QUE Ltd had the following activity during 2020: Proceeds from sale of long-term $156,000 investments Gain on the sale of long-term investments 16,000 Loss on the disposal of equipment ($0 proceeds from disposal) 17,000 Proceeds from the issuance of preferred 182,000 shares Repayment of long-term debt 30,000 What was the cash flow from fınancing activities? O $135,000 O $168,000 O $169,000 O $152.000
Q: 14. Decker Company has five products in its inventory. Information about the December 31, 2021, inve...
A:
Q: Data concerning a recent pertod's activity in the Prep Department, the first processing department i...
A: calculation of above requirement are as follows.
Q: Kevin, Inc. issues P 3,000,000, 9%, bonds for P 2,817,000. The market interest rate for these bonds ...
A: Annual interest payment = Face value of bonds x stated rate of interest x no. of months/12 Annual in...
Q: The balance in Set Corp.'s accounts payable at Dec. 31, 2020 was P 1,350,000 before any necessary ye...
A: Under FOB destination, titles of goods are transferred to the buyer only when goods are delivered to...
Q: 32. which of the following is not an appropriate reporting option one component Auditors are involve...
A: The auditor's report includes a documented letter again from auditors stating whether financial stat...
Q: purchased equipment on January 1, 2018, for 528,000. Suppose 2019. Accumulated Depreciation as of De...
A: Loss on Sale of Equipment= Book Value- Cash Received = (Cost - Accumulated Depreciation)- Cash Recd...
Q: Kakhie Company issued share capital of 20,000 shares with USD5 par at USD10 per share. On January 1,...
A: The calculation is given below
Q: Amina borrowed 60,000 SR on January 1, 2020, from the local bank to expand its building. The funds w...
A: These are the accounting transactions that are having a monetary impact on the financial statement o...
Q: Below are amounts (in millions) from three companies' annual reports. Beginning Accounts Receivable ...
A: Accounts receivable: It implies to the amount that has been owed by the customers to the business. I...
Q: Adham Corporation was organized on January 1, 2019. During its first year, the corporation issued 40...
A: The dividend on preference shares is paid before any dividend is paid to common stockholders, and cu...
Q: On January 1, 2021, Sanderson Variety Store adopted the dollar-value LIFO retail inventory method. A...
A: Inventory valuation method includes: First In, First Out (FIFO) Method Last In, First Out (LIFO) Me...
Q: Zone Sdn. Bhd. (accounting year ended 30 November), bought Furniture and Fittings on 1st June 2022 f...
A: The term residual expenditure refers to the asset cost less or deduct: Notional allowance which is ...
Q: Below is a partial listing of the adjusted account balances of Pina Colada at year-end on December 3...
A: Income statement is prepared by the business organizations so as to know how much amount of gross pr...
Q: Balerio Corporation's relevant range of activity is 8,000 units to 12,000 units. When it produces an...
A: Formula: Product cost per unit = Direct materials + Direct labor + variable manufacturing overhead +...
Q: Ch Zytel Corporation produces cleaning compounds and solutions for industrial and household use. Whi...
A: Calculation maximum number of jar sold for futher processing are as follows.
Q: Belarus Company, your client, failed to record accrued rent income of P 25,000 as of December 31, 20...
A: Accrued rent income is the income earned this year but not received till the year end. Adjusting ent...
Q: Sweet Company purchased equipment on January 1, 2018, for S28,000. Suppose Sweet Company sold the eq...
A: Depreciation means fall in the value of tangible fixed assets because of its usage or with efflux of...
Q: Spyker is a small Nethwelands-based designer and manufacturer of exclusive sports cars, which had it...
A: Accounting policies are the concepts, foundations, conventions, regulations, and practices that a co...
Q: The outside basis is defined in the internal revenue code as a partner's basis in the partnership in...
A: True
Q: A private educational institution has presented the following data for the 2020 taxable year: Gross ...
A: Thus, pioneer college is required to pay 10% of the net income as per the Philippines law. Net incom...
Q: At the end of the current year, fees of $4,430 have been earned but have not been billed to clients....
A: ANSWER THE ADJUSTING ENTRY FOR THE END OF THE CURRENT YEAR IS ACCOUNT RECEIVABLE Dr $4430 T...
Q: Lake Company, organized in 2020, has the following transactions related to intangible assets in that...
A: The question is related to Intangible Assets. The intangible assets will be amortised over a period ...
Q: Due to extreme financial difficulties, Armand Company had negotiated a restructuring of a 10% P 5,00...
A: Annual interest expense = Carrying value of the bonds x market interest rate x no. of months/12 Annu...
Q: Noel and Emily agreed to divide partnership income as follows: a. Noel and Emily will be paid USD60,...
A: Noel Opening capital balance 300000 Add :additional 50000 Less: drawings (10000) Add: neol s...
Q: Canova Corporation adopted the dollar-value LIFO retail method on January 1, 2021. On that date, the...
A: GIVEN Canova Corporation adopted the dollar-value LIFO retail method on January 1, 2021. On that d...
Q: Provide the quick ratio. Given: Current Assets Cash in bank P282,506 Due from related p...
A: current ratio are those ratio that measures the liquidity of the company it is the ability of compan...
Q: Bank Reconciliation The following data were accumulated for use in reconciling the bank account of N...
A: A bank reconciliation statement is prepared by the management at a particular time period. It helps ...
Q: Power Development Incorporation is expecting earnings before interest and taxes of P2 million for th...
A: Given that ; EBIT:$2,000,000 Less: Interest : ($5,000,000*10%) 500,000 Earning before Tax : 1,500,00...
Q: The following data of the industrial enterprise D S.A. for the accounting year 20X9 are given. Ra...
A: For production and manufacturing of goods, various type of costs needs to be incurred. These can be ...
Q: Inc. owns these assets at the statement of financial position date: pank (savings account) $20,240 h...
A: Prepaid Insurance is insurance expenses which have been paid in advance . It is an current asset . P...
Q: A private educational institution submitted the following data for the fiscal year ending April 30,2...
A: Taxable income attributable to school Particulars Amount (P) Tuition fees 9500000 Miscella...
Q: Question 3 (Statement of shareholders’ equity): Below is the statement of shareholder’s equity of HK...
A: Number of ordinary shares Ordinary shares on Dec 31, 2022 6000 Add: shares issued 800 Add: ...
Q: QWE Corporation has the following information available for March of the current year. Beginning Wor...
A: "Since you have posted a question with multiple sub parts, we will solve first three sub parts for y...
Q: 1. What amount should be recognized as investment income for 2021 as a result of the investment? a. ...
A: Investment refers to those mechanism which is used by the company for the purpose of generating inco...
Q: Martinez Company’s relevant range of production is 7,500 units to 12,500 units. When it produces and...
A: If 8,000 units are produced, Variable Manufacturing overhead = 8,000*1.60 = 12,800 Fixed Manufacturi...
Q: There is substantial modification of terms of an old financial liability if the gain or loss on exti...
A: As per IAS 39, in extinguishment accounting we will derecognise/extinguish existing liability and m...
Q: 023? Select] V [ Select ] Debit Sales, P 120,000; Credit Retained Earnings, P 120,000
A: France Compay Financial Statement for year ended on 31.12.2022 Sales of P 120000 is been...
Q: Current Attempt in Progress The following information relates to Blossom Limited's Cash account. The...
A: The question is based on the concept of Bank reconciliation statement. Bank reconciliation statement...
Q: Q1 A company is considering an investment proposal which has in investment outlay of RO 50,000. The ...
A: ANSWER ARR = 14.8 % CALCULATION OF ACCOUNTING RATE OF RETURN ( ARR ) INITIAL INVESTMENT = RO 50000 P...
Q: On August 1, Gold Company exchanged a machine for a similar machine owned by Cowboy Company and also...
A: a. Date General Journal Debit Credit Cash $7,000 Equipment - (New) ($80,000 - $14,500 ...
Q: On December 31, the balance in the office supplies account is $1,235. A physical count shows $490 wo...
A: Balance in supplies account = $1235 Physical count = $490 Supplies expenses = 1235-490 = $745
Q: North Airlines Company issued $900,000 of 8%, 10-year bonds on January 1, 2017, at Face value. Inter...
A: "Since you have posted a question with multiple sub parts, we will solve first three sub parts for y...
Q: Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. The ...
A: A predetermined overhead rate is an allocation rate that is used to apply the anticipated cost of ma...
Q: Within the partnership, Jamestown's capital is $140,000, and Maryland's is $40,000. They share incom...
A: In case of multiple questions, we are allowed to solve only the first question. If you want other qu...
Q: Rooney Company incurred $280,000 of research and development cost in its laboratory to develop a pat...
A: As per Standards on accounting, Research and development expenditures must be recognized as expense...
Q: Problems
A: "Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for y...
Q: STANDARD COST CARD Product: Gallon of Ice Cream Manufacturing Cost Information Standard Standard Cos...
A: Labour cost variance = Standard Cost - Actual Cost = (SRx SH) -(AHx AR)SR= Standard RateSH = Standar...
Q: Prepare a flexible budgeted income for 120,000 units using the following information from a static b...
A: A budget is a statement that is prepared by the companies, government, and individuals based on the ...
Q: Question Two: Read the following transactions related to Inter Company: Inter Company was founded in...
A: The T-accounts are prepared by posting the transactions to their specific account and further find t...
Q: Perpetual Inventory Using FIFO Beginning inventory, purchases, and sales data for DVD players are as...
A: 1. FIFO Method - Under FIFO Method, Inventory purchased first are sold out. 2. LIFO Method - Under...
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- LONG-TERM FINANCING NEEDED At year-end 2019, total assets for Arrington Inc. were 1.8 million and accounts payable were 450,000. Sales, which in 2019 were 3.0 million, are expected to increase by 25% in 2020. Total assets and accounts payable are proportional to sales, and that relationship will be maintained; that is, they will grow at the same rate as sales. Arrington typically uses no current liabilities other than accounts payable. Common stock amounted to 500,000 in 2019, and retained earnings were 475,000. Arrington plans to sell new common stock in the amount of 130,000. The firms profit margin on sates is 5%; 35% of earnings will be retained. a. What were Arringtons total liabilities in 2019? b. How much new long-term debt financing will be needed in 2020? (Hint: AFN - New stock = New long-term debt.)Chasse Building Supply Inc. reported net cash provided by operating activities of $243,000, capital expenditures of $112,900, cash dividends of $35,800, and average maturities of long-term debt over the next 5 years of $122,300. What is Chasses free cash flow and cash flow adequacy ratio? a. $94,300 and 0.77, respectively c. $130,100 and 1.06, respectively b. $94,300 and 0.82, respectively d. $165,900 and 1.36, respectivelyLong-Term Financing Needed At year-end 2018, Wallace Landscapings total assets were 2.17 million, and its accounts payable were 560,000. Sales, which in 2018 were 3.5 million, are expected to increase by 35% in 2019. Total assets and accounts payable are proportional to sales, and that relationship will be maintained. Wallace typically uses no current liabilities other than accounts payable. Common stock amounted to 625,000 in 2018, and retained earnings were 395,000. Wallace has arranged to sell 195,000 of new common stock in 2019 to meet some of its financing needs. The remainder of its financing needs will be met by issuing new long-term debt at the end of 2019. (Because the debt is added at the end of the year, there will be no additional interest expense due to the new debt.) Its net profit margin on sales is 5%, and 45% of earnings will be paid out as dividends. a. What were Wallaces total long-term debt and total liabilities in 2018? b. How much new long-term debt financing will be needed in 2019? [Hint: AFN New stock = New long-term debt.)
- Dunn Company recognized a 5,000 unrealized holding gain on investment in Starbuckss long-term bonds during 2019. The company classified its investment as an available-for-sale security. How would this information be reported on a statement of cash flows prepared using the indirect method?During 2021, Anthony Company purchased debt securities as a long-term investment and classified them as trading. All securities were purchased at par value. Pertinent data are as follows: The net holding gain or loss included in Anthonys income statement for the year should be: a. 0 b. 3,000 gain c. 9,000 loss d. 12,000 lossGray Companys financial statements showed income before income taxes of 4,030,000 for the year ended December 31, 2020, and 3,330,000 for the year ended December 31, 2019. Additional information is as follows: Capital expenditures were 2,800,000 in 2020 and 4,000,000 in 2019. Included in the 2020 capital expenditures is equipment purchased for 1,000,000 on January 1, 2020, with no salvage value. Gray used straight-line depreciation based on a 10-year estimated life in its financial statements. As a result of additional information now available, it is estimated that this equipment should have only an 8-year life. Gray made an error in its financial statements that should be regarded as material. A payment of 180,000 was made in January 2020 and charged to expense in 2020 for insurance premiums applicable to policies commencing and expiring in 2019. No liability had been recorded for this item at December 31, 2019. The allowance for doubtful accounts reflected in Grays financial statements was 7,000 at December 31, 2020, and 97,000 at December 31, 2019. During 2020, 90,000 of uncollectible receivables were written off against the allowance for doubtful accounts. In 2019, the provision for doubtful accounts was based on a percentage of net sales. The 2020 provision has not yet been recorded. Net sales were 58,500,000 for the year ended December 31, 2020, and 49,230,000 for the year ended December 31, 2019. Based on the latest available facts, the 2020 provision for doubtful accounts is estimated to be 0.2% of net sales. A review of the estimated warranty liability at December 31, 2020, which is included in other liabilities in Grays financial statements, has disclosed that this estimated liability should be increased 170,000. Gray has two large blast furnaces that it uses in its manufacturing process. These furnaces must be periodically relined. Furnace A was relined in January 2014 at a cost of 230,000 and in January 2019 at a cost of 280,000. Furnace B was relined for the first time in January 2020 at a cost of 300,000. In Grays financial statements, these costs were expensed as incurred. Since a relining will last for 5 years, Grays management feels it would be preferable to capitalize and depreciate the cost of the relining over the productive life of the relining. Gray has decided to nuke a change in accounting principle from expensing relining costs as incurred to capitalizing them and depreciating them over their productive life on a straight-line basis with a full years depreciation in the year of relining. This change meets the requirements for a change in accounting principle under GAAP. Required: 1. For the years ended December 31, 2020 and 2019, prepare a worksheet reconciling income before income taxes as given previously with income before income taxes as adjusted for the preceding additional information. Show supporting computations in good form. Ignore income taxes and deferred tax considerations in your answer. The worksheet should have the following format: 2. As of January 1, 2020, compute the retrospective adjustment of retained earnings for the change in accounting principle from expensing to capitalizing relining costs. Ignore income taxes and deferred tax considerations in your answer.
- Athenian Venues Inc. just reported the following selected portion of its financial statements for the end of 2020. Your assistant has already calculated the 2020 end-of-year net operating working capital (NOWC) from the full set of financial statements (not shown here), which is 13 million. The total net operating capital for 2019 was 50 million. What was the 2020 net investment in operating capital? Athenian Venues Inc.: Selected Balance Sheet Information as of December 31 (Millions of Dollars)The Berndt Corporation expects to have sales of 12 million. Costs other than depreciation are expected to be 75% of sales, and depreciation is expected to be 1.5 million. All sales revenues will be collected in cash, and costs other than depreciation must be paid for during the year. Berndts federal-plus-state tax rate is 40%. Berndt has no debt. a. Set up an income statement. What is Berndts expected net income? Its expected net cash flow? b. Suppose Congress changed the tax laws so that Berndts depreciation expenses doubled. No changes in operations occurred. What would happen to reported profit and to net cash flow? c. Now suppose that Congress changed the tax laws such that, instead of doubling Berndts depreciation, it was reduced by 50%. How would profit and net cash flow be affected? d. If this were your company, would you prefer Congress to cause your depreciation expense to be doubled or halved? Why?Puddycat Ltd. had the following activity during 2021: Proceeds from the sale of non-current investments: $156,000 Gain on the sale of non-current investments: $16,000 Proceeds from the sale of preferred shares: $182,000 Repayment of long-term debt: $30,000 Increase in income taxes payable: $25,000 What is the cash flow provided by (used in) financing activities? Question 13 options: $212,000 $177,000 $152,000 $140,000
- For 2019, Nirvana Industries disclosed cash revenue of $12.0 million and cash expenses of $6.0 million, depreciation on plant and equipment of $2.0million and an effective tax rate of 21%. For 2019, Nirvana Industries had capital expenditures of $1.0 million to purchase manufacturing equipment and invested $850,000 in net working capital. What were the net (total) cash flows for Nirvana Industries in 2019? Round your answer to the nearest hundredth of million $Presented below is selected information pertaining to the Cassie Inc:Cash balance, January 1, 2020- P13,000Accounts receivable, January 1, 2020- P19,000Collections from customers in 2020- P210,000 Capital account balance, January 1, 2020- P38,000Total assets, January 1, 2020- P75,000Cash investment added, July 1, 2020-P5,000Total asset, December 31, 2020- P101,000 Cash balance, December 31, 2020- P20,000Accounts receivable, December 31, 2020- P36,000Merchandise taken for personal use during 2020- P11,000Total liabilities, December 31, 2020- P41,000How much is the net income for 2020?For 2019, Nirvana Industries disclosed cash revenue of $11.0 million and cash expenses of $6.0 million, depreciation on plant and equipment of $2.5 million and an effective tax rate of 21%. For 2019, Nirvana Industries had capital expenditures of $1.0 million to purchase manufacturing equipment and invested $850,000 in net working capital. What were the net (total) cash flows for Nirvana Industries in 2019? Round your answer to the nearest hundredth of million $