Which of
Q: 10- A work of auditing and reformulation of processes mainly allows: * a) Identify disposable activ...
A: Auditing is the process of examining and verifying books of accounts and financial information in or...
Q: A financial statement that reveals the change in capital. The ending fi gure for capital is then pla...
A: Answer - Statement of Retained Earnings (or Owner's Equity) It explains the changes in capital betwe...
Q: Tell me the golden rules of accounting, just mention the statements.
A: The accounting is a process to identify and classify the business transactions. The transactions are...
Q: A machine costs rs. 22,000 and it's salvage value after its useful life of 5 years is rs. 4,000. Ear...
A: Solution Concept For the calculation of Discounted cash flow we need to discount the given cash flow...
Q: Red Corporation will issue common shares with a par value of P10 for the net assets of Blue Company....
A: Acquisition Goodwill: Goodwill is an intangible asset connected with the acquisition of a Business o...
Q: 6. Which of the following is an example of an operating cash flow? a. Proceed from Sale of Equipment...
A: The cash flow statement is prepared to record the cash flow from various activities during the perio...
Q: 3. Suppose $100 was deposited in 2022 into an account that earns 5% interest, compounded annually. A...
A: Amount = Principal×(1+rate)Time $350 = $100×(1+ 5%)n $35 = $10×(1.05)n $35 ÷ $10 = (1.05)n $3.5 = (...
Q: Samuel Corporation had net current assets of P2,500,000 at the end of 2022 and P1,800,000 at the end...
A: Net current assets at the end of year 2022 = P 2,500,000 Net current assets at the end of year 2021 ...
Q: 5. Which of the following statements is not true? a. If total assets decreased by P300,000 during th...
A: Accounting equation refers to the equation which comprises of assets, liabilities and the shareholde...
Q: Accounts Receivable Accounts Payable Advertising Expense Cash $17,000 $14,000 Machinery Note Payable...
A: In this problem we will prepare balance sheet, Income statement and statement of changes in equity
Q: Less accum. depr. Office equipment Less accum. depr, 64,000 286,000 130,000 40,000 90,000 Total liab...
A:
Q: SG Company's stockholders' equity as of December 31, 2019 is P7,308,000. On January 1, 2020, SG acqu...
A: The goodwill or gain on bargain purchase refers to the excess or short amount paid for the acquisiti...
Q: Product X Product Y Product Z 100,000 200,000 20,000 20 2,000 Total Units produced Materials in kg 2...
A: Solution.. Activity rate Estimated cost (a) estimated cost driver(b) activity rate (a/b)...
Q: P24,291.78, and he has no other benefits. How much of his additional earnings will be taxed? B. Solv...
A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question s...
Q: At the beginning of the year, National Corporation had P100,000 in cash. The company undertook a maj...
A: Cash flow statement means the statement which shows the cash flow in or out of business enterprises ...
Q: volume variance
A: Sales volume variance measures the difference between the actual units sold and the budgeted units t...
Q: Prepare &L account and Balance sneet The following is the trial balance of the Honeywell Ltd. as on ...
A: Financial Statements broadly consists of two statements: Income Statement & Position Statement I...
Q: AL Lhe end of 2019, Guanlao Farms had P 1,500,000 in owner's equity and amounts owed to creditors to...
A: As per the accounting equation, the sum of total liabilities and equity equals the total assets of t...
Q: The Product inventory balance of 62,754 on December 31, 2010 is based on the following information: ...
A: 2011 Dec 31 Ending Product Inventory valued at FIFO = $85,000 Dec 31 Index Value for $ Value LIFO = ...
Q: March 31, 2021 April 1, 2020 200 200 3,800 3,400 2,800 2,100 150 200 1,750 1,900 300 500 1,000 ne ye...
A: Comment- We’ll answer the first question since the exact one wasn’t specified. Please submit a new q...
Q: A UV machine cost 550,000 pesos and has a salvage value of 10% of its cost at the end of its economi...
A: Depreciation Expense = Cost - Salvage ValueEstimated Total Hours in its economic life x Hours used
Q: rite T if the statement is correct and F if the statement is incorrect. On the space provided, brief...
A: solution concept incorporator in a corporation Incorporator means the shareholders who incorporate o...
Q: Data for NationalCo. is as follows: Product A Pro 2020 2021 2020 Units sold 10,000 20,000 10,000
A: The difference between the actual cost and the standard cost of units is referred to as cost price v...
Q: A company, subject to a 25% tax rate, desires to earn P600,000 of after-tax income. How much should...
A: Tax rate = 25% Desired earning after tax = P600,000 Earning before tax shall be added to fixed co...
Q: What is the Accounting Information System (AIS) and how does it work?
A: Accounting information system is used by business organisation inorder to store , retrieve , managin...
Q: On August 31, 2020, Laida Corporation purchased all the net assets of Magtalas Corporation by transf...
A: The share premium account balance cannot be utilized for distributing dividends but can be utilized ...
Q: What is the company's forecasted free cash flow for the year? * Sample format: 1,111,111 stock marke...
A: Solution Concept Free cash flow means the cash flow that is freely available for the company Mathema...
Q: Pierce Ltd. (Pierce) decided to change the costing method for its inventory at its December 31, 2021...
A: Answer:- Inventories are valued as per the accounting and valuation method followed by the compa...
Q: A laser machine costing 380,000 pesos has a useful life of 30,000 hours at the end of which its salv...
A: •Depreciable value of the Laser machine: = Total cost - Salvage value = 380,000 pesos - 45,000 peso...
Q: A junior bookkeeper of Adams Ltd. prepared the following incorrect financial statements at the end o...
A: Introduction We have given the incorrect income statement and balance sheet. We have to prepare the ...
Q: Current liabilities $ 1,065 $ 1,646 Long-term debt 1,952 2,274 Total liabilities $ 3,017 $ 3,920 Tot...
A: Debt Ratio: The debt Ratio also is known as the Debt to Assets Ratio is calculated to find out the p...
Q: Ravenna Company is a merchandiser that uses the indirect method to prepare the operating activities ...
A: The cash flow statement as,
Q: Summarized data for 2016 (the first year of operations) for Gorman Products, Inc., are as follows: S...
A: Production cost per unit under absorption costing Direct Material cost per unit ($1320000 / 8000...
Q: Name different accounting concepts.
A: Lets start with the basics. Accounting concepts are the basic thing to make the accounting principal...
Q: 1) A partner may withdraw or retire from the partnership by A. selling his interest to an outsider B...
A: The meaning of partnership business is two or more persons bringing the capital to form the business...
Q: 9. An entity's accounting year ends on December 31, and it is currently preparing interim financial ...
A: Lets start with the basics. This question deals under the IAS 34 " Interim financial statement". Int...
Q: From the following data. Calculate Labour Variance The budgeted labour force for producing product A...
A: Solution Given for semi skilled workers Standard hour (SH) =20*50 =1000 Standard rate (SR)...
Q: A factory can produce 60,000 units per annum at its optimum (100%) capacity. The estimated cost of p...
A: For first 3 months : Number of units = 60000 units * 3/12 * 50% capacity = 7500 units For remaining ...
Q: For a recent 2-year period, the balance sheet of Ivanhoe Company showed the following stockholders' ...
A: The question is based on the concept of Financial Accounting.
Q: FE16 From the following transactions as well as additional data, please complete the entire account...
A: A journal entry is a form of accounting entry that is used to report a business transaction in a com...
Q: On August 31, 2020, Laida Corporation purchased all the net assets of Magtalas Corporation by transf...
A: Share Premium Share premium is the addition revenue which are derived in the business after issuing ...
Q: LTK BHD entered into an agreement to lease a forklift from HEAVY MACHINERY BHD on 1 January 2020. Th...
A: ANSWER Recognition and measurement of leases as per MFRS 16 Under MFRS 16 lessees need to be acco...
Q: The following Information pertains to ABC Partnership of A, B and C: A. Capital (20%) P 200,000 B. C...
A: In a ABC partnership firm the total partners consists of 3 Their sharing ratio is A,B ,C is. - ...
Q: Jan. 1, 2022, ABC Corporation would be entering into an outsourcing contract which requires payment ...
A: Equivalent annual cost can be found from the present value of all cost and calculating the present v...
Q: Required information Skip to question [The following information applies to the questions display...
A: Net Income=Retained earnings, Ending Balance+Cash Dividend-Retained earnings, Beginning Balance
Q: Problem 2-21 (AICPA Adapted) Mint Company provided the following account balances on December 31, 20...
A: 1. retained earnings retained earnings unappropriated +retained earnings restricted for note payab...
Q: On January 1, 2021, your company purchased 8,000 shares of Another Company's $10 par common stock fo...
A: A Company is in profit or loss can be judged through its Audited Financials.Balance Sheet is an impo...
Q: The following balances are from the accounts of Crabtree Machining Companm Direct materials inventor...
A: Solution Given Direct material purchased during the year 517200 Cost of goods sold 18900...
Q: interest in Southwest Company on December 31, 20x4 for P320,000. During 20x5 Southwest had a net inc...
A: Under the cost method for accounting of investments , the investments are recorded at historical cos...
Q: 34 35 Cash from Operating Activities: n/a n/a n/a n/a 36 37 Cash Paid for Inventory 38 Cash Paid for...
A: Cash flow statement is the statement which is prepared by the company at the end of the financial ye...
36
Step by step
Solved in 2 steps
- Last year, National Co. reported negative net cash flow and negative free cash flow. However, its cash on the balance sheet increased. Which of the following could explain these changes in its cash position? a. The company had a sharp increase in its depreciation and amortization expenses. b. The company had a sharp increase in its inventories. c. The company issued new common stock. d. None of the choicesYou are reviewing a company’s financial statements and find that it has had a negative cash flow from assets this year. What might explain this? Is this a good sign or a bad sign?Howe industries reported a positive cash flow from operations on its cash flow statement, yet cash on the balance sheet decreased relative to the prior year's balance. Which of the following could explain this? Question 11 options: The company issued long-term debt The company issued new common stock The company made a large investment in fixed assets Depreciation expense increased
- Mary Walker, president of Rusco Company, considers $14,000 to be the minimum cash balance for operating purposes. As can be seen from the following statements, only $8,000 in cash was available at the end of this year. Since the company reported a large net income for the year, and also issued both bonds and common stock, the sharp decline in cash is puzzling to Ms. Walker. Mary Walker, president of Rusco Company, considers $14,000 to be the minimum cash balance for operating purposes. As can be seen from the following statements, only $8,000 in cash was available at the end of this year. Since the company reported a large net income for the year, and also issued both bonds and common stock, the sharp decline in cash is puzzling to Ms. Walker. Rusco CompanyComparative Balance Sheetat July 31 This Year Last Year Assets Current assets: Cash $ 8,000 $ 21,000 Accounts receivable 120,000 80,000 Inventory 140,000 90,000 Prepaid expenses 5,000 9,000 Total…Mary Walker, president of Rusco Company, considers $14,000 to be the minimum cash balance for operating purposes. As can be seen from the following statements, only $8,000 in cash was available at the end of this year. Since the company reported a large net income for the year, and also issued both bonds and common stock, the sharp decline in cash is puzzling to Ms. Walker. Mary Walker, president of Rusco Company, considers $14,000 to be the minimum cash balance for operating purposes. As can be seen from the following statements, only $8,000 in cash was available at the end of this year. Since the company reported a large net income for the year, and also issued both bonds and common stock, the sharp decline in cash is puzzling to Ms. Walker. Rusco CompanyComparative Balance Sheetat July 31 This Year Last Year Assets Current assets: Cash $ 8,000 $ 21,000 Accounts receivable 120,000 80,000 Inventory 140,000 90,000 Prepaid expenses 5,000 9,000 Total…QuickServe, a chain of convenience stores, was experiencing some serious cash flow difficultiesbecause of rapid growth. The company did not generate sufficient cash from operating activities tofinance its new stores, and creditors were not willing to lend money because the company had notproduced any income for the previous three years. The new controller for QuickServe proposeda reduction in the estimated life of store equipment to increase depreciation expense; thus, “wecan improve cash flows from operating activities because depreciation expense is added back onthe statement of cash flows.” Other executives were not sure that this was a good idea because theincrease in depreciation would make it more difficult to report positive earnings: “Without income,the bank will never lend us money.”Required:What action would you recommend for QuickServe? Why?
- Which of the following would most likely signal that a company may be using aggressiveaccrual accounting policies to shift current expenses to later periods? Over the last fi veyear period, the ratio of cash fl ow to net income has:A . increased each year.B . decreased each year.C . fl uctuated from year to year.The management of ABC Company felt proud of their accomplishments concerning cash flow for the end of the year because overall cash increased by $1,500,000. In the operating section, the company showed an increase in cash of $250,000 because of net income. However, because of increases in accounts receivable and inventory, the overall cash outflow from operating activities was $100,000. In the investing section, purchases of long-term assets outweighed the sale of long-term assets which resulted in a cash outflow from investing activities of $500,000. The company has a line-of-credit with the bank. During the year, the company drew on the line which resulted in cash inflow from financing activities of $2,100,000. The cash inflow from financing activities of $2,100,000 less the cash outflow from operating activities of $100,000 and less the cash out flow from investing activities resulted in the overall cash increase of $1,500,000. Analyze the cash flows of ABC Company. What conclusions…During the year, D-Bat increased it accounts receivable by $150, decreased its STNP by $185 and decreased its accounts payable by $80, paid dividends of $50, increased its LTD by $100, decreased its inventory by $50 and issued $25 of common stock. What is the cash flow from financing activities?
- The executives at Peach, Inc., are confused. The company reports a net loss of $200,000, and yet its net cash flow from operating activities increased $300,000 during the same period. Is this possible? Explain.Summit Manufacturing’s most recent statements of cash flows indicate that the firm has paid large dividends to its stockholders in each of the past three years. Upon noting this information, A : potential investors would be more likely to invest in Summit, but potential lenders may be less likely to grant the company a loan. B : potential investors would be less likely to invest in Summit, but potential lenders may be more likely to grant the company a loan. C : potential investors would be less likely to invest in Summit, and potential lenders may be less likely to grant the company a loan. D : potential investors would be more likely to invest in Summit, and potential lenders may be more likely to grant the company a loan.Mary Walker, president of Rusco Company, considers $27,000 to be the minimum cash balance for operating purposes. As can be seen from the following statements, only $22,000 in cash was available at the end of this year. Since the company reported a large net income for the year, and also issued both bonds and common stock, the sharp decline in cash is puzzling to Ms. Walker. Rusco CompanyComparative Balance Sheetat July 31 This Year Last Year Assets Current assets: Cash $ 22,000 $ 41,400 Accounts Receivable 229,800 219,100 Inventory 256,300 200,200 Prepaid expenses 11,900 23,400 Total current assets 520,000 484,100 Long-term investments 111,000 155,000 Plant and equipment 874,000 757,000 Less accumulated depreciation 213,500 192,100 Net plant and equipment 660,500 564,900 Total assets $ 1,291,500 $ 1,204,000 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 237,700 $ 176,400 Accrued liabilities 8,700…