K The income statement and additional data of Newton Travel Products, Inc., follow: (Click the icon to view the income statement.) (Click the icon to view the additional data.) Requirements 1. Prepare Newton's statement of cash flows for the year ended December 31, 2020, using the indirect method. 2. Evaluate Newton's cash flows for the year. In your evaluation, mention all three categories of cash flows and give the reason for your evaluation

K The income statement and additional data of Newton Travel Products, Inc., follow: (Click the icon to view the income statement.) (Click the icon to view the additional data.) Requirements 1. Prepare Newton's statement of cash flows for the year ended December 31, 2020, using the indirect method. 2. Evaluate Newton's cash flows for the year. In your evaluation, mention all three categories of cash flows and give the reason for your evaluation

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter14: Statement Of Cash Flows

Section: Chapter Questions

Problem 37E: During 20X1, Craig Company had the following transactions: a. Purchased 300,000 of 10-year bonds...

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Oz Corporation has the following assets at year-end: Patents (net), 26,000; Land, 50,000; Buildings, 175,000; Accumulated Depreciation: Buildings, 57,500; Investment in Held-to-Maturity Bonds, 12,000; Equipment, 95,000; and Accumulated Depreciation: Equipment, 25,000. Prepare the property, plant, and equipment section of Ozs year-end balance sheet.
Noncurrent Asset Held for Sale The statement of financial position of an entity on December 31, 20x1 shows the following information: Cash and cash equivalents 600,000 Trade and other receivables 1,200,000 Inventories 3,600,000 Investment property (Cost model) 1,400,000 Investment in associate 800,000 Property, plant and equipment 5,000,000 Total assets 12,600,000 Trade and other payables 4,900,000 Current tax payable 1,800,000 Deferred tax liability 700,000 Ordinary share capital 2,000,000 Retained earnings 2,700,000 Other components of equity 500,000 Total liabilities & equity 12,600,000 On December 31, 20x1, the entity commits to a plan to sell the investment property. All conditions of PFRS 5 are met. The fair value of the investment property on this date is P1,600,000 while the estimate of costs to sell is P50,000. Requirement: Prepare the classified statement of financial position of the entity as at December 31, 20x1.
Noncurrent Asset Held for Sale The statement of financial position of an entity on December 31, 20x1 shows the following information: Cash and cash equivalents 600,000 Trade and other receivables 1,200,000 Inventories 3,600,000 Investment property (Cost model) 1,400,000 Investment in associate 800,000 Property, plant and equipment 5,000,000 Total assets 12,600,000 Trade and other payables 4,900,000 Current tax payable 1,800,000 Deferred tax liability 700,000 Ordinary share capital 2,000,000 Retained earnings 2,700,000 Other components of equity 500,000 Total liabilities & equity 12,600,000 On December 31, 20x1, the entity commits to a plan to sell the investment property. All conditions of PFRS 5 are met. The fair value of the investment property on this date is P1,600,000 while the estimate of costs to sell is P50,000. Explain why is it considered as a noncurrent asset held for sale. And what should be the journal entry
The following balance sheets have been prepared on December 31, Year 13 for Albert Corp. and Becky Inc.Balance Sheets Albert & Becky Cash $30,000 & $50,000Accounts Receivable $180,000 & $100,000Inventory $70,000 & $30,000Investment in Becky $100,000Property, Plant and Equipment* $600,000 & $140,000Accumulated Depreciation ($280,000) & ($40,000)Total Assets $700,000 & $280,000 * Includes landCurrent Liabilities $120,000 & $30,000Long-Term Debt $400,000 & $20,000Common shares $90,000 & $40,000Retained Earnings $90,000 & $190,000Liabilities and Equity $700,000 & $280,000Additional Information: Albert uses the cost method to account for its 50% interest in Becky, which it acquired on January 1, Year 10 for $100,000. On that date, Becky's retained earnings were $20,000 and common shares $40,000. The acquisition differential was fully amortized by the end of Year 13. Albert sold Land to Becky during Year 12 and recorded a $15,000 gain on the…
A primary beneficiary company has established control over a VIE by guaranteeing its long term debt and by establishing an income distribution contract. The balance sheet of the VIE on the acquisition date was as follows: Current assets . . . . . . . . . . . . 100,000 Land and buildings . . . . . . . 600,000 Accumulated depreciation (100,000) Equipment . . . . . . . . . . . . . . . 300,000 Accumulated depreciation . (50,000) Total assets. . . . . . . . . . . . . . . 850,000 Current liabilities . . .. . . . . . . . 70,000 Long term note payable . . 700,000 Common stock, $1 par . . . . . . 5,000 Paid-in excess of par . . . . . .. . 45,000 Retained earnings . . . . . . .. . . 30,000 Total liabilities and equity .. 850,000 The fair values of the land and buildings are $800,000. The fair value of the equipment is $400,000. The fair value of the company’s net (of debt) assets is estimated to be $600,000. Prepare the distribution of excess schedule.
The statement of financial position and profit or loss of an entity on December 31, 20x1 shows the following information: Cash and cash equivalents 1,500,000Trade and other receivables 3,000,000 Inventories 9,000,000Investment property (Cost model) 3,500,000Investment in associate 2,000,000Property, plant and equipment 12,500,000Total assets 31,500,000 Trade and other payables 12,250,000Current tax payable 4,500,000Deferred tax liability 1,750,000Ordinary share capital 5,000,000Retained earnings 6,750,000Other components of equity 1,250,000Total liabilities & equity 31,500,000Revenue 5,600,000Cost of sales (2,000,000)Gross profit 3,600,000Distribution of cost (780,000)Administrative expenses (900,000) Impairment loss (reversal) on assets held for saleFinance costs (300,000)Share of profit of associates 240,000Profit for the period from continuing operations 1,860,000 Discontinued Operations:Profit for the period from discontinued operations…
On August 1, Hyde, Inc. exchanged productive assets with Wiggins, Inc. Hyde's asset is referred to below as "Asset A," and Wiggins' is referred to as "Asset B." The following facts pertain to these assets.Asset AOriginal Cost $96,000Accumulated Depreciation (to date of exchange) $40,000Fair Value at date of exchange $60,000Cash paid by Hyde, Inc $15,000Asset BOriginal Cost $110,000Accumulated Depreciation (to date of exchange) $47,000Fair Value at date of exchange $75,000Cash paid by Hyde, Inc $15,000Instructions:(a) Assuming that the exchange of Assets A and B has commercial substance, record the exchange for both Hyde, Inc. and Wiggins, Inc. in accordance with generally accepted accounting principles.(b) Assuming that the exchange of Assets A and B lacks commercial substance, record the exchange for both Hyde, Inc. and Wiggins, Inc. in accordance with generally accepted accounting principles.
At the beginning of current year, Melancholy Company reported the following property, plant and equipment: Land 3,500,000 Land improvements 900,000 Building 6,000,000 Equipment 1,500,000 The following transactions occurred during the current year: * A tract of land was acquired for P1,250,000 and intended definitely for use as future building site. * A plant facility consisting of land and building was acquired from another entity in exchange for 100,000 Melancholy shares. On the acquisition date, the share had a closing market price of P45 on a stock exchange. The land facility was carried at P1,000,000 for land and P3,000,000 for the building at the exchange date. Current appraised values for the land and building, respectively, are P1,200,000 and P2,400,000. * Expenditures totaling P750,000 were made in early part of the year for new parking lot, street and sidewalk at the entity's various plant locations. These expenditures had an estimated useful life of 15 years *…
At the beginning of current year, Melancholy Company reported the following property, plant and equipment: Land 3,500,000 Land improvements 900,000 Building 6,000,000 Equipment 1,500,000 The following transactions occurred during the current year: * A tract of land was acquired for P1,250,000 and intended definitely for use as future building site. * A plant facility consisting of land and building was acquired from another entity in exchange for 100,000 Melancholy shares. On the acquisition date, the share had a closing market price of P45 on a stock exchange. The land facility was carried at P1,000,000 for land and P3,000,000 for the building at the exchange date. Current appraised values for the land and building, respectively, are P1,200,000 and P2,400,000. * Expenditures totaling P750,000 were made in early part of the year for new parking lot, street and sidewalk at the entity's various plant locations. These expenditures had an estimated useful life of 15 years *…
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