Concept explainers
Statement of
Orlando Incorporated At December 31 |
||
Assets | Current Year | Prior Year |
Current Assets | ||
Cash | $ 60,750 | $ 69,700 |
Available for-Sale Debt Investments | 78,300 | 110,700 |
128,250 | 74,250 | |
Merchandise Inventory | 182,250 | 128,250 |
Total Current Assets | $ 449,550 | $ 382,900 |
Noncurrent Assets | ||
Investments m Affiliate Companies | $ 357,750 | $ 135,675 |
Property, Plant, and Equipment - net | 1,842,075 | 2,066,175 |
Intangible Assets - net | 118,125 | 168,750 |
Total Noncurrent Assets | $2,317,950 | $2,370,600 |
Total Assets | $ 2,767,500 | $2,753,500 |
Liabilities | ||
Current Liabilities | ||
Current Portion of Long-Term Debt | $ 33,750 | $ 88,830 |
Accounts Payable | 252,450 | 213,475 |
Dividends Payable | 101,250 | 74,250 |
Income Taxes Payable | 88,830 | 78,975 |
Total Current Liabilities | $ 476,280 | $ 455,530 |
Noncurrent Liabilities |
Bonds Payable | $ 540,000 | $ 540,000 |
Less: Discount on Bonds | (173,475) | (195,750) |
Notes Payable | 304,425 | 303,750 |
84,375 | 97,875 | |
Net Obligations under Pension Plans | 108,000 | 81,000 |
Total Noncurrent Liabilities | $ 863,325 | $ 826,875 |
Total Liabilities | $1,339,605 | $1,282,405 |
Orlando Incorporated Balance Sheets At December 31 |
||
Current Year | Prior Year | |
Shareholders' Equity | ||
Common Stock, $1 par value | $ 182,250 | $ 182,250 |
Additional Paid-in Capital in Excess of Par - Common | 474,525 | 474,525 |
Additional Paid-in Capital - Stock Options | 22,275 | 0 |
924,750 | 706,995 | |
Accumulated Other Comprehensive Income | (175,905) | 107,325 |
Total Shareholders' Equity | $ 1,427,895 | $1,471,095 |
Total Liabilities and Shareholders' Equity | S 2,767,500 | $2,753,500 |
Orlando Incorporated Income Statement For the Current Year Ended December 31 |
|
Sales | $2,342,000 |
Cost of Goods Sold | 1,405,200 |
Gross Profit | $ 936,800 |
Selling, General, and Administrative Expenses | $ 66,500 |
Pension Expense | 200,150 |
Bad Debt Expense | 2,835 |
25,500 | |
Amortization Expense | 9,000 |
Total Operating Expenses | $ 303,985 |
Operating Income | $ 632,815 |
Loss on Disposal of Equipment | $ (35,000) |
Interest Expense | (75,110) |
Investment Income (includes loss on sale) | 5,000 |
Equity Earnings from Affiliate Companies | 330,350 |
Income from Continuing Operations before Tax | $ 858,055 |
Income Tax Expense | (343,222) |
Income from Continuing Operations | $ 514,833 |
Loss from Discontinued Operations - net of tax | (16,478) |
Net Income | $ 498,355 |
Additional Information
- Orlando sold available-for-sale investments that had been acquired for the cost of $74, 250 at a loss of $14, 250 It included this loss in investment income on the income statement
- It acquired additional shares as investments to be carried at fair value Orlando accounted for all investments except for investments carried under the equity method as available-for-sale securities It recorded a $6, 000 unrealized loss for the current year
- It reported accounts receivable net of the allowance for
bad debts - It did not acquire additional plant and equipment during the year but sold a piece of equipment that had cost $198, 600
- It did not increase its percentage ownership of its equity investee (affiliate company)
- It sold one of its franchises at book value
- It signed a $675 promissory note.
- It reported the loss from discontinued operations net of tax and as a cash transaction.
Required
Prepare the current-year cash flow statement for Orlando Incorporated under the indirect method. Present required disclosures.
Want to see the full answer?
Check out a sample textbook solutionChapter 22 Solutions
INTERMEDIATE ACCOUNTING-MYLAB W/ETEXT
Additional Business Textbook Solutions
Auditing And Assurance Services
Managerial Accounting (4th Edition)
Financial Accounting: Information for Decisions
Auditing and Assurance Services (16th Edition)
Financial Accounting
Introduction To Managerial Accounting
- Tifton Co. had the following cash transactions during the current year: Refer to the information in RE21-6. Prepare the financing activities section of Tifton Co.s statement of cash flows.arrow_forwardUse the following excerpts from Swansea Companys financial information to prepare the operating section of the statement of cash flows (direct method) for the year 2018.arrow_forwardPreparing a Statement of Cash Flows Volusia Company reported the following comparative balance sheets for 2019: Required: Prepare a statement of cash flows for Volusia using the indirect method to compute net cash flow from operating activities.arrow_forward
- Use the following excerpts from Unigen Companys financial information to prepare the operating section of the statement of cash flows (indirect method) for the year 2018.arrow_forwardWe are given the following information for Pettit Corporation. Sales (credit) Cash Inventory Current liabilities. Asset turnover Current ratio Debt-to-assets ratio Receivables turnover $4,344,000 229,000 873,000 773,000 a. Accounts receivable b. Marketable securities c. Capital assets d. Long-term debt $ $ Current assets are composed of cash, marketable securities, accounts receivable, and inventory. Calculate the following balance sheet items: ta ta ta 1.45 times 2.80 times $ $ 50 % 8 timesarrow_forwardStatement of Cash Flows (Indirect Method)Use the following information regarding the Lund Corporation to (a) prepare a statement of cash flows using the indirect method and (b) compute Lund's operating-cash-flow-to-current-liabilities ratio. Accounts payable increase $13,500 Accounts receivable increase 6,000 Accrued liabilities decrease 4,500 Amortization expense 9,000 Cash balance, January 1 33,000 Cash balance, December 31 22,500 Cash paid as dividends 43,500 Cash paid to purchase land 135,000 Cash paid to retire bonds payable at par 90,000 Cash received from issuance of common stock 52,500 Cash received from sale of equipment 25,500 Depreciation expense 43,500 Gain on sale of equipment 6,000 Inventory decrease 19,500 Net income 114,000 Prepaid expenses increase 3,000 Average current liabilities 150,000 a. Use negative signs with cash outflow answers. LUND CORPORATIONStatement of Cash FlowsFor Year Ended December 31 Cash Flow from…arrow_forward
- 14. Cash Flow Statement Required: Prepare a statement of Cash Flows For Year Ended December 31, 2021 Use Proper Format and Indirect Method The comparative balance sheets of Street Inc. at the beginning and end of the year 2021 are as follows: Cash Accounts Receivable Inventory Property, Plant and Equipment Accumulated Depreciation Marketable Securities Loan Receivable Total Assets Accounts Payable Income Taxes Payable Dividends Payable Lease Liability Common Stock Capital in Excess of Par Retained Earnings Total Liabilities and Stockholders Equity Street, Inc. Income Statement For Year Ended December 31, 2021 Sales Cost of Good Sold Gross Profit Depreciation Expense Administrative Expense Earnings Before Interest and Taxes Interest Expense Earnings Before Taxes Taxes Net Income Dec 31st $600,000 332,000 4,100,000 600,000 550,000 (325,000) (300,000) 1,250,000 1,000,000 100,000 $6,557,000 $6,070,000 $180,000 $140,000 45,000 46,000 10,000 January 1st $320,000 300,000 4,100,000 $4,000,000…arrow_forwardClassifying Items in the Statement of Cash Flows The following items are commonly reported in a statement of cash flows (indirect method presentation). For each item 1 through 20, determine (a) in which section the item is presented (operating, investing, or financing) and (b) whether the associated dollar amount is added or subtracted in the statement. (a) (b) 1. Payments of short-term debt. AnswerOperatingInvestingFinancing AnswerAddSubtract 2. Repurchases of common stock. AnswerOperatingInvestingFinancing AnswerAddSubtract 3. Purchases of property and equipment. AnswerOperatingInvestingFinancing AnswerAddSubtract 4. Sale of investments classified as long-term. AnswerOperatingInvestingFinancing AnswerAddSubtract 5. Proceeds from the issuance of common stock. AnswerOperatingInvestingFinancing AnswerAddSubtract 6. Increase in prepaid expenses and other current assets. AnswerOperatingInvestingFinancing AnswerAddSubtract 7. Acquisition for cash of a competitor.…arrow_forwardClassifying Items in the Statement of Cash Flows The following items are commonly reported in a statement of cash flows (indirect method presentation). For each item 1 through 20, determine (a) in which section the item is presented (operating, investing, or financing) and (b) whether the associated dollar amount is added or subtracted in the statement. (a) (b) 1. Payments of short-term debt. Answer Answer 2. Repurchases of common stock. Answer Answer 3. Purchases of property and equipment. Answer Answer 4. Sale of investments classified as long-term. Answer Answer 5. Proceeds from the issuance of common stock. Answer Answer 6. Increase in prepaid expenses and other current assets. Answer Answer 7. Acquisition for cash of a competitor. Answer Answer 8. Increase in current income tax payable. Answer Answer 9. Decrease in accounts payable. Answer Answer 10. Dividends paid to stockholders. Answer Answer 11.…arrow_forward
- Kindly can you assist with the attached question, info all attached. thanksarrow_forwardFrom the summary cash account of X Ltd. prepare the Cash Flow Statement for the year ended 31 March, 2020 by Direct Method. CASH BOOK Dr. for the year ended March 31,2020 Cr. Particulars SAR. Particular SAR. 50,000 By Payment to Suppliers 3,00,000 By Purchased of Fixed Assets 2,00,000 20,00,000 To Balance on April 1, 2019 To Issue of Equity Shares To Receipts from Customers To Sale of Fixed Assets 28,00,000 By Overhead Expenses 1,00,000 By Wages and Salaries 2,00,000 |1,00,000 2.50.000 By Income Tax Paid By Dividend Paid By Re payment of Bank Loan | 3,00,000 By Balance on March 31, 2020 1,50,000 50,000 32.50.000 32,50,000arrow_forwardClassification of Cash Flows: For each of the following items, indicate whether the cash flow relates to an operating activity, an investing activity, or a financing activity. Cash receipts from customers for services rendered Sale of long-term investments for cash Acquisition of PPE for cash Payment of income taxes Bonds payable issued for cash Payment of cash dividends declared in previous year Purchase of short-term investments (not cash equivalents) for casharrow_forward
- Intermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage LearningCornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage LearningManagerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College Pub
- Financial And Managerial AccountingAccountingISBN:9781337902663Author:WARREN, Carl S.Publisher:Cengage Learning,Financial Accounting: The Impact on Decision Make...AccountingISBN:9781305654174Author:Gary A. Porter, Curtis L. NortonPublisher:Cengage Learning