Accounts payable:90000, Accounts receivable: 130000 At year-end, the following information is available from Felix Inc.'s Adjusted TrialBalance (Accounts are in random order, but assume normal account balances):$250,000EquipmentAccumulated Depreciation $120,000Accounts Payable$90,000Cost of Goods Sold (COGS) $140,000Loss on Equipment Sale$25,000Depreciation Expense$50,000Dividends$80,000Cash$15,000Salaries Expense$75,000Sales$720,000Retained Earnings$160,000$130,000Accounts ReceivableBased on this information, what is Felix Inc.'s Net Income for the year?

Explanation of Net Income: Net income represents the profit a company earns after deducting all…

Answered: At year-end, the following information…

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion

Section: Chapter Questions

Problem 30CE

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The following pretax amounts pertain to Han Ae Sook Company for the year ended December 31, 2020: Sales -P800,000; Distribution and administrative costs – P84,000; Other income - P40,000; Interest expense - P4,000; Cost of goods sold – P480,000; Correction of prior period error (credit) – P16,000; Discontinued operations (debit) – P40,000; Cumulative effect of change in accounting policy (credit) – P28,000; Retained earnings, January 1 (not restated) – P160,000; Dividends declared – P12,000; Income tax rate is 30%. How much retained earnings would be shown on December 31, 2020 statement of financial position? А. Р310,400 В. Р335,600 C. P341,200 D. P344,800
The income statement disclosed the following items for the year: Line Item Description Amount Depreciation expense $43,900 Gain on disposal of equipment 25,610 Net income 292,200 The changes in the current asset and liability accounts for the year are as follows: Line Item Description Increase (Decrease) Accounts receivable $6,840 Inventory (3,890) Prepaid insurance (1,460) Accounts payable (4,640) Income taxes payable 1,460 Dividends payable 1,020 Question Content Area a. Prepare the "Cash flows from (used for) operating activities" section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments. blankStatement of Cash Flows (partial) Line Item Description Amount Amount Cash flows from (used for) operatingactivities: $Net income Adjustments to reconcile net incometo net cash flows from (used for) operating…
The net income reported on the income statement for the current year was $149,900. Depreciation recorded on store equipment for the year amounted to $24,700. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: ETT End of Year Beginning of Year Cash $59,660 $54,290 Accounts receivable (net) 42,780 40,120 Inventories 58,410 61,080 Prepaid expenses 6,560 5,160 Accounts payable (merchandise creditors) 55,900 51,360 Wages payable 30,550 33,550 a. Prepare the "Cash flows from operating activities" section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments. Statement of Cash Flows (partial) Cash flows from operating activities: Adjustments to reconcile net income to net cash flow from operating activities: Changes in current operating assets and liabilities: Net cash flow from operating activities b. Cash flows from…
Adjusting Journal Entry: using accounts listed 12/31 - Estimated Allowance for Doubtful Accounts is computed to be 1% of current year sales. (Hint: the amount of the adjustment should be computed starting from the unadjusted balance in Allowance for Doubtful Accounts)
The income statement disclosed the following items for the year: Depreciation expense $40,700 Gain on disposal of equipment 23,760 Net income 254,700 The changes in the current asset and liability accounts for the year are as follows: Increase (Decrease) Accounts receivable $6,340 Inventory (3,610) Prepaid insurance (1,350) Accounts payable (4,300) Income taxes payable 1,350 Dividends payable 950 a. Prepare the Cash Flows from (used for) Operating Activities section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments. Statement of Cash Flows (partial) Cash flows from (used for) operating activities: Adjustments to reconcile net income to net cash flows from (used for) operating activities: Changes in current operating assets and liabilities: Net cash flows from operating activities b. Why is net cash flows from operating activities different than net income? Cash flows…
The following income statement and additional year-end information is provided. SONAD COMPANYIncome StatementFor Year Ended December 31 Sales $ 2,420,000 Cost of goods sold 1,185,800 Gross profit 1,234,200 Operating expenses Salaries expense $ 331,540 Depreciation expense 58,080 Rent expense 65,340 Amortization expenses—Patents 7,260 Utilities expense 26,620 488,840 745,360 Gain on sale of equipment 9,680 Net income $ 755,040 Accounts receivable $ 36,900 increase Accounts payable $ 10,425 decrease Inventory 36,800 increase Salaries payable 3,050 decrease Prepare the operating activities section of the statement of cash flows using the indirect method. (Amounts to be deducted should be indicated with a minus sign.) Statement of Cash Flows (partial) Cash flows from…
Shaquille Corporation began the current year with inventory of 50,000. During the year, its purchases totaled 110,000. Shaquille paid freight charges of 8,500 for those purchases. At the end of the year, Shaquille had inventory of 47,800. Prepare a schedule to determine Shaquille's cost of goods sold for the current year.
The following selected information is taken from the financial statements of Arnn Company for its most recent year of operations: During the year, Arnn had net sales of 2.45 million. The cost of goods sold was 1.3 million. Required: Note: Round all answers to two decimal places. 1. Compute the current ratio. 2. Compute the quick or acid-test ratio. 3. Compute the accounts receivable turnover ratio. 4. Compute the accounts receivable turnover in days. 5. Compute the inventory turnover ratio. 6. Compute the inventory turnover in days.
Assume the following data for Oshkosh Company before its year-end adjustments:Unadjusted BalancesDebit CreditSales $51,600000Cost of Merchandise Sold $31,750,000Estimated Returns Inventory 28,100Customer Refunds Payable 115,400Estimated cost of merchandise thatwill be returned in the next year $400,000Estimated percent of refunds forcurrent year sales 1.2%Journalize the adjusting entries for the following:a. Estimated customer refunds and allowancesb. Estimated customer returns
Daly company's activities for the year included the following: Gross Sales Sales Discounts Cost of Good Sold Adjustment for a prior year error - understatement of depreciation expense Sales Returns and Allowance Loss on sale of plant asset Gain on discontinued operation (not adjusted for taxes) Unrealized gain on available for sale debt securities Unearned Revenue Selling and Administrative expense $616,910 $896,300 Daly company has a 30% income tax rate. What is the company's net income for the year? $624,110 $2,674,200 $90,000 1,164,300 $625,310 60,000 48,000 15,000 12,000 9,000 5,400 475,600
How much is the comprehensive income for the current year?
The income statement disclosed the following items for the year: Depreciation expense $ 57,600Gain on disposal of equipment 33,600Net income 508,000The changes in the current asset and liability accounts for the year are as follows: Increase (Decrease)Accounts receivable $8,960 Inventory (5,120)Prepaid insurance (1,920)Accounts payable (6,080)Income taxes payable 1,410 Dividends payable 2,200 Prepare the “Cash flows from operating activities” section of the statement of cash flows, using the indirect method. Briefly explain why net cash flow from operating activities is different than net income. Check Figure: Net cash flow from operating activities, $525,410

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