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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
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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what should have been the Cash Flow Provided By (Used In) FinancingActivities for 2021 if the gross profit of the company for the year 2021 equals $39,375? (Round to the nearest 2 decimal places)
Comprehensive Problem Poco Lo, Co.'s 2020 balance sheet and 2021 common-size income statement follow: Poco Lo, Co. Balance Sheet December 31, 2020 ASSETS Cash 2$ 4,000 2,000 7,200 8.000 21,200 12,000 20,000 3,000 70,500 12,000 87,500 $ 108,700 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 Total Current Liabilities Bonds Payable Total Liabilities Common Stock, $10 par Additional Paid-In Capital Retained Earnings 30,000 19,200 20,000 69.200 $ 108,700 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) 100.00% Cost of Goods Sold (28% Fixed) 56.25% Gross Profit Operating Expenses Operating Income 43.75% 43.35% 0.40% (40% Variable) Gain on Sale of Land 1.60%
Transcribed Image Text: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 Cash 2$ 4,000 2,000 7,200 8.000 21,200 12,000 20,000 3,000 70,500 12,000 87,500 $ 108,700 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 Total Current Liabilities Bonds Payable Total Liabilities Common Stock, $10 par Additional Paid-In Capital Retained Earnings 30,000 19,200 20,000 69.200 $ 108,700 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) 100.00% Cost of Goods Sold (28% Fixed) 56.25% Gross Profit Operating Expenses Operating Income 43.75% 43.35% 0.40% (40% Variable) Gain on Sale of Land 1.60%
Income Before Income Tax 2.00% Tax Expense (50%) Net Income 1.00% 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 December 31, 2020, and 2021, the following overall changes were observed: Account Name Changes Increased by 12.5% Increased to 125% Cash Marketable Securities Decreased by 10% Decreased by 6.25% Decreased by 12.5% Increased to 120% Accounts Receivable Inventories Land Equipment Accumulated Depreciation – Equipment Building Accumulated Depreciation – Building Accounts Payable Wages Payable Taxes Payable Bonds Payable Retained Earnings Increased by 1/6 No Change Increased by 1/6 Increased to 110% Increased by 5% Decreased by 2/3 No Change Decreased by 19.25% Upon inspection of the company's records, 250 common stocks were issued for cash for the 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 the year. 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 the nearest centavos)
Transcribed Image Text:Income Before Income Tax 2.00% Tax Expense (50%) Net Income 1.00% 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 December 31, 2020, and 2021, the following overall changes were observed: Account Name Changes Increased by 12.5% Increased to 125% Cash Marketable Securities Decreased by 10% Decreased by 6.25% Decreased by 12.5% Increased to 120% Accounts Receivable Inventories Land Equipment Accumulated Depreciation – Equipment Building Accumulated Depreciation – Building Accounts Payable Wages Payable Taxes Payable Bonds Payable Retained Earnings Increased by 1/6 No Change Increased by 1/6 Increased to 110% Increased by 5% Decreased by 2/3 No Change Decreased by 19.25% Upon inspection of the company's records, 250 common stocks were issued for cash for the 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 the year. 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 the nearest centavos)
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