PROBLEM EABC company's total equity for 2019 amounted to P1,750,000. There was a 5% and a 15% increase in equity for the next 2 years.Withdrawals were P10,000 for 2020, No additional investments were made during 2020, and P15,000 for 2021. The combination ofadditional investments and net income for 2021 amounted to 130% of the increase in equity for 2020.Question 42How much was 2020 net income? Blank 1Blank 1 Add your answer

The equity of the company refers to Stockholder' Equity as of a particular date. It has been given…

Answered: PROBLEM E ABC company's total equity…

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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Q. 7 The Primus Corp. began the year with $7,451 in its long-term debt account and ended the year with $9,117 in long-term debt. The company paid $1,059 in interest during the year and issued $2,435 in new long-term debt. How much long-term debt must the company have paid off during the year? -$1,666 -$607 $769 $532 $1,666
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Problem 18-12 Eagle Products EBITDA is $500, its tax rate is 21%, depreciation is $30, capital expenditures are $80, and the planned increase in net working capital is $10. What is the free cash flow to the firm? (Round your answer to 2 decimal place.) Answer is complete but not entirely correct. $335.00 FCFF
Question 2 of 8 14 Poin Extract from Income Statement for the year ended 30 June 2020: R Sales 5 220 000 Cost of sales 3 600 000 Operating profit 1 295 000 Income tax 190 500 Net profit after tax 444 500 Extract from Balance Sheet on 30 June : 2020 2019 R R Fixed assets (carrying value) 17 420 950 14 683 300 Fixed deposit: Ken Bank 250 000 380 000 Current assets 1015 000 456 000 Inventories (only trading stock) 564 000 281 500 Trade and other receivables (debtors) 246 000 167 000 Cash and cash equivalents 205 000 7 500 Shareholders' equity 10 050 750 9 540 000 Ordinary share capital 10 000 000 9 180 000 Retained income 50 750 360 000 Loan: Barbie Bank 8 000 000 4 500 000 Current liabilities 635 200 1 479 300 Trade and other payables 420 000 683 400 Shareholders for dividends 209 000 162 000 SARS: Income tax 6 200 23 400 Bank overdraft 610 500 Use the above information and calculate the following financial indicators were on 30 June: (Rounded off to 1 decimal) 2020 2019 Current ratio…
Question 91 Using Financial Statements for 2020, sales to total assets for the year 2020 is 0.99. TRUE OR FALSE
Q9 The Harrison Bicycle Company had the following operating results for 2021-2022. In addition, the company paid dividends in both 2021 and 2022 of $80,000 per year and made capital expenditures in both years of $230,000 per year. The company's stock price in 2021 was $14.20 and $12.50 in 2022. Also in 2022, the industry average earnings multiple for the bicycle industry was 8 and the free cash flow and sales multiples were 16 and 1.35, respectively. The company is publicly owned and has 1,400,000 shares of outstanding stock at the end of 2022. Balance Sheet, December 31, 2022 2021 Cash $ 267,000 $ 100,000 Accounts Receivable $ 525,000 $ 400,000 Inventory $ 450,000 $ 300,000 Total Current Assets $ 1,242,000 $ 800,000 Long-lived Assets 1,205,000 1,100,000 Total Assets $ 2,447,000 $ 1,900,000 Current Liabilities $ 500,000 $ 300,000 Long-term Debt 600,000 500,000 Shareholder Equity 1,347,000 1,100,000 Total Debt and Equity $ 2,447,000 $ 1,900,000…
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PROBLEM 3As a result of a restructuring agreement on January 1, 2018, First Bank agreed tothe following provisions: • The principal obligation is reduced to P7,000,000.• The accrued interest of P640,000 is forgiven.• The date of maturity is extended to December 31, 2021.Annual interest of 10% is to be paid for 4 years every December31.The present value of 1 at 8% for 4 periods is 0.735 and the present value of anordinary annuity of 1 at 8% for 4 periods is 3.31.Requirement:a. What is the gain on extinguishment of debt for 2018?b. What is interest expense for 2018?
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Question 36 7 pts Cinderella Company began 2023 with its accounts receivable, inventory, and prepaid expenses of $310,000 and its total current liabilities totaling $90,000. At the end of the year, these same current assets totaled $260,000, while its total current liabilities totaled $190,000. Net income for the year was $100,000. Included in net income were a gain of $6,000 on the sale of equipment and Depreciation Expense of $44,000 for the year ending December 31, 2023. REQUIRED: Using the indirect method, prepare the operating activities section of the statement of cash flows for the year ending December 31, 2023. HINT: Use the following rules for adjusting amounts for current assets other than cash and current liabilities: Begin this section of the statement of cash flows from operating expenses with net income. For an increase in a noncash current asset (from the beginning of the period to the end per the comparative balance sheets) decrease cash (subtraction from net income)…
fegnsto nellob teegisl ort zon triompe Question 3 In 2019, Rylan Enterprises' net income increased by $2.5 million while its depreciation expense decreased by $500,000, accounts receivable increased by $2,000,000 and accounts payable increased by $1,000,000. Rylan's total corporate tax rate is 40%. How did the decline in Rylan's placer depreciation expense impact its end-of-year cash balance? Question 4 Suppose Global had an additional $1 million depreciation expense in 2018. If Global's tax rate on pretax income is 26%, what would this expense impact Global's earnings? How would it impact Global's cash balance at the end of the year? Tabivorq aston erit ob noitsmoin

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