The December 31, 2013, balance sheet of Schism, Inc., showed long-term debt of$1,280,000, $120,000 in the common stock account and $2,120,000 in the additionalpaid-in surplus account. The December 31, 2014, balance sheet showed long-term debtof $1,410,000, $135,000 in the common stock account and $2,380,000 in the additionalpaid-in surplus account. The 2014 income statement showed an interest expense of$93,400 and the company paid out $135,000 in cash dividends during 2014. The firm'snet capital spending for 2014 was $640,000, and the firm reduced its net working capitalinvestment by $105,000. (Enter your answer as directed, but do not roundintermediate calculations.)Required:What was the firm's operating cash flow during 2014?Operating cash flow+A

Calculation of Operating Cash Flow during 2014:The firm’s operating cash flow during 2014 is…

Answered: The December 31, 2013, balance sheet of…

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter15: Investments And Fair Value Accounting

Section: Chapter Questions

Problem 18E

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For the current year, Vidalia Company reported revenues of 250,000 and expenses of 225,000. At the beginning of the year, its retained earnings had a balance of 95,000. During the year, Vidalia paid 11,000 dividends to shareholders. Its contributed capital was 56,000 at the beginning of the year, and it did not issue any new stock during the year. Vidalias assets total 237,500 on December 31 of the current year. What are Vidalias total liabilities on December 31 of the current year?
On January 1, 2019, Kittson Company had a retained earnings balance of 218,600. It is subject to a 30% corporate income tax rate. During 2019, Kittson earned net income of 67,000, and the following events occurred: 1. Cash dividends of 3 per share on 4,000 shares of common stock were declared and paid. 2. A small stock dividend was declared and issued. The dividend consisted of 600 shares of 10 par common stock. On the date of declaration, the market price of the companys common stock was 36 per share. 3. The company recalled and retired 500 shares of 100 par preferred stock. The call price was 125 per share; the stock had originally been issued for 110 per share. 4. The company discovered that it had erroneously recorded depreciation expense of 45,000 in 2018 for both financial reporting and income tax reporting. The correct depreciation for 2018 should have been 20,000. This is considered a material error. Required: 1. Prepare journal entries to record Items 1 through 4. 2. Prepare Kittsons statement of retained earnings for the year ended December 31, 2019.
Frost Company has accumulated the following information relevant to its 2019 earningsper share. 1. Net income for 2019: 150,500. 2. Bonds payable: On January 1, 2019, the company had issued 10%, 200,000 bonds at 110. The premium is being amortized in the amount of 1,000 per year. Each 1,000 bond is currently convertible into 22 shares of common stock. To date, no bonds have been converted. 3. Bonds payable: On December 31, 2017, the company had issued 540,000 of 5.8% bonds at par. Each 1,000 bond is currently convertible into 11.6 shares of common stock. To date, no bonds have been converted. 4. Preferred stock: On July 3, 2018, the company had issued 3,800 shares of 7.5%, 100 par, preferred stock at 108 per share. Each share of preferred stock is currently convertible into 2.45 shares of common stock. To date, no preferred stock has been converted and no additional shares of preferred stock have been issued. The current dividends have been paid. 5. Common stock: At the beginning of 2019, 25,000 shares were outstanding. On August 3, 7,000 additional shares were issued. During September, a 20% stock dividend was declared and issued. On November 30, 2,000 shares were reacquired as treasury stock. 6. Compensatory share options: Options to acquire common stock at a price of 33 per share were outstanding during all of 2019. Currently, 4,000 shares may be acquired. To date, no options have been exercised. The unrecognized compens Frost Company has accumulated the following information relevant to its 2019 earnings ns is 5 per share. 7. Miscellaneous: Stock market prices on common stock averaged 41 per share during 2019, and the 2019 ending stock market price was 40 per share. The corporate income tax rate is 30%. Required: 1. Compute the basic earnings per share. Show supporting calculations. 2. Compute the diluted earnings per share. Show supporting calculations. 3. Indicate which earnings per share figure(s) Frost would report on its 2019 income statement.
Ernst Companys balance sheet shows total liabilities of 32,500,000, total stockholders equity of 8,125,000, and total assets of 40,625,000. Required: Note: Round answers to two decimal places. 1. Calculate the debt ratio. 2. Calculate the debt-to-equity ratio.
The December 31, 2018, balance sheet of Whelan, Inc., showed long-term debt of $1,420,000, $144,000 in the common stock account, and $2,690,000 in the additional paid-in surplus account. The December 31, 2019, balance sheet showed long-term debt of $1,620,000, $154,000 in the common stock account and $2,990,000 in the additional paid-in surplus account. The 2019 income statement showed an interest expense of $96,000 and the company paid out $149,000 in cash dividends during 2019. The firm’s net capital spending for 2019 was $1,000,000, and the firm reduced its net working capital investment by $129,000
The December 31, 2018, balance sheet of Whelan, Inc., showed long-term debt of $1,380,000, $136,000 in the common stock account, and $2,610,000 in the additional paid-in surplus account. The December 31, 2019, balance sheet showed long-term debt of $1,540,000, $146,000 in the common stock account and $2,910,000 in the additional paid-in surplus account. The 2019 income statement showed an interest expense of $92,000 and the company paid out $141,000 in cash dividends during 2019. The firm’s net capital spending for 2019 was $920,000, and the firm reduced its net working capital investment by $121,000. What was the firm's 2019 operating cash flow, or OCF? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole number, e.g., 1,234,567.)
The December 31, 2021, balance sheet of Chen, Incorporated, showed long-term debt of $1,405,000, $141,000 in the common stock account, and $2,660,000 in the additional paid-in surplus account. The December 31, 2022, balance sheet showed long-term debt of $1,590,000, $151,000 in the common stock account and $2,960,000 in the additional paid-in surplus account. The 2022 income statement showed an interest expense of $94,500 and the company paid out $146,000 in cash dividends during 2022. The firm’s net capital spending for 2022 was $970,000, and the firm reduced its net working capital investment by $126,000. What was the firm's 2022 operating cash flow, or OCF?
On January 1, 2017, Polk Co. and Strass Co. had condensed balance sheets as follows:POLK STRASSCurrent assets 70,000 20,000Noncurrent assets 90,000 40,000Total assets 160,000 60,000Current liabilities 30,000 10,000Long Term debt 50,000 -Stockholders' equity 80,000 50,000Total Liabilities and SHE 160,000 60,000On January 2, 2017, Polk borrowed P 60,000 and used the proceeds to purchase 80% of the outstanding commonshares of Strass. This debt is payable in 10 equal annual principal payments, plus interest, beginning December30, 2017. The excess of cost over the investment over Strass’ book value of acquired net assets should beallocated 60% to inventory and 40% to goodwill. On Polk’s January 2, 2017, consolidated balance sheet, Current assets should be Noncurrent assets should be Current liabilities should be Noncurrent liabilities should be Stockholders’ equity should
On January 1, 2006, Polk Corp. and Strass Corp. had condensed balance sheets as follows: Polk Strass Current assets $ 70,000 $20,000 Noncurrent assets 90,000 40,000 Total Assets $160,000 $60,000 Current liabilities $ 30,000 $10,000 Long-term debt 50,000 -- Stockholders’ equity 80,000 50,000 Total liabilities and stockholders’ equity $160,000 $60,000 On January 2, 2018, Polk borrowed P60,000 and used the proceeds to purchase 90% of the outstanding common shares of Strass. This debt is payable in ten equal annual principal payments, plus interest, beginning December 30, 2018. The excess cost of the investment over Strass’s book value of acquired net assets should be allocated 60% to inventory and 40% to goodwill. On January 1, 2018, the fair value of Polk shares held by noncontrolling interest parties was P10,000. Questions: Current assets should be ? P90,000 P99,000 P100,000 P102,000 Noncurrent…
On January 1, 2006, Polk Corp. and Strass Corp. had condensed balance sheets as follows: Polk Strass Current assets $ 70,000 $20,000 Noncurrent assets 90,000 40,000 Total Assets $160,000 $60,000 Current liabilities $ 30,000 $10,000 Long-term debt 50,000 -- Stockholders’ equity 80,000 50,000 Total liabilities and stockholders’ equity $160,000 $60,000 On January 2, 2018, Polk borrowed P60,000 and used the proceeds to purchase 90% of the outstanding common shares of Strass. This debt is payable in ten equal annual principal payments, plus interest, beginning December 30, 2018. The excess cost of the investment over Strass’s book value of acquired net assets should be allocated 60% to inventory and 40% to goodwill. On January 1, 2018, the fair value of Polk shares held by noncontrolling interest parties was P10,000. Questions: Current assets should be ? Noncurrent assets should be ? . Current…
The December 31, 2018, balance sheet of Whelan, Inc., showed long-term debt of $1,420,000, $144,000 in the common stock account, and $2,690,000 in the additional paid-in surplus account. The December 31, 2019, balance sheet showed long-term debt of $1,620,000, $154,0000 in the common stock account and $2,990,000 in the additional paid-in surplus account. The 2019 income statement showed an interest expense of $96,000 and the company paid out $149,000 in cash dividends during 2019. The firm's net capital spending for 2019 was $1,000,000, and the firm reduced its net working capital investment by $129,000. What was the firm's 2019 operating cash flow, OCF?
The December 31, 2021, balance sheet of Chen, Incorporated, showed long-term debt of $1,445,000, $149,000 in the common stock account, and $2,740,000 in the additional paid-in surplus account. The December 31, 2022, balance sheet showed long-term debt of $1,670,000, $159,000 in the common stock account and $3,040,000 in the additional paid-in surplus account. The 2022 income statement showed an interest expense of $98,500 and the company paid out $154,000 in cash dividends during 2022. The firm’s net capital spending for 2022 was $1,050,000, and the firm reduced its net working capital investment by $134,000. What was the firm's 2022 operating cash flow, or OCF? Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.

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