Income StatementFor the year Ended December 31, 2020SalesCost of Goods Sold$ 390,000235,000Gross ProfitS 155,000Wages ExpensesDepreciation ExpenseOther Operating ExpensesIncome Tax ExpenseS6100014,00026,00017,000120,000Net Income$35000Terry CompanyBalance SheetsDec. 31,2020Dec. 1LAssets2019$ 30,00035,00084,0008,000130,000(62.000)CashAccounts Receivable (net)InventoryPrepaid ExpensePlant AssetsAccumulated DepreciationS16.00028,000110,00012,000178,000(76,000)Total Assets$ 268,000$ 225,000ILiabilities and Stockholders' EquityAccounts PayableWages PayableIncome Tax PayableCommon StockRetained Earnings$ 27.0006,0003,000135,00097,000S 14,0002,5004,500125,00079,000Total Liabilities andS 268,000$ 225,000Stockholders' EquityCash dividends of $17,000 were declared and paid during 2020 Plant assets of $48,000 werepurchased for cash, and later in the year, an additional $10,000 common stock was issued for cashREQUIREDPrepare only the Cash Flows from Operations section of the Cash Flow Statement using theindirect method.

Cash flow from operating activities (CFO) indicates the amount of money a company brings in from its…

Income Statement For the year Ended December 31, 2020 Sales $ 390,000 235,000 Cost of Goods Sold Gross Profit S 155,000 Wages Expenses Depreciation Expense Other Operating Expenses Income Tax Expense 14,000 26,000 17,000 120,000 Net Income $15000 Tery Company Balance Sheets Dec. 31, 2020 Dec. 31 2019 Assets Cash Accounts Receivable (net) Inventory Prepaid Expense Plant Assets Accumulated Depreciation S16.000 28,000 110,000 12,000 178,000 26.000 $ 30,000 35,000 84,000 8,000 130,000 2.000) Total Assets $ 268,000 $ 225,000 Liabilities and Stockholders' Equity S 14,000 Accounts Payable Wages Payable Income Tax Payable Common Stock Retained Earmings 22.000 6,000 3,000 135,000 97,000 2,500 4500 125,000 79,000 ILiabilities and 8,000 225,000 Stockholders' Equity Cash dividends of $17,000 were declared and paid during 2020 Plant assets of $48,000 were purchased for cash, and later in the year, an additional $10,000 common stock was ind for cash REQUIRED Prepare only the Cash Flows from Operation section of the Cash Flow Stutement using the indirect method.

Income Statement For the year Ended December 31, 2020 Sales $ 390,000 235,000 Cost of Goods Sold Gross Profit S 155,000 Wages Expenses Depreciation Expense Other Operating Expenses Income Tax Expense 14,000 26,000 17,000 120,000 Net Income $15000 Tery Company Balance Sheets Dec. 31, 2020 Dec. 31 2019 Assets Cash Accounts Receivable (net) Inventory Prepaid Expense Plant Assets Accumulated Depreciation S16.000 28,000 110,000 12,000 178,000 26.000 $ 30,000 35,000 84,000 8,000 130,000 2.000) Total Assets $ 268,000 $ 225,000 Liabilities and Stockholders' Equity S 14,000 Accounts Payable Wages Payable Income Tax Payable Common Stock Retained Earmings 22.000 6,000 3,000 135,000 97,000 2,500 4500 125,000 79,000 ILiabilities and 8,000 225,000 Stockholders' Equity Cash dividends of $17,000 were declared and paid during 2020 Plant assets of $48,000 were purchased for cash, and later in the year, an additional $10,000 common stock was ind for cash REQUIRED Prepare only the Cash Flows from Operation section of the Cash Flow Stutement using the indirect method.

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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Partial income statements for Sherwood Company summarized for a four-year period show the following: 2018 2019 2020 2021 $ 2,900,000 1,508,000 $ 3,300,000 1,683,000 $ 3,400,000 1,802,000 $ 1,598,000 $ 3,900,000 2,028,000 $ 1,872,000 Net Sales Cost of Goods Sold Gross Profit $ 1,392,000 $ 1,617,000 An audit revealed that in determining these amounts, the ending inventory for 2019 was overstated by $23,600. The inventory balance on December 31, 2020, was accurately stated. The company uses a periodic inventory system. Required: 1. Restate the partial income statements to reflect the correct amounts, after fixing the inventory error. 2-a. Compute the gross profit percentage for each year (a) before the correction and (b) after the correction. 2-b. Do the results lend confidence to your corrected amounts? Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Restate the partial income statements to reflect the correct amounts, after fixing the inventory…
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Excerpts from the annual report of XYZ Corporation follow: 2019 $675,138 $241,154 $64,150 $93,650 $25,100 2020 Cost of goods sold Inventory Net income $754,661 $219,686 $31,185 $68,685 $26,900 Retained earnings LIFO reserve Tax rate 20% 20% If XYZ used FIFO, its net income for fiscal 2020 would be O a. $34,165 O b. $30,375 O c. $32,625 d. $36,545
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Presented below is information related to Sheridan Corp. for the year 2020. Net sales $1,196,000 Write-off of inventory due to obsolescence $73,600 Cost of goods sold 717,600 Depreciation expense omitted by accident in 2019 50,600 Selling expenses 59,800 Casualty loss 46,000 Administrative expenses 44,160 Cash dividends declared 41,400 Dividend revenue 18,400 Retained earnings at December 31, 2019 901,600 Interest revenue 6,440 Effective tax rate of 20% on all items Prepare a multiple-step income statement for 2020. Assume that 69,920 shares of common stock are outstanding for the entire year. (Round earnings per share to 2 decimal places, e.g. 1.49.)
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