Income Statement For the Year Ended June 30, 2020 Net of goods sold (including depreciation of P191,500, Operating expenses (including depreciation of P100,000) P2,430,500 P1,073,000 Interest expense Gain on sale of equipment Gain on sale of trading securitics Unrealized holding gain on trading securities 500,000 7,500 (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 P532,000 275,000 141,500 168,500 450,000 43,000 325,000 80,500 86,000 Trading Securities(market) Accounts receivable Inventories Investment in Associates (cost) 43,000 Land Buildings (net) Equipment (net) 321,500 242,500 P1,540,500 1,095,000 352,000 P3,057,000 Total assets Liabilities & Equity P107,500 50,000 41,500 156,500 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 P 93,500 50,000 20,500 143,000 980,000 550,000 400,000 820,000 P3,057,000 500,000 250,000 435,000 P1,540,500 REQUIRED: 1. Prepare a forecast cash flow statement for the year ended June 30,2020. * Show supporting schedules or T-accounts for many missing amounts.
Income Statement For the Year Ended June 30, 2020 Net of goods sold (including depreciation of P191,500, Operating expenses (including depreciation of P100,000) P2,430,500 P1,073,000 Interest expense Gain on sale of equipment Gain on sale of trading securitics Unrealized holding gain on trading securities 500,000 7,500 (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 P532,000 275,000 141,500 168,500 450,000 43,000 325,000 80,500 86,000 Trading Securities(market) Accounts receivable Inventories Investment in Associates (cost) 43,000 Land Buildings (net) Equipment (net) 321,500 242,500 P1,540,500 1,095,000 352,000 P3,057,000 Total assets Liabilities & Equity P107,500 50,000 41,500 156,500 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 P 93,500 50,000 20,500 143,000 980,000 550,000 400,000 820,000 P3,057,000 500,000 250,000 435,000 P1,540,500 REQUIRED: 1. Prepare a forecast cash flow statement for the year ended June 30,2020. * Show supporting schedules or T-accounts for many missing amounts.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Can you help me to create a Direct Method of
Transcribed Image Text:Significant changes to be made during the year are listed below:
substantial investments in new product lines and in a modernization program.
During the next fiscal year ending June 30, 2020, Texas Company will make
Exercise 5-9
During the next fiscal year ending June 30, 2020, Texas Company will make
ontiai investments in new product lines and in a modernization program.
1 Equipment with a net book value of P86,000 will be sold during the year.
1 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.
2 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 forccast for the year ended June 30, 2020 are given
next page:
Transcribed Image Text:Cost of goods sold (including depreciation
Gain on sale of trading securities
Income Satement
For the Year Ended June 30, 2020
Net sales
P2,430,500
of P191,500,
Operating expenses (including depreciation
of P100,000)
P1,073,000
500,000
7,500
(26,000)
(15,000)
(44,000)
356,000
P1,851,500
P 579,000
Interest expense
Gain on sale of equipment
Unrealized holding gain on trading securities
Income tax
Total
Net income
Texas Company
Balance Sheets
June 30
Assets
2020
2019
P442,000
325,000
Cash
P532,000
275,000
141,500
168,500
450,000
43,000
1,095,000
352,000
P3,057,000
Trading Securities(market)
Accounts receivable
80,500
Inventories
86,000
Investment in Associates (cost)
43,000
321,500
Land
Buildings (net)
Equipment (net)
Total assets
242,500
P1,540,500
Liabilities & Equity
P107,500
50,000
41,500
156,500
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
P 93,500
50,000
20,500
143,000
980,000
550,000
400,000
820,000
P3,057,000
500,000
250,000
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
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 6 images
Knowledge Booster
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
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education