Homework Help is Here – Start Your Trial Now!
Business
Accounting
Income Before Income Tax 2.00% Tax Expense (50%) 1.00% 1.00% Net Income 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: Changes Increased by 12.5% Account Name Cash Marketable Securities Increased to 125% 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.

Income Before Income Tax 2.00% Tax Expense (50%) 1.00% 1.00% Net Income 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: Changes Increased by 12.5% Account Name Cash Marketable Securities Increased to 125% 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.

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
What is the amount of Cash Flow Provided By (Used In) Investing Activities? (Round to the nearest 2 decimal places )
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 Accounts Receivable Decreased by 10% Decreased by 6.25% Decreased by 12.5% Increased to 120% 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.
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 Accounts Receivable Decreased by 10% Decreased by 6.25% Decreased by 12.5% Increased to 120% 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.
Statement of Cash Flows Financial Statement Analysis 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 Marketable Securities Accounts Receivable $ 4,000 2,000 7,200 8.000 21,200 12,000 20,000 3,000 70,500 12,000 87,500 $ 108,700 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 $ 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 100.00% (28% Fixed) 56.25% 43.75% Gross Profit Operating Expenses Operating Income Gain on Sale of Land (40% Variable) 43.35% 0.40% 1.60%
Transcribed Image Text:Statement of Cash Flows Financial Statement Analysis 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 Marketable Securities Accounts Receivable $ 4,000 2,000 7,200 8.000 21,200 12,000 20,000 3,000 70,500 12,000 87,500 $ 108,700 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 $ 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 100.00% (28% Fixed) 56.25% 43.75% Gross Profit Operating Expenses Operating Income Gain on Sale of Land (40% Variable) 43.35% 0.40% 1.60%
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 3 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Basic Accounting Terms
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