Norman Company's net income last year was $26,000. Changes in selected balance sheet accounts for the year appear below: Increases (Decreases) Debit balances: Accounts receivable $8,000; Inventory $12,000; Prepaid expenses $(6,000); Credit balances: Accumulated depreciation $24,000; Accounts payable $(15,000); Accrued liabilities $9,000; Taxes payable $0; Deferred taxes $5,000 Based solely on this information, the net cash provided by operations under the indirect method on the statement of cash flows would be: *

Norman Company's net income last year was $26,000. Changes in selected balance sheet accounts for the year appear below: Increases (Decreases) Debit balances: Accounts receivable $8,000; Inventory $12,000; Prepaid expenses $(6,000); Credit balances: Accumulated depreciation $24,000; Accounts payable $(15,000); Accrued liabilities $9,000; Taxes payable $0; Deferred taxes $5,000 Based solely on this information, the net cash provided by operations under the indirect method on the statement of cash flows would be: *

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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AoA Company reported the following for its most recent fiscal year: Net income, - $20,000; Depreciation expense – $5,000; Increase in accounts receivable – $1,000; Decrease in merchandise inventory -$200; Increase in prepaid expenses – $100; Decrease in accounts payable – $900; Increase in wages payable – $300; Decrease in bonds payable – $500; Loss on sale of machinery – $100. What is the net cash flows from Operating Activities?
Concord Ltd. had the following 2023 income statement data: Sales revenue Cost of goods sold Gross profit Operating expenses (includes depreciation of $22,900) Income before income taxes Income taxes Net income $207,500 (a) 119,000 88,500 48,000 40,500 16,000 $24,500 The following accounts increased during 2023 by the amounts shown: Accounts Receivable, $15,900; Inventory, $10,800; Accounts Payable (relating to inventory), $13,900; Taxes Payable, $2,200; and Mortgage Payable, $40,500. Prepare the cash flows from operating activities section of Concord's 2023 statement of cash flows using the indirect method and following IFRS. (Show amounts that decrease cash flow with either a negative sign e.g.-15,000 or in parenthesis e.g. (15,000).) Concord Corporation Statement of Cash Flows Indirect Mothed)
Kyle, a single taxpayer, worked as a freelance software engineer for the first three months of 2023. During that time, he earned $74,000 of self-employment income. On April 1, 2023, Kyle took a job as a full-time software engineer with one of his former clients, Hoogle Incorporated From April through the end of the year, Kyle earned $168,000 in salary. What amount of FICA taxes (self-employment and employment related) does Kyle owe for the year? Note: Round your intermediate calculations and final answer to the nearest whole dollar amount. Self-employment/FICA tax
Borax Corporation reported net income of $140,000 for the current year. Here are other data regarding Borax's activities during the current year: Interest income from short-term investments Increase in accounts receivable balance Decrease in inventory balance Decrease in accounts payable balance Increase in dividends payable balance Gain on the sale of a warehouse Cash received from the sale of a warehouse Depreciation expense on property. plant and equipment Interest expense on short-term loans $7,400 $42,000 $18,000 $35,000 $29,000 $47,000 $21,000 $32,000 $11,000 Based on the information provided, what is Borax's net cash provided by operating activities? Round to the nearest whole dollar amount and do not enter a dollar sign or a decimal point (e.g., enter 89, not $89.00).
Cauce Corporation is preparing its year-end balance sheet. The company records show the following selected amounts at the end of the year: Total assets $ 620,000 Total noncurrent assets 314,000 Liabilities: Notes payable (8%, due in 5 years) 24,000 Accounts payable 55,000 Income taxes payable 10,000 Liability for withholding taxes 1,000 Rent revenue collected in advance 9,000 Bonds payable (due in 15 years) 109,000 Wages payable 9,000 Property taxes payable 5,000 Note payable (10%, due in 6 months) 15,000 Interest payable 800 Common stock 180,000 Required: 1-a. What is the amount of current liabilities? 1-b. Compute working capital. 2. Would your computation be different if the company reported $350,000 worth of contingent liabilities in the notes to its financial statements?
Beck Company had the following accounts and balances at the end of the year. What is net income or net loss for the year? Cash Accounts Payable Common Stock Cost of Goods Sold Dividends Declared and Paid Operating Expenses Accounts Receivable Inventory Long-term Notes Payable Revenues Salaries Payable net loss of $6,000 net income of $91,000 O net loss of $13,000 O net income of $75,000 $74,000 $12,000 $21,000 $88,000 $12,000 $16,000 $0 $0 $33,000 $98,000 $26,000
24. Following are a company's income statement at the end of the last year (year 0) and coming year (year 1). Each year, the company's accounts receivable need to be main- tained at 5% of sales. The company's inventory and accounts payable do not change. Capital expenditure in year 1 is $10,000. Year Sales Depreciation EBIT Taxes (a) What is the free cash flow in year 17 1 85,000 92,000 20,000 22,000 17,000 19,500 3,500 3,700 0 (b) The company's business is mature, so it is expected to generate the same amount of free cash flow every year forever. The firm-specific discount rate is 7%, and the risk-free rate is 2%. What is the enterprise value of the company? (c) The company has $150,000 in cash and $50,000 in debt. In addition, it has 7000 shares outstanding. What is the company's stock price per share?
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The following data were abstracted from the records of Ballistic Corporation for the year: Sales 1,080,000 Interest expense 75,000 Income taxes 240,000 Net income 360,000 Compute interest coverage ratio.
imes interest earned Berry Company reported the following on the company's income statement in two recent years: Current Year Prior Year Interest expense $241,000 $289,200 Income before income tax expense 2,988,400 3,354,720 a. Determine the number of times interest charges were earned for current Year and prior Year. Round to one decimal place. Current Year Prior Year b. Is the number of times interest charges are earned improving or declining?
Fitz Company reports the following information. Selected Annual Income Statement Data Selected Year-End Balance Sheet Data Net income $ 391,000 Accounts receivable decrease $ 27,200 Depreciation expense 44,200 Inventory decrease 46,000 Amortization expense 8,000 Prepaid expenses increase 6,400 Gain on sale of plant assets 7,100 Accounts payable decrease 8,200 Salaries payable increase 1,900 Use the indirect method to prepare the operating activities section of its statement of cash flows for the year ended December 31. Note: Amounts to be deducted should be indicated with a minus sign.
A company had the following selected data for two consecutive years of operation. Year 1 $12,000,000 6,000,000 Interest expense 300,000 Income tax expense 790,000 Profit 1,850,000 Using this data, determine the percentage change in the company's debt to total assets ratio from Year 1 to Year 2. Total assets Total liabilities O increase of 2% decrease of 8% no change O increase of 1% Year 2 $15,000,000 7,800,000 450,000 900,000 2,250,000