John Lee CompanyIncome StatementFor the year ended Dec. 31, 20X2Amounts in Philippine PesoRevenues540,000Cost of Sales3,000,000900,000Operating Expenses, excluding depreciationDepreciation ExpenseNet Income200.0004.100.0001,300,000The following balances are reported on December 31:20x120x2Cash450,0001,010,000250,000720,0001,170,0001,300,000320,000700,000Accounts ReceivableInventoriesAccounts PayableAdditional cash transactions for 20X2:1. The company bought a delivery truck for 2,000,000 cash.2. A long-term loan for 1,800,000 was obtained from the bank.3. The proprietor John Lee withdrew 200,000.Required:Prepare a statement of cash flows using the direct method.

Direct Method of Cashflow Statement: One of two accounting procedures for generating a cash flow…

Answered: John Lee Company Income Statement For…

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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b. In 20X2, sales increased to $5,890,000 and the assets for that year were as follows: $ 138,000 926,000 991,000 533,000 $ 2,588,000 Cash Accounts receivable Inventory Net plant and equipment Total assets Compute the following: Note: Round your answers to 2 decimal places. 1. Accounts receivable turnover 2. Inventory turnover 3. Fixed asset turnover 4. Total asset turnover Turnover Ratios times times times times
Simon Company’s year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash $ 31,800 $ 35,625 $ 37,800 Accounts receivable, net 89,500 62,500 50,200 Merchandise inventory 112,500 82,500 54,000 Prepaid expenses 10,700 9,375 5,000 Plant assets, net 278,500 255,000 230,500 Total assets $ 523,000 $ 445,000 $ 377,500 Liabilities and Equity Accounts payable $ 129,900 $ 75,250 $ 51,250 Long-term notes payable secured bymortgages on plant assets 98,500 101,500 83,500 Common stock, $10 par value 163,500 163,500 163,500 Retained earnings 131,100 104,750 79,250 Total liabilities and equity $ 523,000 $ 445,000 $ 377,500 (1-a) Compute the current ratio for each of the three years.(1-b) Did the current ratio improve or worsen over the three…
Blue Elk Manufacturing Balance Sheet For the Year Ended on December 31 Assets Current Assets: Cash and equivalents Accounts receivable Liabilities Current Liabilities: $150,000 Accounts payable $250,000 400,000 Accrued liabilities 150,000 Inventories 350,000 Notes payable 100,000 Total Current Assets $900,000 Total Current Liabilities $500,000 Net Fixed Assets: Long-Term Bonds 1,000,000 Net plant and equipment(cost minus depreciation) $2,100,000 Total Debt $1,500,000 Common Equity Common stock 800,000 Retained earnings 700,000 Total Common Equity Total Assets $3,000,000 Total Liabilities and Equity $1,500,000 $3,000,000 The firm is currently in the process of forecasting sales, asset requirements, and required funding for the coming year. In the year that just ended, Blue Elk Manufacturing generated $500,000 net income on sales of $14,500,000. The firm expects sales to increase by 17% this coming year and also expects to maintain its long-run dividend payout ratio of 30%. Suppose Blue…
QUESTION: JESTER CORPORATIONS'S MOST RECENT INCOME STATEMENT APPEARS BELOW: SALES (ALL ON ACCOUNT) $610,000 COST OF GOODS SOLD $340,000 GROSS MARGIN $270,000 SELLING AND ADMINISTRATIVE $160,000 EXPENSE NET OPERATING INCOME $110,000 INTEREST EXPENSE $20,000 NET INCOME BEFORE TAXES $90,000 INCOME TAXES (30%) $27,000 NET INCOME $63,000 THE BEGINNING BALANCE OF TOTAL ASSETS WAS $360,000 AND THE ENDING BALANCE WAS $320,000. WHAT IS THE PERCENTAGE OF RETURN ON TOTAL ASSETS?
SONAD COMPANY Income Statement For Year Ended December 31 Sales $ 2,123,000 Cost of goods sold 1,040,270 Gross profit 1,082,730 Operating expenses Salaries expense $ 290,851 Depreciation expense 50,952 Rent expense 57,321 Amortization expenses—Patents 6,369 Utilities expense 23,353 428,846 653,884 Gain on sale of equipment 8,492 Net income $ 662,376 Accounts receivable $ 27,750 increase Accounts payable $ 15,725 decrease Inventory 24,000 increase Salaries payable 5,050 decrease Prepare the operating activities section of the statement of cash flows using the direct method. (Amounts to be deducted should be indicated with a minus sign.)
Sales MOSS COMPANY Income Statement For Year Ended December 31, 2021 Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Income before taxes Income taxes expense Net income $ 549,000 357,600 191,400 128,500 49,000 13,900 8,100 $ 5,800 MOSS COMPANY Selected Balance Sheet Information At December 31 2021 2020 Current assets Cash $ 91,150 $ 33,300 Accounts receivable 31,500 45,000 66,500 55,400 Current liabilities 43,400 32,200 2,700 3,500 Inventory Accounts payable Income taxes payable Use the information above to calculate cash flows from operating activities using the indirect method. Note: Amounts to be deducted should be indicated by a minus sign. Cash flows from operating activities: Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Changes in current operating assets and liabilities $ 49,000 49,000 $ 49,000
Marshall Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 1 20Y2 20Y1 2 Sales $10,850,000.00 $10,000,000.00 3 Cost of goods sold 6,000,000.00 5,450,000.00 4 Gross profit $4,850,000.00 $4,550,000.00 5 Selling expenses $2,170,000.00 $2,000,000.00 6 Administrative expenses 1,627,500.00 1,500,000.00 7 Total operating expenses $3,797,500.00 $3,500,000.00 8 Income from operations $1,052,500.00 $1,050,000.00 9 Other revenue 99,500.00 20,000.00 10 $1,152,000.00 $1,070,000.00 11 Other expense (interest) 132,000.00 120,000.00 12 Income before income tax $1,020,000.00 $950,000.00 13 Income tax expense 420,000.00 400,000.00 14 Net income $600,000.00 $550,000.00 Marshall Inc. Comparative Balance Sheet December 31, 20Y2 and 20Y1 1 20Y2 20Y1 2 Assets…
ces For the year just completed, Hanna Company had net income of $90,500. Balances in the company's current asset and current liability accounts at the beginning and end of the year were as follows: Current assets: Cash and cash equivalents Accounts receivable Inventory Prepaid expenses Current liabilities: Accounts payable Accrued liabilities Income taxes payable December 31 End of Year $ 55,000 $ 152,000 $ 451,000 $ 12,000 $ 356,000 $ 8,000 $ 35,000 Beginning of Year $ 83,000 $184,000 $ 343,000 $ 14,000 $ 400,000 $ 11,500 $ 27,000 The Accumulated Depreciation account had total credits of $58,000 during the year. Hanna Company did not record any gains or losses during the year. Required: Using the indirect method, determine the net cash provided by operating activities for the year. (List any deduction in cash and cash outflows as negative amounts.) Hanna Company Statement of Cash Flows-Indirect Method (partial) +
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Consolidated Statements of Earnings For the Years Ended December 31, (in thousands of dollars) Year 8 Sales $64,000 Cost of sales. 50,000 Gross profit 14,000 Operating expenses before interest and income taxes 8,000 Interest expense 1,780 Earnings before income taxes 4,220 Income tax expense 1,900 Net earnings $ 2,320 MORKSEN CORP. Consolidated Statements of Financial Position At December 31, (in thousands of dollars) Year 8 Year 7 Assets Current assets Cash $ 480 $ 380 740 10,880 Short-term investments Accounts receivable 740 8,400 Merchandise inventory 16,660 10,060 Total current assets 28,660 19,680 Property, plant, and equipment Land 4,000 4,000 Buildings and equipment 26,000 26,000 30,000 30,000 8,940 7,440 Less: Accumulated depreciation. Net property, plant, and equipment 21,060 22,560 Total assets $49,720 $42, 240 Liabilities and Shareholders' Equity Current Liabilities Bank loan $16,500 $11,400 Accounts payable 6,000 4,300 Other liabilities 1,640 1,600 Income tax payable 960…
10 - T&T Company's selected financial statements items are given as following. Total net sales equals to 100.000 TL, COGS equals to 50.000 TL, operating expenses equals to 20.000 TL, interest expenses equals to 10.000 TL, tax expenses 5.000 TL, total depreciation & amortization expenses equals to 15.000 TL. Calculate the EBITDA/Interest Expense ratio of the company for the year 2020. a) 2,50 b) O 01374 3,00 c) O 4,50 d) 5,00
Assume a company had net Income of $72,000 and provided the following excerpts from its balance sheet: This Year Last Year Current assets: $40,000 $53,000 $13,000 $46,000 $50,000 $11,000 Accounts receivable Inventory Prepaid expenses Current liabilities: $38,000 $18,000 $13,000 $44,000 $15,000 $10,000 Accounts payable Accrued liabilities Income taxes payable If the company did not sell any noncurrent assets during the period and the credits to its accumulated depreciation account were $21,000, then based solely on the informatlon provlded, the company's net cash provided by (used in) operating activities would be: Multiple Cholce $94,000. $52,000. $68,000. $92,000.

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