Selected balance sheet information and the income statement for Pioneer Industries for the current year are presented below.Selected Balance Sheet AccountsAccounts ReceivablePrior YearCurrent Year$ 24,000$ 16,000Inventory32,00035,200Prepaid Rent1,6000Accounts Payable17,60022,400Salaries and Wages3,2004,800Payable04:23Depreciation ExpenseSalaries ExpenseIncome StatementSales Revenue$ 480,000Expenses:Cost of Goods Sold288,00032,00048,00019,20019,20017,60016,000$ 40,000Rent ExpenseInsurance ExpenseInterest ExpenseUtilities ExpenseNet IncomeRequired:Prepare the cash flows from operating activities section of the statement of cash flows using the indirect method. (Enter anydeductions and cash outflows as a negative value.)Pioneer IndustriesCash Flows from Operating ActivitiesAdjustments to reconcile net income to net cash provided by operating activities:Changes in current assets and current liabilities:$0

Cash flow statement :— It is one of the financial statements that shows change in cash and cash…

Answered: Selected balance sheet information and…

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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The income statement comparison for Forklift Material Handling shows the income statement for the current and prior year. FORKLIFT MATERIAL HANDLINGIncome statement Comparison Current Year Prior Year (Amounts in thousands) Sales $33,750 $24,750 Cost of goods sold 21,937.5 16,830 Gross profit $11,812.5 $7,920 Expenses: Wages $8,750 $6,188 Utilities 650 250 Repairs 168 325 Selling 507 100 Total Expenses $10,075 $6,863 Operating income ? ? Operating income % ? ? Total assets (investment base) $4,500 $1,600 Return on investment ? ? Residual income (8% cost of capital) ? ? A. Determine the operating income (loss) (dollars) for each year. If required round final answers to two decimal places. Current Year Prior Year Operating income (loss) $fill in the blank 1 $fill in the blank 2 B. Determine the operating income (loss) (percentage) for each year. If required round final answers to two…
Income statement data for Winthrop Company for two recent years ended December 31, are as follows: Current Year Previous Year Sales $516,000 $400,000 Cost of goods sold 428,400 340,000 Gross profit $87,600 $60,000 Selling expenses $26,180 $22,000 Administrative expenses 22,860 18,000 Total operating expenses $49,040 $40,000 Income before income tax $38,560 $20,000 Income tax expenses 15,400 8,000 Net income $23,160 $12,000 a. Prepare a comparative income statement with horizontal analysis, indicating the increase (decrease) for the current year when compared with the previous year. If required, round to one decimal place.
Jester Corporation's most recent income statement appears below: Income Statement Sales (all on account) Cost of goods sold Gross margin Selling and administrative expense Net operating income Interest expense Net income before taxes Income taxes (30%) Net income $ 300,000 170,000 130,000 50,000 80,000 20,000 60,000 18,000 $ 42,000 The beginning balance of total assets was $240,000 and the ending balance was $236,700. The return on total assets is closest to:
Assume Martinez Company has the following reported amounts: Sales revenue $ 610,000, Sales returns and allowances $ 30,000, Cost of goods sold $ 396,500, and Operating expenses $ 84,000. (a) Compute net sales. Net sales (b) Compute gross profit. Gross profit (c) Compute income from operations. Income from operations (d) Compute the gross profit rate. (Round answer to 1 decimal place, e.g. 25.2%.) Gross profit rate %24
The income statement of Tavis Corporation and selected additional data are presented below: Tavis Corporation Income Statement for the Year Ended December 31, 2020 Net sales $220,000 Cost of goods sold __109,000 Gross profit 111,000 Selling and general expenses _98,000 Income from operations 13,000 Interest expense __2,500 Income before income tax 10,500 Income tax expense __3,000 Net income $ 7,500 Additional data: Total assets $214,000 Common stockholders’ equity $116,000 Preferred dividends…
Horizontal Analysis of the Income Statement Income statement data for Winthrop Company for two recent years ended December 31 are as follows: Current Year Previous Year Sales $2,280,000 $2,000,000 Cost of merchandise sold 1,960,000 1,750,000 Gross profit $320,000 $250,000 Selling expenses $156,500 $125,000 Administrative expenses 122,000 100,000 Total operating expenses $278,500 $225,000 Income before income tax expense $41,500 $25,000 Income tax expenses 16,600 10,000 Net income $24,900 $15,000
The income statement comparison for Forklift Material Handling shows the income statement for the current and prior year. FORKLIFT MATERIAL HANDLINGIncome statement Comparison Current Year Prior Year (Amounts in thousands) Sales $33,750 $24,800 Cost of goods sold 21,937.5 16,864 Gross profit $11,812.5 $7,936 Expenses: Wages $8,800 $6,189 Utilities 700 200 Repairs 169 350 Selling 506 200 Total Expenses $10,175 $6,939 Operating income ? ? Operating income % ? ? Total assets (investment base) $4,400 $1,400 Return on investment ? ? Residual income (8% cost of capital) ? ? A. Determine the operating income (loss) (dollars) for each year. If required round final answers to two decimal places. B.Determine the operating income (loss) (percentage) for each year.If required round final answers to two decimal places. C. The company made a strategic decision to invest in additional assets in the current year.…
(a) - Make a "Condensed Income Statements". Prepare a horizontal analysis of the income statement data for Vaughn Corporation, using 2021 as a base. (b ) - Make a "Condensed Income Statements". Prepare a vertical analysis of the income statement data for Vaughn Corporation for both years.
Horizontal Analysis of the Income Statement Income statement data for Winthrop Company for two recent years ended December 31, are as follows: Current Year Previous Year Sales $537,600 $420,000 Cost of goods sold 462,500 370,000 Gross profit $75,100 $50,000 Selling expenses $22,420 $19,000 Administrative expenses 20,160 16,000 Total operating expenses $42,580 $35,000 Income before income tax $32,520 $15,000 Income tax expenses 13,000 6,000 Net income $19,520 $9,000 a. Prepare a comparative income statement with horizontal analysis, indicating the increase (decrease) for the current year when compared with the previous year. If required, round to one decimal place. Winthrop Company Comparative Income Statement For the Years Ended December 31 CurrentyearAmount PreviousyearAmount Increase(Decrease)Amount Increase(Decrease)Percent Sales $537,600 $420,000 $fill in the blank…
Presented below are selected balance sheet information and the income statement for Burch Company. Selected Balance Sheet Information Jan. 1 Dec. 31 Cash $11,400 $17,500 Accounts receivable 8,000 10,500 Inventory 23,500 21,000 Accounts payable 10,000 14,200 Income taxes payable 2,500 1,300 Burch Company Income Statement For the year ended December 31 Sales $250,000 Cost of goods sold (160,000) Depreciation expense (22,900) Other expenses (35,000) Income tax expense (12,000) Net income $20,100 Required: Compute the net cash flows from operating activities using the indirect method.
Given the following information for Blue Bell Company for last year: Net sales (all on account) $5,200,000 Cost of goods sold 2,080,000 Interest expense 240,000 Income tax expense 280,000 Net income 420,000 Income tax rate 40% Total assets: January 1 $1,800,000 December 31 2,400,000 Shareholders' equity (all common): January 1 1,500,000 December 31 1,600,000 Current assets, December 31 700,000 Quick assets, December 31 400,000 Current liabilities, December 31 300,000 Net accounts receivable: January 1 200,000 December 31 180,000 Inventory: January 1 210,000 December 31 250,000 Refer to Exhibit 4-1. Blue Bell's debt to assets ratio December 31 was A16.7% B26.2% C42.8% D33.3%
Horizontal Analysis of the Income Statement Income statement data for Winthrop Company for two recent years ended December 31 are as follows: Current Year Previous Year Sales $660,000 $500,000 Cost of merchandise sold 554,700 430,000 Gross profit $105,300 $70,000 Selling expenses $31,720 $26,000 Administrative expenses 28,600 22,000 Total operating expenses $60,320 $48,000 Income before income tax expense $44,980 $22,000 Income tax expenses 18,000 8,800 Net income $26,980 $13,200

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