The income statem Sales revenues Cost of goods sold Gross profit Operating expenses Loss before interest and taxes Interest expense Net loss Presented here are comparative balance sheets: Cash Accounts receivable Inventory Prepayment Land Plant and equipment Accumulated Depreciation . . 3, 2015 December 31 2015 $ 95,000 50,000 100,000 55,000 475,000 870,000 (370,000) 1,275,000 Total assets Accounts payable Other accrued liabilities Interest Long-term loan payable Common stock Retained eamings Total liabilities and stockholder's equity Other information is as follows: Dividends of $ 35,000 were declared and paid during the year. Operating expenses include $ 70,000 of depreciation. . 125,000 35,000 15,000 $ 500,000 400.000 100,00 340,000 450,000 310,000 1,275,000 180,000 (80,000) 20,000 (100,000) 2014 $80,000 75,000 150,000 45,000 400,000 800,000 (300,000) 1,250,000 100,000 45,000 10,000 250,000 400,000 445,000 1,250,000 Land and plant and equipment were acquired for cash, and additional stock was issued for cash. Required:Prepare a statement of cash flows showing cash from operating- investing and financing activities. On the basis of your statement in part (a), explain why cash increased during such an unprofitable year. Include in your memo your recommendations for improving the bottom ling
The income statem Sales revenues Cost of goods sold Gross profit Operating expenses Loss before interest and taxes Interest expense Net loss Presented here are comparative balance sheets: Cash Accounts receivable Inventory Prepayment Land Plant and equipment Accumulated Depreciation . . 3, 2015 December 31 2015 $ 95,000 50,000 100,000 55,000 475,000 870,000 (370,000) 1,275,000 Total assets Accounts payable Other accrued liabilities Interest Long-term loan payable Common stock Retained eamings Total liabilities and stockholder's equity Other information is as follows: Dividends of $ 35,000 were declared and paid during the year. Operating expenses include $ 70,000 of depreciation. . 125,000 35,000 15,000 $ 500,000 400.000 100,00 340,000 450,000 310,000 1,275,000 180,000 (80,000) 20,000 (100,000) 2014 $80,000 75,000 150,000 45,000 400,000 800,000 (300,000) 1,250,000 100,000 45,000 10,000 250,000 400,000 445,000 1,250,000 Land and plant and equipment were acquired for cash, and additional stock was issued for cash. Required:Prepare a statement of cash flows showing cash from operating- investing and financing activities. On the basis of your statement in part (a), explain why cash increased during such an unprofitable year. Include in your memo your recommendations for improving the bottom ling
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
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2016 Q.No. 1
The income statement for Anupam Company for 2015 is as follows:
Sales revenues
Cost of goods sold
Gross profit
Operating expenses
Loss before interest and taxes
Interest expense
Net loss
Presented here are comparative balance sheets:
Cash
Accounts receivable
Inventory
Prepayment
Land
Plant and equipment
Accumulated Depreciation
For the year ended December
3, 2015
December 31
2015
$95,000
50,000
100,000
55,000
475,000
870,000
(370,000)
1,275,000
$500,000
125,000
35,000
15,000
340,000
450,000
310,000
1,275,000
400,000
100,00
180,000
year.
(80,000)
20,000
(100,000)
2014
$80,000
75,000
150,000
45,000
400,000
800,000
(300,000)
1,250,000
Total assets
Accounts payable
Other accrued liabilities
Interest
Long-term loan payable
Common stock
Retained eamings
Total liabilities and stockholder's equity
Other information is as follows:
Dividends of $ 35,000 were declared and paid during the
• Operating expenses include $70,000 of depreciation.
• Land and plant and equipment were acquired for cash, and additional
stock was issued for cash.
100,000
45,000
10,000
250,000
400,000
445,000
1,250,000
Required: 0 Prepare a statement of cash flows showing cash from operating,
investing and financing activities.
On the basis of your statement in part (a), explain why cash
increased during such an unprofitable year. Include in your
memo your recommendations for improving the company's
bottom line.
Ans: 0 CFOA = $55,000; CFIA = ($145,000); CFFA = $105,000
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