Horngren's Accounting, The Financial Chapters, Student Value Edition (11th Edition)
11th Edition
ISBN: 9780133876352
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Textbook Question
Chapter 16, Problem 16.1DC
Decision Case 16-1
Theater by Design and Show Cinemas are asking you to recommend their stock to your clients. Because Theater by Design and Show Cinemas earn about the same net income and have similar financial positions, your decision depends on their statement of cash flows, summarized as follows.
| Theater by Design | Show Cinemas | |||
| Net Cash Provided by Operating Activities | $30,000 | $70,000 | ||
| Cash Provided by (Used for) Investing Activities: | ||||
| Purchase of Plant Assets | $ (20,000) | $(100,000) | ||
| Sale of Plant Assets | 40.000 | 20,000 | 10,000 | (90,000) |
| Cash Provided by (Used for) Financing Activities: | ||||
| Issuance of Common Stock | 0 | 30,000 | ||
| Payment of Long-term Debt | (40,000) | 0 | ||
| Net Increase (Decrease) in Cash | $ 10,000 | $10,000 | ||
Based on their cash flows, which company looks better? Give your reasons.
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Question 34
Harlan Mining Co. has recently decided to go public and has hired you as an independent CPA. One statement that the enterprise is anxious to have prepared is a statement of cash flows. Financial statements of Harlan Mining Co. for 2022 and 2021 are provided below.
BALANCE SHEETS
12/31/22
12/31/21
Cash
$408,000
$ 192,000
Accounts receivable
360,000
216,000
Inventory
384,000
480,000
Property, plant and equipment
608,000
960,000
Less accumulated depreciation
(320,000)
(304,000)
288,000
656,000
$1,440,000
$1,544,000
Accounts payable
$ 176,000
$ 96,000
Income taxes payable
352,000
392,000
Bonds payable
360,000
600,000
Common stock
216,000
216,000
Retained earnings
336,000
240,000
$1,440,000
$1,544,000
INCOME STATEMENT
For the Year Ended December 31, 2022
Sales revenue
$8,400,000
Cost of sales
7,152,000
Gross profit
1,248,000
Selling expenses
$600,000…
Question 6
You are the finance manager of Adventure Tourist Ltd. The following data is available for the company as of 31 June 2021:
Current assets of $253,950
Current liabilities $178,700
Total assets $795,500
Equity $405,890
Required:
The company’s Management Board required you to evaluate the efficiency of daily cash flows in and out of business operating activities. What job are you doing to complete the task? (referring to one out of 3 important questions of corporate finance for your answer)
Calculate non-current assets, non-current liabilities and build a balance sheet for the company?
Calculate the return on assets (ROA) of the company given that return on equity (ROE) is 35%?
Adventure Tourist Ltd. has net credit sales of $1,476,000. Calculate the accounts receivable turnover of the company, given average accounts receivable is $128,500?
Question 3
Working capital management is so critical in the organization. The following information below was obtained concerning the liquidity of the business.
You are to study the following financial statements for two furniture stores and then answer the questions which follow.
Financial Statements
Profit and loss accounts for the year ending 31 December, 2020
X Y
K K K K
Sales 555,000 750,000
Less Cost of goods sold
Opening stock 100,000 80,000
Add Purchases 200,000 320,000
300,000 400,000
Less Closing stock (60,000) (70,000)…
Chapter 16 Solutions
Horngren's Accounting, The Financial Chapters, Student Value Edition (11th Edition)
Ch. 16 - Prob. 1QCCh. 16 - Prob. 2QCCh. 16 - Prob. 3QCCh. 16 - Prob. 4QCCh. 16 - Prob. 5QCCh. 16 - The Plant Assets account and Accumulated...Ch. 16 - Mountain Water Corp issued common stock of $28,000...Ch. 16 - Prob. 8QCCh. 16 - Maxwell Furniture Center had accounts receivable...Ch. 16 - Prob. 10BQC
Ch. 16 - Prob. 1RQCh. 16 - Prob. 2RQCh. 16 - Prob. 3RQCh. 16 - Prob. 4RQCh. 16 - Prob. 5RQCh. 16 - Prob. 6RQCh. 16 - Prob. 7RQCh. 16 - Prob. 8RQCh. 16 - Prob. 9RQCh. 16 - Prob. 10RQCh. 16 - Prob. 11RQCh. 16 - Prob. 12RQCh. 16 - Prob. 13RQCh. 16 - Prob. 14RQCh. 16 - Prob. 15ARQCh. 16 - Prob. 16BRQCh. 16 - Prob. S16.1SECh. 16 - S16-2 Classifying items on the statement of cash...Ch. 16 - Prob. S16.3SECh. 16 - Prob. S16.4SECh. 16 - Prob. S16.5SECh. 16 - Prob. S16.6SECh. 16 - Prob. S16.7SECh. 16 - Prob. S16.8SECh. 16 - Prob. S16.9SECh. 16 - Prob. S16.10SECh. 16 - Prob. S16A.11SECh. 16 - Prob. S16A.12SECh. 16 - Prob. S16A.13SECh. 16 - Prob. S16A.14SECh. 16 - Prob. S16B.15SECh. 16 - Prob. E16.16ECh. 16 - Prob. E16.17ECh. 16 - Classifying items on the indirect statement of...Ch. 16 - Prob. E16.19ECh. 16 - Prob. E16.20ECh. 16 - Prob. E16.21ECh. 16 - Prob. E16.22ECh. 16 - Prob. E16.23ECh. 16 - Prob. E16.24ECh. 16 - Prob. E16.25ECh. 16 - Prob. E16.26ECh. 16 - Prob. E16A.27ECh. 16 - Prob. E16A.28ECh. 16 - Prob. E16A.29ECh. 16 - Prob. E16A.30ECh. 16 - Prob. E16B.31ECh. 16 - Prob. P16.32APGACh. 16 - Prob. P16.33APGACh. 16 - Prob. P16.34APGACh. 16 - Prob. P16.35APGACh. 16 - Prob. P16A.36APGACh. 16 - Prob. P16A.37APGACh. 16 - Prob. P16B.38APGACh. 16 - Prob. P16.39BPGBCh. 16 - Prob. P16.40BPGBCh. 16 - Prob. P16.41BPGBCh. 16 - Prob. P16.42BPGBCh. 16 - Prob. P16A.43BPGBCh. 16 - Prob. P16A.44BPGBCh. 16 - Prob. P16B.45BPGBCh. 16 - Prob. P16.46CPCh. 16 - Decision Case 16-1 Theater by Design and Show...Ch. 16 - Ethical Issue 16-1 Moss Exports is having a bad...Ch. 16 - Prob. 16.1FSC
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