Cash, Inventory , and Accounts Receivable are reported on the Income statement below Sales and Cost of Goods Sold Balance sheet under fixed or intangible assets $792,000. Balance sheet under current assets Income statement above net income

Current assets are an important part of balance sheet. Current assets are those assets which are…

Answered: Cash, Inventory , and Accounts…

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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Similar questions

Which of the following is correct regarding cash basis of accounting? a. Sales include cash sales and collection of trade receivables. b. Purchases include cash purchases and payment of trade payables. c. All given statements are correct. d. Depreciation is recorded normally.
Based on the following transactions, answer the follosssasdswing questions.Calculate the revenues, expenses, and net income that would be reported on the cash basis. (Enter loss amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Revenues Expenses Net Income / (Loss) i. Inventory costing $79, 800 was purchased on account. ii. Inventory costing $68, 400 was sold for $114,000. Eighty percent of the sales were for cash. iii. Cash collected from credit customers (those who bought on account) totalled $22, 800. iv. A lease was signed at the beginning of the year, requiring monthly payments of $1,100. The rent for the first month was paid when the lease was signed. After that, the $1,100 rent was paid on the last day of each month, to cover the following month. v. Supplies costing $ 6,300 were purchased for cash. At the end of the year, $600 of the supplies were still unused. vi. Wages of $42, 800 were paid during the year. Also, wages of $600…
Which of the following calculations of net income is correct? Select one: Cash receipts minus cash payments Assets minus liabilities Revenues minus cost of goods sold Revenues and gains minus expenses and losses
*Use Accrual Accounting Base Method Chart of Accounts (strictly use it): ASSETS: Cash and Cash Equivalents: Petty Cash Cash on Hand Cash in Bank Accounts Receivables Merchandise Inventory Prepaid Expenses Supplies Fixed Assets Leasehold Improvements Accumulated Depreciation - Leasehold Improvements Accumulated Depreciation - Transportation and Other Equipment Other Assets LIABILITIES: Accounts Payable Accrued Expenses and Other Liabilities Income Tax Payable EQUITY: Owner’s Capital Retained Earnings INCOME STATEMENT: Income: Sales Sales Discount Sales Returns and allowances Cost of Sales: Cost of Sales Expenses: Salary Expenses Rent Expenses Professional Fees Transportation Expenses Depreciation Expenses – Leasehold Improvements Depreciation Expenses – Transportation and Other Equipment Insurance Expenses Supplies Expenses Utility Expenses Miscellaneous Expenses Income Tax Income Tax Expense…
Net Cash Provided by Operating Activities Changes in various accounts and gains and losses on the sale of assets during the year for Argon Company are given below: Required: Prepare an answer sheet using the following column headings: For each item, place an X in the Add or Subtract column to indicate whether the dollar amount should be added to or subtracted from net income under the indirect method when computing the net cash provided by operating activities for the year.
B4.
use the information in the income statement below to calculate operating cash flow (OCF). sales- $1,280 COGS- $620 Dep Exp- $180 EBIT- $480 Int Exp- $110 EBT- $370 Taxes- $78 NI- $292
The time between the acquisition of inventory and the collection of cash from receivables is which of the following? A- operating cycle B- accounts receivable period C- inventory period D- accounts payable period
indicate whether each of the following would be added to be or deducted from net income in determining net cash flow from operating activities by the indirect method: decrease in inventory
The accounting records of Wall's China Shop reflected the following balances as of January 1, Year 2: Cash Beginning inventory Common stock Retained earnings The following five transactions occurred in Year 2: 1. First purchase (cash) 120 units @ $90 2. Second purchase (cash) 205 units @ $98 3. Sales (all cash) 350 units @ $197 4. Paid $13,950 cash for salaries expense 5. Paid cash for income tax at the rate of 25 percent of income before taxes $16, 800 17,600 (200 units @ $88) 15, 700 18,700 Required a. Compute the cost of goods sold and ending inventory, assuming (1) FIFO cost flow, (2) LIFO cost flow, and (3) weighted-average cost flow. b. Use a vertical model to show the Year 2 income statement, balance sheet, and statement of cash flows under FIFO, LIFO, and weighted average. (Hint: Record the events under an accounting equation before preparing the statements.) Complete this question by entering your answers in the tabs below. Req A Req B1 Cost of goods sold Ending inventory Req…
Indicate the effect of the transactions listed in the following table on total current assets, current ration, and net income. Use (+) to indicate an increase, (-) to indicate a decrease, and (0) to indicate either no effect or an indeterminate effect. Be prepared to state any necessary assumptions and assume an initial current ratio of more than 1.0. b Merchandise is sold for cash.
Assets Current assets Cash and cash equivalents Accounts receivable, net Supplies Other current assets Total current assets Property and equipment Accumulated depreciation Net property and equipment Goodwill Deferred charges Other Total assets Liabilities and equity Current liabilities Accounts payable Accrued liabilities Current maturities of long-term debt Total current liabilities Operating lease liabilities non-current Long-term debt Other non-current liabilities Total liabilities Total liabilities Common stock Cummulative dividends Retained earnings Other Total equity Total liabilities and equities Revenue, net Operating charges Salaries, wages, and benefits Other operating expenses Supplies expense Depreciation and amortization Lease and rental expense Total operating charges Income from operations Interest expense, net Other (income) expense, net Income before income taxes Provision for income taxes Net income $61,268 1,560,847 Cost of debt (%) Cost of equity (%) Weighted…

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		Income statement below Sales and Cost of Goods Sold
		Balance sheet under fixed or intangible assets
		$792,000.
		Balance sheet under current assets
		Income statement above net income