Johnson City has the following activity associated with capital assets that are relatedto governmental activities for the fiscal year ended June 30, 2022:Beginning capital assets balance ?Purchases of capital assets $225,000Historical cost of capital assets sold $85,000Ending capital assets balance $1,190,000In addition, accumulated depreciation for these capital assets had the followingactivity:Beginning balance $249,000Depreciation expense $82,000Accumulated depreciation for assets sold?Ending balance $300,000Finally, the proceeds associated with capital assets sold were $60,000.Depreciation expense $82,000Accumulated depreciation for assets sold?Ending balance $300,000Finally, the proceeds associated with capital assets sold were $60,000.Using this information, prepare the four necessary journal entries (beginning,purchases, sales, and depreciation) to adjust the government fund financialstatements to the government-wide statements.

Journal : It is the first book of accounts where all the business transactions are recorded at…

overnmental activities for the fiscal year ended June 30, 2 ginning capital assets balance ? rchases of capital assets $225,000 storical cost of capital assets sold $85,000 ding capital assets balance $1,190,000

overnmental activities for the fiscal year ended June 30, 2 ginning capital assets balance ? rchases of capital assets $225,000 storical cost of capital assets sold $85,000 ding capital assets balance $1,190,000

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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Cash Flows from Operating Activities—Indirect Method The net income reported on the income statement for the current year was $278,600. Depreciation recorded on equipment and a building amounted to $83,300 for the year. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End of Year Beginning of Year Cash $71,320 $74,890 Accounts receivable (net) 90,430 92,410 Inventories 178,300 159,220 Prepaid expenses 9,910 10,560 Accounts payable (merchandise creditors) 79,660 83,580 Salaries payable 11,480 10,410 a. Prepare the "Cash Flows from Operating Activities" section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments. Statement of Cash Flows (partial) Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash…
Cash Flows from (Used for) Operating Activities The net income reported on the income statement for the current year was $277,600. Depreciation recorded on equipment and a building amounted to $83,000 for the year. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: Endof Year Beginningof Year Cash $77,450 $82,100 Accounts Recievable (net) 98,210 101,310 Inventories 193,630 174,540 Prepaid Expenses 10,770 11,580 Accounts Payable (merchandise creditors) 86,510 91,620 Salaries Payable 12,470 11,410 a. Prepare the Cash Flows from (used for) Operating Activities section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments. Statement of Cash Flows (partial) Cash flows from (used for) operating activities: - Net income $ Adjustments to reconcile net income to net cash flows from (used…
Office buildings and equipment, net value Total property, plant, and equipment Intangible assets: Goodwill Total assets Current liabilities: Total current liabilities Long-term liabilities: Total liabilities Paid-in capital: Total paid-in capital Total stockholders' equity Total liabilities and Stockholders' Equity Liabilities Stockholders' Equity $ 2,740,000 11,174,000 700,000 13,500,000
Bauer Industries is an automobile manufacturer. Management is currently evaluating a proposal to build a plant that will manufacture lightweight trucks. Bauer plans to use a cost of capital of 12.3% to evaluate this project. Based on extensive research, it has prepared the following incremental free cash flow projections (in millions of dollars): 1. a. For this base-case scenario, what is the NPV of the plant to manufacture lightweight trucks? b. Based on input from the marketing department, Bauer is uncertain about its revenue forecast. In particular, management would like to examine the sensitivity of the NPV to the revenue assumptions. What is the NPV of this project if revenues are 10% higher than forecast? What is the NPV if revenues are 10% lower than forecast? c. Rather than assuming that cash flows for this project are constant, management would like to explore the sensitivity of its analysis to possible growth in revenues and operating expenses. Specifically, management would…
HOME DEPOT CASH FLOW Fiscal 1985 Fiscal 1984 Fiscal 1983 　 Feb-86 Feb-85 Feb-84 CASH FLOWS FROM OPERATING ACTIVITIES Net income $8,219,000 $14,122,000 $10,261,000 depreciation $4,376,000 $2,275,000 $903,000 def income taxes $3,612,000 $1,508,000 $713,000 amortization $637,000 $93,000 net gain on sale ($1,317,000) other $180,000 $77,000 $59,000 Increase in a/r ($15,799,000) ($7,170,000) ($1,567,000) increase in inventory ($68,654,000) ($25,334,000) ($41,137,000) increase in prepaids ($587,000) ($1,206,000) ($227,000) increase in a/p $21,525,000 $10,505,000 $17,150,000 change in accrued salary $1,578,000 ($93,000)…
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A summary of B's capital account for the year ended December 31, 2022 is as follows: Balance, Jan. 1, 2022 Additional investment, May 1 Withdrawal, Sept 2 Balance, Dec. 31, 2022 Compute for the weighted average capital. 1,200,000 230,000 (100,000) 1,330,000
Revenues - Cost of Goods Sold - Depreciation =EBIT - Taxes (20%) =Unlevered net income +Depreciation - Additions to Net Working Capital - Capital Expenditures =Free Cash Flow Year 0 OA. by 35% OB. by 41% OC. by 69% O D. by 55% Year 1 500,000 - 300,000 Year 2 500,000 - - 100,000 -100,000 165,000-165,000 235,000 -47,000 235,000 -47,000 Year 3 500,000 -165,000 -100,000 188,000 188,000 100,000 100,000 - 20,000 - 20,000 268,000 268,000 Visby Rides, a livery car company, is considering buying some new luxury cars. After extensive research, they come up with the above estimates of free cash flow from this project. Visby learns that a competitor is thinking of offering similar services, thus reducing Visby's sales. By how much could sales fall before the net present value (NPV) was zero, given that the cost of capital is 8%, and that cost of goods sold is 45% of revenues? 235,000 - 47,000 188,000 100,000 - 20,000 268,000
Brief Exercise 11-14 (Algo) Calculate the cash return on assets (LO11-6) The balance sheet of Cranium Gaming reports total assets of $480,000 and $780,000 at the beginning and end of the year, respectively. Sales revenues are $1.90 million, net income is $73,000, and operating cash flows are $59,000. Calculate the cash return on assets, cash flow to sales, and asset turnover for Cranium Gaming. (Enter your answers in dollars, not millions (i.e., $10.1 million should be entered as 10,100,000).) Cash Return on Assets Numerator/Denominator Cash Flow to Sales Numerator/Denominator Numerator/Denominator Amounts Asset Turnover Amounts Amounts times
I. Operating ActivitiesNet income $ 50,000II. Long-Term Investing ActivitiesAdditions to property, plant, and equipment $ (250,000)III. Financing ActivitiesNet cash provided by financing activities $ 170,000IV. SummaryNet decrease in cash (30,000)Cash and equivalents at beginning of the year 55,000Cash and equivalents at the end of the year $ 25,000If accruals increased by $25,000, receivables and inventories increased by $100,000, and depreciation and amortization totaled $10,000, what was the firm’s net income?
The following information is from Lacy's Inc. $ millions Prior Fiscal Year Current Fiscal Year Net Year-End Assets Revenue Income $21,330 14,403 $18,955 $1,070 a. Compute the asset turnover ratio for the current fiscal year. b. Compute the return on assets ratio for the current fiscal year. Numerator a. Asset Turnover Ratio $ Check b. Return on Assets Ratio $ Numerator Denominator / $ Denominator / $ || Result Result