Homework Help is Here – Start Your Trial Now!
Business
Accounting
By how much did Declan's Designs' Gross PPE increase during 2022? Please do not provide the net change in PPE, but instead provide the gross annual increase to PPE.    Question 1 options:   $22,000   $8,000   $12,000   $10,000

By how much did Declan's Designs' Gross PPE increase during 2022? Please do not provide the net change in PPE, but instead provide the gross annual increase to PPE.    Question 1 options:   $22,000   $8,000   $12,000   $10,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

By how much did Declan's Designs' Gross PPE increase during 2022? Please do not provide the net change in PPE, but instead provide the gross annual increase to PPE. 

 

Question 1 options:

 

$22,000
 

$8,000
 

$12,000
 

$10,000

 

ASSETS 12/31/2021 12/31/2022 For the Year Ending Current Assets Cash and Cash Equivalents Accounts Receivable, Net Merchandise Inventory 12/31/2022 $90,000 97,000 400,000 587,000 $294,000 101,000 475,000 870,000 Sales Revenue $225,000 (16,000) 209,000 (22,000) 187,000 (12,000) (5,000) 170,000 (7,000) $163,000 CGS Total Current Assets Gross Margin SG&A PPE, Net Goodwill, Net 62,000 600,000 $1,249,000 70,000 600,000 $1,540,000 Operating Income Interest Expense Loss on Sale of PPE Total Assets Pre-Tax Income Income Tax Expense LIABILITIES & SHAREHOLDERS’ EQUITY Current Liabilities Accounts Payable Interest Payable Dividends Payable Net Income 26,000 3,000 20,000 49,000 17,000 5,000 10,000 32,000 Additional Information regarding Declan's Designs' 12/31/22 financials: Total Current Liabilities Mortgage Payable Long-Term Bank Loan Total Liabilities 500,000 200,000 732,000 PROPERTY, PLANT & EQUIPMENT PPE is shown net accumulated depreciation. Accumulated depreciation was $18,000 at the beginning of the 500,000 and $20,000 at the end of the year. Depreciation expense for the year was $3,000, which is year included in SG&A. New PPE was bought during the year for $22,000 (in cash). 549,000 Shareholder's Equity Preferred Stock Note: You may use the worksheet provided on the last page to help you prepare the Cash Flow Statement. 8,000 54,000 638,000 700,000 Common Stock Hint #1: The most recent year is not always in the left column. Additional Paid in Capital Retained Earnings Total Shareholder's Equity 10,000 60,000 738,000 808,000 Hint #2: Evaluate changes in gross PPE separate from changes in accumulated depreciation. Recall gross PPE less accumulated depreciation equals net PPE. Hint #3: Never “plug" the annual change in gross PPE. Separately evaluate the increase in gross PPE (capital expenditures) from the annual decrease in gross PPE (sale of PPE). Total Liabilities &Shareholders' Equity $1,249,000 $1,540,000 Hint #4: The total change in cash due to stock issuances/repurchases is the sum of the change in common stock (stated par value) and additional paid in capital (APIC). Hint #5: Dividends declared (the decrease in RE) is not the same as dividends paid (the decrease in dividends payable). To find dividends paid, set up your dividends payable account with the beginning and ending balances from the balance sheet. Increase dividends paid by the amount of dividends declared. Then plug for the decrease in dividends payable (which represents dividends paid).
Transcribed Image Text:ASSETS 12/31/2021 12/31/2022 For the Year Ending Current Assets Cash and Cash Equivalents Accounts Receivable, Net Merchandise Inventory 12/31/2022 $90,000 97,000 400,000 587,000 $294,000 101,000 475,000 870,000 Sales Revenue $225,000 (16,000) 209,000 (22,000) 187,000 (12,000) (5,000) 170,000 (7,000) $163,000 CGS Total Current Assets Gross Margin SG&A PPE, Net Goodwill, Net 62,000 600,000 $1,249,000 70,000 600,000 $1,540,000 Operating Income Interest Expense Loss on Sale of PPE Total Assets Pre-Tax Income Income Tax Expense LIABILITIES & SHAREHOLDERS’ EQUITY Current Liabilities Accounts Payable Interest Payable Dividends Payable Net Income 26,000 3,000 20,000 49,000 17,000 5,000 10,000 32,000 Additional Information regarding Declan's Designs' 12/31/22 financials: Total Current Liabilities Mortgage Payable Long-Term Bank Loan Total Liabilities 500,000 200,000 732,000 PROPERTY, PLANT & EQUIPMENT PPE is shown net accumulated depreciation. Accumulated depreciation was $18,000 at the beginning of the 500,000 and $20,000 at the end of the year. Depreciation expense for the year was $3,000, which is year included in SG&A. New PPE was bought during the year for $22,000 (in cash). 549,000 Shareholder's Equity Preferred Stock Note: You may use the worksheet provided on the last page to help you prepare the Cash Flow Statement. 8,000 54,000 638,000 700,000 Common Stock Hint #1: The most recent year is not always in the left column. Additional Paid in Capital Retained Earnings Total Shareholder's Equity 10,000 60,000 738,000 808,000 Hint #2: Evaluate changes in gross PPE separate from changes in accumulated depreciation. Recall gross PPE less accumulated depreciation equals net PPE. Hint #3: Never “plug" the annual change in gross PPE. Separately evaluate the increase in gross PPE (capital expenditures) from the annual decrease in gross PPE (sale of PPE). Total Liabilities &Shareholders' Equity $1,249,000 $1,540,000 Hint #4: The total change in cash due to stock issuances/repurchases is the sum of the change in common stock (stated par value) and additional paid in capital (APIC). Hint #5: Dividends declared (the decrease in RE) is not the same as dividends paid (the decrease in dividends payable). To find dividends paid, set up your dividends payable account with the beginning and ending balances from the balance sheet. Increase dividends paid by the amount of dividends declared. Then plug for the decrease in dividends payable (which represents dividends paid).
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 1 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Follow-up Questions
Read through expert solutions to related follow-up questions below.
Follow-up Question

By how much did Declan's Designs' Gross PPE decrease during 2022? Please do not provide the net change in PPE, but instead provide the gross annual decrease to PPE. 

Solution
Bartleby Expert
SEE SOLUTION
Knowledge Booster
Present Value
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS