a.
Introduction: The cash flow statement is a financial statement that is prepared by the company to check the net decrease or increase in the cash balance during the year. The cash flow statement records the cash outflows and cash inflows during the year.
To calculate: The net income reported by K company during 2020.
b.
Introduction: The cash flow statement is a financial statement that is prepared by the company to check the net decrease or increase in the cash balance during the year. The cash flow statement records the cash outflows and cash inflows during the year.
The amount of
c.
Introduction: The cash flow statement is a financial statement that is prepared by the company to check the net decrease or increase in the cash balance during the year. The cash flow statement records the cash outflows and cash inflows during the year.
To indicate: The section of the cash flow statement in which the amount calculated in part (b) would be recorded.
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ACCOUNTING PRCINCIPLES (CCCS CUSTOM)
- Lyon Company shows the following condensed income statement information for the year ended December 31, 2019: Lyon declared dividends of 6,000 on preferred stock and 17,280 on common stock. At the beginning of 2019, 10,000 shares of common stock were outstanding. On May 1, 2019, the company issued 2,000 additional common shares, and on October 31, 2019, it issued a 20% stock dividend on its common stock. The preferred stock is not convertible. Required: 1. Compute the 2019 basic earnings per share. 2. Show the 2019 income statement disclosure of basic earnings per share. 3. Draft a related note to accompany the 2019 financial statements.arrow_forwardAnoka Company reported the following selected items in the shareholders equity section of its balance sheet on December 31, 2019, and 2020: In addition, it listed the following selected pretax items as a December 31, 2019 and 2020: The preferred shares were outstanding during all of 2019 and 2020; annual dividends were declared and paid in each year. During 2019, 2,000 common shares were sold for cash on October 4. During 2020, a 20% stock dividend was declared and issued in early May. At the end of 2019 and 2020, the common stock was selling for 25.75 and 32.20, respectively. The company is subject to a 30% income tax rate. Required: 1. Prepare the comparative 2019 and 2020 income statements (multiple-step), and the related note that would appear in Anokas 2020 annual report. 2. Next Level Compute the price/earnings ratio for 2020. How does this compare to 2019? Why is it different?arrow_forwardOn 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.arrow_forward
- The stockyholder's section of the balance sheet contains such as the following . Common stock . Preferred stock .Additional paid in capital . Other accumulated comprehensive income .retained earnings It is important to understand how changes in the accounts impact the balance sheet and the financial positions. Ginseng inc. Has $200, 000 of 5%, $10 par value preferred and $450,000 of $5 par value common stock issued outstanding on Dec.31, 2021. There were no stock issuance, stock splits or dividends for 2021. The organization's calender year end is Dec. 31, 2021. The preferred stock did not receive any dividends for 2019 or 2020 because the company did not have adequate cash reserves to pay out dividends. The preferred stock has a mix characteristics. . 10% of the preferred stock is noncumulative, nonparticipating . 20% of the preferred stock is cumulatuve , nonparticipating .20% of the preferred stock is nonculative, participating .50% of the preferred stock is cumulatuve,…arrow_forwardThe board of directors of Wayne Co. declared a cash dividend of $1.50 per share on 42,000 shares of common stock on July 15, 2020. The dividend is to be paid on August 15, 2020, to stockholders of record on July 31, 2020. The effects of the journal entry to record the payment of the dividend on August 15, 2020, are to decrease liabilities and decrease assets. increase stockholders' equity and decrease assets. decrease stockholders' equity and decrease liabilities. increase stockholders' equity and increase liabilities.arrow_forwardDuring 2022, Roblez Corporation had the following transactions and events. 1. 2. 3. 4. 5. 6. 7. 8. Declared a cash dividend. Issued par value common stock for cash at par value. Completed a 2-for-1 stock split in which $10 par value stock was changed to $5 par value stock. Declared a small stock dividend when the market price was higher than par value. Made a prior period adjustment for overstatement of net income. Issued the shares of common stock required by the stock dividend declaration in item no. 4 above.. Paid the cash dividend in item no. 1 above. Issued par value common stock for cash above par value. Indicate the effect(s) of each of the foregoing items on the subdivisions of stockholders' equity. Item 1. 2. 3. 4. 5. 6. 7. 8. Paid-in Capital Capital Stock No Effect Additional No Effect Retained Earnings Decreasearrow_forward
- Minnesota Manufacturing's balance sheet showed total common equity of $3,000,000 and 500,000 shares of stock outstanding on 12/31/2019. During 2020, the firm had $630,000 of net income, and it paid out $150,000 in dividends. What was the book value per share on 12/31/2020, assuming no common stock was issued or retired during 2020?arrow_forwardThe year-end balance sheet of Brandex listed common stock and other paid capital at $2,400,000 and retained earnings at $4,700,00. The next year, retained earnings were listed at $5,000,000. The firms net income in 2019 was $1,030,000. There were no stock repurchases during the year. What were the dividends paid by the firm in 2019?arrow_forwardTemplet Corp. earned net income of $118,400 and paid the minimum dividend to preferred stockholders for 2024. Assume that there are no changes in common shares outstanding during 2024. Templet's books include the following figures: (Click the icon to view the figures.) Read the requirements. ..... Requirement 1. Compute Templet's EPS for the year. Select the formula, then enter the amounts to calculate the company's earnings per share for 2024. (Abbreviations used: Ave. = average, OS = outstanding, SE = stockholders' equity, shrs = shares. Enter the earnings per share to the nearest cent.) Earnings per share %3D %3D Data table Requirements Preferred Stock-4%, $35 par value; 2,000 shares authorized, 1,000 shares issued and outstanding 35,000 Common Stock-$10 par value; 95,000 shares authorized, 53,000 shares issued, 52,000 shares outstanding 530,000 1. Compute Templet's EPS (Earnings Per Share) for the year. 2. Assume Templet's market price of a share of common stock is $9 per share.…arrow_forward
- During 2020, Roblez Corporation had the following transactions and events. 1. Declared a cash dividend. 2. Issued par value common stock for cash at par value. 3. Completed a 2-for-1 stock split in which $10 par value stock was changed to $5 par value stock. 4. Declared a small stock dividend when the market price was higher than par value. 5. Made a prior period adjustment for overstatement of net income. 6. Issued the shares of common stock required by the stock dividend declaration in item no. 4 above. 7. Paid the cash dividend in item no. 1 above. 8. Issued par value common stock for cash above par value. Indicate the effect(s) of each of the foregoing items on the subdivisions of stockholders’ equity. Paid-in Capital Item Capital Stock Additional Retained Earnings 1. No Effect No Effect Decrease 2. IncreaseDecreaseNo Effect IncreaseDecreaseNo Effect IncreaseDecreaseNo Effect 3.…arrow_forwardThe shareholders' equity section of Propel Company's comparative balance sheets for the years ended December 31, 2021 and 2020, reported the following data: ($ in millions) 2021 2020 Common stock, $1 par per share $ 614 $ 601 Paid-in capital—excess of par 350 301 Retained earnings 630 601 During 2021, Propel declared and paid cash dividends of $91 million. The company also declared and issued a small stock dividend. No other changes occurred in shares outstanding during 2021. What was Propel's net income for 2021? Multiple Choice $29 million $120 million $133 million $182 millionarrow_forwardData table Income Statement-partial: Net Income Balance Sheet-partial: Total Assets Paid-In Capital: Preferred Stock-2%, $5 Par Value; 85,000 shares authorized, 5,000 shares issued and outstanding Common Stock-$3 Par Value; 85,000 shares authorized; 55,000 shares issued and outstanding Paid-In Capital in Excess of Par-Common Retained Earnings Total Stockholders' Equity Print $ $ $ $ Done 2024 22,500 $ 260,000 $ Dec. 31, 2024 Dec. 31, 2023 25,000 $ 165,000 2023 5,000 52,000 247,000 $ 25,000 265,000 25,000 165,000 5,000 30,000 225,000arrow_forward
- Intermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning