2 Comparative balance sheets for 2021 and 2020, a statement of income for 2021 and3 additional information from the accounting records of Red Inc are provided below.4.RED INC.9.Comparative Balance SheetsDecember 31,2021 and 2020 ($ inmillions)202120209 Assets10 Cash44.1164.611 Accounts receivable1439412 Prepaid Insurance13 Inventory14 Buildings and equipment5.42.429817243637015 Less:16 Accumulated depreciation-144-2591718 Liabilities95106.519 Accounts payable20 Accrued Liabilities21 Notes payable22 Bonds payable23 Shareholders' Equity8.515.51000.13040040024 Common Stock25 Retained earnings4922144>Sheet1Sheet2Sheet3 2 Bonds payable3 Shareholders' Equity1304 Common Stock5 Retained earnings400400492226782.55442728RED INC.29Statement oflncome30For the year ended December 31,2021 ($ in millions)31 Revenues32 Sales revenue2,50033 Expenses34 Cost of goods sold35 Depreciation expense36 Operating expense1,825564922,37337 Net Income1273839 Additional information from the accounting records:40 a.) During 2021, $246.0 million of equipnent was purchased to replace $180.0million of equipment (95.0% depreciated) sold at book value.42 b.) In order to maintain the usual policy of paying eash dividends of $100.0 million4143it was necessary forRed to borrow $100.0 million from its bank4445 PREPARE CASH FLOW( DIRECT METHOD) AND T- ACCOUNTS46144>4Sheet1Sheet?Sheet?

Cash flow statement: It is a statement which reports the cash inflows and outflows of a business…

Comparative balance sheets for 2021 and 2020, a statement of income for 2021 and additional information from the accounting records of Red Inc are provided below. RED INC. Comparative Balance Sheets December 31,2021 and 2020 ($ inmillions) 2021 2020 9 Assets 10 Cash 44.1 164.6 11 Accounts receivable 143 94 12 Prepaid Insurance 13 Inventory 14 Buildings and equipment 5.4 2.4 298 172 436 370 15 Less: -144 -259 16 Accumulated depreciation 17 18 Liabilities 95 106.5 19 Accounts payable 8.5 15.5 20 Accrued Liabilities 100 21 Notes payable 22 Bonds payable 130 01 23 Shareholders' Equity 24 Common Stock 400 400 49 22

Comparative balance sheets for 2021 and 2020, a statement of income for 2021 and additional information from the accounting records of Red Inc are provided below. RED INC. Comparative Balance Sheets December 31,2021 and 2020 ($ inmillions) 2021 2020 9 Assets 10 Cash 44.1 164.6 11 Accounts receivable 143 94 12 Prepaid Insurance 13 Inventory 14 Buildings and equipment 5.4 2.4 298 172 436 370 15 Less: -144 -259 16 Accumulated depreciation 17 18 Liabilities 95 106.5 19 Accounts payable 8.5 15.5 20 Accrued Liabilities 100 21 Notes payable 22 Bonds payable 130 01 23 Shareholders' Equity 24 Common Stock 400 400 49 22

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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3. You are given the following summarized financial statements of Tech Inc. for the year 2020. Sales revenue Cost of goods sold & various operating expenses Depreciation Operating income Interest Income tax Net income Tech Inc. Income Statement for 2020 Current assets: Cash Trade accounts receivable Inventory Long-term assets: At cost Total assets Liabilities & Equity Current liabilities Long-term liabilities Total liabilities Tech Inc. Balance Sheet as at End of 2020 $ Accumulated depreciation $1,950,000 300,000 Equity: Common shares Retained earnings Total Liabilities & Equity $ 15,000 150,000 $ 900.000 520.000 $2,700,000 $ 100.000 500.000 2,250,000 $ 450,000 10,000 270.000 540.000 $ 820,000 150.000 300.000 380.000 $1.200.000 $ 540,000 60.000 $ 600.000 600.000 $1.200.000 Required Using financial ratio analysis, prepare a report on how well Tech Inc. is doing in 2020.
Just Dew It Corporation reports the following balance sheet information for 2020 and 2021. JUST DEW IT CORPORATION 2020 and 2021 Balance Sheets Liabilities and Owners' Equity Current liabilities Accounts payable Notes payable 2020 2021 $ 43,500 $48,240 29,625 32,160 Assets 2020 2021 Current assets Cash $ 8,250 $ 12,240 Accounts receivable 34,500 40,560 Inventory 58,500 86,160 Total $101,250 $ 138,960 Total es Long-term debt Owners' equity $ 73,125 $ 80,400 $ 45,000 $ 36,000 Common stock and paid-in surplus $60,000 $60,000 Retained earnings 196,875 303,600 $ Net plant and equipment $273,750 $341,040 Total $ 256,875 363,600 $ Total assets $375,000 480,000 Total liabilities and owners' equity $ $375,000 480,000 Prepare the 2020 and 2021 common-size balance sheets for Just Dew It. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)
Condensed financial data of Waterway Company for 2020 and 2019 are presented below. WATERWAY COMPANYCOMPARATIVE BALANCE SHEETAS OF DECEMBER 31, 2020 AND 2019 2020 2019 Cash $1,790 $1,150 Receivables 1,780 1,330 Inventory 1,620 1,890 Plant assets 1,930 1,700 Accumulated depreciation (1,200 ) (1,180 ) Long-term investments (held-to-maturity) 1,310 1,420 $7,230 $6,310 Accounts payable $1,210 $920 Accrued liabilities 210 240 Bonds payable 1,370 1,530 Common stock 1,860 1,670 Retained earnings 2,580 1,950 $7,230 $6,310 WATERWAY COMPANYINCOME STATEMENTFOR THE YEAR ENDED DECEMBER 31, 2020 Sales revenue $6,970 Cost of goods sold 4,680 Gross margin 2,290 Selling and administrative expenses 940 Income from…
Selected financial statement information for 2018, 2019, and 2023 for End Run Corporation is presented below (amounts in millions of dollars): Accounts receivable Current assets Property, plant, and equipment (net) Total assets Current liabilities Long-term debt Sales Cost of goods sold Selling and administrative expenses Income from continuing operations Cash flow from operations Depreciation expense 2020 A. 2020 SAI B. 2020 LVGI C. 2020 TATA D. 2020 Y E. 2020 earnings manipulation probability 10508 30945 11284 68787 29417 8776 101573 92207 3931 946 4837 518 2019 3905 7438 10744 31289 6595 7223 47860 32090 3315 1063 1127 550 2018 2985 5743 10493 26213 6048 7223 33906 27772 2582 739 1863 550 For 2019 and 2020, compute the following amounts relative to Beneish's eight-factor earnings manipulation model:
The balance sheets for Mary Company showed the following information. Additional information concerning transactions and events during 2021 are presented below. Mary CompanyBalance Sheet December 31 2021 2020 Cash $ 31,209 $ 10,302 Accounts receivable (net) 43,733 20,503 Inventory 35,350 42,420 Long-term investments 0 15,150 Property, plant & equipment 238,865 151,500 Accumulated depreciation (38,077) (25,250) $311,080 $214,625 Accounts payable $ 17,170 $ 26,765 Accrued liabilities 21,210 17,170 Long-term notes payable 70,700 50,500 Common stock 131,300 90,900 Retained earnings 70,700 29,290 $311,080 $214,625 Additional data: 1. Net income for the year 2021, $61,610. 2. Depreciation on plant assets for the year, $12,827. 3. Sold the long-term…
he current sections of Skysong, Inc.’s balance sheets at December 31, 2021 and 2022, are presented here.Skysong’s net income for 2022 was $152,700. Depreciation expense was $27,600. 2022 2021 Current assets Cash $107,600 $95,900 Accounts receivable 78,400 89,400 Inventory 167,800 172,100 Prepaid expenses 26,800 22,000 Total current assets $380,600 $379,400 Current liabilities Accrued expenses payable $15,800 $8,600 Accounts payable 84,900 95,500 Total current liabilities $100,700 $104,100 Prepare the net cash provided by operating activities section of the company’s statement of cash flows for the year ended December 31, 2022, using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
Following are the current asset and current liability sections of the balance sheets for Freedom Inc. at January 31, 2020 and 2019 (in millions): Current Assets Cash Accounts receivable Inventories Total current assets Current Liabilities Note payable Accounts payable Other accrued liabilities Total current liabilities January 31, 2020 Working capital Current ratio 6 EL EL $ 21 $ 15 January 31, 2019 01/31/2020 01/31/2019 9 18 $ 25 Required: a. Calculate the working capital and current ratio at each balance sheet date. (Enter "Working capital" in millions of dollars (1.e.. 10,000,000 should be entered as 10). Round your "Current ratio" to 2 decimal places.) $12 b. Evaluate the firm's liquidity at each balance sheet date. Based on the working capital and current ratio measures, the firm has become more liquid over the 2-year period. O Based on the working capital and current ratio measures, the firm has become less liquid over the 2-year period. c. Assume that the firm operated at a loss…
Subject: acounting
Just Dew It Corporation reports the following balance sheet information for 2020 and 2021. JUST DEW IT CORPORATION 2020 and 2021 Balance Sheets Assets 2020 2021 Liabilities and Owners' Equity 2020 2021 Current assets Current liabilities Cash $ 10, 620 $ 13, 275 Accounts payable $ 52, 560 $ 60, 750 Accounts receivable 21,420 29, 925 Notes payable 19, 260 24,075 Inventory 67, 860 82, 575 Total $ 99,900 $ 125, 775 Total $ 71,820 $ 84, 825 Long-term debt $ 36,000 $ 27,000 Owners' equity Common stock and paid - in surplus $ 45,000 $ 45,000 Retained earnings 207, 180 293, 175 Net plant and equipment $ 260, 100 $ 324, 225 Total $ 252, 180 $ 338, 175 Total assets $ 360,000 $ 450,000 Total liabilities and owners' equity $ 360,000 $ 450,000 For each account on this company's balance sheet, show the change in the account during 2021 and note whether this change was a source or use of cash. (If there is no action select "None" from the dropdown options. Leave no cells blank - be certain to enter…
The current sections of Famous’s statements of financial position at December 31, 2019 and 2020, are presented here. Famous’s net income for 2020 was €147,000. Depreciation expense was €21,000. 2020 2019 Current assets Prepaid expenses €25,000 €27,000 Inventory 158,000 172,000 Accounts receivable 79,000 110,000 Cash 105,000 99,000 Total current assets €367,000 €408,000 Current liabilities Accrued expenses payable € 15,000 € 9,000 Accounts payable 85,000 95,000 Total current liabilities €100,000 €104,000 Instructions Prepare the net cash provided by operating activities section of the company’s statement of cash flows for the year ended December 31, 2020, using the indirect method.
Required information [The following information applies to the questions displayed below.] Selected comparative financial statements of Korbin Company follow. Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total expenses Income before taxes Income tax expense Net income Assets Current assets KORBIN COMPANY Comparative Income Statements For Years Ended December 31 2021 2020 $ 481,724 $369,040 289,998 191,726 68,405 43,355 111,760 Long-term investments Plant assets, net Total assets Liabilities and Equity Current liabilities Assets Current assets Long-term investments Plant assets, net Total assets Common stock Other paid-in capital Retained earnings Total liabilities and equity Liabilities and Equity Current liabilities Common stock Other paid-in capital Retained earnings Total liabilities and equity 79,966 14,874 52,403 10,743 $ 65,092 $ 41,660 KORBIN COMPANY Comparative Balance Sheets December 31 233,233 135,807 50,928 32,476 83,404 2021 2020 $ 56,542 0…
The comparative balance sheets for 2021 and 2020 and the statement of income for 2021 are given below for Wright Company. Additional information from Wright's accounting records is provided also. WRIGHT COMPANYComparative Balance SheetsDecember 31, 2021 and 2020($ in thousands) 2021 2020 Assets Cash $ 116 $ 95 Accounts receivable 136 140 Short-term investment 47 14 Inventory 137 135 Land 102 125 Buildings and equipment 695 530 Less: Accumulated depreciation (193 ) (140 ) $ 1,040 899 Liabilities Accounts payable $ 40 $ 48 Salaries payable 2 6 Interest payable 8 5 Income tax payable 5 10 Notes payable 0 33 Bonds payable 296 230 Shareholders’ Equity Common stock 390 330 Paid-in capital—excess of par 187 165…