3.14Management AccountingProblem 3.6.Given below are the balance sheets of IVRL & Sons.1 Jans 20051 Jan. 2005 31 Dec. 2005Rs.Liabilities31 Dec. 2005 | AssetsRs.Rs.Rs.7,00050,00025,00055,00050,00060,00044,000 CashDebtors10,00030,00035,00080,000Creditors40,00025,000Mrs. A's Loan50,000 Stock1,53,000 MachineryLandBuildingLoans from Bank40,000Capital1,25,00040,00035,0002,30,0002,47,0002,30,0002,47,000During the year a machine costing Rs. 10,000 (accumulated depreciation Rs. 3,000) sold for Rs.5,000. The provisions for depreciation against Machinery as on 1 January, 2005 was Rs. 25,000 and on31 December 2005 Rs. 40,000. Net profit for the year amount to Rs. 45,000.You are required to prepare Cash Flow Statement.(B. Com. Madras)

A cash flow statement is a financial statement that provides aggregate data regarding all cash…

Problem 3.6. Given below are the balance sheets of IVRL & Sons. Liabilities 1 Jda 2005 | 31 Dec. 2005 | Assets 1 Jan. 2005 31 Dec. 2005 Rs. Rs. Rs. Rs. 7,000 50,000 25,000 55,000 50,000 60,000 44,000 Cash Debtors 10,000 Creditors Mrs. A's Loan Loans from Bank 40,000 25,000 40,000 1,25,000 30,000 50,000 Stock 1,53,000 | Machinery Land Building 35,000 80,000 40,000 35,000 Capital 2,30,000 2,47,000 2,30,000 2,47,000 During the year a machine costing Rs. 10,000 (accumulated depreciation Rs. 3,000) sold for Rs. 5,000. The provisions for depreciation against Machinery as on 1 January, 2005 was Rs. 25,000 and on 31 December 2005 Rs. 40,000. Net profit for the year amount to Rs. 45,000. You are required to prepare Cash Flow Statement. (B. Com. Madras)

Problem 3.6. Given below are the balance sheets of IVRL & Sons. Liabilities 1 Jda 2005 | 31 Dec. 2005 | Assets 1 Jan. 2005 31 Dec. 2005 Rs. Rs. Rs. Rs. 7,000 50,000 25,000 55,000 50,000 60,000 44,000 Cash Debtors 10,000 Creditors Mrs. A's Loan Loans from Bank 40,000 25,000 40,000 1,25,000 30,000 50,000 Stock 1,53,000 | Machinery Land Building 35,000 80,000 40,000 35,000 Capital 2,30,000 2,47,000 2,30,000 2,47,000 During the year a machine costing Rs. 10,000 (accumulated depreciation Rs. 3,000) sold for Rs. 5,000. The provisions for depreciation against Machinery as on 1 January, 2005 was Rs. 25,000 and on 31 December 2005 Rs. 40,000. Net profit for the year amount to Rs. 45,000. You are required to prepare Cash Flow Statement. (B. Com. Madras)

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

The following are the Balance Sheets of XYZ Company Ltd. (Rs.in lakhs) 1.1.2020 Rs. 31.12.2020 Rs. Assets : Net Fixed Assets 900 1,000 Cash 50 50 Marketable Securities 100 - Debtors 100 400 Stock of Goods 600 800 Total 1,750 2,250 Liabilities : Equity Shares 500 500 Reserves 400 600 Long-term Debt 100 100 Creditors 200 250 Payables 450 650 Provisions 100 150 Total 1,750 2,250 From the above data, prepare a Comparative Balance Sheet with comments.?
Q5. Shown below are selected financial data for Planet X, Inc. and Planet Y, Inc., at the end of the current year: Planet X, Inc. Planet Y, Inc. $ 700,000 550,000 30,000 80.000 150,000 100,000 Net credit sales Cost of goods sold Cash $ 800,000 600,000 80,000 Accounts receivable (net) 85,000 60,000 110,000 Inventory Current liabilities Instructions a. For each of the two companies, compute the following: 1. Current ratio 2. Quick ratio 3. Number of times inventory turned over during the year and the average number of days required to tum over inventory (round computation to the nearest day). 4. Number of times accounts receivable turned over during the year and the average number of days required to collect accounts receivable (round computation to the nearest day). b. From the viewpoint of a short-tem creditor, comment on the quality of each company's operations. To which company would you prefer to sell $40,000 in merchandise on a 30-day open account?
As loan analyst for Carla Bank, you have been presented the following information. Toulouse Co. Lautrec Co. Assets Cash $124,000 $335,000 Receivables 214,000 305,000 Inventories 589,000 523,000 Total current assets 927,000 1,163,000 Other assets 482,000 582,000 Total assets $1,409,000 $1,745,000 Liabilities and Stockholders’ Equity Current liabilities $301,000 $368,000 Long-term liabilities 409,000 482,000 Capital stock and retained earnings 699,000 895,000 Total liabilities and stockholders’ equity $1,409,000 $1,745,000 Annual sales $946,000 $1,559,000 Rate of gross profit on sales 30 % 40 % Each of these companies has requested a loan of $50,000 for 6 months with no collateral offered. Because your bank has reached its quota for loans of this type, only one of these requests is to be…
Telfer Smith’s statement of financial position at 31 December shows the following balances: £Non-current assets 79 000Inventory 22 000Trade receivables 10 000Cash at bank 1 500Trade payables 28 000 There were no non-current liabilities. What is the total of Telfer Smith’s capital at 31 December? Group of answer choices£64 500£84 500£120 500£140 500
Debtors were shown in balance sheet at Rs 80,000. Debtors were realised at a discount of 7%. The journal entry will be- A. Bank A/c Dr 5600 To Realisation A/c 5600 B. Realisation A/c Dr 5600 To Bank A/c 5600 C. Bank A/c Dr 74400 To Realisation A/c 74400 D. Realisation A/c Dr 74400 To Bank A/c 74400
Q7. Calculate debt and equity ratios using the following information- Accounts payable- $10,000 Accounts Receivable- $15,000 Buildings- $42,000 Cash-$4,000 Current Notes payable- $7,000 Office supplies $3,000 Long term notes payable- $40,000 Prepaid insurance- $2,000 Unearned revenue liability- $1,000 Wages payable- $3,000 Retained earnings- $10,000 Company issued 500 common shares @ $2 and 400 Preference shares @$3 during the year.. B W
son.1 Prezas Company's balance sheet showed total current assets of $5,250, all of which were required in operations. Its current liabilities consisted of $1,040 of accounts payable, $600 of 6% short-term notes payable to the bank, and $310 of accrued wages and taxes. What was its net operating working capital? a. $3,900 b. $4,650 c. $1,350 d. $1,950 e. $3,300
4
As loan analyst for Waterway Bank, you have been presented the following information. Toulouse Co. Lautrec Co. Assets Cash $114,000 $328,000 Receivables 230,000 296,000 Inventories 582,000 493,000 Total current assets 926,000 1,117,000 Other assets 493,000 607,000 Total assets $1,419,000 $1,724,000 Liabilities and Stockholders' Equity Current liabilities $314,000 $340,000 Long-term liabilities 385,000 493,000 Capital stock and retained earnings 720,000 891,000 Total liabilities and stockholders' equity $1,419,000 $1,724,000 Annual sales $911,000 $1,440,000 Rate of gross profit on sales 30 % 40 % Each of these companies has requested a loan of $50,000 for 6 months with no collateral offered. Because your bank has reached its quota for loans of this type, only one of these requests is to be granted. Compute the various ratios for each company. (Round answer to 2 decimal places, e.g. 2.25.) Toulouse Co. Lautrec Co. Current ratio :1 :1 Acid-test ratio :1 :1 Accounts receivable turnover…
Peoples Bank Ltd.Balance sheetAs at 31/03/2021Assets $(000) Liab. & Equity $(000)Cash 50,000 Payables 50,000Short term Invest 50,000 short term deposits 500,000Long term Invest. 180,000 long term deposits. 180,000Loans 550,000 Long-term bonds 50,000Other 50,000 Equity 100,000Total 880,000 880,000 The long-term investment portfolio comprises shares in an associate company (25%), azero-coupon bond (25%), government fixed rate bonds (40) and shares in publicly tradedcompanies (10%).The loan portfolio is composed as follows: 10% residential mortgages, 50% consumerand 40% commercial. The loan portfolio has a 5% delinquency, and the average return is8%. Fixed rate loans are 60% and floating rate 40%.Deposits are primarily short term. The renewal rate is declining and expected to continueinto the medium term. The average deposit rate is 4%.Interest rates are expected to rise in the short term for both, loans and deposits. A. Based on the balance sheet and the information above, identify…
1. The following accounts appeared on the partial Balance Sheet of Brandy Inc.: Accounts Payable Accounts Receivable $ 5,500 2,300 2,820 3,000 8,140 18,560 18,760 100 Bank Loan Cash Common Stock Inventory Long-term debt Machinery What is the total amount of all assets (rounded to the nearest dollar)?
Miracle Bank's balance sheet is the following. Assets Reserves Loans Short-term securities a. 70 Miracle Bank's leverage ratio is Ob. 0.0857 c. 8.57 Miracle Bank Od. 80 Liabilities & Owners' Equity $600 Deposits 6,400 Debt 1000 Capital (owners' equity) $7,000 990 10