Homework Help is Here – Start Your Trial Now!
Business
Accounting
EQUIRED: Prepare a forecast cash flow statement for the year ended June 30,2020. Show supporting schedules or T-accounts for many missing amounts.

EQUIRED: Prepare a forecast cash flow statement for the year ended June 30,2020. Show supporting schedules or T-accounts for many missing amounts.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

Pa help po salamat. 

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 will be paid to stockholders. The financial statements forccast for the year ended June 30, 2020 are given next page: Income Satement For the Year Ended June 30, 2020 Net sales Cost of gogds sold (including depreciation P2,430,500 P1,073,000 Operating expenses (including depreciation of P100,000) 500,000 Interest expense 7,500 Gain on sale of equipment Gain on sale of trading securities Unrealized holding gain on trading securities (26,000) (15,000) (44,000) 356,000 P1,851,500 P 579,000 Income tax Total Net income Texas Company Balance Sheets June 30 Assets 2020 2019 Cash P442,000 Trading Securities(market) Accounts receivable Inventories P532,000 275,000 141,500 325,000 80,500 168,500 450,000 43,000 86,000 Investment in Associates (cost) Land 43,000 Buildings (net) Equipment (net) Total assets 1,095,000 321,500 352,000 P3,057,000 242,500 P1,540,500 Liabilities & Equity P 93,500 50,000 20,500 P107,500 50,000 Accounts payable Short-term bank loans payable Accrued operating expenses Income tax payable Bonds payable (net) Common stock, P10 par value Additional paid in capital Retained earnings Total liabilities & equity 41.500 143,000 156,500 980,000 0. 550,000 500,000 400,000 250,000 820,000 P3,057.000 435,000 P1,540,500 REQUIRED: Prepare a forecast cash flow statement for the year ended June 30.2020. Show supporting schedules or T-accounts for many missing amounts.
Transcribed Image Text: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 will be paid to stockholders. The financial statements forccast for the year ended June 30, 2020 are given next page: Income Satement For the Year Ended June 30, 2020 Net sales Cost of gogds sold (including depreciation P2,430,500 P1,073,000 Operating expenses (including depreciation of P100,000) 500,000 Interest expense 7,500 Gain on sale of equipment Gain on sale of trading securities Unrealized holding gain on trading securities (26,000) (15,000) (44,000) 356,000 P1,851,500 P 579,000 Income tax Total Net income Texas Company Balance Sheets June 30 Assets 2020 2019 Cash P442,000 Trading Securities(market) Accounts receivable Inventories P532,000 275,000 141,500 325,000 80,500 168,500 450,000 43,000 86,000 Investment in Associates (cost) Land 43,000 Buildings (net) Equipment (net) Total assets 1,095,000 321,500 352,000 P3,057,000 242,500 P1,540,500 Liabilities & Equity P 93,500 50,000 20,500 P107,500 50,000 Accounts payable Short-term bank loans payable Accrued operating expenses Income tax payable Bonds payable (net) Common stock, P10 par value Additional paid in capital Retained earnings Total liabilities & equity 41.500 143,000 156,500 980,000 0. 550,000 500,000 400,000 250,000 820,000 P3,057.000 435,000 P1,540,500 REQUIRED: Prepare a forecast cash flow statement for the year ended June 30.2020. Show supporting schedules or T-accounts for many missing amounts.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Financial Information
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS