KM Manufacturing CompanyThe income statement for the year ended December 31, 2020, for KM Manufacturing Company contains thefollowing condensed information.KM Manufacturing CompanyIncome StatementFor the Year Ended December 31, 2X20Sales revenueCost of goods soldOperating expenses (excluding depreciation)Depreciation expenseLoss on disposal of plant assetsIncome before income taxesP6,583,000P2,810,0002,086,000880,00024,0005,800,000783,000353,000P430,000Income tax expenseNet incomeThe P24,000 loss resulted from selling equipment for P270,000 cash. The equipment was purchased at a costof P750,000. The following balances are reported on KM's comparative balance sheets at December 31.KM Manufacturing CompanyComparative Balance Sheets2X202X19CashAccounts receivableInventoryAccounts payableP672,000775,000834,000521,000P130,000610,000867,000501,000Income tax expense of P353,000 represents the amount paid in 2020. Dividends declared and paid in 2020totaled P200,000.Required:Prepare the statement of cash flows using ia. Indirect methodb. Direct method

A cash flow statement (CFS) is used to distribute the flow of cash in three categories, operating,…

Answered: KM Manufacturing Company The income…

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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Income S.atement For the Year Ended June 30, 2020 Net sales P2,430,500 Cost of goods sold (including depreciation of P191,500) P1,073,000 Operating expenses (including depreciation of P100,000) 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 Gain on sale of trading securities Unrealized holding gain on trading securities Income tax Total Net income Texas Company Balance Sheets June 30 2020 2019 Assets P442,000 325,000 P532,000 275,000 141,500 168,500 450,000 43,000 1,095,000 352,000 P3,057,000 Cash 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 P 93,500 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…
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Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total expenses Income before taxes Income tax expense Net income Assets Current assets KORBIN COMPANY Comparative Income Statements For Years Ended December 31, 2020, 2019, and 2018 2020 $ 474, 200 285,468 2819 $363, 276 228,864 188, 732 134,412 67,336 50, 132 42,678 31, 968 119,014 82, 198 78, 718 52,312 14,642 19,724 $ 64,976 $ 41,588 S Long-term investments Plant assets, net Total assets Liabilities and Equity Current liabilities Common stock Other paid-in capital Retained earnings Total liabilities and equity Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total expenses Income before taxes Income tax expense Net income KORBIN COMPANY Comparative Balance Sheets December 31, 2020, 2019, and 2018 2020 Common-Size Comparative Income Statements For Years Ended December 31, 2020, 2019, and 2018 2020 100.00 % 2019 100.00 % Assets Current assets Long-term investments Plant assets,…
Selected comparative financial statements of Korbin Company follow. KORBIN COMPANY Comparative Income Statements For Years Ended December 31 2021 Sales $ 562,795 2019 $ 299,200 338,803 Cost of goods sold Gross profit 191,488 223,992 107,712 Selling expenses 79,917 39,494 Administrative expenses 50,652 24,834 Total expenses 130,569 64,328 Income before taxes 93,423 43,384 Income tax expense 17,377 8,807 Net income $ 76,046 $ 34,577 KORBIN COMPANY Comparative Balance Sheets December 31 2021 2020 Assets Current assets $ 38,127 $ 56,965 0 Long-term investments 700 97,740 Plant assets, net Total assets 107,436 $164,401 $ 136,567 Liabilities and Equity Current liabilities $ 20,348 Common stock 68,000 $ 24,003 68,000 8,500 63,898 Other paid-in capital 8,500 Retained earnings 39,719 Total liabilities and equity $164,401 $ 136,567 2020 $431,147 273,778 157,369 59,498 37,941 97,439 59,930 12,286 $ 47,644 2019 $ 50,967 4,550 57,629 $ 113,146 $ 19,801 50,000 5,556 37,789 $113,146 4
Forecast an Income Statement Following is the income statement for Medtronic PLC. Consolidated Statement of Income ($ millions) For Fiscal Year Ended April 26, 2019 Net sales $27,807 Costs and expenses Cost of products sold 8,331 Research and development expense 2,330 Selling, general, and administrative expense 9,480 Amortization of intangible assets 1,605 Restructuring charges, net 198 Certain litigation charges, net 166 Other operating expense, net 258 Operating profit 5,439 Other nonoperating income, net (373) Interest expense 1,314 Income before income taxes 4,498 Income tax provision 547 Net income 3,951 Net income loss attributable to noncontrolling interests (19) Net income attributable to Medtronic $3,932 Use the following assumptions to prepare a forecast of the company’s income statement for FY2020. Note: Complete the entire question in Excel using the following template: Excel Template. Format each answer to two decimal…
comparative income statements of Arab Manufacturing Company are shown below. 2019 $38,610 $32,175 $25,740 2020 2018 Net sales 25,100 19,950 S13,510 S12,225 $10,340 7,700 4,270 Cost of sales 15,400 Gross profit Selling expenses 6,565 5,148 Administrative 4.175 3,861 expenses Total operating S11,970 $10,740 $9.009 expenses Operating S 1,540 S1,485 $1,331 income Interest expense 115 95 100 Net income S 1,425 S 1,390 $1,231 before tax 655 645 S 770 S 745 541 $ 690 Income taxes Net income Required: a. Perform a vertical, common size analysis of the income statement data for Arab Manufacturing Company in columnar form, using sales as the base. b. Comment briefly on significant trends and relationships revealed by the computations. :52 PM
Problem: Remesh Corporation prepared the following income statement and statement of retained earnings for the year ended December 31, 2021. Remesh Corporation December 31, 2021 Expense and Profit Statement Dollars in thousands Sales (net) $206,000 Less: Selling Expenses (20,600) Net Sales $185,400 Add: Interest Revenue 2,400 Add: Gain on sale of equipment 3,600 Gross Sales Revenue $191,400 Less: Cost of operations: Cost of Goods Sold $126,100 Correction of overstatement in last years income because of error $5,500 (net of tax credit) $3850 Dividend cost ($0.50 per share for 8k common shares) $4000 Unusual loss due to a hurricane, $6,400 (net of tax credit) $1,920 ($135,870) Taxable Revenues $55,530 Less: Income tax on income from continuing operations $16,659 Net income $38871 Miscellaneous Deductions Loss from operations of…
Prepare a 2020 income statement for Wildhorse Corporation based on the following information: Cost of goods sold Operating expenses Other expenses and losses Sales revenue Tax rate $500,000 118,000 31,000 730,000 30% WILDHORSE CORPORATION Income Statement tA
Operating data for Cheyenne Corp. are presented below. 2022 2021 Sales revenue $831,900 $629,500 Cost of goods sold 529,700 410,900 Selling expenses 125,400 74,300 Administrative expenses 79,400 52,000 Income tax expense 37,000 24,500 Net income 60,400 67,800 Prepare a schedule showing a vertical analysis for 2022 and 2021. (Round percentages to 1 decimal place, e.g. 12.1%.)
ICE Drilling Inc.'s balance sheet information and income statement are as follows: ICE Drilling Inc. Income Statement For Year Ended December 31, 2020 Sales Cost of goods sold Gross profit Operating expenses: Depreciation expense Other expenses $1,111,800 561,000 550,800 $ 43,000 305,960 Total operating expenses Profit from operations Loss on sale of equipment Profit before taxes Income taxes Profit 348,960 $ 201,840 11,680 $ 190,160 27,360 $ 162,800 ICE Drilling Inc. Comparative Balance Sheet Information December 31 2020 2019 Cash $121,680 $172,640 Accounts receivable 146,600 112,160 Merchandise inventory 614,200 566,600 Prepaid expenses 12,050 15,000 Equipment 357,480 247,400 Accumulated depreciation 78,560 99,560 Accounts payable 196,610 259,440 Current notes payable 23,400 15,000 Notes payable 210,000 120,600 Common shares 451,800 351,000 Retained earnings 291,640 268,200 Additional information regarding ICE Drilling's activities during 2020: 1. Loss on sale of equipment is…
LAG Network Inc.'s balance sheet and income statement are as follows: LAG Network Inc. Income Statement For Year Ended December 31, 2023 Sales Cost of goods sold Gross profit Operating expenses: Depreciation expense Other expenses Total operating expenses Profit from operations Income taxes Profit Assets $ 25,200 215,800 LAG Network Inc. Comparative Balance Sheet Information $ 920,600 548,200 $372,400 241,000 $ 131,400 14,600 $ 116,800 December 31 2023 2022 Cash Accounts receivable $ 81,110 $ 52,800 Merchandise inventory Equipment Accumulated depreciation Total assets Liabilities and Equity 40,400 287,790 36,800 235,800 $ 491,900 Accounts payable Income taxes payable Common shares Retained earnings $ 23,200 3,600 355,000 110,100 146,400 (63,800) 136,800 (38,600) $ 423,600 $ 35,800 2,200 349,500 36,100 Total liabilities and equity $ 491,900 $ 423,600 Additional information regarding LAG Network Inc.'s activities during 2023: a. Equipment is purchased for $9,600 cash. b. 2,200 common…
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