Beginning of End of Shonda Corporation 2014 2014 Direct materials inventory $ 129,000 $ 72,000 Work-in-process inventory 166,000 144,000 Finished goods inventory 248,000 205,000 Purchases of direct materials 255,000 Direct manufacturing labor 213,000 Indirect manufacturing labor 101,000 Indirect materials 29,000 Plant insurance 9,000 Depreciation-plant, building, and equipment 47,000 Plant utilities 21,000 Repairs and maintenance-plant 17,000 Equipment leasing costs 61,000 Marketing, distribution, and customer-service costs 126,000 General and administrative costs 73,000
Reporting Cash Flows
Reporting of cash flows means a statement of cash flow which is a financial statement. A cash flow statement is prepared by gathering all the data regarding inflows and outflows of a company. The cash flow statement includes cash inflows and outflows from various activities such as operating, financing, and investment. Reporting this statement is important because it is the main financial statement of the company.
Balance Sheet
A balance sheet is an integral part of the set of financial statements of an organization that reports the assets, liabilities, equity (shareholding) capital, other short and long-term debts, along with other related items. A balance sheet is one of the most critical measures of the financial performance and position of the company, and as the name suggests, the statement must balance the assets against the liabilities and equity. The assets are what the company owns, and the liabilities represent what the company owes. Equity represents the amount invested in the business, either by the promoters of the company or by external shareholders. The total assets must match total liabilities plus equity.
Financial Statements
Financial statements are written records of an organization which provide a true and real picture of business activities. It shows the financial position and the operating performance of the company. It is prepared at the end of every financial cycle. It includes three main components that are balance sheet, income statement and cash flow statement.
Owner's Capital
Before we begin to understand what Owner’s capital is and what Equity financing is to an organization, it is important to understand some basic accounting terminologies. A double-entry bookkeeping system Normal account balances are those which are expected to have either a debit balance or a credit balance, depending on the nature of the account. An asset account will have a debit balance as normal balance because an asset is a debit account. Similarly, a liability account will have the normal balance as a credit balance because it is amount owed, representing a credit account. Equity is also said to have a credit balance as its normal balance. However, sometimes the normal balances may be reversed, often due to incorrect journal or posting entries or other accounting/ clerical errors.
Find the attached file.
1) Prepare a schedule for the cost of goods manufactured for 2014.
2) Revenues in thousands for 2014 were $1,700,000. Prepare income statement for 2014.
![Beginning of
End of
Shonda Corporation
2014
2014
Direct materials inventory
$
129,000 $
72,000
Work-in-process inventory
166,000
144,000
Finished goods inventory
248,000
205,000
Purchases of direct materials
255,000
Direct manufacturing labor
213,000
Indirect manufacturing labor
101,000
Indirect materials
29,000
Plant insurance
9,000
Depreciation-plant, building, and equipment
47,000
Plant utilities
21,000
Repairs and maintenance-plant
17,000
Equipment leasing costs
61,000
Marketing, distribution, and customer-service costs
126,000
General and administrative costs
73,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9a9b46db-7180-4776-980c-edc7be0f3b85%2F345112b3-ef6c-4812-96c3-d91b4e090b52%2Fgrgd0g7_processed.png&w=3840&q=75)
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