Homework Help is Here – Start Your Trial Now!
Business
Accounting
I have previously asked this question! The commas in the table do not line up on the answer provided.  For example the net income is 805,000 you provided 8,05,000 Also please explain how you got the purchase of marketable securities, sale of long term investments, purchase of property, dividends paid a what is debentures?

I have previously asked this question! The commas in the table do not line up on the answer provided.  For example the net income is 805,000 you provided 8,05,000 Also please explain how you got the purchase of marketable securities, sale of long term investments, purchase of property, dividends paid a what is debentures?

Financial Accounting: The Impact on Decision Makers
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter12: The Statement Of Cash Flows
Section: Chapter Questions
Problem 12.24MCE
See similar textbooks
icon
Related questions
Question

I have previously asked this question! The commas in the table do not line up on the answer provided.  For example the net income is 805,000 you provided 8,05,000

Also please explain how you got the purchase of marketable securities, sale of long term investments, purchase of property, dividends paid a what is debentures?

Auto Zoom 119 As of Year-End ($ thousands) 2020 2019 Liabilities & Shareholders' Equity Accounts payable $ 890,000 $ 850,000 Short-term bank debt 190,000 Total liabilities... 1,080,000 850,000 Shareholders' equity Common stock, $10 par value Additional paid-in-capital. Retained earnings... $ 775,000 380,000 870,000 $ 675,000 300,000 415,000 Total shareholders' equity 2,025,000 1,390,000 Total liabilities & shareholders' equity $3,105,000 $2,240,000 LINCOLN CORPORATION Consolidated Income Statement For Year Ended ($ thousands) 2020 2019 $1,448,000 513,000 $1,200,000 420,000 Revenues . Less: Cost of goods sold Gross margin ... Less: Selling, general & administrative expenses 935,000 150,000 780,000 120,000 Operating income.. Gain on sale of investments. 785,000 70,000 660,000 Net income before taxes. . 855,000 50,000 660,000 11,000 Less: Income taxes. . Net income after taxes $ 805,000 $ 649,000 The footnotes to the Lincoln Corporation's financial statements revealed the following additional information: 1. Property and equipment costing $450 million was sold for its book value of $200 million. 2. Long-term investments were sold for $150 million, which included a gain of $70 million. Required Using the above financial data for the Lincoln Corporation, prepare the firm's statement of cash flow for 2020 using the indirect method. What does the company's statement of cash flow reveal about the business's financial health?
Transcribed Image Text:Auto Zoom 119 As of Year-End ($ thousands) 2020 2019 Liabilities & Shareholders' Equity Accounts payable $ 890,000 $ 850,000 Short-term bank debt 190,000 Total liabilities... 1,080,000 850,000 Shareholders' equity Common stock, $10 par value Additional paid-in-capital. Retained earnings... $ 775,000 380,000 870,000 $ 675,000 300,000 415,000 Total shareholders' equity 2,025,000 1,390,000 Total liabilities & shareholders' equity $3,105,000 $2,240,000 LINCOLN CORPORATION Consolidated Income Statement For Year Ended ($ thousands) 2020 2019 $1,448,000 513,000 $1,200,000 420,000 Revenues . Less: Cost of goods sold Gross margin ... Less: Selling, general & administrative expenses 935,000 150,000 780,000 120,000 Operating income.. Gain on sale of investments. 785,000 70,000 660,000 Net income before taxes. . 855,000 50,000 660,000 11,000 Less: Income taxes. . Net income after taxes $ 805,000 $ 649,000 The footnotes to the Lincoln Corporation's financial statements revealed the following additional information: 1. Property and equipment costing $450 million was sold for its book value of $200 million. 2. Long-term investments were sold for $150 million, which included a gain of $70 million. Required Using the above financial data for the Lincoln Corporation, prepare the firm's statement of cash flow for 2020 using the indirect method. What does the company's statement of cash flow reveal about the business's financial health?
PROBLEMS TA 1, 2 Р3.22 Statement of Cash Flow. Presented below are the financial statements for the Lincoln Corporation, as of year-end 2020 and 2019. omewo MBC LINCOLN CORPORATION Consolidated Balance Sheets As of Year-End ($ thousands) 2020 2019 Assets Current Cash. 2$ 23,000 200,000 590,000 587,000 2$ 90,000 Marketable securities Accounts receivable (net) . Inventory.. 440,000 615,000 Total current assets 1,400,000 1,145,000 Noncurrent Long-term investments 310,000 390,000 Property & equipment.. Less: Accumulated depreciation. 1,800,000 (500,000) 1,100,000 (500,000) Property & equipment (net). 1,300,000 600,000 Intangibles (net) 95,000 105,000 Total noncurrent assets 1,705,000 1,095,000 Total assets $3,105,000 $2,240,000 continued
Transcribed Image Text:PROBLEMS TA 1, 2 Р3.22 Statement of Cash Flow. Presented below are the financial statements for the Lincoln Corporation, as of year-end 2020 and 2019. omewo MBC LINCOLN CORPORATION Consolidated Balance Sheets As of Year-End ($ thousands) 2020 2019 Assets Current Cash. 2$ 23,000 200,000 590,000 587,000 2$ 90,000 Marketable securities Accounts receivable (net) . Inventory.. 440,000 615,000 Total current assets 1,400,000 1,145,000 Noncurrent Long-term investments 310,000 390,000 Property & equipment.. Less: Accumulated depreciation. 1,800,000 (500,000) 1,100,000 (500,000) Property & equipment (net). 1,300,000 600,000 Intangibles (net) 95,000 105,000 Total noncurrent assets 1,705,000 1,095,000 Total assets $3,105,000 $2,240,000 continued
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 4 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
Recommended textbooks for you
Financial Accounting: The Impact on Decision Make…
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Fundamentals Of Financial Management, Concise Edi…
Fundamentals Of Financial Management, Concise Edi…
Finance
ISBN:
9781337902571
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS