General Accounting Grant, Inc. acquired 40% of South Company'scommon stock for $200,000 on January 1, 2014. Inits 2014 cash flow statement, Grant, Inc. reported anoperating cash inflow related to its investment inSouth Company of $6,800. The balance in theinvestment in the South Company accountDecember 31, 2014, amounted to $226,800. During2015, South Company reported a net income of$91,000. On December 31, 2015, Grant, Inc. soldone-half of its investment in South Company for$137,000 cash which resulted in them reporting again on sale of investments of $12,000.Calculate the balance in the Investment in SouthCompany account at December 31, 2015,immediately before one-half of the investment wassold.

Step 1: Calculate the share of South Company's net incomeGrant, Inc. owns 40% of South Company.South…

Answered: Grant, Inc. acquired 40% of South…

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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The Crane Company has disclosed the following financial information in its annual reports for the period ending March 31, 2017: sales of $1.473 million, cost of goods sold of $817,000, depreciation expenses of $175,000, and interest expenses of $89,575. Assume that the firm has an average tax rate of 35 percent. Compute the cash flows to investors from operating activity. (Round answer to 2 decimal places, e.g. 15.25.)
The Pharoah Company has disclosed the following financial information in its annual reports for the period ending March 31, 2017: sales of $1.416 million, cost of goods sold of $815,000, depreciation expenses of $175,000, and interest expenses of $89,575. Assume that the firm has an average tax rate of 35 percent. Compute the cash flows to investors from operating activity. (Round answer to 2 decimal places, e.g. 15.25.) Cash flow from operating activity %24
The Sunland Company has disclosed the following financial information in its annual reports for the period ending March 31, 2017: sales of $1.426 million, cost of goods sold of $815,000, depreciation expenses of $175,000, and interest expenses of $89,575. Assume that the firm has an average tax rate of 35 percent. Compute the cash flows to investors from operating activity. (Round answer to 2 decimal places, e.g. 15.25.) Cash flow from operating activity $
Hendrickson Corporation reported net income of $50,000 in 2017. Depreciation expense was $17,000. The following working capital accounts changed. Accounts receivable $11,000 increase Available-for-sale debt securities 16,000 increase Inventory 7,400 increase Nontrade note payable 15,000 decrease Accounts payable 12,300 increase Compute net cash provided by operating activities.
Terrance Corporation ended its fiscal year on September 30, 2021, with cash of $76 milion, accounts receivable of $28 million, property and equipment of 529 milion, and other long-term assets of $16 million The company's labebes consist of accounts payatle of $35 mition and long-term notes payable of $10 milion Terrance Corporation has total stockholders equity of 596 millon, of this total, common stock is $34 mon Solve for the company's ending retained eamings and then prepare Terrance Corporation's balance sheet at September 30, 2021 Use a proper heading on the balance sheet (2 million Terrance Corporation's ending retained earnings balance is Now prepare Terrance Corporation's balance sheet at September 30, 2021 Use a proper heading on the balance sheet Start with the heading and then complete the assets section of the statement Finally, complete the abilities and stockholders equity section of the statement (Enter at amounts in milions Classify the balance sheet by selecting the…
The following information is available from the financial statements of Hornets Corporation for the year ended December 31, 2015: Net income - P396,000; Depreciation expense - 102,000; Decrease in accounts receivable - 126,000; Increase in inventories - 90,000; Increase in accounts payable - 24,000; Payment of dividends 54,000Purchase of available-for-sale securities - 22,000; Decrease in income taxes payable - 16,000. What is Hornets Corporation's net cash flow from operating activities?
Stellar Co. reported $145,700 of net income for 2020. The accountant, in preparing the statement of cash flows, noted the following items occurring during 2020 that might affect cash flows from operating activities. 1. Stellar purchased 100 shares of treasury stock at a cost of $20 per share. These shares were then resold at $25 per share. 2. Stellar sold 100 shares of IBM common at $200 per share. The acquisition cost of these shares was $160 per share. There were no unrealized gains or losses recorded on this investment in 2020. 3. Stellar revised its estimate for bad debts. Before 2020, Stellar’s bad debt expense was 1% of its receivables. In 2020, this percentage was increased to 2%. Net account for 2020 were $485,400, and net accounts receivable decreased by $12,800 during 2020. 4. Stellar issued 500 shares of its $10 par common stock for a patent. The market price of the shares on the date of the transaction was $23 per share. 5. Depreciation expense is…
Ivanhoe Co. reported $145,700 of net income for 2020. The accountant, in preparing the statement of cash flows, noted the following items occurring during 2020 that might affect cash flows from operating activities. 1. Ivanhoe purchased 100 shares of treasury stock at a cost of $20 per share. These shares were then resold at $25 per share.2. Ivanhoe sold 100 shares of IBM common at $190 per share. The acquisition cost of these shares was $140 per share. There were no unrealized gains or losses recorded on this investment in 2020.3. Ivanhoe revised its estimate for bad debts. Before 2020, Ivanhoe’s bad debt expense was 1% of its receivables. In 2020, this percentage was increased to 2%. Net account for 2020 were $464,100, and net accounts receivable decreased by $10,800 during 2020.4. Ivanhoe issued 500 shares of its $10 par common stock for a patent. The market price of the shares on the date of the transaction was $23 per share.5. Depreciation expense is $35,600.6. Ivanhoe Co. holds…
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The net changes in the balance sheet accounts of Amy Corporation for the year 2021 are shown below. Account Debit Credit Cash $ 103,530 Short-term investments $143,990 Accounts receivable 93,058 Allowance for doubtful accounts 15,827 Inventory 88,298 Prepaid expenses 27,132 Investment in subsidiary (equity method) 29,750 Plant and equipment 249,900 Accumulated depreciation 154,700 Accounts payable 96,033 Accrued liabilities 25,585 Deferred tax liability 18,445 8% serial bonds 83,300 Common stock, $10 par 107,100 Additional paid-in capital 178,500 Retained earnings—Appropriation for bonded indebtedness 71,400 Retained earnings—Unappropriated 45,220 $765,884 $765,884 An analysis of the Retained Earnings—Unappropriated account follows: Retained earnings unappropriated, December 31, 2020 $1,547,000 Add: Net income…
(Schedule of Net Cash Flow from Operating Activities—Indirect Method) Ballard Co. reported $145,000 of net income for 2017. The accountant, in preparing the statement of cash flows, noted the following items occurring during 2017 that might affect cash flows from operating activities.1. Ballard purchased 100 shares of treasury stock at a cost of $20 per share. These shares were then resold at $25 per share.2. Ballard sold 100 shares of IBM common at $200 per share. The acquisition cost of these shares was $145 per share. There were no unrealized gains or losses recorded on this investment in 2017.3. Ballard revised its estimate for bad debts. Before 2017, Ballard’s bad debt expense was 1% of its net sales. In 2017, this percentage was increased to 2%. Net sales for 2017 were $500,000, and net accounts receivable decreased by $12,000 during 2017.4. Ballard issued 500 shares of its $10 par common stock for a patent. The market price of the shares on the date of the transaction was $23…
The 2017 balance sheet of Kerber's Tennis Shop , Incorporated, showed $2.4 million long-term debt, $760,000 in the common stock account, and $5.95 million in the additional paid-in surplus account. The 2018 balance sheet showed $3.95 million $985,000, and $8.05 million in the same three accounts , respectively . The 2018 income statement showed an interest expense of $ 310,000 . The company paid out $590,000 in cash dividends during 2018. If the firm's net capital spending for 2018 was $690,000 , and the firm reduced its net working capital Investment by $185,000 , what was the firm's 2018 operating cash flow , or OCF ? Typed solution

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