Given Information: December 31 Debits 2017 ($) 2018 ($) Cash 35,000 32,000 Accounts receivable 33,000 30,000 Inventory 31,000 47,000 Property, plant, and equipment 100,000 95,000 Unamortized bond discount 4,500 5,000 Cost of goods sold 250,000 380,000 Selling expenses 141,500 172,000 General and administrative expenses 137,000 151,300 Interest expense 4,300 2,600 Income tax expense 20,400 61,200 756,700 976,100 Credits Allowance for doubtful accounts 1,300 1,100 Accumulated depreciation —plant assets 16,500 15,000 Accounts payable 25,000 15,500 Income taxes payable 21,000 29,100 Deferred tax liability 5,300 4,600 8% callable bonds payable 45,000 20,000 Common stock 50,000 40,000 Paid-in capital in excess of par 9,100 7,500 Retained earnings 44,700 64,600 Sales revenue 538,800 778,700 756,700 976,100 To determine the amounts L L should report in its statement of cash flows for the year ended December 31, 2017, for the following items. (a) Collection from customers. (b) Payment to suppliers. (c) Payment for interest. (d) Income tax payment. (e) Selling expenses.

Question

Want to see the full answer?

Answer 1

Question

Chapter 23, Problem 9E

To determine

Given Information:

December 31

Debits

2017 ($)

2018 ($)

Cash

35,000

32,000

Accounts receivable

33,000

30,000

Inventory

31,000

47,000

Property, plant, and equipment

100,000

95,000

Unamortized bond discount

4,500

5,000

Cost of goods sold

250,000

380,000

Selling expenses

141,500

172,000

General and administrative expenses

137,000

151,300

Interest expense

4,300

2,600

Income tax expense

20,400

61,200

756,700

976,100

Credits

Allowance for doubtful accounts

1,300

1,100

Accumulated depreciation—plant assets

16,500

15,000

Accounts payable

25,000

15,500

Income taxes payable

21,000

29,100

Deferred tax liability

5,300

4,600

8% callable bonds payable

45,000

20,000

Common stock

50,000

40,000

Paid-in capital in excess of par

9,100

7,500

Retained earnings

44,700

64,600

Sales revenue

538,800

778,700

756,700

976,100

To determine the amounts L L should report in its statement of cash flows for the year ended December 31, 2017, for the following items.

(a) Collection from customers.

(b) Payment to suppliers.

(c) Payment for interest.

(d) Income tax payment.

(e) Selling expenses.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Write down as many descriptions describing rock and roll that you can. From these descriptions can you come up with s denition of rock and roll? What performers do you recognize? What performers don’t you recognize? What can you say about musical inuence on these current rock musicians? Try to break these inuences into genres and relate them to the rock musicians. What does Mick Jagger say about country artists? What does pioneering mean? What kind of ensembles w

Recently, Abercrombie & Fitch has been implementing a turnaround strategy since its sales had been falling for the past few years (11% decrease in 2014, 8% in 2015, and just 3% in 2016.) One part of Abercrombie's new strategy has been to abandon its logo-adorned merchandise, replacing it with a subtler look. Abercrombie wrote down $20.6 million of inventory, including logo-adorned merchandise, during the year ending January 30, 2016. Some of this inventory dated back to late 2013. The write-down was net of the amount it would be able to recover selling the inventory at a discount. The write-down is significant; Abercrombie's reported net income after this write-down was $35.6 million. Interestingly, Abercrombie excluded the inventory write-down from its non-GAAP income measures presented to investors; GAAP earnings were also included in the same report. Question: What impact would the write-down of inventory have had on Abercrombie's expenses, Gross margin, and Net income?

Recently, Abercrombie & Fitch has been implementing a turnaround strategy since its sales had been falling for the past few years (11% decrease in 2014, 8% in 2015, and just 3% in 2016.) One part of Abercrombie's new strategy has been to abandon its logo-adorned merchandise, replacing it with a subtler look. Abercrombie wrote down $20.6 million of inventory, including logo-adorned merchandise, during the year ending January 30, 2016. Some of this inventory dated back to late 2013. The write-down was net of the amount it would be able to recover selling the inventory at a discount. The write-down is significant; Abercrombie's reported net income after this write-down was $35.6 million. Interestingly, Abercrombie excluded the inventory write-down from its non-GAAP income measures presented to investors; GAAP earnings were also included in the same report. Question: What impact would the write-down of inventory have had on Abercrombie's assets, Liabilities, and Equity?

Answer 2

Question

Chapter 23, Problem 9E

To determine

Given Information:

December 31

Debits

2017 ($)

2018 ($)

Cash

35,000

32,000

Accounts receivable

33,000

30,000

Inventory

31,000

47,000

Property, plant, and equipment

100,000

95,000

Unamortized bond discount

4,500

5,000

Cost of goods sold

250,000

380,000

Selling expenses

141,500

172,000

General and administrative expenses

137,000

151,300

Interest expense

4,300

2,600

Income tax expense

20,400

61,200

756,700

976,100

Credits

Allowance for doubtful accounts

1,300

1,100

Accumulated depreciation—plant assets

16,500

15,000

Accounts payable

25,000

15,500

Income taxes payable

21,000

29,100

Deferred tax liability

5,300

4,600

8% callable bonds payable

45,000

20,000

Common stock

50,000

40,000

Paid-in capital in excess of par

9,100

7,500

Retained earnings

44,700

64,600

Sales revenue

538,800

778,700

756,700

976,100

To determine the amounts L L should report in its statement of cash flows for the year ended December 31, 2017, for the following items.

(a) Collection from customers.

(b) Payment to suppliers.

(c) Payment for interest.

(d) Income tax payment.

(e) Selling expenses.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 23, Problem 9E

To determine

Given Information:

December 31

Debits

2017 ($)

2018 ($)

Cash

35,000

32,000

Accounts receivable

33,000

30,000

Inventory

31,000

47,000

Property, plant, and equipment

100,000

95,000

Unamortized bond discount

4,500

5,000

Cost of goods sold

250,000

380,000

Selling expenses

141,500

172,000

General and administrative expenses

137,000

151,300

Interest expense

4,300

2,600

Income tax expense

20,400

61,200

756,700

976,100

Credits

Allowance for doubtful accounts

1,300

1,100

Accumulated depreciation—plant assets

16,500

15,000

Accounts payable

25,000

15,500

Income taxes payable

21,000

29,100

Deferred tax liability

5,300

4,600

8% callable bonds payable

45,000

20,000

Common stock

50,000

40,000

Paid-in capital in excess of par

9,100

7,500

Retained earnings

44,700

64,600

Sales revenue

538,800

778,700

756,700

976,100

To determine the amounts L L should report in its statement of cash flows for the year ended December 31, 2017, for the following items.

(a) Collection from customers.

(b) Payment to suppliers.

(c) Payment for interest.

(d) Income tax payment.

(e) Selling expenses.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 23, Problem 9E

To determine

Given Information:

December 31

Debits

2017 ($)

2018 ($)

Cash

35,000

32,000

Accounts receivable

33,000

30,000

Inventory

31,000

47,000

Property, plant, and equipment

100,000

95,000

Unamortized bond discount

4,500

5,000

Cost of goods sold

250,000

380,000

Selling expenses

141,500

172,000

General and administrative expenses

137,000

151,300

Interest expense

4,300

2,600

Income tax expense

20,400

61,200

756,700

976,100

Credits

Allowance for doubtful accounts

1,300

1,100

Accumulated depreciation—plant assets

16,500

15,000

Accounts payable

25,000

15,500

Income taxes payable

21,000

29,100

Deferred tax liability

5,300

4,600

8% callable bonds payable

45,000

20,000

Common stock

50,000

40,000

Paid-in capital in excess of par

9,100

7,500

Retained earnings

44,700

64,600

Sales revenue

538,800

778,700

756,700

976,100

To determine the amounts L L should report in its statement of cash flows for the year ended December 31, 2017, for the following items.

(a) Collection from customers.

(b) Payment to suppliers.

(c) Payment for interest.

(d) Income tax payment.

(e) Selling expenses.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 23, Problem 9E

To determine

Given Information:

December 31

Debits

2017 ($)

2018 ($)

Cash

35,000

32,000

Accounts receivable

33,000

30,000

Inventory

31,000

47,000

Property, plant, and equipment

100,000

95,000

Unamortized bond discount

4,500

5,000

Cost of goods sold

250,000

380,000

Selling expenses

141,500

172,000

General and administrative expenses

137,000

151,300

Interest expense

4,300

2,600

Income tax expense

20,400

61,200

756,700

976,100

Credits

Allowance for doubtful accounts

1,300

1,100

Accumulated depreciation—plant assets

16,500

15,000

Accounts payable

25,000

15,500

Income taxes payable

21,000

29,100

Deferred tax liability

5,300

4,600

8% callable bonds payable

45,000

20,000

Common stock

50,000

40,000

Paid-in capital in excess of par

9,100

7,500

Retained earnings

44,700

64,600

Sales revenue

538,800

778,700

756,700

976,100

To determine the amounts L L should report in its statement of cash flows for the year ended December 31, 2017, for the following items.

(a) Collection from customers.

(b) Payment to suppliers.

(c) Payment for interest.

(d) Income tax payment.

(e) Selling expenses.

Answer 6

Chapter 23, Problem 9E

To determine

Given Information:

December 31

Debits

2017 ($)

2018 ($)

Cash

35,000

32,000

Accounts receivable

33,000

30,000

Inventory

31,000

47,000

Property, plant, and equipment

100,000

95,000

Unamortized bond discount

4,500

5,000

Cost of goods sold

250,000

380,000

Selling expenses

141,500

172,000

General and administrative expenses

137,000

151,300

Interest expense

4,300

2,600

Income tax expense

20,400

61,200

756,700

976,100

Credits

Allowance for doubtful accounts

1,300

1,100

Accumulated depreciation—plant assets

16,500

15,000

Accounts payable

25,000

15,500

Income taxes payable

21,000

29,100

Deferred tax liability

5,300

4,600

8% callable bonds payable

45,000

20,000

Common stock

50,000

40,000

Paid-in capital in excess of par

9,100

7,500

Retained earnings

44,700

64,600

Sales revenue

538,800

778,700

756,700

976,100

To determine the amounts L L should report in its statement of cash flows for the year ended December 31, 2017, for the following items.

(a) Collection from customers.

(b) Payment to suppliers.

(c) Payment for interest.

(d) Income tax payment.

(e) Selling expenses.

Answer 7

Chapter 23, Problem 9E

To determine

Given Information:

December 31

Debits

2017 ($)

2018 ($)

Cash

35,000

32,000

Accounts receivable

33,000

30,000

Inventory

31,000

47,000

Property, plant, and equipment

100,000

95,000

Unamortized bond discount

4,500

5,000

Cost of goods sold

250,000

380,000

Selling expenses

141,500

172,000

General and administrative expenses

137,000

151,300

Interest expense

4,300

2,600

Income tax expense

20,400

61,200

756,700

976,100

Credits

Allowance for doubtful accounts

1,300

1,100

Accumulated depreciation—plant assets

16,500

15,000

Accounts payable

25,000

15,500

Income taxes payable

21,000

29,100

Deferred tax liability

5,300

4,600

8% callable bonds payable

45,000

20,000

Common stock

50,000

40,000

Paid-in capital in excess of par

9,100

7,500

Retained earnings

44,700

64,600

Sales revenue

538,800

778,700

756,700

976,100

To determine the amounts L L should report in its statement of cash flows for the year ended December 31, 2017, for the following items.

(a) Collection from customers.

(b) Payment to suppliers.

(c) Payment for interest.

(d) Income tax payment.

(e) Selling expenses.

Answer 8

Expert Solution & Answer

Answer 9

Expert Solution & Answer

Answer 10

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 11

Ch. 23 - Prob. 1Q Ch. 23 - Prob. 2Q Ch. 23 - Prob. 3Q Ch. 23 - Prob. 4Q Ch. 23 - Prob. 5Q Ch. 23 - Prob. 6Q Ch. 23 - Prob. 7Q Ch. 23 - Prob. 8Q Ch. 23 - Prob. 9Q Ch. 23 - Prob. 10Q

	December 31
Debits	2017 ($)	2018 ($)
Cash	35,000	32,000
Accounts receivable	33,000	30,000
Inventory	31,000	47,000
Property, plant, and equipment	100,000	95,000
Unamortized bond discount	4,500	5,000
Cost of goods sold	250,000	380,000
Selling expenses	141,500	172,000
General and administrative expenses	137,000	151,300
Interest expense	4,300	2,600
Income tax expense	20,400	61,200
	756,700	976,100
Credits
Allowance for doubtful accounts	1,300	1,100
Accumulated depreciation—plant assets	16,500	15,000
Accounts payable	25,000	15,500
Income taxes payable	21,000	29,100
Deferred tax liability	5,300	4,600
8% callable bonds payable	45,000	20,000
Common stock	50,000	40,000
Paid-in capital in excess of par	9,100	7,500
Retained earnings	44,700	64,600
Sales revenue	538,800	778,700
	756,700	976,100

Want to see the full answer?

Chapter 23 Solutions