The following is information for Concord Corp. for the year ended December 31, 2020:Sales revenueUnrealized gain on FV-OCI equityinvestmentsInterest incomeCost of goods soldSelling expensesAdministrative expensesDividend revenue$1,450,00040,000Concord Corp.Statement of Financial Performance5,000870,00072,50046,00025,000Loss on inventory due to decline in net realizable valueLoss on disposal of equipmentDepreciation expense related to buildings omitted bymistake in 2019Retained earnings at December 31, 2019Loss from expropriation of landDividends declaredThe effective tax rate is 35% on all items. Concord prepares financial statements in accordance with IFRS. The FV-OCI equityinvestments trade on the stock exchange. Gains/losses on FV-OCI investments are not recycled through net income.$76,00025,00053,000980,00058,00043,000Prepare a multiple-step statement of financial performance for 2020, showing expenses by function. Ignore calculation of EPS.

A financial statement for a business that shows revenues outlays, and expenses for a certain…

Answered: The following is information for…

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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Net Cash Flow From Operating Activities Verna Company's records provided the following information for 2019: decrease in accounts payable, $4,000 loss on sale of land, $1,200 increase in inventory, $7,400 increase in income taxes payable, $2,700 net income, $69,400 patent amortization expense, $1,500 ordinary loss, $6,400 decrease in deferred taxes payable, $2,300 amortization of discount on bonds payable, $1,400 payment of cash dividends, $26,000 depletion expense, $5,000 decrease in salaries payable, $2,000 decrease in accounts receivable, $3,600 gain on sale of equipment, $6,000 proceeds from issuance of stock, $56,000 ordinary gain, $3,100 depreciation expense, $10,000 amortization of discount on investment in bonds, $1,500 Required Prepare the operating activities section of Verna's 2019 statement of cash flows using the indirect method. Use a minus sign to indicate cash outflows or decreases in cash.
The income statement disclosed the following items for the year: Depreciation expense $40,700 Gain on disposal of equipment 23,760 Net income 254,700 The changes in the current asset and liability accounts for the year are as follows: Increase (Decrease) Accounts receivable $6,340 Inventory (3,610) Prepaid insurance (1,350) Accounts payable (4,300) Income taxes payable 1,350 Dividends payable 950 a. Prepare the Cash Flows from (used for) Operating Activities section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments. Statement of Cash Flows (partial) Cash flows from (used for) operating activities: Adjustments to reconcile net income to net cash flows from (used for) operating activities: Changes in current operating assets and liabilities: Net cash flows from operating activities b. Why is net cash flows from operating activities different than net income? Cash flows…
The T-accounts for Equipment and the related Accumulated Depreciation—Equipment for Luo Company at the end of 2020 are shown here. Equipment Beg. bal. 80,600 Disposals 23,800 Acquisitions 40,000 End. bal. 96,800 Accumulated Depreciation—Equipment Disposals 8,700 Beg. bal. 47,800 Depr. exp. 13,300 End. bal. 52,400 In addition, Luo’s income statement reported a loss on the disposal of plant assets of $6,100. What amount was reported on the statement of cash flows as “cash flow from sale of equipment”? (Show amount that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) Cash flow from sale of equipment $
The following information is from Lacy's Inc. $ millions Prior Fiscal Year Current Fiscal Year Net Year-End Assets Revenue Income $21,330 14,403 $18,955 $1,070 a. Compute the asset turnover ratio for the current fiscal year. b. Compute the return on assets ratio for the current fiscal year. Numerator a. Asset Turnover Ratio $ Check b. Return on Assets Ratio $ Numerator Denominator / $ Denominator / $ || Result Result
Net Cash Flow From Operating Activities Verna Company's records provided the following information for 2019: decrease in accounts payable, $4,000 loss on sale of land, $1,100 increase in inventory, $7,100 increase in income taxes payable, $2,800 net income, $68,500 patent amortization expense, $1,200 ordinary loss, $6,300 decrease in deferred taxes payable, $2,200 amortization of discount on bonds payable, $1,800 payment of cash dividends, $22,000 depletion expense, $4,800 decrease in salaries payable, $1,900 decrease in accounts receivable, $3,800 gain on sale of equipment, $6,900 proceeds from issuance of stock, $62,000 ordinary gain, $4,000 depreciation expense, $10,000 amortization of discount on investment in bonds, $1,700 Required Prepare the operating activities section of Verna's 2019 statement of cash flows using the indirect method. Use a minus sign to indicate cash outflows or decreases in cash.
Fitz Company reports the following information. Selected Annual Income Statement Data Selected Year-End Balance Sheet Data Net income $ 391,000 Accounts receivable decrease $ 27,200 Depreciation expense 44,200 Inventory decrease 46,000 Amortization expense 8,000 Prepaid expenses increase 6,400 Gain on sale of plant assets 7,100 Accounts payable decrease 8,200 Salaries payable increase 1,900 Use the indirect method to prepare the operating activities section of its statement of cash flows for the year ended December 31. Note: Amounts to be deducted should be indicated with a minus sign.
The balance sheets of HIROE Inc. showed the following at December 31, 2020 and 2019: December 31, 2020 December 31, 2019 Equipment, less accumulated depreciation of $212,625 at December 31, 2020, and $151,875 at December 31, 2019. $273,375 $334,125 Required: a. If there have not been any purchases, sales, or other transactions affecting this equipment account since the equipment was first acquired, what is the amount of the depreciation expense for 2020? b. Assume the same facts as in part a, and assume that the estimated useful life of the equipment to HİROE Inc., is eight years and that there is no estimated salvage value. Determine: 1. What the original cost of the equipment was. 2. What depreciation method is apparently being used. 3. When the equipment was acquired. c. Assume that this equipment account represents the cost of 5 identical machines. Prepare the horizontal model and record the journal entry for the sale of the machine to calculate the gain or loss on the sale of one…
Altima Corporation discovered an error in its 2020 financial statements. The firm recorded $4,200,000 in depreciation expense instead of record $4,500,000. Altima has a constant tax rate of 40% and reports 3 years of comparative income statements and 2 years of comparative balance sh- in its annual report. Ignoring the income tax effect, what is the correct journal entry to record the prior-period adjustment? O Depreciation expense Accumulated Depreciation O Retained Earnings 300,000 Income Tax Payable Accumulated Depreciation Retained Earnings O Accumulated Depreciation 300,000 Retained Earnings Accumulated Depreciation 300.000 estion 22 300,000 300,000 120.000 180,000 300,000 300,000
WB Inc. reported profits of P 100,000 in its March 31, 2022 interim financial statements. Additional information is shown below (amounts are net of tax): • AP 10,000 cumulative-effect gain resulting from a change in inventory cost flow formula was recognized in profit or loss during the 1 quarter. • In March 2022, a component of an entity was classified as held for sale. Of the total loss on discontinued operations of P 12,000, only P 3,000 has been recognized in the 1" quarter. WB Inc. intends to allocate the remaining P 9,000 loss to the other quarters in 2022. REQUIRED: Compute for the restated profit after tax for the 1" quarter of 2022.
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Problem: Recognition and Measurement in Interim Periods Athena Corp. reports profit before tax of P 1,000,000 I its 2nd quarter interim financial statements before consideration for the following: Inventory with a carrying amount of P 100,000 has a net realizable value of P 80,000. It is expected that the decline in value will reverse in the 3rd An investment property measured under the cost model has a carrying amount of P 250,000 but its recoverable amount is P 210,000. An investment in FVPL measured at acquisition cost of P 20,000 has a fair value of P 25,000 as at the end of the 2nd However, the increase in fair value is expected to be only temporary. No depreciation is recognized during the 2nd The annual depreciation under the straight-line method of items of PPEs is P 360,000. Athena Corp. has a policy of providing 12 days paid vacation leaves for its employees. The vacation leaves are vesting and accumulating. Total paid vacation leaves eligibility of employees for the full…

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