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

The question is based on the concept of Cash flow statement.

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.
i need this question answer general accounting
Sh9
Hii expert please given true answer general Accounting
Financial accounting question
Sales Costs Other expenses Earnings before interest and taxes Interest paid Taxable income Taxes (21%) Net income Dividends Addition to retained earnings Current assets Cash CROSBY, INCORPORATED 2023 Income Statement Accounts receivable Inventory Total Total assets Assets Fixed assets Net plant and equipment EFN $ 21,340 44,280 98,960 $ 164,580 $ 430,000 $ 28,203 65,807 $ 594,580 $ 754,000 589,000 25,000 $ 140,000 21,000 CROSBY, INCORPORATED Balance Sheet as of December 31, 2023 $ 119,000 24,990 $ 94,010 Liabilities and Owners' Equity Current liabilities Accounts payable Notes payable Total Long-term debt Owners' equity Common stock and paid-in surplus Accumulated retained earnings Total Total liabilities and owners' equity $ 55,500 14,700 $ 70,200 $ 137,000 $ 118,000 269,380 $ 387,380 $ 594,580 If the firm is operating at full capacity and no new debt or equity is issued, what is the external financing needed to support the 25 percent growth rate in sales? Note: Do not round…
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
i want to this question answer General accounting