Pearl Company's income statement for the year ended December 31, 2017, contained the following condensed information. Service revenue Operating expenses (excluding depreciation) Depreciation expense Loss on sale of equipment Income before income taxes Income tax expense Net income $624,000 Accounts receivable Accounts payable Income taxes payable 59,000 25,000 2017 $841,000. $35,000 41,000 3,800 708,000 133,000 Pearl's balance sheet contained the following comparative data at December 31. 40,000 $93,000 2016 $53,000 31,000 8,000 (Accounts payable pertains to operating expenses.) Prepare the operating activities section of the statement of cash flows using the direct method. PEARL COMPANY Statement of Cash Flows (Partial) + # $

Pearl Company's income statement for the year ended December 31, 2017, contained the following condensed information. Service revenue Operating expenses (excluding depreciation) Depreciation expense Loss on sale of equipment Income before income taxes Income tax expense Net income $624,000 Accounts receivable Accounts payable Income taxes payable 59,000 25,000 2017 $841,000. $35,000 41,000 3,800 708,000 133,000 Pearl's balance sheet contained the following comparative data at December 31. 40,000 $93,000 2016 $53,000 31,000 8,000 (Accounts payable pertains to operating expenses.) Prepare the operating activities section of the statement of cash flows using the direct method. PEARL COMPANY Statement of Cash Flows (Partial) + # $

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter8: Operating Assets: Property, Plant, And Equipment, And Intangibles

Section: Chapter Questions

Problem 8.3DC

See similar textbooks

Similar questions

Financial information for Powell Panther Corporation is shown below: Powell Panther Corporation: Income Statements for Year Ending December 31 (Millions of Dollars) 2018 Sales $ 1,625.0 $ 2017 1,300.0 Operating costs excluding depreciation and amortization 1,300.0 1,105.0 EBITDA $ 325.0 $ 195.0 Depreciation and amortization 39.0 31.0 Earnings before interest and taxes (EBIT) $ 286.0 $ 164.0 Interest 36.0 29.0 Earnings before taxes (EBT) $ 250.0 $ 135.0 Taxes (40%) 100.0 54.0 Net income $ 150.0 $ 81.0 Common dividends $ 135.0 $ 65.0 Powell Panther Corporation: Balance Sheets as of December 31 (Millions of Dollars) 2018 Assets Cash and equivalents $ 23.0 $ 2017 18.0 Accounts receivable 164.0 143.0 Inventories 343.0 312.0 Total current assets $ 530.0 $ 473.0 Net plant and equipment 390.0 312.0 Total assets $ 920.0 $ 785.0 Liabilities and Equity…
Below are the financial statements of Coco Stationary Statement of Comprehensive Income for the Year ended 31 December 2017 $ $ Sales 305,830 Cost of goods sold 210,935 Depreciation 26,850 Earnings before interest and taxes 68,045 Interest paid 11,930 Taxable income 56,115 Taxes (35%) 19,640 Net income 36,475 Dividends 20,000 Retained earnings 16,475 Coco Stationary Statement of Financial Position as at 31 December 2017 $ Net plant and equipment 260,525 Cash 22,050 Accounts receivable 13,850 Inventory 24,650 Total current assets 60,550 Total assets 321,075 Ordinary shares 25,000 Retained earnings 167,840 Total owners' equity 192,840 Long term debt 85,000 Accounts payable 22,850 Notes payable 9,000 Other 11,385 Total current liabilities 43,235 Total liabilities after owners' equity 321,075 Calculate the following financial ratios as at 31 December 201 Profitability ratios i.…
Below are the financial statements of Coco Stationary Statement of Comprehensive Income for the Year ended 31 December 2017 $ $ Sales 305,830 Cost of goods sold 210,935 Depreciation 26,850 Earnings before interest and taxes 68,045 Interest paid 11,930 Taxable income 56,115 Taxes (35%) 19,640 Net income 36,475 Dividends 20,000 Retained earnings 16,475 Coco Stationary Statement of Financial Position as at 31 December 2017 $ Net plant and equipment 260,525 Cash 22,050 Accounts receivable 13,850 Inventory 24,650 Total current assets 60,550 Total assets 321,075 Ordinary shares 25,000 Retained earnings 167,840 Total owners' equity 192,840 Long term debt 85,000 Accounts payable 22,850 Notes payable 9,000 Other 11,385 Total current liabilities 43,235 Total liabilities after owners' equity 321,075 Calculate the following financial ratios as at 31 December 2017 a. Liquidity ratios: 1)…
Dela Rosa Company Company The income statement for the year ended December 31, 2020, for Dela Rosa Company Comnany contains the following condensed information. Dela Rosa Company Company Income Statement For the Year Ended December 31, 2X20 Sales revenue Cost of goods sold Operating expenses (excluding depreciation) Depreciation expense Loss on disposal of plant assets Income before income taxes Income tax expense Net income P6,583,000 P2,810,000 2,086,000 880,000 24.000 5,800.000 783,000 353,000 P430,000 The P24,000 loss resulted from selling equipment for P270,000 cash. The equipment was purchased at a cost of P750,000. The following balances are reported on Dela Rosa's comparative balance sheets at December 31, Dela Rosa Company Company Comparative Balance Sheets Cash Accounts receivable Inventory Accounts payable 2X20 P672,000 775,000 834,000 521,000 2X19 P130,000 610,000 867,000 501,000 Income tax expense of P353,000 represents the amount paid in 2020. Dividends declared and paid…
Financial information for Powell Panther Corporation is shown below: Powell Panther Corporation: Income Statements for Year Ending December 31 (Millions of Dollars) 2018 2017 Sales $ 1,800.0 $ 1,500.0 Operating costs excluding depreciation and amortization 1,395.0 1,275.0 EBITDA $ 405.0 $ 225.0 Depreciation and amortization 43.0 39.0 Earnings before interest and taxes (EBIT) $ 362.0 $ 186.0 Interest 40.0 33.0 Earnings before taxes (EBT) $ 322.0 $ 153.0 Taxes (40%) 128.8 61.2 Net income $ 193.2 $ 91.8 Common dividends $ 174.0 $ 73.0 Powell Panther Corporation: Balance Sheets as of December 31 (Millions of Dollars) 2018 2017 Assets Cash and equivalents $ 23.0 $ 18.0 Accounts receivable 248.0 225.0 Inventories 396.0 360.0 Total current assets $ 667.0 $ 603.0 Net plant and equipment 429.0 390.0 Total assets $ 1,096.0 $ 993.0 Liabilities and Equity Accounts…
Shamrock, Inc.’s income statement contained the condensed information below. Shamrock, Inc.Income StatementFor the Year Ended December 31, 2017 Service revenue $1,775,100 Operating expenses, excluding depreciation $1,123,620 Depreciation expense 100,650 Loss on disposal of plant assets 29,280 1,253,550 Income before income taxes 521,550 Income tax expense 102,480 Net income $419,070 Shamrock, Inc.’s balance sheet contained the comparative data at December 31. 2017 2016 Accounts receivable $128,100 $109,800 Accounts payable 75,030 58,560 Income taxes payable 23,790 12,810 Accounts payable pertain to operating expenses.Prepare the operating activities section of the statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
Financial information for Powell Panther Corporation is shown below: Powell Panther Corporation: Income Statements for Year Ending December 31 (Millions of Dollars) 2018 2017 Sales $ 3,900.0 $ 3,000.0 Operating costs excluding depreciation and amortization 2,925.0 2,550.0 EBITDA $ 975.0 $ 450.0 Depreciation and amortization 90.0 69.0 Earnings before interest and taxes (EBIT) $ 885.0 $ 381.0 Interest 86.0 66.0 Earnings before taxes (EBT) $ 799.0 $ 315.0 Taxes (40%) 319.6 126.0 Net income $ 479.4 $ 189.0 Common dividends $ 431.0 $ 151.0 Powell Panther Corporation: Balance Sheets as of December 31 (Millions of Dollars) 2018 2017 Assets Cash and equivalents $ 38.0 $ 30.0 Accounts receivable 432.0 360.0 Inventories 819.0 630.0 Total current assets $ 1,289.0 $ 1,020.0 Net plant and equipment 897.0 690.0 Total assets $ 2,186.0 $ 1,710.0 Liabilities and Equity…
Using the information below calculate the ROC of the company Years Revenue ($M) Net Income ($M) 2012 221.8 2.9 2013 473.8 20.2 2014 627.7 36.4 2015 947.8 45.0 2016 1,015.5 50.3 2017 1,046.2 64.9 2018 1,293.2 90.4 Years Total Assets ($M) Fixed Assets ($M) Current Assets ($M) Total Equity ($M) Retained Earnings ($M) 2012 430 286 144 293 12.8 2013 956 501 455 558 33.0 2014 922 668 324 620 69.4 2015 1103 796 307 665 114.4 2016 1120 835 285 729 164.7 2017 1294 738 556 805 229.6 2018 2053 703 1350 934 320
Oriole Company's income statement contained the following condensed information ORIOLE COMPANY Income Statement For the Year Ended December 31, 2022 Service revenue Operating expenses, excluding depreciation $624.500 Depreciation expense Loss on disposal of plant assets Income before income taxes Income tax expense Net income Accounts receivable Accounts payable Income taxes payable 2022 $74,400 40.300 Oriole's balance sheets contained the comparative data at December 31, shown below. 12.900 2021 54,600 $61000 27.000 6.400 24.100 $972,000 703,200 268,800 40,100 $228.700 Accounts payable pertain to operating expenses. Prepare the operating activities section of the statement of cash flows using the direct method. (Show amounts that decrease cash flow with either a-sign e.g.-15.000 or in parenthesis e.g. (15.000))
The current sections of Teal Mountain Inc.’s balance sheets at December 31, 2016 and 2017, are presented here. Teal Mountain Inc.’s net income for 2017 was $156,366. Depreciation expense was $27,594. 2017 2016Current assets Cash $107,310 $ 101,178Accounts receivable 81,760 90,958Inventory 171,696 175,784Prepaid expenses 27,594 22,484Total current assets $388,360 $390,404Current liabilities Accrued expenses payable $ 15,330 $ 5,110Accounts payable 86,870 94,024Total current liabilities $102,200 $ 99,134 Prepare the net cash provided (used) by operating activities section of the company’s statement of cash flows for the year ended December 31, 2017, using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
Sage Company's income statement for the year ended December 31, 2020, contained the following condensed information. Service revenue $848,000 Operating expenses (excluding depreciation) Depreciation expense Loss on sale of equipment Income before income taxes $628,000 61,000 26,000 715,000 133,000 Income tax expense 40,000 $93.000 Net income Sage's balance sheet contained the following comparative data at December 31. 2020 2019 Accounts receivable $37.00 $52,000 Accounts payable 39.000 32,000 Income taxes payable 4,000 8.400 (Accounts payable pertains to operating expenses.) Prepare the operating activities section of the statement of cash flows using the direct method. SAGE COMPANY Statement of Cash Flows (Partial) 24 %24 >
Lily Company's income statement contained the following condensed Information. LILY COMPANY Income Statement For the Year Ended December 31, 2022 Service revenue Operating expenses, excluding depreciation $624,200 Depreciation expense 55,500 Loss on disposal of plant assets Income before income taxes Income tax expense Net income 2021 $75,500 $61,000 2022 Accounts receivable Accounts payable Income taxes payable 12,200 Lily's balance sheets contained the comparative data at December 31, shown below. 41.000 For Income Taxes Cash Flows from Operating Activities Cash Receipts from Customers V Less cash payments: For Operating Expenses 28,300 Accounts payable pertain to operating expenses. Prepare the operating activities section of the statement of cash flows using the direct method. (Show amounts that decrease cash flow with either a sign e.g.-15,000 or in parenthesis eg. (15,000)) 25,000 6,700 $969,000 Net Cash Provided by Operating Activities 704,700 264,300 39,700 $224,600 LILY…