: Juroes balance sheet as of December 31 last year showed total liabilities of 10,250,000, total equity of 6,150,000, and total assets of 16,400,000. Refer to the information for Juroe Company on the previous page. Also, assume that Juroes total assets at the beginning of last year equaled 17,350,000 and that the tax rate applicable to Juroe is 40%. Required: Note: Round answers to two decimal places. 1. Calculate the average total assets. 2. Calculate the return on assets.Smoltz Company reported the following information for the current year: cost of goods sold, $252,500; increase in inventory, $21,700; and increase in accounts payable, $12,200. What is the amount of cash paid to suppliers that Smoltz would report on its statement of cash flows under the direct method? a. $218,600 c. $262,000 b. $243,000 d. $286,400
- Chasse Building Supply Inc. reported net cash provided by operating activities of $243,000, capital expenditures of $112,900, cash dividends of $35,800, and average maturities of long-term debt over the next 5 years of $122,300. What is Chasses free cash flow and cash flow adequacy ratio? a. $94,300 and 0.77, respectively c. $130,100 and 1.06, respectively b. $94,300 and 0.82, respectively d. $165,900 and 1.36, respectivelyShaquille Corporation began the current year with inventory of 50,000. During the year, its purchases totaled 110,000. Shaquille paid freight charges of 8,500 for those purchases. At the end of the year, Shaquille had inventory of 47,800. Prepare a schedule to determine Shaquille's cost of goods sold for the current year.Comprehensive The following are Farrell Corporations balance sheets as of December 31, 2019, and 2018, and the statement of income and retained earnings for the year ended December 31, 2019: Additional information: a. On January 2, 2019, Farrell sold equipment costing 45,000, with a book value of 24,000, for 19,000 cash. b. On April 2, 2019, Farrell issued 1, 000 shares of common stock for 23,000 cash. c. On May 14, 2019, Farrell sold all of its treasury stock for 25,000 cash. d. On June 1, 2019, Farrell paid 50, 000 to retire bonds with a face value (and book value) of 50, 000. e. On July 2, 2019, Farrell purchased equipment for 63, 000 cash. f. On December 31, 2019, land with a fair market value of 150,000 was purchased through the issuance of a long-term note in the amount of 150,000. The note bears interest at the rate of 15% and is due on December 31, 2021. g. Deferred taxes payable represent temporary differences relating to the use of accelerated depreciation methods for income tax reporting and the straight-line method for financial statement reporting. Required: 1. Prepare a spreadsheet to support a statement of cash flows for Farrell for the year ended December 31, 2019, based on the preceding information. 2. Prepare the statement of cash flows. (Appendix 21.1) Spreadsheet and Statement Refer to the information for Farrell Corporation in P21-13. Required: 1. Using the direct method for operating cash flows, prepare a spreadsheet to support a 2019 statement of cash flows. (Hint: Combine the income statement and December 31, 2019, balance sheet items for the adjusted trial balance. Use a retained earnings balance of 291,000 in this adjusted trial balance.) 2. Prepare the statement of cash flows. (A separate schedule reconciling net income to cash provided by operating activities is not necessary.)
- Comprehensive The following are Farrell Corporations balance sheets as of December 31, 2019, and 2018, and the statement of income and retained earnings for the year ended December 31, 2019: Additional information: a. On January 2, 2019, Farrell sold equipment costing 45,000, with a book value of 24,000, for 19,000 cash. b. On April 2, 2019, Farrell issued 1,000 shares of common stock for 23,000 cash. c. On May 14, 2019, Farrell sold all of its treasury stock for 25,000 cash. d. On June 1, 2019, Farrell paid 50,000 to retire bonds with a face value (and book value) of 50,000. e. On July 2, 2019, Farrell purchased equipment for 63,000 cash. f. On December 31, 2019. land with a fair market value of 150,000 was purchased through the issuance of a long-term note in the amount of 150,000. The note bears interest at the rate of 15% and is due on December 31, 2021. g. Deferred taxes payable represent temporary differences relating to the use of accelerated depreciation methods for income tax reporting and the straight-line method for financial statement reporting. Required: 1. Prepare a spreadsheet to support a statement of cash flows for Farrell for the year ended December 31, 2019, based on the preceding information. 2. Prepare the statement of cash flows.The comparative balance sheet of Prime Sports Gear, Inc., at December 31, the end of the fiscal year, is as follows: Additional data obtained from the records of Prime Sports Gear are as follows: a. Net income for 2013 was 121,610. b. Depreciation reported on income statement for 2013 was 46,500. c. Purchased 165,000 of new equipment, putting 90,000 cash down and issuing 75,000 of bonds for the balance. d. Old equipment originally costing 19,500, with accumulated depreciation of 7,950, was sold for 8,000. e. Retired 60,000 of bonds. f. Declared cash dividends of 64,000. g. Issued 1,500 shares of common stock at 27 cash per share. Open the file CASHFLOW from the website for this book at cengagebrain.com. First, enter the formulas. Then, complete the worksheet in the manner described next. According to the problem, cash increased from 39,600 to 67,210 during the year. This is a 27,610 increase. To record this increase on the worksheet, move to row 17. Since this is the first account you are analyzing, enter the letter a in column C. Then enter 27610 in column D (a debit since cash increased). This brings the year-end balance (column G) to 67,210, its proper balance. Now move to the bottom part of the statement where you see the categories Operating Activities, Investing Activities, and so on. The credit side of the entry has to be entered here. The proper space for this cash entry is on row 59. Enter the letter a in cell E59 and 27610 in cell F59. Notice the totals at the bottom of the page (row 60) now agree. The next account balance that changed is accounts receivable. It increased by 9,035. To enter this change on the worksheet, enter the letter b in cell C18 and 9035 in cell D18 (again, a debit since accounts receivable increased). This brings the year-end balance in column G to 121,250, its proper balance. The change in accounts receivable balance is an operating activity adjustment (as explained in your textbook). Enter the credit side of this entry in cells E34 and F34, and enter the explanation Increase in accounts receivable in cell A34. Note: Your textbook probably shows Net income as the first item under Operating Activities. We will get to that later. The sequence in which you enter items on this worksheet is not important. All other balance sheet accounts must be analyzed in the same manner, placing appropriate debit or credit entries in the top part of the worksheet to obtain the proper balances in column G, and then entering the second side of the entry in the appropriate row on the bottom part of the worksheet. You should use letter references to identify all entries. Also, you must enter a description of the entry in column A under the appropriate activity category. Although a sequence of analyzing the balance sheet from top to bottom is suggested here, this order is not necessary. As mentioned earlier, your textbook may specify a different sequence. Also, note that some accounts may have both debit and credit adjustments to them. The worksheet is not a substitute for a statement of cash flows, but it does provide you with all the numbers you need to properly prepare one. You will be done with your analysis when: a. The individual account balances at December 31, 2013, as shown on the worksheet (column G) equal those shown in the given problem data. b. The transaction column totals are equal (cells D60 and F60). c. The sum of the operating, investing, and financing activities (cell G59) equals the change in cash (cell D59 or F59). When you are finished, enter your name in cell A1. Save your completed file as CASHFLOW2. Print the worksheet when done. Also print your formulas. Check figure: Total credits at 12/31/2013 (cell G31), 860,460.Bloom Company had beginning unadjusted retained earnings of 400,000 in the current year. At the beginning of the current year, Bloom changed its inventory method from LIFO to FIFO, and the cumulative effect (net of taxes) of this change was 28,000. In addition, Bloom earned net income of 150,000 and paid dividends of 30,000 in the current year. Prepare Blooms retained earnings statement for the current year.
- The 2021 income statement of Adrian Express reports sales of $14,400,000, cost of goods sold of $8,387,500, and net income of $1,550,000. Balance sheet information is provided in the following table. ADRIAN EXPRESSBalance SheetsDecember 31, 2021 and 2020 2021 2020 Assets Current assets: Cash $ 550,000 $ 710,000 Accounts receivable 1,300,000 950,000 Inventory 1,700,000 1,350,000 Long-term assets 4,750,000 4,190,000 Total assets $ 8,300,000 $ 7,200,000 Liabilities and Stockholders' Equity Current liabilities $ 1,970,000 $ 1,610,000 Long-term liabilities 2,250,000 2,350,000 Common stock 1,900,000 1,900,000 Retained earnings 2,180,000 1,340,000 Total liabilities and stockholders' equity $ 8,300,000 $ 7,200,000 Industry averages for the following four risk ratios are as follows:…The 2021 income statement of Adrian Express reports sales of $22,710,000, cost of goods sold of $13,100,000, and net income of $2,380,000. Balance sheet information is provided in the following table. ADRIAN EXPRESSBalance SheetsDecember 31, 2021 and 2020 2021 2020 Assets Current assets: Cash $ 1,040,000 $ 1,030,000 Accounts receivable 2,025,000 1,355,000 Inventory 2,595,000 1,925,000 Long-term assets 5,240,000 4,510,000 Total assets $ 10,900,000 $ 8,820,000 Liabilities and Stockholders' Equity Current liabilities $ 2,294,000 $ 1,964,000 Long-term liabilities 2,706,000 2,704,000 Common stock 2,325,000 2,155,000 Retained earnings 3,575,000 1,997,000 Total liabilities and stockholders' equity $ 10,900,000 $ 8,820,000 Industry averages for the following profitability ratios are as follows:…Power Company's income statement for 2021 is given below. If inventory balances are 5000 in 2021 and 9000 in 2020, and if accounts payables balances are 7000 in 2021 and 12000 in 2020. Which of the following is cash payments for COGS (cash inputs)? Sales 75,000 -COGS 55,000 Gross Profit 20,000 -Operating Expenses 8,000 Operating Profit 12,000 -Interest Expense 2,000 Profit before Tax 10,000 -Tax 3,000 Net Profit 7,000 Select one: a. 54000 b. 56000 c. 59000 d. 63000 Clear my choice ◄ CLO ASSESSMENT