Robinson Company has provided the following information: Cash sales totaled $255,000. Credit sales totaled $479,000. Cash collections from customers for services yet to be provided totaled $88,000. A $22,000 loss from the sale of plant and equipment occurred. Interest income was $7,700. Interest expense was $19,900. Cost of goods sold was $336,000. Rent expense was $36,000. Salaries expense was $49,000. Other operating expenses totaled $79,000. Income tax expense was $8,000. How much was Robinson's operating income? Group of answer choices a)$221,800 b)$322,000 c)$199,800 d)$234,000 e)$226,000

Robinson Company has provided the following information: Cash sales totaled $255,000. Credit sales totaled $479,000. Cash collections from customers for services yet to be provided totaled $88,000. A $22,000 loss from the sale of plant and equipment occurred. Interest income was $7,700. Interest expense was $19,900. Cost of goods sold was $336,000. Rent expense was $36,000. Salaries expense was $49,000. Other operating expenses totaled $79,000. Income tax expense was $8,000. How much was Robinson's operating income? Group of answer choices a)$221,800 b)$322,000 c)$199,800 d)$234,000 e)$226,000

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 12MCQ: Smoltz Company reported the following information for the current year: cost of goods sold,...

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Krespy Corp. has a cash balance of $7,500 before the following transactions occur: A. received customer payments of $965 B. supplies purchased on account $435 C. services worth $850 performed, 25% is paid in cash the rest will be billed D. corporation pays $275 for an ad in the newspaper E. bill is received for electricity used $235. F. dividends of $2,500 are distributed What is the balance in cash after these transactions are journalized and posted?
Analyzing the Accounts The controller for Summit Sales Inc. provides the following information on transactions that occurred during the year: a. Purchased supplies on credit, $18,600 b. Paid $14,800 cash toward the purchase in Transaction a c. Provided services to customers on credit1 $46,925 d. Collected $39,650 cash from accounts receivable e. Recorded depreciation expense, $8,175 f. Employee salaries accrued, $15,650 g. Paid $15,650 cash to employees for salaries earned h. Accrued interest expense on long-term debt, $1,950 i. Paid a total of $25,000 on long-term debt, which includes $1.950 interest from Transaction h j. Paid $2,220 cash for l years insurance coverage in advance k. Recognized insurance expense, $1,340, that was paid in a previous period l. Sold equipment with a book value of $7,500 for $7,500 cash m. Declared cash dividend, $12,000 n. Paid cash dividend declared in Transaction m o. Purchased new equipment for $28,300 cash. p. Issued common stock for $60,000 cash q. Used $10,700 of supplies to produce revenues Summit Sales uses the indirect method to prepare its statement of cash flows. Required: 1. Construct a table similar to the one shown at the top of the next page. Analyze each transaction and indicate its effect on the fundamental accounting equation. If the transaction increases a financial statement element, write the amount of the increase preceded by a plus sign (+) in the appropriate column. If the transaction decreases a financial statement element, write the amount of the decrease preceded by a minus sign (-) in the appropriate column. 2. Indicate whether each transaction results in a cash inflow or a cash outflow in the Effect on Cash Flows column. If the transaction has no effect on cash flow, then indicate this by placing none in the Effect on Cash Flows column. 3. For each transaction that affected cash flows, indicate whether the cash flow would be classified as a cash flow from operating activities, cash flow from investing activities, or cash flow from financing activities. If there is no effect on cash flows, indicate this as a non-cash activity.
Lantz Company has provided the following information: Cash sales totaled $280,000.Credit sales totaled $488,000.Cash collections from customers for services yet to be provided totaled $88,000.A $24,000 loss from the sale of property and equipment occurred.Interest income was $8,600.Interest expense was $18,800.Cost of goods sold was $380,000.Rent expense was $38,000.Salaries expense was $48,000.Other operating expenses totaled $78,000.Unearned revenue was $3,900. How much was Lantz's operating income?
Smith Corporation has provided the following information: Cash sales totaled $143,000.Credit sales totaled $297,000.Cash collections from customers for services yet to be provided totaled $56,000.An $18,000 gain from the sale of property and equipment occurred.Interest income totaled $9,500. How much were Smith's operating revenues?
During the year Ruby Sea Nautical Supplies collected $280,000 from customers, with payments to suppliers of $62,000. Cash paid to employees amounted to $55,000, and cash paid for interest was $14,600. Total assets at the end of the previous accounting period totalled $830,000, and for the current accounting period was $865,000. Total owners equity on the current year's balance sheet was $201,600. Calculate the cash return on total assets.
Sharpe Corporation has provided the following information: Cash sales totaled $125,000. Credit sales totaled $279,000. Cash collections from customers for services yet to be provided totaled $38,000. An $11,000 gain from the sale of plant and equipment occurred. Interest income totaled $7,700. How much was Sharpe's operating revenue? Group of answer choices a)$404,000 b)$411,700 c)$442,000 d)$460,700 e)None of the above
Karakaraka Boom’s cash balance on January 1, 2021 was ₱40,000. The following were the transactions that affected the cash during the period: Cash Receipt from loan obtained from a bank, ₱360,000 Payments for utilities expenses, ₱40,000 Payments to suppliers for the purchase of inventory, ₱240,000 Payment for the acquisition of equipment, ₱400,000 Collections from customers for the sale of goods, ₱1,160,000 Cash receipt from additional investment by the owner, ₱40,000 Payments for employee salaries, ₱280,000 Payment for rent expense, ₱140,000 Cash disbursements for drawings by the owner, ₱120,000 Requirement: Prepare a direct method Statement of Cash
Husky Company has provided the following information for its most recent year of operation: Cash collected from customers totaled $90,000. Cash borrowed from banks totaled $33,100. Cash paid to employees for salaries totaled $32,800. Cash received from selling Husky common stock to stockholders totaled $48,000. Cash payments to banks for repayment of money borrowed totaled $8,200. Cash paid to suppliers totaled $8,600. Land costing $26,000 was sold for $26,000 cash. Cash paid for dividends to stockholders totaled $4,000. How much was Husky's cash flow from operating activities?
Jackson Company recorded the following cash transactions for the year: Paid $135,000 for salaries Paid $60,000 to purchase office equipment Paid $15,000 for utilities Paid $6,000 in dividends Collected $245,000 from customers What was Jackson's net cash provided by operating activities?
The Coffman Company has provided the following account balances: Cash $380,000 Short-term investments $40,000 Accounts receivable $60,000 Inventory $480,000 Long-term notes receivable $20,000 Equipment $960,000 Factory Building $1,800,000 Intangible assets $60,000 Accounts payable $300,000 Accrued liabilities payable $40,000 Short-term notes payable $95,000 Income taxes payable $55,000 Long-term notes payable $920,000 Stockholders’ equity $2,400,000What is Coffman's current ratio? Group of answer choices a)2.00 b)2.17 c)2.71 d)1.96 e)None of the above
Mississippi Products Co. had the following positive cash flows during the current year: received cash from customers of $750,000; received bank loans of $35,000; and received cash from the sale of common stock of $145,000. During the same year, cash was paid out to purchase inventory for $345,000, to employees for $230,000, and for the purchase of plant assets of $217,000. Calculate the amount of cash provided by or used for operating activities by the direct method.
The Pasley Company prepares an income statement that reports cost of goods sold of $320,000, rent expense of $30,000, and salary expense of $90,000. During the year, prepaid rent went up $5,000, accounts payable went down $4,000, salary payable went up $3,000, and inventory went down $2,000. What is the amount of cash the company spent this year to purchase inventory? Responses Cash outflow of $322,000 Cash outflow of $450,000 Cash outflow of $454,000 Cash inflow of $454,000