Intermediate Accounting, Student Value Edition (2nd Edition)
2nd Edition
ISBN: 9780134732145
Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Publisher: PEARSON
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Textbook Question
Chapter 22, Problem 22.3MC
Big Dollars Corporation's comparative financial statements included the following amounts for the current year:
| Net income | $650,000 |
| $ 93,000 | |
| Equity in earnings of unconsolidated affiliate | $ 61,000 |
| Gain on sale of fixed assets | $ 4,000 |
| Increase in |
$ 25,000 |
| Decrease in inventory | $ (57,000) |
| Decrease in fixed assets | $ 38,000 |
| Increase m accounts payable | $ 42,000 |
| Decrease in notes payable | $ (75,000) |
On its current year statement of
- a. $677,000
- b. $714,000
- c. $752,000
- d. $790,000
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Students have asked these similar questions
Carr Corporation's comparative balance sheet and income statement for last year appear below:
Comparative Balance Sheet
Ending Balance
Beginning Balance
Cash and cash equivalents
$ 3,060
$ 25,070
Accounts receivable
88,000
77,390
Inventory
41,300
48,410
Prepaid expenses
9,810
16,500
Long-term investments
252,000
208,000
Property, plant, and equipment
566,500
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Less accumulated depreciation
339,200
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Total assets
$ 621,470
$ 546,370
Accounts payable
$ 9,180
$ 27,250
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25,680
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Income taxes payable
53,900
50,600
Bonds payable
176,000
210,000
Common stock
152,000
140,000
Retained earnings
204,710
100,670
Total liabilities and stockholders' equity
$ 621,470
$ 546,370
Income Statement
Sales
$ 926,500
Cost of goods sold
486,000
Gross margin
440,500
Selling and administrative expense
286,200
Net operating income
154,300
Income taxes
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Net income
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The company declared and paid…
Volutia Corporation's comparative financial statements included the following amounts for the current year:
Depreciation expense
$102,000
Loss on sale of fixed assets
38,000
Decrease in fixed assets
155,000
Increase in accounts receivable
37,000
Decrease in accounts payable
42,000
Decrease in inventory
71,000
Increase in taxes payable
19,000
Net income
72,000
Compute net cash provided by operating activities using the indirect method.
Group of answer choices
$223,000
$68,000
$22,000
$185,000
Here are simplified financial statements for Watervan Corporation:
INCOME STATEMENT
(Figures in $ millions)
Net sales
$ 887.00
Cost of goods sold
747.00
Depreciation
37.00
Earnings before interest and taxes (EBIT)
$ 103.00
Interest expense
18.00
Income before tax
$ 85.00
Taxes
17.85
Net income
$ 67.15
BALANCE SHEET
(Figures in $ millions)
End of Year
Start of Year
Assets
Current assets
$ 375
$ 324
Long-term assets
270
228
Total assets
$ 645
$ 552
Liabilities and shareholders’ equity
Current liabilities
$ 200
$ 163
Long-term debt
114
127
Shareholders’ equity
331
262
Total liabilities and shareholders’ equity
$ 645
$ 552
The company’s cost of capital is 8.5%.
Required:
Calculate Watervan’s economic value added (EVA).
Note: Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.
What is the company’s return on capital? (Use start-of-year rather than average capital.)
Note: Do not…
Chapter 22 Solutions
Intermediate Accounting, Student Value Edition (2nd Edition)
Ch. 22 - Prob. 22.1QCh. 22 - Prob. 22.2QCh. 22 - Prob. 22.3QCh. 22 - Prob. 22.4QCh. 22 - Prob. 22.5QCh. 22 - How do firms reclassify gains and losses on the...Ch. 22 - Prob. 22.7QCh. 22 - Prob. 22.8QCh. 22 - Prob. 22.9QCh. 22 - Prob. 22.10Q
Ch. 22 - Prob. 22.11QCh. 22 - What approach is used in preparing the operating...Ch. 22 - Under the indirect method, do firms subtract bond...Ch. 22 - Do firms subtract pension expense from net income...Ch. 22 - Prob. 22.15QCh. 22 - Prob. 22.16QCh. 22 - Prob. 22.1MCCh. 22 - Prob. 22.2MCCh. 22 - Big Dollars Corporation's comparative financial...Ch. 22 - Prob. 22.4MCCh. 22 - Prob. 22.5MCCh. 22 - Sykes Corporation's comparative balance sheets at...Ch. 22 - Prob. 22.7MCCh. 22 - Prob. 22.8MCCh. 22 - Prob. 22.1BECh. 22 - Prob. 22.2BECh. 22 - Prob. 22.3BECh. 22 - Prob. 22.4BECh. 22 - Prob. 22.5BECh. 22 - Prob. 22.6BECh. 22 - Prob. 22.7BECh. 22 - Operating Activities Section, Indirect Method,...Ch. 22 - Prob. 22.9BECh. 22 - Prob. 22.10BECh. 22 - Prob. 22.11BECh. 22 - Prob. 22.12BECh. 22 - Prob. 22.13BECh. 22 - Operating Activities Section, Indirect Method,...Ch. 22 - Prob. 22.15BECh. 22 - Prob. 22.16BECh. 22 - Prob. 22.17BECh. 22 - Prob. 22.18BECh. 22 - Prob. 22.19BECh. 22 - Prob. 22.20BECh. 22 - Prob. 22.21BECh. 22 - Prob. 22.22BECh. 22 - Complex Transactions, Acquisitions and...Ch. 22 - Prob. 22.24BECh. 22 - Prob. 22.25BECh. 22 - Complex Transactions, Change in Accounts...Ch. 22 - Prob. 22.1ECh. 22 - Prob. 22.2ECh. 22 - Prob. 22.3ECh. 22 - Prob. 22.4ECh. 22 - Prob. 22.5ECh. 22 - Prob. 22.6ECh. 22 - Statement of Cash Flows, Indirect Method,...Ch. 22 - Prob. 22.8ECh. 22 - Prob. 22.9ECh. 22 - Prob. 22.10ECh. 22 - Statement of Cash Flows, Indirect Method....Ch. 22 - Prob. 22.15ECh. 22 - Prob. 22.16ECh. 22 - Prepare Statement of Cash Flows, Direct Method....Ch. 22 - Prob. 22.2PCh. 22 - Statement of Cash Flows, Indirect Method, Complex...Ch. 22 - Statement of Cash Flows, Indirect Method, Complex...Ch. 22 - Statement of Cash Flows, Indirect Method, Complex...Ch. 22 - Statement of Cash Flows, Indirect Method, Complex...Ch. 22 - Statement of Cash Flows, Indirect Method, Complex...Ch. 22 - Statement of Cash Flows, Indirect Method, Complex...Ch. 22 - Prob. 22.11PCh. 22 - Prob. 22.12PCh. 22 - Prob. 22.13PCh. 22 - Statement of Cash Flows, Direct Method, Complex...Ch. 22 - Prob. 1JCCh. 22 - Prob. 1FSCCh. 22 - Prob. 1SSCCh. 22 - Surfing the Standards Case 2: Cash Flow per Share...Ch. 22 - Basis for Conclusions Cases Basis for Conclusions...Ch. 22 - Basis for Conclusions Case 2: Indirect versus...
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