A company began operations at the start of 2022. During the year, it made cash sales of $225,000 and credit sales of $750,000. $630,000 in cash from these credit sales was collected during the year. The company purchased land for $90,000 for a new location. Expenses totaled $508, 500, of which $450,000 was paid in cash. Dividends of $15,000 were paid to stockholders. What was income for 2022? Select one: a. $405, 000 b. $525,000 c. $ 451, 500 d. $466, 500 e. None of these are correct.

A company began operations at the start of 2022. During the year, it made cash sales of $225,000 and credit sales of $750,000. $630,000 in cash from these credit sales was collected during the year. The company purchased land for $90,000 for a new location. Expenses totaled $508, 500, of which $450,000 was paid in cash. Dividends of $15,000 were paid to stockholders. What was income for 2022? Select one: a. $405, 000 b. $525,000 c. $ 451, 500 d. $466, 500 e. None of these are correct.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Muffin's Masonry, Inc.'s balance sheet lists net fixed assets as $33 million. The fixed assets could currently be sold for $57 million. Muffin's current balance sheet shows current liabilities of $15.0 million and net working capital of $14.0 million. If all the current accounts were liquidated today, the company would receive $8.20 million cash after paying the $15.0 million in current liabilities.What is the book value of Muffin's Masonry's assets today and the market value of these assets?
Looking forward to next year, if Baldwin's current cash balance is $20,926,712 and Cash Flows From Operations next period are unchanged from this period, which of the following activities will expose Baldwin to the most risk of needing an emergency loan? Issues 10,000 shares of stock at the current stock price Purchases assets at a cost of $25,000,000 Sells $10,000,000 of their Long-Term Assets Retires $10,000,000 in Long-Term Debt
A company issues $1.1 million of new stock and pays $201,000 in cash dividends during the year. In addition, the company took advantage of falling interest rates to borrow $1.51 million in a new bond issue and paid off existing bonds with a face value of $2.05 million. The company bought 501 of another company's $1,010 bonds at a $101,000 premium. The net cash flow provided by financing activities is: A) An outflow of $201,000. B) An inflow of $359,000. C) An inflow of $540,000. D) An outflow of $101,000
Smith Corporation has provided the following information: Cash sales totaled $143,000.Credit sales totaled $297,000.Cash collections from customers for services yet to be provided totaled $56,000.An $18,000 gain from the sale of property and equipment occurred.Interest income totaled $9,500. How much were Smith's operating revenues?
The following December 31, 2021, fiscal year-end account balance information is available for the Stonebridge Corporation: Cash and cash equivalents $ 5,000Accounts receivable (net) 20,000Inventory 60,000Property, plant, and equipment (net) 120,000Accounts payable 44,000Salaries payable 15,000Paid-in capital 100,000 The only asset not listed is short-term investments. The only liabilities not listed are $30,000 notes payable due in two years and related accrued interest of $1,000 due in four months. The current ratio at year-end is 1.5:1.Required:Determine the following…
At the beginning of the current year, a company issued stock for $150,000 and borrowed $80,000 from the bank. By the end of the year, the company had provided services of $83,000 for cash, paid employee salaries of $39,000, and paid utilities of $13,000. Determine the amount of financing cash flows the company will report in the current year. (Cash outflows should be indicated with a minus sign.) Financing cash flows
Stmt of Cash Flows and Req C, please The following transactions apply to Ozark Sales for Year 1: The business was started when the company received $50,000 from the issue of common stock. Purchased equipment inventory of $178,000 on account. Sold equipment for $192,000 cash (not including sales tax). Sales tax of 6 percent is collected when the merchandise is sold. The merchandise had a cost of $117,000. Provided a six-month warranty on the equipment sold. Based on industry estimates, the warranty claims would amount to 5 percent of sales. Paid the sales tax to the state agency on $142,000 of the sales. On September 1, Year 1, borrowed $21,500 from the local bank. The note had a 6 percent interest rate and matured on March 1, Year 2. Paid $5,900 for warranty repairs during the year. Paid operating expenses of $56,000 for the year. Paid $124,000 of accounts payable. Recorded accrued interest on the note issued in transaction no. 6. Required Record the given transactions in a…
Trident Corporation had the following cash flows in the current year. Which of the following will be categorized under the financing activities section of the statement of cash flows? O Purchase of $125,000 worth of five-year bonds issued by Towson Utilities O Rent on a warehouse amounting to $1.1 million O Lease income received on a piece of land O Preferred dividends of $330,000 paid to shareholders
The Coneflower Company had $312,000 in cash at the beginning of the year (January 1, 2020). Using the data in the chart, prepare a statement of Cash Flows. Cash paid for other operating activities $1,291,000 Cash paid for dividends 16,900 Cash received from selling equipment and other assets 16,300 Cash paid on notes payable 412,000 Cash paid to suppliers and employees 1,258,900 Cash collected from customers 3,840, 700 Cash paid to purchase equipment and other assets 140, 200