what should have beenthe Cash Flow Provided By (Used In) FinancingActivities for 2021 if the gross profit of the company for the year 2021 equals $39,375? (Round to the nearest 2 decimal places) Comprehensive ProblemPoco Lo, Co.'s 2020 balance sheet and 2021 common-size income statement follow:Poco Lo, Co.Balance SheetDecember 31, 2020ASSETSCash2$4,0002,0007,2008.00021,20012,00020,0003,00070,50012,00087,500$ 108,700Marketable SecuritiesAccounts ReceivableInventoriesTotal Current AssetsLandEquipmentAccumulated Depreciation -BuildingAccumulated Depreciation –EquipmentBuildingTotal Noncurrent AssetsTotal AssetsLIABILITIES AND STOCKHOLDERS' EQUITYAccounts PayableWages PayableTaxes Payable2$7,0001,0001,5009,50030,00039,500Total Current LiabilitiesBonds PayableTotal LiabilitiesCommon Stock, $10 parAdditional Paid-In CapitalRetained Earnings30,00019,20020,00069.200$ 108,700Total Stockholders' EquityTotal Liabilities and Stockholders' EquityPoco Lo, Co.Common-Size Income StatementFor the Year Ended December 31, 2021Sales (400 Units)100.00%Cost of Goods Sold(28% Fixed)56.25%Gross ProfitOperating ExpensesOperating Income43.75%43.35%0.40%(40% Variable)Gain on Sale of Land1.60% Income Before Income Tax2.00%Tax Expense (50%)Net Income1.00%1.00%Additional Information for the Year 2021:Poco Lo, Co. is a merchandiser of single-priced, wooden cabinets and no other products.Based on the horizontal and trend analysis made for accounts balances as of December31, 2020, and 2021, the following overall changes were observed:Account NameChangesIncreased by 12.5%Increased to 125%CashMarketable SecuritiesDecreased by 10%Decreased by 6.25%Decreased by 12.5%Increased to 120%Accounts ReceivableInventoriesLandEquipmentAccumulated Depreciation – EquipmentBuildingAccumulated Depreciation – BuildingAccounts PayableWages PayableTaxes PayableBonds PayableRetained EarningsIncreased by 1/6No ChangeIncreased by 1/6Increased to 110%Increased by 5%Decreased by 2/3No ChangeDecreased by 19.25%Upon inspection of the company's records, 250 common stocks were issued for cash forthe year and the company did not repurchaseany of its common stock within the year.The company did not issue any new bonds nor retired any of the existing bonds during theyear.Aside from the land sold, no other noncurrent assets were disposedof within the year.Pieces of equipment were purchased within the year and no other acquisition was made.Cash Dividends were declared and paid within the year.Gross Profit for the period is equal to $30,625.Based on the foregoing facts, answer the following questions:a. Quick Ratio for the Year 2021 (Round to the nearest 3 decimalplaces)b. Cash Flow Provided By (Used In) Operating Activities (Round to thenearest centavos)c. Issuance Price per Share for the Common Stock Issued for the Year(Round to thenearest centavos)

cash flow statement: The Cash flow statement shows a statement that presents information about the…

Comprehensive Problem Poco Lo, Co.'s 2020 balance sheet and 2021 common-size income statement follow: Poco Lo, Co. Balance Sheet December 31, 2020 ASSETS 4,000 2,000 7,200 8.000 21,200 12,000 20,000 3,000 70,500 12,000 87,500 $ 108.700 2$ Cash Marketable Securities Accounts Receivable Inventories Total Current Assets Land Equipment Accumulated Depreciation - Building Accumulated Depreciation - Equipment Building Total Noncurrent Assets Total Assets LIABILITIES AND STOCKHOLDERS' EQUITY Accounts Payable Wages Payable Taxes Payable 2$ 7,000 1,000 1,500 9,500 30,000 39,500 30,000 19,200 20,000 69.200 $ 108.700 Total Current Liabilities Bonds Payable Total Liabilities Common Stock, $10 par Additional Paid-In Capital Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity Poco Lo, Co. Common-Size Income Statement For the Year Ended December 31, 2021 Sales (400 Units) Cost of Goods Sold Gross Profit Operating Expenses Operating Income Gain on Sale of Land 100.00% (28% Fixed) 56.25% 43.75% (40% Variable) 43.35% 0.40% 1.60%

Comprehensive Problem Poco Lo, Co.'s 2020 balance sheet and 2021 common-size income statement follow: Poco Lo, Co. Balance Sheet December 31, 2020 ASSETS 4,000 2,000 7,200 8.000 21,200 12,000 20,000 3,000 70,500 12,000 87,500 $ 108.700 2$ Cash Marketable Securities Accounts Receivable Inventories Total Current Assets Land Equipment Accumulated Depreciation - Building Accumulated Depreciation - Equipment Building Total Noncurrent Assets Total Assets LIABILITIES AND STOCKHOLDERS' EQUITY Accounts Payable Wages Payable Taxes Payable 2$ 7,000 1,000 1,500 9,500 30,000 39,500 30,000 19,200 20,000 69.200 $ 108.700 Total Current Liabilities Bonds Payable Total Liabilities Common Stock, $10 par Additional Paid-In Capital Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity Poco Lo, Co. Common-Size Income Statement For the Year Ended December 31, 2021 Sales (400 Units) Cost of Goods Sold Gross Profit Operating Expenses Operating Income Gain on Sale of Land 100.00% (28% Fixed) 56.25% 43.75% (40% Variable) 43.35% 0.40% 1.60%

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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