Unit 6 Discussion Board

Presented below is information related to Novak Corporation at December 31, 2025, the end of its first year of operations. Sales revenue Cost of goods sold Interest expense Selling and administrative expenses Dividends declared and paid Loss on sale of investments Unrealized gain on available-for-sale financial assets Gain on discontinued operations Compute the following: Ignore tax effects. (a) Income from operations $532,000 360,000 29,500 109,400 9,900 5,500 16,200 17,600 $ GA

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Required: 1. Prepare revised income statements according to generally accepted accounting principles, beginning with income from continuing operations before income taxes. Ignore EPS disclosures. 2. Assume that by December 31, 2016, the division had not yet been sold but was considered held for sale. The fair value of the division’s assets on December 31 was $5,000,000. How would the presentation of discontinued operations be different from your answer to requirement 1? 3. Assume that by December 31, 2016, the division had not yet been sold but was considered held for sale. The fair value of the division’s assets on December 31 was $3,900,000. How would the presentation of discontinued operations be different from your answer to requirement 1?

Subject :- Accounting

Prepare a single step income statement with respect to income from operations.

You have partial information from an entity financial statements as follows: Accounts receivable Allowance for doubtful accounts Inventory FV-NI Investments Accounts payable Unearned revenues Equipment Accumulated depreciation - equipment Sales Cost of goods sold Depreciation expense Bad debt expense Loss on sale of equipment Loss on sale of FV-NI investments Holding gain- FV-NI investments Note also the following: Accounts written off that were recoved during 2024: $ $ $ $ $ 2024 4,450,000 $ (198,000) $ 3,820,000 $ 1020000 2,740,000 $ 365,000 $ 200,000 -98,000 $ $ $ $ $ 2023 3,690,000 (165,000) 4,490,000 925000 2,630,000 430,000 189,000 -89,000 20,560,000 9,250,000 10,000 356,000 5,500 5000 33000 25,000 Required 1) Calculate the cash collected from customers in 2024. 2) Calculate the cash paid to suppliers for purchase of inventory. 3) One FV-NI investment was sold during the year. Its carrying value at the beginning of the year was: $ 125,000 Calculate the NET cash generated/used up…

Match Ltd and Box Ltd both began operations on 1 January 2020. For illustrative purposes, assume that at that date their statement of financial positions were identical and that their operations during 2020 were also identical. The only difference between the two companies is that they elected to use different accounting methods as can be seen below:     Match Ltd   Box Ltd Inventories   FIFO   Weighted average cost Property, plant and equipment   Straight-line depreciation   Diminishing-balance depreciation Summary financial information for both companies at the end of 2020 is presented below. Statement of profit or lossfor the year ended 31 December 2020     Match Ltd   Box Ltd Revenues   $260,000   $260,000 Less: Cost of sales   143,520   156,000 Gross profit   116,480   104,000 Other expenses*   44,000   50,000 Profit   72,480   54,000 * Includes finance costs of $8000. Depreciation expense was $10000 forMatch Ltd and $20000 for Box Ltd. Assume no income…

During 2025, Sheridan Company entered into the following transactions. 1. 2. 3. (1) Your answer is partially correct. Using the following tabular analysis, show the effect of each transaction on the accounting equation. (If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced.) (2) (3) Purchased equipment for $313,650 cash. Issued common stock to investors for $136,360 cash. Purchased inventory of $70,990 on account. $ Cash 313650 eTextbook and Media 136360 Assets Inventory Save for Later Last saved 11 days ago. Saved work will be auto-submitted on the due date. Auto- submission can take up to 10 minutes. 70990 Equipment 313650 Attempts: 1 of 3 used Liabilities Accounts Payable 709 Submit Answer

Calculate operating income in 2021 using the following balances for an industrial company (not a financial institution). Tax Expense Accumulated Depreciation Sales Unearned Revenue Investment Income Selling and Administrative Expense Prepaid Insurance Expense Gross Profit Other Operating Expense Dividends Total operating income is: 2021 80 150 850 40 20 120 80 400 15 4

The gearing of a JK plc has reduced from 45% in 2020 to 37% in 2021.Answer TRUE or FALSE to indicate which of the following is/are VALID reasons for thedecrease?(iii) JK have changed their accounting policy with regard to property. They are now using therevaluation model instead of the cost model(iv) JK made a bonus issue during the year

What accounting assumption, principle, or constraint would Target Corporation use in each of the situations below? a.    Target was involved in litigation over the last year. This litigation is disclosed in the financial statements. b.    Target allocates the cost of its depreciable assets over the life it expects to receive revenue from these assets. c.    Target records the purchase of a new Dell PC at its cash equivalent price.

Sheffield Corp.has income from continuing operations of $220,000 for the year ended December 31, 2022. It also has the following items (before considering income taxes). 1. 2 An unrealized loss of $50,300 on available-for-sale securities. A gain of $37.500 on the discontinuance of a division (comprised of a $9.400 loss from operations and a $46,900 gain on disposal). Assume all items are subject to income taxes at a 15% tax rate. D SUPP

vRay Solutions decided to make the following changes in its accounting policies on January 1, 2018:a. Changed from the cash to the accrual basis of accounting for recognizing revenue on its service contracts.b. Adopted straight-line depreciation for all future equipment purchases, but continued to use accelerated depreciation for all equipment acquired before 2018.c. Changed from the LIFO inventory method to the FIFO inventory method.Required:For each accounting change Ray undertook, indicate the type of change and how Ray should report the change.Be specific.

Culver Corp's income statement for the year ended December 31, 2023, had the following condensed information: Service revenue Operating expenses (excluding depreciation) Depreciation expense Unrealized loss on FV-NI investments Loss on disposal of equipment Income before income tax Income tax expense Net income FV-NI investments Accounts receivable Accounts payable Income tax payable (a) 2023 (b1) $22,000 $26,300 35,500 44,900 7,700 Your answer is correct. There were no purchases or sales of trading (FV-NI) investments during 2023. Culver's statement of financial position included the following comparative data at December 31: Cash Paid To Suppliers Cash Flows from Operating Activities Cash Received from Customers Cash Paid For Income Taxes eTextbook and Media 2022 V 54,700 Cash debt coverage ratio 31,600 8,800 $489,000 Net Cash Provided by Operating Activities V 64,000 Prepare the operating activities section of the statement of cash flows using the direct method. (Show amounts that…

Assume an income statement with the following classifications: A. Revenues B. Cost of goods sold C. Distribution expenses D. General & administrative expenses E. Other revenues and expenses F. Income tax on income from continuing operations G. Gain from disposal of discontinued operations H. Income tax on gain from discontinued operations I. None of the above Indicate by letter how each of the following should be classified: 1. Advertising expense 2. Amortization of a patent held as an investment 3. Cash dividend received on short-term investment 4. Depreciation on plant that manufactures good for sale (prior to sale of the (spoob 5. Freight on sales 6. Income tax effect of loss on sale of plant 7. Income tax on gain on sale of short-term investment in securities 8. Interest expense 9. Interest revenue 10. Loss on sale of patent 11. Dividend revenue from investment 12. Salary of 13. Sales 14. Sales returns 15. Services sold company president

What amount does the company report for nonoperating income?

please answer with must and compulsory explanation, computation , for each steps and parts answer in text form

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Complete the following tasks:  a.   Consider the following worksheet with information extracted from a financial statement: 2018 Assets Liabilities Equity Reported ($) 500 000 100 000 400 000   An analyst makes an adjustment that decreases goodwill by $100 000 and equity (profit) by $100 000. This goodwill was acquired on consolidation, hence there are no tax adjustments. Using the worksheet approach, what would be the change in the debt to assets ratio?    b.  Consider the following information:   Net working capital/total assets = 0.9 Retained earnings/total earnings = 0.15 EBIT/total assets = 1.1 MV of equity/BV of total liabilities = 2 Sales/total assets = 2.5   Compute the Z-score. Is there a likelihood of financial distress?

After conducting a thorough review of the company’s fi nancial statements, Martinez concludes the following:Conclusion 1 Although Stellar’s fi nancial statements adhere to generally accepted accounting principles (GAAP), Stellar understates earnings in periods whenthe company is performing well and overstates earnings in periods whenthe company is struggling.Conclusion 2 Stellar most likely understated the value of amortizable intangibles whenrecording the acquisition of Solar, Inc. last year. No goodwill impairmentcharges have been taken since the acquisition.Conclusion 3 Over time, the accruals component of Stellar’s earnings is large relative tothe cash component.Conclusion 4 Stellar reported an unusually sharp decline in accounts receivable in thecurrent year, and an increase in long-term trade receivables.1 . Based on Martinez’s conclusions, Stellar’s fi nancial statements are best categorized as:A . non-GAAP compliant.B . GAAP compliant, but with earnings management.C . GAAP…

After conducting a thorough review of the company’s fi nancial statements, Martinez concludes the following:Conclusion 1 Although Stellar’s fi nancial statements adhere to generally accepted accounting principles (GAAP), Stellar understates earnings in periods whenthe company is performing well and overstates earnings in periods whenthe company is struggling.Conclusion 2 Stellar most likely understated the value of amortizable intangibles whenrecording the acquisition of Solar, Inc. last year. No goodwill impairmentcharges have been taken since the acquisition.Conclusion 3 Over time, the accruals component of Stellar’s earnings is large relative tothe cash component.Conclusion 4 Stellar reported an unusually sharp decline in accounts receivable in thecurrent year, and an increase in long-term trade receivables.2 . Based on Conclusion 2, after the acquisition of Solar, Stellar’s earnings are most likely :A . understated.B . fairly stated.C . overstated

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Based on the Afrox statement explain the change that possibly took place during 2022 in respect of:1. Long-term borrowings2. Property, plant and equipment.3. Calculate the administrative expenses for 2022.4. Explain if there was a change to the company tax rate of Afrox Ltd during 2022 5. Explain the performance of the company from the information provided without making use of any ratios.6. Recommend FOUR (4) ways in which the company can improve its profitability.