Explain whether Corporation S uses a multiple-step or a single-step format on its income statement.

Question

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Answer 1

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 5, Problem 10C

1)

To determine

Explain whether Corporation S uses a multiple-step or a single-step format on its income statement.

1)

Expert Solution

Explanation of Solution

Multi-step income statement: The income statement represented in multi-steps with several subtotals, to report the income from principal operations, and separate the other expenses and revenues which affect net income, is referred to as multi-step income statement.

Corporation S uses a multiple-step income statement because there are deduction of cost of sales and various operating expenses from the total net revenues to determine the operating income. After the determination of operating income, it adds and deducts interest income and interest expense respectively to calculate the earnings before income taxes, and then subtracts income taxes to compute net earnings including non-controlling interests.

2)

To determine

Ascertain the net earnings attributable to Corporation S and also state the basic earnings per common share for 2013.

2)

Expert Solution

Explanation of Solution

Net earnings: The bottom line of income statement which is the result of excess of earnings from operations (revenues) over the costs incurred for earning revenues (expenses) is referred to as net earnings.

The net earnings attributable to Corporation S for 2013 are $8.3 million.

Basic earnings per common share: Basic earnings per common share represent the amount of income earned per share of outstanding common stock in a period. This ratio is used for analyzing the profitability of company’s stockholders.

The basic earnings per common share attributable to Corporation S for 2013 are $0.01.

3)

To determine

Determine the amount of operating income for the year 2013 and 2012.

3)

Expert Solution

Explanation of Solution

Operating income: Income statement reports revenues and expenses from business operations, and the result of those operations, before taxes, other revenues and expenses, is referred to as income from operations.

The amount of operating loss for the year 2013 is ($325.4) million and the operating income for the year 2012 is $1,997.4 million.

4)

To determine

Determine the amount of interest expense incurred in the year 2013 and 2012.

4)

Expert Solution

Explanation of Solution

The amount of interest expense incurred during the year 2013 is $28.1 million.

The amount of interest expense incurred during the year 2012 is $32.7 million.

5)

To determine

Determine the amount of the income taxes related to income before income taxes for 2013.

5)

Expert Solution

Explanation of Solution

The income taxes related to income before income taxes of Corporation S for 2013 is ($238.7) million.

6)

To determine

Determine the amount of general and administrative expense for 2013.

6)

Expert Solution

Explanation of Solution

Selling, general, and administrative expenses: The cost expended for selling the merchandise, and general administrative purposes during a certain period are referred to as selling, general, and administrative expenses. Some examples are salaries of sales personnel, salaries of office personnel, store supplies, office supplies, rent, delivery, and advertising expenses.

The general and administrative expense of Corporation S for 2013 is $937.9 million.

7)

To determine

Determine the amount of depreciation and amortization that are reported on the income statement for 2013. Determine the amount of depreciation and amortization expense added back to net income on the statement of cash flows. Identify the item on the income statement that caused major differences.

7)

Expert Solution

Explanation of Solution

Depreciation: Depreciation refers to the reduction in the monetary value of a fixed asset due to its wear and tear or obsolescence. It is a method of distributing the cost of the fixed assets over its estimated useful life.

Depreciation and amortization expense reported on the income statement of Corporation S for the year 2013 is $621.4 million.
Depreciation and amortization expense of 655.6 million is added back to net income on the statement of cash flows.
The major difference on the income statement is the depreciation expense allocated to cost of sales that includes depreciation on roasting and other production equipment for the production of roast coffee beans.

8)

To determine

Determine the amount of dividends on common stock that was paid and declared in 2013. Identify the difference on balance sheet if the amounts are different.

8)

Expert Solution

Explanation of Solution

Dividends: This is the amount of cash distributed to stockholders by a company out its earnings, according to their proportion of shares invested in the company.

The amount of Dividends paid reported on the statement of cash flows in 2013 is $628.9 million. However, according to the statement of shareholders’ equity, the dividends declared were $668.6 million. The difference of $39.7 million represents dividends declared but not yet paid by year-end. This amount is reported as increase in the dividend payable liability on the balance sheet that is reported under Note 7: “Other accrued liabilities”.

9)

To determine

Identify whether the revenues of Corporation S are seasonal. If so, determine the two quarters in which Corporation S generate most revenues during the year 2012 and 2013.

9)

Expert Solution

Explanation of Solution

Revenues: Revenues are earnings from operations of a business. The operating activities are sale of goods and services, and rent revenue.

The revenues of Corporation S are seasonal because the net revenues of Corporation S were highest in the first and second quarters. Corporation S generated revenues in the first and fourth quarter of 2013 which was $3,799.6 million.

10)

To determine

Identify whether Corporation S used direct or indirect method to compute the net cash flow from operating activities in 2013 and state the amount.

10)

Expert Solution

Explanation of Solution

Statement of cash flows: Statement of cash flows reports all the cash transactions which are responsible for inflow and outflow of cash and result of these transactions is reported as ending balance of cash at the end of reported period. Statement of cash flows includes the changes in cash balance due to operating, investing, and financing activities.

Cash flow from operating activities: This section of cash flow statement provides information about the cash received or cash paid in day-to-day operating activities of a company.

Indirect method: Under indirect method, net income is reported first, and then non-cash expenses, losses from fixed assets, and changes in opening balances and ending balances of current assets are adjusted to reconcile the net income balance.

Corporation S reports net cash provided by operating activities by using the indirect method. The net cash flow from operating activities of Corporation S for 2013 is $2,908.3 million.

11)

To determine

Determine the amount of net cash used in investing activities for 2013.

11)

Expert Solution

Explanation of Solution

Statement of cash flows: Statement of cash flows reports all the cash transactions which are responsible for inflow and outflow of cash and result of these transactions is reported as ending balance of cash at the end of reported period. Statement of cash flows includes the changes in cash balance due to operating, investing, and financing activities.

Cash flow from investing activities: This section of cash flows statement provides information concerning about the purchase and sale of capital assets by the company.

The net cash flow used in investing activities of Corporation S for 2013 is $(1,411.2) million.

12)

To determine

Determine the amount of cash used to pay for long-term debt in 2013.

12)

Expert Solution

Explanation of Solution

Statement of cash flows: Statement of cash flows reports all the cash transactions which are responsible for inflow and outflow of cash and result of these transactions is reported as ending balance of cash at the end of reported period. Statement of cash flows includes the changes in cash balance due to operating, investing, and financing activities.

Cash flow from financing activities: This section of cash flows statement provides information about the cash inflow and outflow as a result of issuance and financing of debt, issue of new stock and payment of dividends.

The net cash used to pay for long-term debt of Corporation S for 2013 is ($35.2) million.

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Answer 2

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 5, Problem 10C

1)

To determine

Explain whether Corporation S uses a multiple-step or a single-step format on its income statement.

1)

Expert Solution

Explanation of Solution

Multi-step income statement: The income statement represented in multi-steps with several subtotals, to report the income from principal operations, and separate the other expenses and revenues which affect net income, is referred to as multi-step income statement.

Corporation S uses a multiple-step income statement because there are deduction of cost of sales and various operating expenses from the total net revenues to determine the operating income. After the determination of operating income, it adds and deducts interest income and interest expense respectively to calculate the earnings before income taxes, and then subtracts income taxes to compute net earnings including non-controlling interests.

2)

To determine

Ascertain the net earnings attributable to Corporation S and also state the basic earnings per common share for 2013.

2)

Expert Solution

Explanation of Solution

Net earnings: The bottom line of income statement which is the result of excess of earnings from operations (revenues) over the costs incurred for earning revenues (expenses) is referred to as net earnings.

The net earnings attributable to Corporation S for 2013 are $8.3 million.

Basic earnings per common share: Basic earnings per common share represent the amount of income earned per share of outstanding common stock in a period. This ratio is used for analyzing the profitability of company’s stockholders.

The basic earnings per common share attributable to Corporation S for 2013 are $0.01.

3)

To determine

Determine the amount of operating income for the year 2013 and 2012.

3)

Expert Solution

Explanation of Solution

Operating income: Income statement reports revenues and expenses from business operations, and the result of those operations, before taxes, other revenues and expenses, is referred to as income from operations.

The amount of operating loss for the year 2013 is ($325.4) million and the operating income for the year 2012 is $1,997.4 million.

4)

To determine

Determine the amount of interest expense incurred in the year 2013 and 2012.

4)

Expert Solution

Explanation of Solution

The amount of interest expense incurred during the year 2013 is $28.1 million.

The amount of interest expense incurred during the year 2012 is $32.7 million.

5)

To determine

Determine the amount of the income taxes related to income before income taxes for 2013.

5)

Expert Solution

Explanation of Solution

The income taxes related to income before income taxes of Corporation S for 2013 is ($238.7) million.

6)

To determine

Determine the amount of general and administrative expense for 2013.

6)

Expert Solution

Explanation of Solution

Selling, general, and administrative expenses: The cost expended for selling the merchandise, and general administrative purposes during a certain period are referred to as selling, general, and administrative expenses. Some examples are salaries of sales personnel, salaries of office personnel, store supplies, office supplies, rent, delivery, and advertising expenses.

The general and administrative expense of Corporation S for 2013 is $937.9 million.

7)

To determine

Determine the amount of depreciation and amortization that are reported on the income statement for 2013. Determine the amount of depreciation and amortization expense added back to net income on the statement of cash flows. Identify the item on the income statement that caused major differences.

7)

Expert Solution

Explanation of Solution

Depreciation: Depreciation refers to the reduction in the monetary value of a fixed asset due to its wear and tear or obsolescence. It is a method of distributing the cost of the fixed assets over its estimated useful life.

Depreciation and amortization expense reported on the income statement of Corporation S for the year 2013 is $621.4 million.
Depreciation and amortization expense of 655.6 million is added back to net income on the statement of cash flows.
The major difference on the income statement is the depreciation expense allocated to cost of sales that includes depreciation on roasting and other production equipment for the production of roast coffee beans.

8)

To determine

Determine the amount of dividends on common stock that was paid and declared in 2013. Identify the difference on balance sheet if the amounts are different.

8)

Expert Solution

Explanation of Solution

Dividends: This is the amount of cash distributed to stockholders by a company out its earnings, according to their proportion of shares invested in the company.

The amount of Dividends paid reported on the statement of cash flows in 2013 is $628.9 million. However, according to the statement of shareholders’ equity, the dividends declared were $668.6 million. The difference of $39.7 million represents dividends declared but not yet paid by year-end. This amount is reported as increase in the dividend payable liability on the balance sheet that is reported under Note 7: “Other accrued liabilities”.

9)

To determine

Identify whether the revenues of Corporation S are seasonal. If so, determine the two quarters in which Corporation S generate most revenues during the year 2012 and 2013.

9)

Expert Solution

Explanation of Solution

Revenues: Revenues are earnings from operations of a business. The operating activities are sale of goods and services, and rent revenue.

The revenues of Corporation S are seasonal because the net revenues of Corporation S were highest in the first and second quarters. Corporation S generated revenues in the first and fourth quarter of 2013 which was $3,799.6 million.

10)

To determine

Identify whether Corporation S used direct or indirect method to compute the net cash flow from operating activities in 2013 and state the amount.

10)

Expert Solution

Explanation of Solution

Statement of cash flows: Statement of cash flows reports all the cash transactions which are responsible for inflow and outflow of cash and result of these transactions is reported as ending balance of cash at the end of reported period. Statement of cash flows includes the changes in cash balance due to operating, investing, and financing activities.

Cash flow from operating activities: This section of cash flow statement provides information about the cash received or cash paid in day-to-day operating activities of a company.

Indirect method: Under indirect method, net income is reported first, and then non-cash expenses, losses from fixed assets, and changes in opening balances and ending balances of current assets are adjusted to reconcile the net income balance.

Corporation S reports net cash provided by operating activities by using the indirect method. The net cash flow from operating activities of Corporation S for 2013 is $2,908.3 million.

11)

To determine

Determine the amount of net cash used in investing activities for 2013.

11)

Expert Solution

Explanation of Solution

Statement of cash flows: Statement of cash flows reports all the cash transactions which are responsible for inflow and outflow of cash and result of these transactions is reported as ending balance of cash at the end of reported period. Statement of cash flows includes the changes in cash balance due to operating, investing, and financing activities.

Cash flow from investing activities: This section of cash flows statement provides information concerning about the purchase and sale of capital assets by the company.

The net cash flow used in investing activities of Corporation S for 2013 is $(1,411.2) million.

12)

To determine

Determine the amount of cash used to pay for long-term debt in 2013.

12)

Expert Solution

Explanation of Solution

Statement of cash flows: Statement of cash flows reports all the cash transactions which are responsible for inflow and outflow of cash and result of these transactions is reported as ending balance of cash at the end of reported period. Statement of cash flows includes the changes in cash balance due to operating, investing, and financing activities.

Cash flow from financing activities: This section of cash flows statement provides information about the cash inflow and outflow as a result of issuance and financing of debt, issue of new stock and payment of dividends.

The net cash used to pay for long-term debt of Corporation S for 2013 is ($35.2) million.

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Answer 3

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 5, Problem 10C

1)

To determine

Explain whether Corporation S uses a multiple-step or a single-step format on its income statement.

1)

Expert Solution

Explanation of Solution

Multi-step income statement: The income statement represented in multi-steps with several subtotals, to report the income from principal operations, and separate the other expenses and revenues which affect net income, is referred to as multi-step income statement.

Corporation S uses a multiple-step income statement because there are deduction of cost of sales and various operating expenses from the total net revenues to determine the operating income. After the determination of operating income, it adds and deducts interest income and interest expense respectively to calculate the earnings before income taxes, and then subtracts income taxes to compute net earnings including non-controlling interests.

2)

To determine

Ascertain the net earnings attributable to Corporation S and also state the basic earnings per common share for 2013.

2)

Expert Solution

Explanation of Solution

Net earnings: The bottom line of income statement which is the result of excess of earnings from operations (revenues) over the costs incurred for earning revenues (expenses) is referred to as net earnings.

The net earnings attributable to Corporation S for 2013 are $8.3 million.

Basic earnings per common share: Basic earnings per common share represent the amount of income earned per share of outstanding common stock in a period. This ratio is used for analyzing the profitability of company’s stockholders.

The basic earnings per common share attributable to Corporation S for 2013 are $0.01.

3)

To determine

Determine the amount of operating income for the year 2013 and 2012.

3)

Expert Solution

Explanation of Solution

Operating income: Income statement reports revenues and expenses from business operations, and the result of those operations, before taxes, other revenues and expenses, is referred to as income from operations.

The amount of operating loss for the year 2013 is ($325.4) million and the operating income for the year 2012 is $1,997.4 million.

4)

To determine

Determine the amount of interest expense incurred in the year 2013 and 2012.

4)

Expert Solution

Explanation of Solution

The amount of interest expense incurred during the year 2013 is $28.1 million.

The amount of interest expense incurred during the year 2012 is $32.7 million.

5)

To determine

Determine the amount of the income taxes related to income before income taxes for 2013.

5)

Expert Solution

Explanation of Solution

The income taxes related to income before income taxes of Corporation S for 2013 is ($238.7) million.

6)

To determine

Determine the amount of general and administrative expense for 2013.

6)

Expert Solution

Explanation of Solution

Selling, general, and administrative expenses: The cost expended for selling the merchandise, and general administrative purposes during a certain period are referred to as selling, general, and administrative expenses. Some examples are salaries of sales personnel, salaries of office personnel, store supplies, office supplies, rent, delivery, and advertising expenses.

The general and administrative expense of Corporation S for 2013 is $937.9 million.

7)

To determine

Determine the amount of depreciation and amortization that are reported on the income statement for 2013. Determine the amount of depreciation and amortization expense added back to net income on the statement of cash flows. Identify the item on the income statement that caused major differences.

7)

Expert Solution

Explanation of Solution

Depreciation: Depreciation refers to the reduction in the monetary value of a fixed asset due to its wear and tear or obsolescence. It is a method of distributing the cost of the fixed assets over its estimated useful life.

Depreciation and amortization expense reported on the income statement of Corporation S for the year 2013 is $621.4 million.
Depreciation and amortization expense of 655.6 million is added back to net income on the statement of cash flows.
The major difference on the income statement is the depreciation expense allocated to cost of sales that includes depreciation on roasting and other production equipment for the production of roast coffee beans.

8)

To determine

Determine the amount of dividends on common stock that was paid and declared in 2013. Identify the difference on balance sheet if the amounts are different.

8)

Expert Solution

Explanation of Solution

Dividends: This is the amount of cash distributed to stockholders by a company out its earnings, according to their proportion of shares invested in the company.

The amount of Dividends paid reported on the statement of cash flows in 2013 is $628.9 million. However, according to the statement of shareholders’ equity, the dividends declared were $668.6 million. The difference of $39.7 million represents dividends declared but not yet paid by year-end. This amount is reported as increase in the dividend payable liability on the balance sheet that is reported under Note 7: “Other accrued liabilities”.

9)

To determine

Identify whether the revenues of Corporation S are seasonal. If so, determine the two quarters in which Corporation S generate most revenues during the year 2012 and 2013.

9)

Expert Solution

Explanation of Solution

Revenues: Revenues are earnings from operations of a business. The operating activities are sale of goods and services, and rent revenue.

The revenues of Corporation S are seasonal because the net revenues of Corporation S were highest in the first and second quarters. Corporation S generated revenues in the first and fourth quarter of 2013 which was $3,799.6 million.

10)

To determine

Identify whether Corporation S used direct or indirect method to compute the net cash flow from operating activities in 2013 and state the amount.

10)

Expert Solution

Explanation of Solution

Statement of cash flows: Statement of cash flows reports all the cash transactions which are responsible for inflow and outflow of cash and result of these transactions is reported as ending balance of cash at the end of reported period. Statement of cash flows includes the changes in cash balance due to operating, investing, and financing activities.

Cash flow from operating activities: This section of cash flow statement provides information about the cash received or cash paid in day-to-day operating activities of a company.

Indirect method: Under indirect method, net income is reported first, and then non-cash expenses, losses from fixed assets, and changes in opening balances and ending balances of current assets are adjusted to reconcile the net income balance.

Corporation S reports net cash provided by operating activities by using the indirect method. The net cash flow from operating activities of Corporation S for 2013 is $2,908.3 million.

11)

To determine

Determine the amount of net cash used in investing activities for 2013.

11)

Expert Solution

Explanation of Solution

Statement of cash flows: Statement of cash flows reports all the cash transactions which are responsible for inflow and outflow of cash and result of these transactions is reported as ending balance of cash at the end of reported period. Statement of cash flows includes the changes in cash balance due to operating, investing, and financing activities.

Cash flow from investing activities: This section of cash flows statement provides information concerning about the purchase and sale of capital assets by the company.

The net cash flow used in investing activities of Corporation S for 2013 is $(1,411.2) million.

12)

To determine

Determine the amount of cash used to pay for long-term debt in 2013.

12)

Expert Solution

Explanation of Solution

Statement of cash flows: Statement of cash flows reports all the cash transactions which are responsible for inflow and outflow of cash and result of these transactions is reported as ending balance of cash at the end of reported period. Statement of cash flows includes the changes in cash balance due to operating, investing, and financing activities.

Cash flow from financing activities: This section of cash flows statement provides information about the cash inflow and outflow as a result of issuance and financing of debt, issue of new stock and payment of dividends.

The net cash used to pay for long-term debt of Corporation S for 2013 is ($35.2) million.

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Answer 4

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 5, Problem 10C

1)

To determine

Explain whether Corporation S uses a multiple-step or a single-step format on its income statement.

1)

Expert Solution

Explanation of Solution

Multi-step income statement: The income statement represented in multi-steps with several subtotals, to report the income from principal operations, and separate the other expenses and revenues which affect net income, is referred to as multi-step income statement.

Corporation S uses a multiple-step income statement because there are deduction of cost of sales and various operating expenses from the total net revenues to determine the operating income. After the determination of operating income, it adds and deducts interest income and interest expense respectively to calculate the earnings before income taxes, and then subtracts income taxes to compute net earnings including non-controlling interests.

2)

To determine

Ascertain the net earnings attributable to Corporation S and also state the basic earnings per common share for 2013.

2)

Expert Solution

Explanation of Solution

Net earnings: The bottom line of income statement which is the result of excess of earnings from operations (revenues) over the costs incurred for earning revenues (expenses) is referred to as net earnings.

The net earnings attributable to Corporation S for 2013 are $8.3 million.

Basic earnings per common share: Basic earnings per common share represent the amount of income earned per share of outstanding common stock in a period. This ratio is used for analyzing the profitability of company’s stockholders.

The basic earnings per common share attributable to Corporation S for 2013 are $0.01.

3)

To determine

Determine the amount of operating income for the year 2013 and 2012.

3)

Expert Solution

Explanation of Solution

Operating income: Income statement reports revenues and expenses from business operations, and the result of those operations, before taxes, other revenues and expenses, is referred to as income from operations.

The amount of operating loss for the year 2013 is ($325.4) million and the operating income for the year 2012 is $1,997.4 million.

4)

To determine

Determine the amount of interest expense incurred in the year 2013 and 2012.

4)

Expert Solution

Explanation of Solution

The amount of interest expense incurred during the year 2013 is $28.1 million.

The amount of interest expense incurred during the year 2012 is $32.7 million.

5)

To determine

Determine the amount of the income taxes related to income before income taxes for 2013.

5)

Expert Solution

Explanation of Solution

The income taxes related to income before income taxes of Corporation S for 2013 is ($238.7) million.

6)

To determine

Determine the amount of general and administrative expense for 2013.

6)

Expert Solution

Explanation of Solution

Selling, general, and administrative expenses: The cost expended for selling the merchandise, and general administrative purposes during a certain period are referred to as selling, general, and administrative expenses. Some examples are salaries of sales personnel, salaries of office personnel, store supplies, office supplies, rent, delivery, and advertising expenses.

The general and administrative expense of Corporation S for 2013 is $937.9 million.

7)

To determine

Determine the amount of depreciation and amortization that are reported on the income statement for 2013. Determine the amount of depreciation and amortization expense added back to net income on the statement of cash flows. Identify the item on the income statement that caused major differences.

7)

Expert Solution

Explanation of Solution

Depreciation: Depreciation refers to the reduction in the monetary value of a fixed asset due to its wear and tear or obsolescence. It is a method of distributing the cost of the fixed assets over its estimated useful life.

Depreciation and amortization expense reported on the income statement of Corporation S for the year 2013 is $621.4 million.
Depreciation and amortization expense of 655.6 million is added back to net income on the statement of cash flows.
The major difference on the income statement is the depreciation expense allocated to cost of sales that includes depreciation on roasting and other production equipment for the production of roast coffee beans.

8)

To determine

Determine the amount of dividends on common stock that was paid and declared in 2013. Identify the difference on balance sheet if the amounts are different.

8)

Expert Solution

Explanation of Solution

Dividends: This is the amount of cash distributed to stockholders by a company out its earnings, according to their proportion of shares invested in the company.

The amount of Dividends paid reported on the statement of cash flows in 2013 is $628.9 million. However, according to the statement of shareholders’ equity, the dividends declared were $668.6 million. The difference of $39.7 million represents dividends declared but not yet paid by year-end. This amount is reported as increase in the dividend payable liability on the balance sheet that is reported under Note 7: “Other accrued liabilities”.

9)

To determine

Identify whether the revenues of Corporation S are seasonal. If so, determine the two quarters in which Corporation S generate most revenues during the year 2012 and 2013.

9)

Expert Solution

Explanation of Solution

Revenues: Revenues are earnings from operations of a business. The operating activities are sale of goods and services, and rent revenue.

The revenues of Corporation S are seasonal because the net revenues of Corporation S were highest in the first and second quarters. Corporation S generated revenues in the first and fourth quarter of 2013 which was $3,799.6 million.

10)

To determine

Identify whether Corporation S used direct or indirect method to compute the net cash flow from operating activities in 2013 and state the amount.

10)

Expert Solution

Explanation of Solution

Statement of cash flows: Statement of cash flows reports all the cash transactions which are responsible for inflow and outflow of cash and result of these transactions is reported as ending balance of cash at the end of reported period. Statement of cash flows includes the changes in cash balance due to operating, investing, and financing activities.

Cash flow from operating activities: This section of cash flow statement provides information about the cash received or cash paid in day-to-day operating activities of a company.

Indirect method: Under indirect method, net income is reported first, and then non-cash expenses, losses from fixed assets, and changes in opening balances and ending balances of current assets are adjusted to reconcile the net income balance.

Corporation S reports net cash provided by operating activities by using the indirect method. The net cash flow from operating activities of Corporation S for 2013 is $2,908.3 million.

11)

To determine

Determine the amount of net cash used in investing activities for 2013.

11)

Expert Solution

Explanation of Solution

Statement of cash flows: Statement of cash flows reports all the cash transactions which are responsible for inflow and outflow of cash and result of these transactions is reported as ending balance of cash at the end of reported period. Statement of cash flows includes the changes in cash balance due to operating, investing, and financing activities.

Cash flow from investing activities: This section of cash flows statement provides information concerning about the purchase and sale of capital assets by the company.

The net cash flow used in investing activities of Corporation S for 2013 is $(1,411.2) million.

12)

To determine

Determine the amount of cash used to pay for long-term debt in 2013.

12)

Expert Solution

Explanation of Solution

Statement of cash flows: Statement of cash flows reports all the cash transactions which are responsible for inflow and outflow of cash and result of these transactions is reported as ending balance of cash at the end of reported period. Statement of cash flows includes the changes in cash balance due to operating, investing, and financing activities.

Cash flow from financing activities: This section of cash flows statement provides information about the cash inflow and outflow as a result of issuance and financing of debt, issue of new stock and payment of dividends.

The net cash used to pay for long-term debt of Corporation S for 2013 is ($35.2) million.

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Answer 5

Chapter 5, Problem 10C

1)

To determine

Explain whether Corporation S uses a multiple-step or a single-step format on its income statement.

1)

Expert Solution

Explanation of Solution

Multi-step income statement: The income statement represented in multi-steps with several subtotals, to report the income from principal operations, and separate the other expenses and revenues which affect net income, is referred to as multi-step income statement.

Corporation S uses a multiple-step income statement because there are deduction of cost of sales and various operating expenses from the total net revenues to determine the operating income. After the determination of operating income, it adds and deducts interest income and interest expense respectively to calculate the earnings before income taxes, and then subtracts income taxes to compute net earnings including non-controlling interests.

2)

To determine

Ascertain the net earnings attributable to Corporation S and also state the basic earnings per common share for 2013.

2)

Expert Solution

Explanation of Solution

Net earnings: The bottom line of income statement which is the result of excess of earnings from operations (revenues) over the costs incurred for earning revenues (expenses) is referred to as net earnings.

The net earnings attributable to Corporation S for 2013 are $8.3 million.

Basic earnings per common share: Basic earnings per common share represent the amount of income earned per share of outstanding common stock in a period. This ratio is used for analyzing the profitability of company’s stockholders.

The basic earnings per common share attributable to Corporation S for 2013 are $0.01.

3)

To determine

Determine the amount of operating income for the year 2013 and 2012.

3)

Expert Solution

Explanation of Solution

Operating income: Income statement reports revenues and expenses from business operations, and the result of those operations, before taxes, other revenues and expenses, is referred to as income from operations.

The amount of operating loss for the year 2013 is ($325.4) million and the operating income for the year 2012 is $1,997.4 million.

4)

To determine

Determine the amount of interest expense incurred in the year 2013 and 2012.

4)

Expert Solution

Explanation of Solution

The amount of interest expense incurred during the year 2013 is $28.1 million.

The amount of interest expense incurred during the year 2012 is $32.7 million.

5)

To determine

Determine the amount of the income taxes related to income before income taxes for 2013.

5)

Expert Solution

Explanation of Solution

The income taxes related to income before income taxes of Corporation S for 2013 is ($238.7) million.

6)

To determine

Determine the amount of general and administrative expense for 2013.

6)

Expert Solution

Explanation of Solution

Selling, general, and administrative expenses: The cost expended for selling the merchandise, and general administrative purposes during a certain period are referred to as selling, general, and administrative expenses. Some examples are salaries of sales personnel, salaries of office personnel, store supplies, office supplies, rent, delivery, and advertising expenses.

The general and administrative expense of Corporation S for 2013 is $937.9 million.

7)

To determine

Determine the amount of depreciation and amortization that are reported on the income statement for 2013. Determine the amount of depreciation and amortization expense added back to net income on the statement of cash flows. Identify the item on the income statement that caused major differences.

7)

Expert Solution

Explanation of Solution

Depreciation: Depreciation refers to the reduction in the monetary value of a fixed asset due to its wear and tear or obsolescence. It is a method of distributing the cost of the fixed assets over its estimated useful life.

Depreciation and amortization expense reported on the income statement of Corporation S for the year 2013 is $621.4 million.
Depreciation and amortization expense of 655.6 million is added back to net income on the statement of cash flows.
The major difference on the income statement is the depreciation expense allocated to cost of sales that includes depreciation on roasting and other production equipment for the production of roast coffee beans.

8)

To determine

Determine the amount of dividends on common stock that was paid and declared in 2013. Identify the difference on balance sheet if the amounts are different.

8)

Expert Solution

Explanation of Solution

Dividends: This is the amount of cash distributed to stockholders by a company out its earnings, according to their proportion of shares invested in the company.

The amount of Dividends paid reported on the statement of cash flows in 2013 is $628.9 million. However, according to the statement of shareholders’ equity, the dividends declared were $668.6 million. The difference of $39.7 million represents dividends declared but not yet paid by year-end. This amount is reported as increase in the dividend payable liability on the balance sheet that is reported under Note 7: “Other accrued liabilities”.

9)

To determine

Identify whether the revenues of Corporation S are seasonal. If so, determine the two quarters in which Corporation S generate most revenues during the year 2012 and 2013.

9)

Expert Solution

Explanation of Solution

Revenues: Revenues are earnings from operations of a business. The operating activities are sale of goods and services, and rent revenue.

The revenues of Corporation S are seasonal because the net revenues of Corporation S were highest in the first and second quarters. Corporation S generated revenues in the first and fourth quarter of 2013 which was $3,799.6 million.

10)

To determine

Identify whether Corporation S used direct or indirect method to compute the net cash flow from operating activities in 2013 and state the amount.

10)

Expert Solution

Explanation of Solution

Statement of cash flows: Statement of cash flows reports all the cash transactions which are responsible for inflow and outflow of cash and result of these transactions is reported as ending balance of cash at the end of reported period. Statement of cash flows includes the changes in cash balance due to operating, investing, and financing activities.

Cash flow from operating activities: This section of cash flow statement provides information about the cash received or cash paid in day-to-day operating activities of a company.

Indirect method: Under indirect method, net income is reported first, and then non-cash expenses, losses from fixed assets, and changes in opening balances and ending balances of current assets are adjusted to reconcile the net income balance.

Corporation S reports net cash provided by operating activities by using the indirect method. The net cash flow from operating activities of Corporation S for 2013 is $2,908.3 million.

11)

To determine

Determine the amount of net cash used in investing activities for 2013.

11)

Expert Solution

Explanation of Solution

Statement of cash flows: Statement of cash flows reports all the cash transactions which are responsible for inflow and outflow of cash and result of these transactions is reported as ending balance of cash at the end of reported period. Statement of cash flows includes the changes in cash balance due to operating, investing, and financing activities.

Cash flow from investing activities: This section of cash flows statement provides information concerning about the purchase and sale of capital assets by the company.

The net cash flow used in investing activities of Corporation S for 2013 is $(1,411.2) million.

12)

To determine

Determine the amount of cash used to pay for long-term debt in 2013.

12)

Expert Solution

Explanation of Solution

Statement of cash flows: Statement of cash flows reports all the cash transactions which are responsible for inflow and outflow of cash and result of these transactions is reported as ending balance of cash at the end of reported period. Statement of cash flows includes the changes in cash balance due to operating, investing, and financing activities.

Cash flow from financing activities: This section of cash flows statement provides information about the cash inflow and outflow as a result of issuance and financing of debt, issue of new stock and payment of dividends.

The net cash used to pay for long-term debt of Corporation S for 2013 is ($35.2) million.

Answer 6

Chapter 5, Problem 10C

1)

To determine

Explain whether Corporation S uses a multiple-step or a single-step format on its income statement.

1)

Expert Solution

Explanation of Solution

Multi-step income statement: The income statement represented in multi-steps with several subtotals, to report the income from principal operations, and separate the other expenses and revenues which affect net income, is referred to as multi-step income statement.

Corporation S uses a multiple-step income statement because there are deduction of cost of sales and various operating expenses from the total net revenues to determine the operating income. After the determination of operating income, it adds and deducts interest income and interest expense respectively to calculate the earnings before income taxes, and then subtracts income taxes to compute net earnings including non-controlling interests.

Answer 7

Chapter 5, Problem 10C

1)

To determine

Explain whether Corporation S uses a multiple-step or a single-step format on its income statement.

Answer 8

1)

Expert Solution

Explanation of Solution

Multi-step income statement: The income statement represented in multi-steps with several subtotals, to report the income from principal operations, and separate the other expenses and revenues which affect net income, is referred to as multi-step income statement.

Corporation S uses a multiple-step income statement because there are deduction of cost of sales and various operating expenses from the total net revenues to determine the operating income. After the determination of operating income, it adds and deducts interest income and interest expense respectively to calculate the earnings before income taxes, and then subtracts income taxes to compute net earnings including non-controlling interests.

Answer 9

1)

Expert Solution

Answer 10

1)

Expert Solution

Answer 11

Expert Solution

Answer 12

2)

To determine

Ascertain the net earnings attributable to Corporation S and also state the basic earnings per common share for 2013.

2)

Expert Solution

Explanation of Solution

Net earnings: The bottom line of income statement which is the result of excess of earnings from operations (revenues) over the costs incurred for earning revenues (expenses) is referred to as net earnings.

The net earnings attributable to Corporation S for 2013 are $8.3 million.

Basic earnings per common share: Basic earnings per common share represent the amount of income earned per share of outstanding common stock in a period. This ratio is used for analyzing the profitability of company’s stockholders.

The basic earnings per common share attributable to Corporation S for 2013 are $0.01.

Answer 13

2)

To determine

Ascertain the net earnings attributable to Corporation S and also state the basic earnings per common share for 2013.

Answer 14

2)

Expert Solution

Explanation of Solution

Net earnings: The bottom line of income statement which is the result of excess of earnings from operations (revenues) over the costs incurred for earning revenues (expenses) is referred to as net earnings.

The net earnings attributable to Corporation S for 2013 are $8.3 million.

Basic earnings per common share: Basic earnings per common share represent the amount of income earned per share of outstanding common stock in a period. This ratio is used for analyzing the profitability of company’s stockholders.

The basic earnings per common share attributable to Corporation S for 2013 are $0.01.

Answer 15

2)

Expert Solution

Answer 16

2)

Expert Solution

Answer 17

Expert Solution

Answer 18

3)

To determine

Determine the amount of operating income for the year 2013 and 2012.

3)

Expert Solution

Explanation of Solution

Operating income: Income statement reports revenues and expenses from business operations, and the result of those operations, before taxes, other revenues and expenses, is referred to as income from operations.

The amount of operating loss for the year 2013 is ($325.4) million and the operating income for the year 2012 is $1,997.4 million.

Answer 19

3)

To determine

Determine the amount of operating income for the year 2013 and 2012.

Answer 20

3)

Expert Solution

Explanation of Solution

Operating income: Income statement reports revenues and expenses from business operations, and the result of those operations, before taxes, other revenues and expenses, is referred to as income from operations.

The amount of operating loss for the year 2013 is ($325.4) million and the operating income for the year 2012 is $1,997.4 million.

Answer 21

3)

Expert Solution

Answer 22

3)

Expert Solution

Answer 23

Expert Solution

Answer 24

4)

To determine

Determine the amount of interest expense incurred in the year 2013 and 2012.

4)

Expert Solution

Explanation of Solution

The amount of interest expense incurred during the year 2013 is $28.1 million.

The amount of interest expense incurred during the year 2012 is $32.7 million.

Answer 25

4)

To determine

Determine the amount of interest expense incurred in the year 2013 and 2012.

Answer 26

4)

Expert Solution

Explanation of Solution

The amount of interest expense incurred during the year 2013 is $28.1 million.

The amount of interest expense incurred during the year 2012 is $32.7 million.

Answer 27

4)

Expert Solution

Answer 28

4)

Expert Solution

Answer 29

Expert Solution

Answer 30

5)

To determine

Determine the amount of the income taxes related to income before income taxes for 2013.

5)

Expert Solution

Explanation of Solution

The income taxes related to income before income taxes of Corporation S for 2013 is ($238.7) million.

Answer 31

5)

To determine

Determine the amount of the income taxes related to income before income taxes for 2013.

Answer 32

5)

Expert Solution

Explanation of Solution

The income taxes related to income before income taxes of Corporation S for 2013 is ($238.7) million.

Answer 33

5)

Expert Solution

Answer 34

5)

Expert Solution

Answer 35

Expert Solution

Answer 36

6)

To determine

Determine the amount of general and administrative expense for 2013.

6)

Expert Solution

Explanation of Solution

Selling, general, and administrative expenses: The cost expended for selling the merchandise, and general administrative purposes during a certain period are referred to as selling, general, and administrative expenses. Some examples are salaries of sales personnel, salaries of office personnel, store supplies, office supplies, rent, delivery, and advertising expenses.

The general and administrative expense of Corporation S for 2013 is $937.9 million.

Answer 37

6)

To determine

Determine the amount of general and administrative expense for 2013.

Answer 38

6)

Expert Solution

Explanation of Solution

Selling, general, and administrative expenses: The cost expended for selling the merchandise, and general administrative purposes during a certain period are referred to as selling, general, and administrative expenses. Some examples are salaries of sales personnel, salaries of office personnel, store supplies, office supplies, rent, delivery, and advertising expenses.

The general and administrative expense of Corporation S for 2013 is $937.9 million.

Answer 39

6)

Expert Solution

Answer 40

6)

Expert Solution

Answer 41

Expert Solution

Answer 42

7)

To determine

Determine the amount of depreciation and amortization that are reported on the income statement for 2013. Determine the amount of depreciation and amortization expense added back to net income on the statement of cash flows. Identify the item on the income statement that caused major differences.

7)

Expert Solution

Explanation of Solution

Depreciation: Depreciation refers to the reduction in the monetary value of a fixed asset due to its wear and tear or obsolescence. It is a method of distributing the cost of the fixed assets over its estimated useful life.

Depreciation and amortization expense reported on the income statement of Corporation S for the year 2013 is $621.4 million.
Depreciation and amortization expense of 655.6 million is added back to net income on the statement of cash flows.
The major difference on the income statement is the depreciation expense allocated to cost of sales that includes depreciation on roasting and other production equipment for the production of roast coffee beans.

Answer 43

7)

To determine

Determine the amount of depreciation and amortization that are reported on the income statement for 2013. Determine the amount of depreciation and amortization expense added back to net income on the statement of cash flows. Identify the item on the income statement that caused major differences.

Answer 44

7)

Expert Solution

Explanation of Solution

Depreciation: Depreciation refers to the reduction in the monetary value of a fixed asset due to its wear and tear or obsolescence. It is a method of distributing the cost of the fixed assets over its estimated useful life.

Depreciation and amortization expense reported on the income statement of Corporation S for the year 2013 is $621.4 million.
Depreciation and amortization expense of 655.6 million is added back to net income on the statement of cash flows.
The major difference on the income statement is the depreciation expense allocated to cost of sales that includes depreciation on roasting and other production equipment for the production of roast coffee beans.

Answer 45

7)

Expert Solution

Answer 46

7)

Expert Solution

Answer 47

Expert Solution

Answer 48

8)

To determine

Determine the amount of dividends on common stock that was paid and declared in 2013. Identify the difference on balance sheet if the amounts are different.

8)

Expert Solution

Explanation of Solution

Dividends: This is the amount of cash distributed to stockholders by a company out its earnings, according to their proportion of shares invested in the company.

The amount of Dividends paid reported on the statement of cash flows in 2013 is $628.9 million. However, according to the statement of shareholders’ equity, the dividends declared were $668.6 million. The difference of $39.7 million represents dividends declared but not yet paid by year-end. This amount is reported as increase in the dividend payable liability on the balance sheet that is reported under Note 7: “Other accrued liabilities”.

Answer 49

8)

To determine

Determine the amount of dividends on common stock that was paid and declared in 2013. Identify the difference on balance sheet if the amounts are different.

Answer 50

8)

Expert Solution

Explanation of Solution

Dividends: This is the amount of cash distributed to stockholders by a company out its earnings, according to their proportion of shares invested in the company.

The amount of Dividends paid reported on the statement of cash flows in 2013 is $628.9 million. However, according to the statement of shareholders’ equity, the dividends declared were $668.6 million. The difference of $39.7 million represents dividends declared but not yet paid by year-end. This amount is reported as increase in the dividend payable liability on the balance sheet that is reported under Note 7: “Other accrued liabilities”.

Answer 51

8)

Expert Solution

Answer 52

8)

Expert Solution

Answer 53

Expert Solution

Answer 54

9)

To determine

Identify whether the revenues of Corporation S are seasonal. If so, determine the two quarters in which Corporation S generate most revenues during the year 2012 and 2013.

9)

Expert Solution

Explanation of Solution

Revenues: Revenues are earnings from operations of a business. The operating activities are sale of goods and services, and rent revenue.

The revenues of Corporation S are seasonal because the net revenues of Corporation S were highest in the first and second quarters. Corporation S generated revenues in the first and fourth quarter of 2013 which was $3,799.6 million.

Answer 55

9)

To determine

Identify whether the revenues of Corporation S are seasonal. If so, determine the two quarters in which Corporation S generate most revenues during the year 2012 and 2013.

Answer 56

9)

Expert Solution

Explanation of Solution

Revenues: Revenues are earnings from operations of a business. The operating activities are sale of goods and services, and rent revenue.

The revenues of Corporation S are seasonal because the net revenues of Corporation S were highest in the first and second quarters. Corporation S generated revenues in the first and fourth quarter of 2013 which was $3,799.6 million.

Answer 57

9)

Expert Solution

Answer 58

9)

Expert Solution

Answer 59

Expert Solution

Answer 60

10)

To determine

Identify whether Corporation S used direct or indirect method to compute the net cash flow from operating activities in 2013 and state the amount.

10)

Expert Solution

Explanation of Solution

Statement of cash flows: Statement of cash flows reports all the cash transactions which are responsible for inflow and outflow of cash and result of these transactions is reported as ending balance of cash at the end of reported period. Statement of cash flows includes the changes in cash balance due to operating, investing, and financing activities.

Cash flow from operating activities: This section of cash flow statement provides information about the cash received or cash paid in day-to-day operating activities of a company.

Indirect method: Under indirect method, net income is reported first, and then non-cash expenses, losses from fixed assets, and changes in opening balances and ending balances of current assets are adjusted to reconcile the net income balance.

Corporation S reports net cash provided by operating activities by using the indirect method. The net cash flow from operating activities of Corporation S for 2013 is $2,908.3 million.

Answer 61

10)

To determine

Identify whether Corporation S used direct or indirect method to compute the net cash flow from operating activities in 2013 and state the amount.

Answer 62

10)

Expert Solution

Explanation of Solution

Statement of cash flows: Statement of cash flows reports all the cash transactions which are responsible for inflow and outflow of cash and result of these transactions is reported as ending balance of cash at the end of reported period. Statement of cash flows includes the changes in cash balance due to operating, investing, and financing activities.

Cash flow from operating activities: This section of cash flow statement provides information about the cash received or cash paid in day-to-day operating activities of a company.

Indirect method: Under indirect method, net income is reported first, and then non-cash expenses, losses from fixed assets, and changes in opening balances and ending balances of current assets are adjusted to reconcile the net income balance.

Corporation S reports net cash provided by operating activities by using the indirect method. The net cash flow from operating activities of Corporation S for 2013 is $2,908.3 million.

Answer 63

10)

Expert Solution

Answer 64

10)

Expert Solution

Answer 65

Expert Solution

Answer 66

11)

To determine

Determine the amount of net cash used in investing activities for 2013.

11)

Expert Solution

Explanation of Solution

Statement of cash flows: Statement of cash flows reports all the cash transactions which are responsible for inflow and outflow of cash and result of these transactions is reported as ending balance of cash at the end of reported period. Statement of cash flows includes the changes in cash balance due to operating, investing, and financing activities.

Cash flow from investing activities: This section of cash flows statement provides information concerning about the purchase and sale of capital assets by the company.

The net cash flow used in investing activities of Corporation S for 2013 is $(1,411.2) million.

Answer 67

11)

To determine

Determine the amount of net cash used in investing activities for 2013.

Answer 68

11)

Expert Solution

Explanation of Solution

Statement of cash flows: Statement of cash flows reports all the cash transactions which are responsible for inflow and outflow of cash and result of these transactions is reported as ending balance of cash at the end of reported period. Statement of cash flows includes the changes in cash balance due to operating, investing, and financing activities.

Cash flow from investing activities: This section of cash flows statement provides information concerning about the purchase and sale of capital assets by the company.

The net cash flow used in investing activities of Corporation S for 2013 is $(1,411.2) million.

Answer 69

11)

Expert Solution

Answer 70

11)

Expert Solution

Answer 71

Expert Solution

Answer 72

12)

To determine

Determine the amount of cash used to pay for long-term debt in 2013.

12)

Expert Solution

Explanation of Solution

Statement of cash flows: Statement of cash flows reports all the cash transactions which are responsible for inflow and outflow of cash and result of these transactions is reported as ending balance of cash at the end of reported period. Statement of cash flows includes the changes in cash balance due to operating, investing, and financing activities.

Cash flow from financing activities: This section of cash flows statement provides information about the cash inflow and outflow as a result of issuance and financing of debt, issue of new stock and payment of dividends.

The net cash used to pay for long-term debt of Corporation S for 2013 is ($35.2) million.

Answer 73

12)

To determine

Determine the amount of cash used to pay for long-term debt in 2013.

Answer 74

12)

Expert Solution

Explanation of Solution

Statement of cash flows: Statement of cash flows reports all the cash transactions which are responsible for inflow and outflow of cash and result of these transactions is reported as ending balance of cash at the end of reported period. Statement of cash flows includes the changes in cash balance due to operating, investing, and financing activities.

Cash flow from financing activities: This section of cash flows statement provides information about the cash inflow and outflow as a result of issuance and financing of debt, issue of new stock and payment of dividends.

The net cash used to pay for long-term debt of Corporation S for 2013 is ($35.2) million.

Answer 75

12)

Expert Solution

Answer 76

12)

Expert Solution

Answer 77

Expert Solution

Answer 78

Ch. 5 - In general, how does the income statement help...Ch. 5 - Prob. 2GI Ch. 5 - Define income under the capital maintenance...Ch. 5 - Prob. 4GI Ch. 5 - What is net income?Ch. 5 - What three things must a company determine to...Ch. 5 - Prob. 7GI Ch. 5 - Prob. 8GI Ch. 5 - Prob. 9GI Ch. 5 - Give an example and explanation for each of the...

Explain whether Corporation S uses a multiple-step or a single-step format on its income statement.

Videos

Explain whether Corporation S uses a multiple-step or a single-step format on its income statement.

Explanation of Solution

Ascertain the net earnings attributable to Corporation S and also state the basic earnings per common share for 2013.

Explanation of Solution

Determine the amount of operating income for the year 2013 and 2012.

Explanation of Solution

Determine the amount of interest expense incurred in the year 2013 and 2012.

Explanation of Solution

Determine the amount of the income taxes related to income before income taxes for 2013.

Explanation of Solution

Determine the amount of general and administrative expense for 2013.

Explanation of Solution

Determine the amount of depreciation and amortization that are reported on the income statement for 2013. Determine the amount of depreciation and amortization expense added back to net income on the statement of cash flows. Identify the item on the income statement that caused major differences.

Explanation of Solution

Determine the amount of dividends on common stock that was paid and declared in 2013. Identify the difference on balance sheet if the amounts are different.

Explanation of Solution

Identify whether the revenues of Corporation S are seasonal. If so, determine the two quarters in which Corporation S generate most revenues during the year 2012 and 2013.

Explanation of Solution

Identify whether Corporation S used direct or indirect method to compute the net cash flow from operating activities in 2013 and state the amount.

Explanation of Solution

Determine the amount of net cash used in investing activities for 2013.

Explanation of Solution

Determine the amount of cash used to pay for long-term debt in 2013.

Explanation of Solution

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Chapter 5 Solutions