Requirements: Prepare the Statement of Cash Flows in Direct and Indirect Method and Balance Sheet.D.P 120,00075,00020,000204,50022,000fiscal year ending May 31 200B:P 40,860 Mortgage Payable4,000 M. Lanza Capital57,880 M Lanza Drawing3,280 Service Income10,000 Rental Income6,000 Interest Income1,260 Salaries Expense40 Rent Expense36,800 Utilities Expense1,840 Supplies Expense50,000 Advertising ExpenseAccum. Dep’n.- Office Eqpmt. 2,500 Insurance ExpenseCashNote ReceivableAccounts ReceivableAllow. for Impairment LossPrepaid AdvertisingUnexpired InsuranceSupplies InventoryInterest ReceivableFurniture & Fixtures40114,60030,0008,2504,16040,00024,00012,000Accum. Dep'n.- Furn. & Fixt.Office EquipmentNote Payable (short-term)Accounts PayableUtilities PayableInterest Payable2,000 Taxes & Licenses24,250 Interest Expense4,250 Impairment Loss10 Depreciation - Furn. & Fixt2,000 Depreciation – Office Eqpmt.200280Unearned Rental840500

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Accounting

Prepare the Statement of Cash Flows in Direct and Indirect Method

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter9: Long-term Liabilities

Section: Chapter Questions

Problem 89E: Ratio Analysis Rising Stars Academy provided the following information on its 2019 balance sheet and...

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Ratio Analysis Rising Stars Academy provided the following information on its 2019 balance sheet and state mcnt of cash flows: Long-term debt S 4,400 Interest expense S 398 Total liabilities 8,972 Net income 559 Total assets 38,775 Interest payments 432 Total equity 29,803 Cash flows from operations 1.015 Operating income 1.223 Income tax expenses 266 Income taxes paid 150 Required: Calculate the following ratios for Rising Stars: (a) debt to equity, (b) debt to total assets, (c) long-term debt to equity, (d) times interest earned (accrual basis), and (e) times interest earned (cash basis). (Note: Round answers to three decimal places.) CONCEPTUAL CONNECTION Interpret these results. 3.What does it mean if a bond is callable
Extract of Balance sheet items as at 31 December 2019 OR Building 35000 Account receivables 3500 Capital 120000 Closing Stock 5000 Short term Loan 3000 Bank overdraft 4500 Cash 500 Long term loan 7500 Machinery 1650 Account payables 5000 Accumulated Depreciation 1000 Short term Investments 200 Copy rights 4500 Drawings 1000 Retained Earnings 7150 Rent Payable 1800 Calculate Total Current Liabilities Select one: a. 11300 OMR b. 14300 OMR c. 6800 OMR d. 11800 OMR
Calculate the following for Co. XYZ: c. Average collection period (365 days) d. Times interest earned Assets: Cash and marketable securities $400,000Accounts receivable 1,415,000Inventories 1,847,500Prepaid expenses 24,000Total current assets $3,686,500Fixed assets 2,800,000Less: accumulated depreciation 1,087,500Net fixed assets $1,712,500Total assets $5,399,000Liabilities: Accounts payable $600,000Notes payable 875,000Accrued taxes Total current liabilities $1,567,000Long-term debt 900,000Owner's equity Total liabilities and owner's equity Co. XYZ Income Statement: Net sales (all credit) $6,375,000Less: Cost of goods sold 4,375,000Selling and administrative expense 1,000,500Depreciation expense 135,000Interest expense Earnings before taxes $765,000Income taxes Net income Common stock dividends $230,000Change in retained earnings
Calculate Total Current Liabilities Extract of Balance sheet items as at 31 December 2020 OR Equipment 20000 Goodwill 4500 Creditors 1000 Land 35000 Account receivables 3500 Capital 11500 Closing Stock 15000 Loan 3000 Bank overdraft 3200 Cash 2500 Mortagage loan 7500 Machinery 1650 Trade payables 5700 Accumulated Depreciation (Equipment) 1000 Short term Investments 2200 Trade marks 6000 Drawings 1000 Retained Earnings 9150 Prepaid Expenses 2300 MC Select one: a. 25500 OMR b. 9900 OMR c. 91650 OMR d. 81250 OMR
Selected accounts of Noteworthy Communications at December 31, 20X6, follow:Accounts payable $15,100 Lori Stone, capital $67,100Accounts receivable 6,600 Note payable, long-term 27,800Accumulated depreciation - equipment 37,800 Other assets 3,600Accumulated depreciation- computers 11,600 Other current liabilities 4,700Equipment 114,400 Prepaid insurance 1,100Cash 16,500 Prepaid rent 6,600Service revenue 93,500 Salary expense 24,600Computers 22,700 Salary payable 3,900Interest payable 600 Supplies 2,500Unearned service revenue 5,400Required:i) Prepare Noteworthy’s classified balance sheet in report form as at4December 31, 20X6. Show totals for total assets, total liabilities andowner’s equity.
Extract of Balance sheet items as at 31 December 2019 OR Equipment 20000 Account receivables 3500 Retained earnings 11500 Inventories 5000 Loan 3000 Bank overdraft 1500 Cash and bank 500 Mortgage loan 7500 Furniture 1650 Trade payables 6000 Accumulated Depreciation (Equipment) 1000 Short term Investments 200 Goodwill 4500 Drawings 1000 Capital 7150 Prepaid Expenses 1300 Calculate Total Net Assets(Total Assets)? Select one: a. 35350 OMR b. 34350 OMR c.35650 OMR d. 30350 OMR
Extract of Balance sheet items as at 31 December 2020 OR Land 35000 Account receivables 3500 Capital 11500 Closing Stock 15000 Loan 3000 Bank overdraft 3200 Cash 2500 Mortagage loan 7500 Machinery 1650 Trade payables 5700 Accumulated Depreciation 1000 Short term Investments 2200 Trade marks 6000 Drawings 1000 Retained Earnings 7150 Prepaid Expenses 2300 Calculate Owners Equity Select one: a. None Of These b. 17650 OMR c. 8900 OMR d. 58250 OMR
25. Windsor Inc., a greeting card company, had the following statements prepared as of December 31, 2020. WINDSOR INC.COMPARATIVE BALANCE SHEETAS OF DECEMBER 31, 2020 AND 2019 12/31/20 12/31/19 Cash $6,100 $7,100 Accounts receivable 62,400 51,000 Short-term debt investments (available-for-sale) 34,700 18,100 Inventory 40,400 60,300 Prepaid rent 4,900 4,000 Equipment 154,100 130,600 Accumulated depreciation—equipment (34,900 ) (24,800 ) Copyrights 46,400 49,800 Total assets $314,100 $296,100 Accounts payable $46,500 $40,200 Income taxes payable 4,000 6,000 Salaries and wages payable 8,100 4,100 Short-term loans payable 7,900 10,100 Long-term loans payable 59,600 68,400 Common stock, $10 par 100,000 100,000…
Category Prior Year Current Year Accounts payable ??? ??? Accounts receivable 320,715 397,400 Accruals 40,500 33,750 Additional paid in capital 500,000 541,650 Cash 17,500 47,500 Common Stock 94,000 105,000 COGS 328,500 431,139.00 Current portion long-term debt 33,750 35,000 Depreciation expense 54,000 54,349.00 Interest expense 40,500 41,741.00 Inventories 279,000 288,000 Long-term debt 337,728.00 398,725.00 Net fixed assets 946,535 999,000 Notes payable 148,500 162,000 Operating expenses (excl. depr.) 126,000 162,280.00 Retained earnings 306,000 342,000 Sales 639,000 847,106.00 Taxes 24,750 48,618.00 What is the current year's return on assets (ROA)? (Round to 4 decimal places.)
5. The followings ate the information about Rainbow National Bank:Report of Income Tk.Interest income 1,250Interest expense 500Total assets 40,000Securities losses or gains 1,000Earning assets 30,000Total liabilities 30,000Taxes paid 1,000Shares of common stock outstanding 3,000Noninterest income 8,000Noninterest expense 6,000Provision for loan losses 2,500Calculate ROE, ROA, Net interest margin, Earnings per share, Net noninterest marginand Net operating margin.Alternative Scenarios:Suppose interest income, interest expenses, noninterest income, and noninterestexpenses each decline by 5 percent while all other revenue and expense items shown inthe preceding table remain unchanged. What will be happen to Rainbow ROE, ROA,and earnings per share?
The table below shows accounting data of ABC company as of 30June 2020. From the data, establish an income statement and a balance sheetfor the company.Note: Company income tax 30%, during the accounting period companies haspaid 5% of interest on the mortgage. Profit is retained for further investment Administration expense 1500 sales 342000 insurance expense 8500 cash 54000 cost of good solds 92000 equipment 31000 electricity and telephone expense 9540 accounts payables 15020 bank overdraft fee 2500 wages and salaries 42100 supplies expense 700 land and buildings 325000 prepair by a client for a company service 4500 vehicles 54000 mortgage 250000 prepaid rent 10000 supplies 43000 account recievables 72000
The current asset section of Guardian Consultant’s balance sheet consists of cash, accounts receivable, and prepaid expenses. The 2021 balance sheet reported the following: cash, $1,300,000; prepaid expenses, $360,000;long-term assets, $2,400,000; and shareholders’ equity, $2,500,000. The current ratio at the end of the year was 2.0 and the debt to equity ratio was 1.4.Required:Determine the following 2021 amounts and ratios:1. Current liabilities2. Long-term liabilities3. Accounts receivable4. The acid-test ratio