During the next fiscal year ending June 30, 2020, Texas Company will nakesubstantial investments in new product lines and in a modernization program.Significant changes to be made during the year are listed below:1. Equipment with a net book value of P86,000 will be sold during the year.2. All of the capital stock of Ohio Company will be exchanged with 5,000shares of Texas Company at a time when the market value is P40 per share.P250,000 cash will also be given as part payment.3. Bonds having a face value of P1,000,000 will be issued on June 30, 2020 at98%.4. Trading securities carried at market value of P200,000 will be sold forP215,000.5. New equipment will be purchased during the year.6. A new building will be purchased at a cost of P1,000,000, although there arno building retirements.7. Cash dividends will be paid to stockholders.The financial statements forccast for the year ended June 30, 2020 are givennext page: Income S.atementFor the Year Ended June 30, 2020Net salesP2,430,500Cost of goods sold (including depreciationof P191,500)P1,073,000Operating expenses (including depreciationof P100,000)500,0007,500(26,000)(15,000)(44,000)356,000P1,851,500P 579,000Interest expenseGain on sale of equipmentGain on sale of trading securitiesUnrealized holding gain on trading securitiesIncome taxTotalNet incomeTexas CompanyBalance SheetsJune 3020202019AssetsP442,000325,000P532,000275,000141,500168,500450,00043,0001,095,000352,000P3,057,000CashTrading Securities(market)Accounts receivable80,500Inventories86,000Investment in Associates (cost)43,000321,500LandBuildings (net)Equipment (net)Total assets242,500P1,540,500Liabilities & EquityP 93,500P107,50050,00041,500156,500Accounts payableShort-term bank loans payableAccrued operating expensesIncome tax payableBonds payable (net)Common stock, P10 par valueAdditional paid in capitalRetained earningsTotal liabilities & equity50,00020,500143,000980,000550,000400,000500,000250,000820,000P3,057,000435,000P1,540,500REQUIRED:1. Prepare a forecast cash flow statement for the vear ended June 30, 2020.2. Show supporting schedules or T-accounts for many missing amounts.

Cash Flow Statement - It refers to the statement which shows the inflow and outflow of cash and cash…

During the next fiscal year ending June 30. 2020, Texas Company will make substantial investments in new product lines and in a modernization program. Significant changes to be made during the year are listed below: 1. Equipment with a net book value of P86,000 will be sold during the year. 2. All of the capital stock of Ohio Company will be exchanged with 5,000 shares of Texas Company at a time when the market value is P40 per share. P250,000 cash will also be given as part payment. 3. Bonds having a face value of P1,000,000 will be issued on June 30, 2020 at 98%. 4. Trading securities carried at market value of P200,000 will be sold for P215,000. 5. New equipment will be purchased during the year. 6. A new building will be purchased at a cost of P1,000,000, although there are no building retirements. 7. Cash dividends wil! be paid to stockholders. The financial statements forecast for the year ended June 30, 2020 are given next page:

During the next fiscal year ending June 30. 2020, Texas Company will make substantial investments in new product lines and in a modernization program. Significant changes to be made during the year are listed below: 1. Equipment with a net book value of P86,000 will be sold during the year. 2. All of the capital stock of Ohio Company will be exchanged with 5,000 shares of Texas Company at a time when the market value is P40 per share. P250,000 cash will also be given as part payment. 3. Bonds having a face value of P1,000,000 will be issued on June 30, 2020 at 98%. 4. Trading securities carried at market value of P200,000 will be sold for P215,000. 5. New equipment will be purchased during the year. 6. A new building will be purchased at a cost of P1,000,000, although there are no building retirements. 7. Cash dividends wil! be paid to stockholders. The financial statements forecast for the year ended June 30, 2020 are given next page:

Fundamentals of Financial Management (MindTap Course List)

15th Edition

ISBN:9781337395250

Author:Eugene F. Brigham, Joel F. Houston

Publisher:Eugene F. Brigham, Joel F. Houston

Chapter4: Analysis Of Financial Statements

Section: Chapter Questions

Problem 24P: Income Statement for Year Ended December 31, 2018 (Millions of Dollars) Net sales 795.0 Cost of...

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Exercise 5-9 During the next fiscal year ending June 30, 2020, Texas Company will make substantial investments in new product lines and in a modernization program. Significant changes to be made during the year are listed below: 1. Equipment with a net book value of P86,000 will be sold during the year. 2. All of the capital stock of Ohio Company will be exchanged with 5,000 shares of Texas Company at a time when the market value is P40 per share. P250,000 cash will also be given as part payment. 3. Bonds having a face value of P1,000,000 will be issued on June 30, 2020 at 4. Trading securities carried at market value of P200,000 will be sold for P215,000. 5. New equipment will be purchased during the year. 6. A new building will be purchased at a cost of P1,000,000, although there are no building retirements. 7. Cash dividends will be paid to stockholders. The financial statements forccast for the year ended June 30, 2020 are given next page:
Computron's Income Statement 2019 2020 INCOME STATEMENT Net sales $ 2,059,200 $ 3,500,640 Cost of Goods Sold (Except depr. and amort.) $ 1,718,400 $ 2,988,000 Other Expenses $ 204,000 $ 432,000 Depreciation and amortization $ 11,340 $ 70,176 Total Operating Costs $ 1,933,740 $ 3,490,176 Earnings before interest and taxes (EBIT) $ 125,460 $ 10,464 Less interest $ 37,500 $ 105,600 Pre-tax earnings $ 87,960 $ (95,136) Taxes (40%) $ 35,184 $ (38,054) Net Income $ 52,776 $ (57,082)…
What is National Co.’s net operating profit after taxes (NOPAT) for 2022?
The following information is available for Sunland Corporation for the year ended December 31, 2022: sales revenue $840,000, other revenues and gains $91,000, operating expenses $101,000, cost of goods sold $466,000, other expenses and losses $30,500, and preferred stock dividends $40,950. The company's tax rate was 20%, and it had 70,000 common shares outstanding during the entire year. (a) Your Answer Correct Answer Your answer is partially correct. Prepare a corporate income statement. (List other revenues before other expenses.)
Lancer Company's preliminary income statement for 2021 and its reported income statement for 2020 are given below. 2021 2020 1,350,000 (648,0001 702,000 (172,500) (162.000 367.500 Sales Revenues 1,320,000 (630.000 690,000 Cost of Goods Sold Gross Profit Depreciation Other Expenses (172,500) (153.000 364.500 Net Income Lancer's records reveal the following information: (1) Lancer neglected to record S8,000 of supplies expense at the end of 2020, so the supplies inventory was overstated at the end of 2020. Consequently, the supplies expense computed for 2021 included the additional amount of supplies used in 2020. (2) On 1/1/19, Lancer purchased a machine for $120,000. Although the machine was expected to have an eight-year life, it was erroneously expensed in recording the purchase. The appropriate depreciation method for this machine is double-declining-balance with no residual. (3) At the end of 2021, Lancer decided to change its inventory costing method from the FIFO costing method…
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Prepare Amount increase or decrease and Percentage?
Module pute Net Operating Profit after Tax Refer to the balance sheet information below for Home Depot. Feb. 3, 2019 Jan. 28, 2018 $35,891 $34,794 1,511 3,056 $37,402 $37,850 $14,177 $13,640 24,822 22,974 $38,999 $36,614 Operating assets Nonoperating assets Total assets $ millions Operating liabilities Nonoperating liabilities Total liabilities Net sales Operating expense before tax Net operating profit before tax (NOPBT) Other expense Income before tax Tax expense Net income Assume a statutory tax rate of 22%. a. Compute NOPAT for the year ended Feb. 3, 2019 using the formula: NOPAT = Net income + NNE Net income NNE NOPAT $ 9,453 $ $ $91,973 78,772 13,201 828 12,373 2,920 $9,453 7,361 * $ 16814 b. Compute NOPAT for the year ended Feb. 3, 2019 using the formula: NOPAT = NOPBT - Tax on operating profit NOPBT Tax on operating profit 7,361 * $ 10,296.78 x $ NOPAT -2936
What is the income before tax for the third quarter ended September 30, 2020? a. P406,250 b. P375,000 c. P675,000 d. P275,000
Sales Revenue $983,000 Cost of Goods Sold 489,000 Operating Expenses 243,000 Use this information to construct an income statement for the year 2019.
A firm has been experiencing low profitability in recent years. Perform an analysis of the firm's financial position using the DuPont equation. The firm has no lease payments but has a $3 million sinking fund payment on its debt. The most recent industry average ratios and the firm's financial statements are as follows: Industry Average Ratios Current ratio Debt-to-capital ratio Times interest earned EBITDA coverage Inventory turnover Cash and equivalents Accounts receivables Inventories Total current assets 2x 17% 3 x 6 x 11 x Days sales outstandinga Calculation is based on a 365-day year. Balance Sheet as of December 31, 2021 (millions of dollars) $78 Accounts payable Other current liabilities 51 125 Notes payable $ 254 Total current liabilities Long-term debt Total liabilities Common stock Retained earnings Total stockholders' equity Total liabilities and equity Gross fixed assets Less depreciation Net fixed assets Total assets 15 days Fixed assets turnover Total assets turnover…
THE ATHLETIC ATTICIncome StatementFor the Year Ended December 31, 2024Net sales $8,900,000Cost of goods sold 5,450,000Gross profit 3,450,000Expenses: Operating expenses $1,600,000 Depreciation expense 210,000 Interest expense 50,000 Income tax expense 360,000 Total expenses 2,220,000Net income $1,230,000 THE ATHLETIC ATTICBalance SheetsDecember 31 2024 2023Assets Current assets: Cash $164,000 Accounts receivable 790,000 Inventory 1,405,000 Supplies 110,000Long-term assets: Equipment 1,150,000 Less: Accumulated depreciation (420,000) Total assets $3,199,000 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $115,000 Interest payable 0 Income tax payable 40,000 Long-term liabilities: Notes payable 600,000 Stockholders' equity: Common stock 700,000…