Levi had following information on is books: 2019 2020 Accounts Receivable 500,000 1,000,000 Accounts Payable 350,000 50,000 Prepaid Rent 200,000 475,000 Loans Receivable 500,000 250,000 Loans Payable 150,000 Depreciation Expense 100,000 100,000 Net income for 2020 was P7,000,000. • Levi (owner) invested P500,000 worth of inventories to the company, and withdrew P150,000 cash. • Levi purchased P2,000,000 worth of land. He paid 50% as a down payment, and the other 50% will be payable on December 31, 2021. 1.) How much is the net cash effect relating to Levi's operating activities? 2.) How much is the net cash effect relating to Levi's investing activities? 3.) How much is the net cash effect relating to Levi's financing activities? 4) How much is the total net cash effect?

Levi had following information on is books: 2019 2020 Accounts Receivable 500,000 1,000,000 Accounts Payable 350,000 50,000 Prepaid Rent 200,000 475,000 Loans Receivable 500,000 250,000 Loans Payable 150,000 Depreciation Expense 100,000 100,000 Net income for 2020 was P7,000,000. • Levi (owner) invested P500,000 worth of inventories to the company, and withdrew P150,000 cash. • Levi purchased P2,000,000 worth of land. He paid 50% as a down payment, and the other 50% will be payable on December 31, 2021. 1.) How much is the net cash effect relating to Levi's operating activities? 2.) How much is the net cash effect relating to Levi's investing activities? 3.) How much is the net cash effect relating to Levi's financing activities? 4) How much is the total net cash effect?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

What is net income ?
Galubhai
Excelsior Corporation has the following headings on its December 31, 2019 Balance Sheet: Total Current Assets $200,000 Total Assets $500,000 Total Current Liabilities $169,000 Total Non Current Liabilities $300,000 On January 2020 Excelsior sells temporary investments to pay off $56,400 in long term debt Required 1: How much will working capital increase (decrease) by when comparing December 2019 with January 2020? Required 2: If no other transaction took place in January 2020, the current ratio at the end of January 2020 is: Required 3: If no other transaction took place in January 2020, the debt to equity ratio at the end of January 2020 is: Required 4: If no other transaction took place in January 2020, the financial leverage in January 2020 is (calculate the Equity Ratio and not the Equity Ratio percentage): Required 5: If last 12 month sales as of January 2020 amount to $480,000, the working capital turnover for the period ended January 31st 2020 is:
Monday Company provided the following information on December 31, 2020: Notes payable: Trade P2,500,000 Bank loans 4,000,000 Advances from employees 250,000 Accounts payable after deducting debit balances in supplier’s accounts of P500,000 5,000,000 Bank overdraft 600,000 Property dividends payable 750,000 Share dividend payable 400,000 Withholding tax payable 200,000 Mortgage payable 2,000,000 Income tax payable 1,000,000 Estimated warranty liability 500,000 Estimated damages payable by reason of breach of contract 650,000 Accrued liabilities 850,000 Estimated premium liabilities 350,000 Claim for increase in wages by employees covered in a pending lawsuit 2,000,000 Contract entered into for the construction of building 4,000,000 P2,000,000 of the Bank loans under Notes payable above is due on June 1, 2021, which was replaced by a 2-year note for the same amount before the financial statements were issued. The other P2,000,000 of the…
OrangeParty had a net income of 1,050,000$ in 2021. It sold land for 200,500$ that had a book value of 20,050$. It purchased equipment worth 50,500$ by issuing a note payable of 20,800$ and by paying the balance cash. It declared dividends of 5,400$, of which 2,300$ were paid in 2021 and the balance will be paid in 2022. The company made a payment of 355,000$ on long-term debt. The beginning cash balance is 150,000$. Create the statement of Cash Flows for the year ended on Dec 31st, 2021. OrangeParty had the following changes in 2021. AR Decrease $33,000 Prepaid Expense Decrease $44,000 Inventory Increase $13,000 Depreciation expense $88,000 A) Create the statement of cash flow for OrangeParty for the year ending Dec 31st, 2021.
On January 1, 2023, ABC Company sold a office equipment with a cost of P5,400,000 and accumulated depreciation of P2,980,000. In consideration for the sale, ABC Company received cash of P220,000 and a noninterest-bearing note receivable of P3,500,000 due on December 31, 2026. The prevailing rate of interest for this type of note is 12%. On January 1, 2023, ABC Company sold an old machinery with a cost of P3,000,000 and accumulated depreciation of P2,000,000. In consideration for the sale, ABC Company received cash of P250,000 and a noninterest-bearing note receivable of P1,850,000 due in 5 equal annual installments starting December 31, 2023. The prevailing rate of interest of this type of note is 10%. 1. The total gain or loss on sale of office equipment and old machinery is A. Nil B. 600,000 C. 652,591 D. 676,904 2. The interest income to be recognized in 2023 is A. Nil B. 266,918 C. 407,177 D. 605,000 3. The carrying amount of the note as of December 31, 2023 is A. 3,256,904 B.…
On January 1, 2021 Asset of ABC Company was P2,500,000 and its liabilities was P800,000. By December 31, 2021 Asset of ABC Company was P4,700,000 and its liabilities was P1,200,000. During the year the owner withdrew merchandise costing P100,000 with a sales value of P150,000. The owner also paid a P1,000,000 notes payable of the business with interest of 12% for nine months with a check drawn on a personal checking account. How much is the net income (loss) for ABC Company as of December 31, 2021?
Maria reported has the following transactions for the year 2020. Gross sales-100,000 php Sales discounts- 55,000 php Cost of sales- 350,000 php Operating Expenses-100,000 php Interest income on bank deposit- 5,000 php a.Determine the net taxable income b. Determine the total taxable income
The following information was extracted from the records of Elwood Ltd as at 30 June 2020. Asset (liability) Carrying amount ($) Tax base ($) Machinery 720,000 600,000 Accounts receivable 262,500 322,500 Prepaid rent 45,000 0 Provision for warranty (86,000) 0 Insurance payable (15,000) 0 Deposit received in advance (54,000) 0 Depreciation rate for machinery is 20% per year. For tax purpose, the depreciation rate is 25%. An allowance for doubtful debts of $60,000 has been raised against accounts receivable for accounting purposes, but such debts are deductible only when written off as uncollectible. Deposits are taxable when received, and warranty costs are deductible when paid. Deferred tax assets and deferred tax liabilities as at 30 June 2019 were $35,000 and $31,250 respectively. The tax rate is 30%. Question Calculate Deferred Tax Assets and Deferred Tax Liabilities as at 30 June 2020. Show your calculations by creating…
The current asset section of the Moorcroft Outboard Motor Company's balance sheet reported the following amounts: Accounts receivable, net The average collection period for 2021 is 50 days. 12/31/2021 12/31/2020 $500,000 $400,000 Required: Determine net sales for 2021. (Use 365 days in a year. Do not round intermediate calculations.) Net sales $ 450,000
Additional information:i. Supplies as at 31st December 2019, RM34,500.ii. Insurance expense at the rate of RM850 per month.iii. Yearly depreciation on the non current assets as below:• furniture and fittings, RM5,175• motor vehicles, RM20,400.iv. Interest expense RM5,295 still payable by end of the yearv. Estimated doubtful debt at the rate of 2% of accounts receivable Question: 1. Prepare the Statement of Profit or Loss and Other Comprehensive Income for the year ended 31st December 2019. 2. Prepare the Statement of Financial Position as at 31st December 2019.
The Statement of Financial Position of Hawkeye as at 30 June 2022 showed the following assets and liabilities: 2022 $ Assets Cash Accounts receivables Allowance for doubtful debts Inventory Rent Receivable Plant Accumulated Depreciation - Plant Deferred Tax Asset Liabilities Accounts Payable Unearned rent revenue Provision for annual leave Deferred Tax Liability Additional information 15 000 30,000 (3,000) 13,500 7,000 100,000 (40,000) ? 19,000 5,000 2,500 ? 2021 $ 12 500 40,000 (5,000) 10,500 7,500 100,000 (30,000) 3,400 16,000 3,500 2,000 5,200 a. Accumulated depreciation of plant for tax purposes was $55,000 as at 30 June 2022. b. The tax rate is 30%. Required Prepare the deferred tax worksheet and journal entries to adjust deferred tax accounts as at 30 June 2022.