cash accounts receivable inventories current assets gross fixed assets accumulated depreciation net fixed assets total assets accounts payable accruals End-of-Year Balance Sheets current liabilities long-term bonds common stock paid-in capital retained earnings total liabilities & equity sales cost of goods sold depreciation expense EBIT interest expense EBT taxes @ 40% NI cash dividends 2022 2,000,000 5,500,000 4,000,000 11,500,000 25,000,000 900,000 2021 2,100,000 3,500,000 3,750,000 2,000,000 2,250,000 Alpha Unlimited, Inc. Income Statements 2022 6,275,000 5,500,000 6,000,000 12,000,000 13,500,000 2,000,000 2,000,000 5,000,000 5,000,000 98,000,000 86,000,000 50,000 4,750,000 11,100,000 12,455,000 35,600,000 38,955,000 13,125,000 26,780,000 950,000 24,100,000 25,830,000 25,780,000 35,600,000 38,955,000 39,803,000 6,306,000 5,433,921 11,950,000 16,950,000 1,440,000 1,620,000 10,510,000 15,330,000 4,204,000 6,132,000 9,198,000 2020 2,050,000 8,443,000 6,873,000 5,100,000 14,023,000 26,780,000 1,000,000 4,000,000 2,500,000 6,500,000 13,500,000 2,000,000 5,000,000 12,803,000 2021 125,500,000 126,000,000 108,500,000 110,000,000 50,000 50,000 39,803,000 2020 15,950,000 1,620,000 14,330,000 5,732,000 8,598,000 8,250,000 Assume that you are preparing a 2022 Statement of Cash Flows for Alpha Unlimited. Which of the following statements is true of accounts payable? A. Accounts payable will be a source of funds in the amount of $250,000. B. Accounts payable will be a use of funds in the amount of $250,000. OC. Accounts payable will be a source of funds in the amount of $4,000,000. D. Accounts payable will be a use of funds in the amount of $4,000,000. E. None of the above is true.
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.
Finance
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