Additional data: 1. Net income for the year 2020, $61,000. 2. Depreciation on plant assets for the year, $12,700. 3. Sold the long-term investments for $33,000 (assume gain or loss is ordinary). 4. Paid dividends of $20,000. 5. Purchased machinery costing $26,500, paid cash. 6. Purchased machinery and gave a $60,000 long-term note payable. 7. Paid a $40,000 long-term note payable by issuing common stock. Required: 1. Prepare a partial statement which contains cash flows from operating activities using indirect method for 2020 for Planet Company, 2. Calculate net cash flows from investing activities for 2020 for Planet Company 3. Calculate net cash flows from financing activities for 2020 for Planet Company

Additional data: 1. Net income for the year 2020, $61,000. 2. Depreciation on plant assets for the year, $12,700. 3. Sold the long-term investments for $33,000 (assume gain or loss is ordinary). 4. Paid dividends of $20,000. 5. Purchased machinery costing $26,500, paid cash. 6. Purchased machinery and gave a $60,000 long-term note payable. 7. Paid a $40,000 long-term note payable by issuing common stock. Required: 1. Prepare a partial statement which contains cash flows from operating activities using indirect method for 2020 for Planet Company, 2. Calculate net cash flows from investing activities for 2020 for Planet Company 3. Calculate net cash flows from financing activities for 2020 for Planet Company

Name: Additional data:1. Net income for the year 2020, $61,000.2. Depreciat
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Description: Additional data:1. Net income for the year 2020, $61,000.2. Depreciation on plant assets for the year, $12,700.3. Sold the long-term investments for $33,000 (assume gain or loss is ordinary).4. Paid dividends of $20,000.5. Purchased machinery costin

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Study the information provided below and prepare the Cash Flow Statement of Company A for the year ended 31December 2022. Additional information¦ Selling and administrative expenses include the following:Depreciation on buildings R270 000Depreciation on plant and machinery R450 000¦ Property, plant and equipment were purchased during the year but there were no disposals.¦ Total dividends for the year ended 31 December 2022 amounted to R810 000.¦ 750 000 ordinary shares were issued by the company.¦ All purchases and sales of inventories were on credit.¦ The market price of each Company A share was R10 on 31 December 2022.
CQ Photography reported net income of $103,000 for 2022. Included in the income statement were depreciation expense of $6,500, patent amortization expense of $3,800, and a gain on disposal of plant assets of $4,000. CQ's comparative balance sheets show the following balances. Accounts receivable Accounts payable 12/31/22 $19,200 Net Income 8,400 12/31/21 Cash Flows from Operating Activities Calculate net cash provided by operating activities for CQ Photography using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) $27,000 CQ Photography Statement of Cash Flows For the Year Ended December 31, 2022 Adjustments to reconcile net income to 6,500 Net Cash Provided by Operating Activities $ 103000
Net Cash Flow From Operating Activities Verna Company's records provided the following information for 2019: decrease in accounts payable, $4,000 loss on sale of land, $1,100 increase in inventory, $7,100 increase in income taxes payable, $2,800 net income, $68,500 patent amortization expense, $1,200 ordinary loss, $6,300 decrease in deferred taxes payable, $2,200 amortization of discount on bonds payable, $1,800 payment of cash dividends, $22,000 depletion expense, $4,800 decrease in salaries payable, $1,900 decrease in accounts receivable, $3,800 gain on sale of equipment, $6,900 proceeds from issuance of stock, $62,000 ordinary gain, $4,000 depreciation expense, $10,000 amortization of discount on investment in bonds, $1,700 Required Prepare the operating activities section of Verna's 2019 statement of cash flows using the indirect method. Use a minus sign to indicate cash outflows or decreases in cash.
Finance Assume that Tim Corporation has 2020 taxable income of $240,000 for purposes of computing the $179 expense. It acquired the following assets in 2020: (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) ASSET PURCHASE DATE BASIS Furniture (7-year) December 1$ 450,000 Computer equipment (5-year) February 28 $90,000 Copier (5-year) July 15 $30,000 Machinery (7-year) May 22 480,000 Total $ 1,050,000 c. What would Tim's maximum depreciation expense deduction be for 2020 if the machinery cost $3,500,000 instead of 480,000 and assuming no bonus depreciation?
The 2021 Income statement for Egyptian Nolse Blasters shows that depreciation expense is $80 million, NOPAT is $239 million. At the end of the year, the balance of gross fixed assets was $650 million. The change in net operating working capital during the year was $70 million. Egyptian's free cash flow for the year was $180 million. Calculate the beginning-of-year balance for gross fixed assets. (Enter your answer in millions of dollars.) Gross fixed assets million
Lindsay Corporation had net income for 2021 of $3,000,000. Additional information is as follows: Depreciation of plant assets Amortization of intangibles Increase in accounts receivable Increase in accounts payable $1,200,000 240,000 420,000 540,000 Lindsay's net cash provided by operating activities for 2021 was $2,680,000. $4,440,000. $4,320,000. $4,560,000.
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Krakow Corporation reported 2010 net income of $450,000, including the effects of depreciationexpense of $60,000, and amortization expense on a patent of $10,000. Also, cash of $50,000 wasborrowed on a 5-year note payable. Based on this data, total cash inflow from operating activities usingthe indirect method for 2010 was:$570,000$520,000$470.000$440,000
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At December 31, 2022, Flounder Company reported the following as plant assets. Land Buildings Less: Accumulated depreciation-buildings Equipment Less: Accumulated depreciation-equipment Total plant assets April 1 May 1 June 1 $27,650,000 13,740,000 During 2023, the following selected cash transactions occurred. July 1 Dec. 31 48,010,000 4,600,000 $3,590,000 13,910,000 43,410,000 $60,910,000 Purchased land for $2,170,000. Sold equipment that cost $1,080,000 when purchased on January 1, 2019. The equipment was sold for $648,000. Sold land purchased on June 1, 2013 for $1,410,000. The land cost $402,000. Purchased equipment for $2,370,000. Retired equipment that cost $503,000 when purchased on December 31, 2013.
The following is the Statement of Financial Position and the Statement of Income for Kaminsky Ltd. Kaminsky Ltd Statement of Financial Position As at December 31, 2020 2020 2019 Assets Cash 24,700 $ 41,750 Accounts receivable 188,500 183,400 Allowance for doubtful accounts (15,000) (16,500) FVTOCI investments 260,000 200,000 FVTPL investments 60,000 80,000 Inventory Prepaid insurance 184,000 161,000 18,000 16.000 665,650 150,000 1,480,000 -580,000 S 1,400,000 $ 1,050,000 $ 2,120,200 $ 1,715,650 $ 720,200 $ Land 400,000 Buildings and equipment Accumulated depreciation 1,650,000 -650,000 Liabilities and Shareholders' Equity Short-term bank loan 22,000 5000 103,600 16,750 Accounts payable Unearned revenues Тах рayable Dividends payable 119,300 20,400 19,900 25,000 16,600 30,000 $ 187,250 S $ 800,000 $ 1,124,950 186,300 Common shares 800,000 Retained earnings 747,350 -18,000 1,529,350 $ 2,120,200 $ 1,715,650 AOC- FVTOCI investments 8,000 1,932,950 Kaminsky Ltd Statement of Income for the…
At December 31, 2025, Blue Corporation reported the following plant assets. Land Buildings Less: Accumulated depreciation-buildings Equipment Less: Accumulated depreciation-equipment Total plant assets During 2026, the following selected cash transactions occurred. Apr. May June Date 1 Purchased land for $3,335,200. 1 Sold equipment that cost $909,600 when purchased on January 1, 2019. The equipment was sold for $257,720. 1 Sold land for $2,425,600. The land cost $1,516,000. July 1 Purchased equipment for $1,667,600. Dec. 31 Retired equipment that cost $1,061,200 when purchased on December 31, 2016. No salvage value was received. April 1 $26,520,000 11,934,000 60,640,000 7,580,000 May 1 Journalize the transactions. (Hint: You may wish to set up T-accounts, post beginning balances, and then post 2026 transactions.) Blue uses straight-line depreciation for buildings and equipment. The buildings are estimated to have a 40-year useful life and no salvage value; the equipment is estimated…