Portions of the financial statements for a company are provided below.Income StatementFor the year ended December 31, Year 2Net salesExpenses:Cost of goods sold.Operating expensesDepreciation expenseIncome tax expenseTotal expensesNet incomeCashAccounts receivableInventoryPrepaid rentAccounts payableIncome tax payable$1,060,000570,00051,00041,000Selected Balance Sheet DataDecember 31Year 2$103,00045, 10076,0003,10046,0005,100Cash flows from operating activities:Net incomeDepreciation expense$1,825,0001,722,000$ 103,000Net cash flows from operating activitiesYear 1$85,50049,50055,5005, 20037,50010,500Increase (I)orDecrease (D)$17,500 (1)4,400 (D)20,500 (1)Required:Prepare the operating activities section of the statement of cash flows for the conand any decrease in cash as negative amounts.)Statement of Cash Flows (partial)For the Year Ended December 31, Year 202,100 (D)8,500 (I)5,400(D)$0

The cash flow statement is prepared to record the cash flow from various activities during the…

Portions of the financial statements for a company are provided below. Income Statement For the year ended December 31, Year 2 Net sales Expenses: Cost of goods sold Operating expenses Depreciation expense Income tax expense Total expenses Net income $1,060,000 570,000 51,000 41,000 Cash Accounts receivable Inventory Prepaid rent Accounts payable Income tax payable Selected Balance Sheet Data December 31 Year 2 $103,000 45, 100 76,000 3,100 46,000 5,100 $1,825,000 1,722,000 $ 103,000 Year 1 $85, 500 49,500 55,500 5, 200 37,500 10,500 Increase (1) or Decrease (D) $17,500 (1) 4,400 (D) 20,500 (1) 2,100 (D) 8,500 (1) 5,400 (D) Required: Prepare the operating activities section of the statement of cash flows for the con and any decrease in cash as negative amounts.) Statement of Cash Flows (partial) For the Year Ended December 31, Year 20

Portions of the financial statements for a company are provided below. Income Statement For the year ended December 31, Year 2 Net sales Expenses: Cost of goods sold Operating expenses Depreciation expense Income tax expense Total expenses Net income $1,060,000 570,000 51,000 41,000 Cash Accounts receivable Inventory Prepaid rent Accounts payable Income tax payable Selected Balance Sheet Data December 31 Year 2 $103,000 45, 100 76,000 3,100 46,000 5,100 $1,825,000 1,722,000 $ 103,000 Year 1 $85, 500 49,500 55,500 5, 200 37,500 10,500 Increase (1) or Decrease (D) $17,500 (1) 4,400 (D) 20,500 (1) 2,100 (D) 8,500 (1) 5,400 (D) Required: Prepare the operating activities section of the statement of cash flows for the con and any decrease in cash as negative amounts.) Statement of Cash Flows (partial) For the Year Ended December 31, Year 20

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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Refer to the following selected financial information from a company. Compute the company’s return on total assets for Year 2. Year 2 Year 1 Net sales $ 483,000 $ 427,150 Cost of goods sold 277,200 251,020 Interest expense 10,600 11,600 Net income before tax 68,150 53,580 Net income after tax 46,950 40,800 Total assets 318,900 293,400 Total liabilities 176,900 168,200 Total equity 142,000 125,200 Answer: A. 22.3% B. 14.7% C. 9.7% D. 2.7% E. 15.3%
A company reports the following amounts at the end of the year: Sales revenue Cost of goods sold Net income $ 310,000 210,000 53,000 Compute the company's gross profit ratio. (Round your final answe Gross profit ratio %
Lansing Company's current-year income statement and selected balance sheet data at December 31 of the current and prior years follow. LANSING COMPANY Income Statement For Current Year Ended December 31 Sales revenue $ 130,200 Expenses Cost of goods sold Depreciation expense Salaries expense Rent expense Insurance expense Interest expense Utilities expense 53,000 17,500 29,000 10,100 4,900 4,700 3,900 Net income $ 7,100 LANSING COMPANY Selected Balance Sheet Accounts At December 31 Current Year Prior Year Accounts receivable $ 6,700 $ 8,000 Inventory Accounts payable Salaries payable Utilities payable Prepaid insurance Prepaid rent 3,080 5,500 2,090 6,800 1,100 810 440 270 370 500 440 290 Required: Prepare the operating activities section of the statement of cash flows using the indirect method for the current year. (Amounts to be deducted should be indicated with a minus sign.)
Use the information above to calculate cash flows from operating activities using the indirect method. Note: Amounts to be deducted should be indicated by a minus sign. Cash flows from operating activities Net income Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Changes in current operating assets and liabilities $ 42,000 S 42.000 42.000
Income statements for Franklin Company for Year 3 and Year 4 follow: FRANKLIN COMPANY Income Statements Year 4 Year 3 Sales $ 201,300 $181, 300 Cost of goods sold 143, 600 121,600 Selling expenses 20,100 18, 100 Administrative expenses 12,500 14,500 Interest expense 3, 900 5,900 Total expenses 180, 100 160, 100 Income before taxes 21, 200 21,200 Income taxes expense 6, 400 3,600 Net income $ 14,800 $ 17,600 Required Perform a horizontal analysis, showing the percentage change in each income statement component between Year 3 and Year 4. Perform a vertical analysis, showing each income statement component as a percentage of sales for each year.
The Tarboro Corporation data for the current year and prior year is as follows: Current year $75,600 $59,400 $51,200 Account Current assets A/R Mdse. Inventory Current liabilities $76,500 $31,000 $47,460 $31,240 $607,700 $469,700 $138,000 $49,080 $88,920 $20,520 $68,400 Long-term liabilities. Common stock (5,000 shares) Retained earnings Net sales revenue COGS Gross Profit Selling/General expenses Net income before taxes Income tax expense Net Income What would a horizontal analysis report with respect to long-term liabilities? OA. Long-term liabilities increased by $28,500. B. Long-term liabilities decreased by $16,500. OC. Long-term liabilities decreased by 27.5%. D. Long-term liabilities increased by 91.94%. Prior year $60,000 $44,000 $40,000 $60,000 $2,500 $42,000 $17,000 $515,000 $385,000 $130,000 $52,000 $78,000 $18,000 $60,000
Cochran corporation, Inc. has the following income statement: Cochran corporation, Inc. Income statement For the year ended December 31, 2021 net sales $240 Cost of goods sold $150 gross profit $90 Operating expenses $65 Net income $25 Using vertical analysis, what percentage is assigned to operating expenses? a. 27,1% b. 43.3% c. 72.2% d. 260.0%
Vertical Analysis of Income Statement Revenue and expense data for Innovation Quarter Inc. for two recent years are as follows: Previous Year Sales Cost of goods sold Selling expenses Administrative expenses Income tax expense Current Year $447,000 272,670 71,520 71,520 13,410 $384,000 215,040 69,120 57,600 15,360
Net sales Cost of goods sold Gross margin Operating expenses Net income Cash Accounts receivable, net Merchandise inventory Plant assets, net Total assets Current liabilities Long-term liabilities Common stock Retained earnings Total liabilities and equity Goliath Company Comparative Income Statements For Years Ended December 31 Current Year One Year Ago $ 206,000 $ 184,000 108,000 121,000 85,000 45,000 $ 40,000 76,000 40,000 $ 36,000 Goliath Company Comparative Balance Sheets For Years Ended December 31 Current Year $ 153,000 58,000 30,000 170,000 $ 411,000 $ 36,000 190,000 60,000 125,000 $ 411,000 Required: Using the above information, compute the following: Two Years Ago $ 160,000 92,000 68,000 36,000 $ 32,000 One Year Ago $ 158,000 52,000 17,000 170,000 $ 397,000 $ 32,000 220,000 60,000 85,000 $ 397,000 Three Years Ago $ 114,000 78,000 36,000 19,000 $ 17,000 Two Years Ago $ 129,000 45,000 23,000 140,000 $ 337,000 $ 28,000 200,000 60,000 49,000 $ 337,000 Three Years Ago $ 156,000…
Sales MOSS COMPANY Income Statement For Year Ended December 31, 2021 Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Income before taxes Income taxes expense Net income $ 549,000 357,600 191,400 128,500 49,000 13,900 8,100 $ 5,800 MOSS COMPANY Selected Balance Sheet Information At December 31 2021 2020 Current assets Cash $ 91,150 $ 33,300 Accounts receivable 31,500 45,000 66,500 55,400 Current liabilities 43,400 32,200 2,700 3,500 Inventory Accounts payable Income taxes payable Use the information above to calculate cash flows from operating activities using the indirect method. Note: Amounts to be deducted should be indicated by a minus sign. Cash flows from operating activities: Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Changes in current operating assets and liabilities $ 49,000 49,000 $ 49,000
Return on Total Assets A company reports the following income statement and balance sheet information for the current year: Net income $661,910Interest expense 116,810Average total assets 6,280,000Determine the return on total assets. If required, round the answer to one decimal place.fill in the blank 1 %
Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total expenses Income before taxes. Income tax expense Net income Assets Current assets Long-term investments Plant assets, net Total assets Sin Comparative Income Statements For Years Ended December 31 2021 $ 420,027 252,856 167,171 59,644 37,802 97,446 69,725 12,969 $ 56,756 Liabilities and Equity Current liabilities Common stock Other paid-in capital Retained earnings Total liabilities and equity Assets Current assets Long-term investments Plant assets, net. Total assets Liabilities and Equity Current liabaties Common stock Other paid-in capital Retained earnings Total liabilities and equity 2020 $ 321,775 202,718 KORBIN COMPANY Comparative Balance Sheets December 31 2021 119,057 44,405 28,316 72,721 46,336 9,499 $ 36,837 $ 55,286 0 102,674 $ 157,960 2020 3. Complete the below table to calculate the balance sheet data in trend percents with 2019 as answers to 2 decimal places.) 111.77 % 0.00 $ 37,003 700…