Mesflo Enterprise, Income Statement For the Year Ended 31t December, 2020 Sales $442 500 Cost of goods sold Operating expenses Interest expense Income tax expense Depreciation expense $225 000 162 000 5 250 11 250 18 000 (421 500) (4 500) Loss on sale of a plant asset Gain on retirement of debt Net Income 12 000 28 500 Additional Information 1. All sales were on credit 2. All purchases were on credit 3. Plant assets that cost $52 500 were purchased for $7 500 and issuing $45 000 of bonds payable to the seller 4. Plant assets with an original cost of $22 500 and accumulated depreciation of $9 000 were sold for $9 000 cash. The result was a loss of $4 500. 5. The proceeds from issuing 2 250 ordinary shares were $11 250. 6. The $12 000 gain on retirement of bonds resulted from paying $13 500 to retire bonds that had a book value of $25 500. 7. Cash dividends of $10 500 were declared and paid. Required: 1. Prepare a statement of cash flows that reports the cash inflows and outflows from operating activities according to the direct method. 2. Show the reconciliation of net income to cash provided by operating activities.

Mesflo Enterprise, Income Statement For the Year Ended 31t December, 2020 Sales $442 500 Cost of goods sold Operating expenses Interest expense Income tax expense Depreciation expense $225 000 162 000 5 250 11 250 18 000 (421 500) (4 500) Loss on sale of a plant asset Gain on retirement of debt Net Income 12 000 28 500 Additional Information 1. All sales were on credit 2. All purchases were on credit 3. Plant assets that cost $52 500 were purchased for $7 500 and issuing $45 000 of bonds payable to the seller 4. Plant assets with an original cost of $22 500 and accumulated depreciation of $9 000 were sold for $9 000 cash. The result was a loss of $4 500. 5. The proceeds from issuing 2 250 ordinary shares were $11 250. 6. The $12 000 gain on retirement of bonds resulted from paying $13 500 to retire bonds that had a book value of $25 500. 7. Cash dividends of $10 500 were declared and paid. Required: 1. Prepare a statement of cash flows that reports the cash inflows and outflows from operating activities according to the direct method. 2. Show the reconciliation of net income to cash provided by operating activities.

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter9: Metric-analysis Of Financial Statements

Section: Chapter Questions

Problem 9.23E: Unusual income statement items Assume that the amount of each of the following items is material to...

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Unusual income statement items Assume that the amount of each of the following items is material to the financial statements. Classify each item as either normally recurring (NR) or unusual (U) items. If unusual item, then specify if it is a discontinued operations item (DO). a. Interest revenue on notes receivable. b. Gain on sale of segment of the company's operations that manufactures bottling equipment. c.Loss on sale of investments in stocks and bonds. d. Uncollectible accounts expense. e. Uninsured flood loss. (Hood insurance is unavailable because of periodic Hooding in the area.)
Refer to RE22-2. Assume Heller Company had sales revenue of 510,000 in 2019 and 650,000 in 2020. Prepare Hellers partial income statements (through gross profit) for 2019 and 2020. RE22-2 Heller Company began operations in 2019 and used the LIFO method to compute its 300,000 cost of goods sold for that year. At the beginning of 2020, Heller changed to the FIFO method. Heller determined that its cost of goods sold under FIFO would have been 250,000 in 2019. For 2020, Hellers cost of goods sold under FIFO was 360,000, while it would have been 410,000 under LIFO. Heller is subject to a 21% income tax rate. Compute the cumulative effect of the retrospective adjustment on prior years income (net of taxes) that Heller would report on its retained earnings statement for 2020.
Recording Various Liabilities Plymouth Electronics had the following transactions that produced liabilities during 2020: a. Purchased merchandise on credit for $80,000. ( Note: Assume a periodic inventory system.) Year-end wages of $40,000 were incurred, but not paid. Related federal income taxes of $13,000 and Medicare taxes of $580 were withheld. Employee wages are all above the Social Security maximum, so only Medicare was paid. b. Year-end estimated income taxes payable, but unpaid, for the year were $113,615. c. Sold merchandise on account for $3,636, including state sales taxes of $180. ( Note: Assume a periodic inventory system.) d. Employers share of Medicare taxes for the period was $580. The taxes will be paid at a later date. e. Borrowed cash under a 180-day, 8%, $155,000 note. Required: Prepare the entry to record each of these transactions (treat each transaction independently).
Refer to the information for Cox Inc. above. What amount would Cox record as depreciation expense for 2019 if the units-of-production method were used ( Note: Round your answer to the nearest dollar)? a. $179,400 b. $184,000 c. $218,400 d. $224,000
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Good Truck Berhad Income Statement for The Year ending 31 Dec 2019 (RM in millions) Net sales 8,450 Less: Cost of goods sold 7,240 Less: Depreciation 400 Earnings before interest and taxes 810 Less: Interest paid 70 Taxable Income 740 Less: Taxes 259 Net income 481 Good Truck Berhad Balance Sheets as at 31 December 2019 (RM in millions) Assets Liabilities and Equities Cash 140 Accounts payable 1,120 Accounts rec. 780 Long-term debt 1,210 Inventory 1,520 Common stock 3,000 Total 2,440 Net fixed assets 3,600 Retained earnings 710 Total assets 6,040 Total liabilities & equity 6,040…
Good Truck Berhad Income Statement for The Year ending 31 Dec 2019 (RM in millions) Net sales 8,450 Less: Cost of goods sold 7,240 Less: Depreciation 400 Earnings before interest and taxes 810 Less: Interest paid 70 Taxable Income 740 Less: Taxes 259 Net income 481 Good Truck Berhad Balance Sheets as at 31 December 2019 (RM in millions) Assets Liabilities and Equities Cash 140 Accounts payable 1,120 Accounts rec. 780 Long-term debt 1,210 Inventory 1,520 Common stock 3,000 Total 2,440 Retained earnings 710 Net fixed assets 3,600 Total assets 6,040 Total liabilities & equity 6,040 You are required to calculate: f. Debt ratio g. Time Interest Earned h. Net profit margin…
Use the following information to answer this question: Windswept, Incorporated 2021 Income Statement ($ in millions) Net sales $ 9,250 Cost of goods sold 7,550 Depreciation 330 Earnings before interest and taxes $ 1,370 Interest paid 82 Taxable income $ 1,288 Taxes 270 Net income $ 1,018 Windswept, Incorporated 2020 and 2021 Balance Sheets ($ in millions) 2020 2021 2020 2021 Cash $ 200 $ 215 Accounts payable $ 1,380 $ 1,587 Accounts received 950 850 Long-term debt 1,000 1,178 Inventory 1,620 1,580 Common stock 3,200 2,950 Total $ 2,770 $ 2,645 Retained earnings 510 760 Net fixed assets 3,320 3,830 Total assets $ 6,090 $ 6,475 Total liabilities & equity $ 6,090 $ 6,475 Windswept, Incorporated, has 350 million shares of stock outstanding. Its price-earnings ratio for 2021 is 12. What is the market price per share of stock?
The following are the financial statement Kin Ltd. for the year ended 31 March 2020: Kin Ltd. Income statement For the year ended 31 March 2020 $”M” Revenue 1276.50 Cost of sales (907.00) 369.50 Distribution costs (62.50) Administrative expenses (132.00) 175.00 Interest received 12.50 Interest paid (37.50) 150.00 Tax (70.00) Profit after tax 80.00 Kin Ltd. Statement of financial position as at 31 March 2020 2019 $”M” $”M” ASSETS: Non- current assets: Property, plant and equipment 190 152.5 Intangible assets 125 100 Investments 12.5 Current assets: Inventories 75 51 Receivables 195 157.5 Short-term investment 25 Cash in hand 1 0.5 Total assets 611 474 Equity and liabilities: Equity: Share capital (10 million ordinary shares of $ 10 per value) 100 75 Share premium 80 75 Revolution reserve 50 45.5 Retained earnings 130 90 Non-current liabilities:…
Show the solution in good accounting form Orange Company’s ledger revealed the following account balances as of December 31, 2020: Unamortized discount on bonds payable P120,000; Organization costs P100,000; Losses in early years of company P450,000; Trademarks P750,000 Patents P150,000; Amount set up by BOD as goodwill P300,000. How much should be presented as intangible assets shown In the statement of financial position?