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Net Fixed Assets and Depreciation [L04] On the balance sheet, the net fixed assets (NFA) account is equal to the gross fixed assets (FA) account (which records the acquisition cost of fixed assets) minus the accumulated depreciation (AD) account (which records the total depreciation taken by the firm against its fixed assets). Using the fact that NFA FA - AD, show that the expression given in the chapter for net capital spending, NFAend - NFAbez +D (where D is the depreciation expense during the year), is equivalent to FAend - FAbeg- Use the following information for Taco Swell, Inc., for Problems 21 and 22 (assume the tax rate is 21 percent): 2017 2018 Sales $16,549 $18,498 Depreciation 2,376 2,484 Cost of goods sold 5,690 6,731 Other expenses 1,353 1,178 Interest 1,110 1,325 Cash S,676 9,247 Accounts receivable 11,488 13,482 Short-term notes payable 1,674 1,641 Long-term debt 29,060 35.229 Net fixed assets 72,770 77,610 Accounts payable 6,269 6,640 Inventory 20,424 21,862 Dividends 1,979 2,314 Financial Statements [LO1] Draw up an income statement and balance sheet for this company for 2017 and 2018. Calculating Cash Flow [LO4] For 201s, calculate the cash flow from assets, cash flow to creditors, and cash flow to stockholders.

Net Fixed Assets and Depreciation [L04] On the balance sheet, the net fixed assets (NFA) account is equal to the gross fixed assets (FA) account (which records the acquisition cost of fixed assets) minus the accumulated depreciation (AD) account (which records the total depreciation taken by the firm against its fixed assets). Using the fact that NFA FA - AD, show that the expression given in the chapter for net capital spending, NFAend - NFAbez +D (where D is the depreciation expense during the year), is equivalent to FAend - FAbeg- Use the following information for Taco Swell, Inc., for Problems 21 and 22 (assume the tax rate is 21 percent): 2017 2018 Sales $16,549 $18,498 Depreciation 2,376 2,484 Cost of goods sold 5,690 6,731 Other expenses 1,353 1,178 Interest 1,110 1,325 Cash S,676 9,247 Accounts receivable 11,488 13,482 Short-term notes payable 1,674 1,641 Long-term debt 29,060 35.229 Net fixed assets 72,770 77,610 Accounts payable 6,269 6,640 Inventory 20,424 21,862 Dividends 1,979 2,314 Financial Statements [LO1] Draw up an income statement and balance sheet for this company for 2017 and 2018. Calculating Cash Flow [LO4] For 201s, calculate the cash flow from assets, cash flow to creditors, and cash flow to stockholders.

College Accounting, Chapters 1-27
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter15: Financial Statements And Year-end Accounting For A Merchandising Business
Section: Chapter Questions
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Net Fixed Assets and Depreciation [L04] On the balance sheet, the net fixed assets (NFA) account is equal to the gross fixed assets (FA) account (which records the acquisition cost of fixed assets) minus the accumulated depreciation (AD) account (which records the total depreciation taken by the firm against its fixed assets). Using the fact that NFA = FA – AD, show that the expression given in the chapter for net capital spending, NFAend – NFAbez + D (where D is the depreciation expense during the year), is equivalent to FAend - FAbeg Use the following information for Taco Swell, Inc., for Problems 21 and 22 (assume the tax rate is 21 percent): 2017 2018 Sales $16,549 $18,498 Depreciation 2,376 2,484 Cost of goods sold 5,690 6,731 Other expenses 1,353 1,178 Interest 1,110 1,325 Cash S,676 9.247 Accounts receivable 11,488 13,482 Short-term notes payable 1,674 1,641 Long-term debt 29,060 35,229 Net fixed assets 72,770 77,610 Accounts payable 6,269 6,640 Inventory 20,424 21,862 Dividends 1,979 2,314 Financial Statements [LO1] Draw up an income statement and balance sheet for this company for 2017 and 2018. Calculating Cash Flow [LO4] For 2018, calculate the cash flow from assets, cash flow to creditors, and cash flow to stockholders.
Transcribed Image Text:Net Fixed Assets and Depreciation [L04] On the balance sheet, the net fixed assets (NFA) account is equal to the gross fixed assets (FA) account (which records the acquisition cost of fixed assets) minus the accumulated depreciation (AD) account (which records the total depreciation taken by the firm against its fixed assets). Using the fact that NFA = FA – AD, show that the expression given in the chapter for net capital spending, NFAend – NFAbez + D (where D is the depreciation expense during the year), is equivalent to FAend - FAbeg Use the following information for Taco Swell, Inc., for Problems 21 and 22 (assume the tax rate is 21 percent): 2017 2018 Sales $16,549 $18,498 Depreciation 2,376 2,484 Cost of goods sold 5,690 6,731 Other expenses 1,353 1,178 Interest 1,110 1,325 Cash S,676 9.247 Accounts receivable 11,488 13,482 Short-term notes payable 1,674 1,641 Long-term debt 29,060 35,229 Net fixed assets 72,770 77,610 Accounts payable 6,269 6,640 Inventory 20,424 21,862 Dividends 1,979 2,314 Financial Statements [LO1] Draw up an income statement and balance sheet for this company for 2017 and 2018. Calculating Cash Flow [LO4] For 2018, calculate the cash flow from assets, cash flow to creditors, and cash flow to stockholders.
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