Problems21-73Statement of Income and Retained EarningsFor the Year Ended December 31, 2016Net sales$1,950,000Operating expenses:Cost of salesSelling and administrative expensesDepreciation$1,150,000505,00053,000$1,708,000$242,000Operating incomeOther (income) expense:Interest expenseEquity in net income of Hall Inc.Loss on sale of equipmentAmortization of patent2415,000(13,000)5,0004,000$ 11,000$ 231,000Income before income taxesIncome taxes:CurrentDeferredProvision for income taxes%2479,00011,000$ 90,000$ 141,000334,000$ 475,00043,000$ 432,000Net incomeRetained earnings, January 1, 2016Cash dividends, paid August 13, 2016Retained earnings, December 31, 2016Additional information:On January 2, 2016, Farrell sold equipment costing $45,000, with a book value of $24,000, for S19,000 cash.b. On April 2, 2016, Farrell issued 1,000 shares of common stock for $23,000 cash.On May 14, 2016, Farrell sold all of its treasury stock for $25,000 cash.d. On June 1, 2016, Farrell paid $50,000 to retire bonds with a face value (and book value) of $50,000.On July 2, 2016, Farrell purchased equipment for $63,000 cash.f.a.c.е.On December 31, 2016, land with a fair market value of $150,000 was purchased through the issuance of along-term note in the amount of $150,000. The note bears interest at the rate of 15% and is due on December31, 2018.g. Deferred taxes payable represent temporary differences relating to the use of accelerated depreciation methodsfor income tax reporting and the straight-line method for financial statement reporting.Required:1. Prepare a spreadsheet to support a statement of cash flows for Farrell for the year ended December 31, 2016,based on the preceding information.2. Prepare the statement of cash flows. P21-13 Comprehensive The following are Farrell Corporation's balance sheets as of December 31, 2016, and 2015, andthe statement of income and retained earnings for the year ended December 31, 2016:LO 21.3LO 21.4LO 21.5Balance SheetsDecember 31Increase(Decrease)20162015AssetsCashAccounts receivable, netInventoriesInvestment in Hall Inc. at equityLandPlant and equipmentLess: Accumulated depreciationPatentTotal Assets$225,000295,000549,00073,000350,000624,000(139,000)16,000$1,993,000$ 180,000305,000431,00060,000200,000606,000(107,000)20,000$1,695,000$ 45,000(10,000)118,00013,000150,00018,000(32,000)(4,000)$298,000Liabilities and Shareholders' EquityAccounts payable and accrued expensesNote payable, long-termBonds payableDeferred taxes payableCommon stock, $10 parAdditional paid-in capitalRetained earningsTreasury stock, at costTotal Liabilities and Shareholders' Equity$ 563,000$ 604,000150,000160,00041,000410,000196,000432,000210,00030,000400,000175,000334,000(17,000)$1,695,000$ 41,000150,000(50,000)11,00010,00021,00098,00017,000$298,000$1,993,000

Statement of Income and Retained Earnings For the Year Ended December 31, 2016 Net sales $1,950,000 Operating expenses: Cost of sales Selling and administrative expenses Depreciation $1,150,000 505,000 53,000 $1,708,000 $242,000 Operating income Other (income) expense: Interest expense Equity in net income of Hall Inc. Loss on sale of equipment Amortization of patent $15,000 (13,000) 5,000 4,000 $ 11,000 $231,000 Income before income taxes Income taxes: Current Deferred $ 79,000 11,000 90.000 Provision for income taxes

Statement of Income and Retained Earnings For the Year Ended December 31, 2016 Net sales $1,950,000 Operating expenses: Cost of sales Selling and administrative expenses Depreciation $1,150,000 505,000 53,000 $1,708,000 $242,000 Operating income Other (income) expense: Interest expense Equity in net income of Hall Inc. Loss on sale of equipment Amortization of patent $15,000 (13,000) 5,000 4,000 $ 11,000 $231,000 Income before income taxes Income taxes: Current Deferred $ 79,000 11,000 90.000 Provision for income taxes

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter9: Metric-analysis Of Financial Statements

Section: Chapter Questions

Problem 9.4.13P: Twenty metrics of liquidity, solvency, and profitability The comparative financial statements of...

See similar textbooks

Similar questions

Twenty metrics of liquidity, solvency, and profitability The comparative financial statements of Automotive Solutions Inc. are as follows. The market price of Automotive Solutions Inc. common stock was $119.70 on December 31, 20Y8 Instructions Asset turnover
Statement of Profit and Loss and Other Comprehensive Income for the years ended 31 December 2024 2023 R'000 R'000 Turnover 1287052 934052 Operating Profit 137342 81768 Net Finance Cost 39264 20862 Operating Profit before taxation 98078 60906 Income tax expense 7027 3048 Profit for the Year 91051 57858 3502 2237 Operating profit includes Depreciation and loss on sale of fixed asset 5/12 Required: a) Prepare the cash flows from operating activities for the company for 2024 using the available information (10 Marks) b) Perform a financial review of the company based on calculating the following financial ratios and explain how it may be interpreted. Debt equity ratio Times interest earned Current ratio Debtors average collection period Inventory turnover Your answer should include an overall assessment of the company (25 Marks) c) List the audit steps to verify the existence of inventory (10 Marks)
Problem: Remesh Corporation prepared the following income statement and statement of retained earnings for the year ended December 31, 2021. Remesh Corporation December 31, 2021 Expense and Profit Statement Dollars in thousands Sales (net) $206,000 Less: Selling Expenses (20,600) Net Sales $185,400 Add: Interest Revenue 2,400 Add: Gain on sale of equipment 3,600 Gross Sales Revenue $191,400 Less: Cost of operations: Cost of Goods Sold $126,100 Correction of overstatement in last years income because of error $5,500 (net of tax credit) $3850 Dividend cost ($0.50 per share for 8k common shares) $4000 Unusual loss due to a hurricane, $6,400 (net of tax credit) $1,920 ($135,870) Taxable Revenues $55,530 Less: Income tax on income from continuing operations $16,659 Net income $38871 Miscellaneous Deductions Loss from operations of…
Current Attempt in Progress Sheridan Inc. reported the following for 2023: Sales Revenue Cost of Goods Sold Selling and Administrative Expenses Loss on Disposal of Equipment Unrealized Gain-OCI $1,512,000 874,000 216,000 (12,300) 14,400 Prepare a statement of comprehensive income. Ignore income tax and EPS. Assume Sheridan follows IFRS.
Please help me with correct answer thanku
Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses: Salaries Expense Depreciation Expense-Plant Assets Total Operating Expenses Net Income Before Income Taxes Income Tax Expense Net Income Health Plus, Inc. Income Statement Year Ended September 30, 2016 e. ته f. Cash Accounts Receivable Merchandise Inventory Plant Assets Accumulated Depreciation $ Land Accounts Payable Accrued Liabilities Notes Payable (long-term) Common Stock, no par Retained Earnings 58,000 24,000 a. Acquisition of plant assets is $120,000. Of this amount, $109,000 is paid in cash and $11,000 by signing a note payable. b. Cash receipt from sale of land totals $22,000. There was no gain or loss. C. Cash receipts from issuance of common stock total $34,000. d. Payment of note payable is $10,000. Payment of dividends is $8,000. From the balance sheet: $ 2016 $ 32,000 51,000 97,000 235,000 89,000 146,000 180,000 (58,000) 72,000 36,000 17,000 11,000 40,000 270,000 82,000 64,000 6,000 58,000 September 30 2015…
question in the pic
Prepare Operating income part Selling, general, and administrative expenses Accounts payable Research and development expenses Loss from discontinued operations, net of tax savings of $6,000 Provision for income taxes Net sales Interest expense Net cash provided by operations Cost of goods sold $ 61,200 102,000 44,400 19,200 88,800 694,800 76,800 177,600 326,400
Compute for the following 1. TIE Ratio 2. Gross Profit Ratio 3. Operating Profit Ratio 4. Net Profit Ratio
Condensed financial data of Cullumber Company follow. Cullumber Company Comparative Balance Sheets December 31 Assets Cash Accounts receivable Inventory Prepaid expenses Long-term investments Plant assets Accumulated depreciation Total Liabilities and Stockholders' Equity Accounts payable Accrued expenses payable Bonds payable Common stock Retained earnings Total 2022 $100,000 91,000 111,000 29,000 139,000 113,000 274,000 241,000 (46,000) (51,000) $698,000 $508,000 2021 $47,000 32,000 101,000 25,000 $111.000 $67,000 16,000 17,000 149,000 174,000 101,000 $508,000 110,000 219,000 242,000 $698,000
Calculate the asset efficiency - receivables turnover ratios, inventory turnover ratios, fixed asset turnover ratios and total asset turnover ratios.
Sales Cost of goods sold Gross profit FORTEN COMPANY Income Statement For Current Year Ended December 31 Operating expenses (excluding depreciation) Depreciation expense Other gains (losses) Loss on sale of equipment Income before taxes Income taxes expense Net income $ 637,500 296,000 341,500 $ 143,400 31,750 175,150 (16,125) 150,225 39,650 $ 110,575 FORTEN COMPANY Comparative Balance Sheets December 31 Current Year Prior Year Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Long-term notes payable Total liabilities Equity Common stock, $5 par value Paid-in capital in excess of par, common stock Retained earnings Total liabilities and equity Additional Information on Current Year Transactions $ 66,400 82,380 $ 84,500 61,625 262,800 292,156 1,320 2,115 442,256 411,040 146,500 (42,125) $ 546,631 $ 64,141 72,800 136,941 179,250 119,000 (51,500) $ 478,540 $…