Exercise 11-6 (Algo) Calculate operating activities-indirect method (LO11-3) Gemstone Suppliers reports net income of $157,000. Included in net income is a gain on the sale of land of $16,000. A comparison of this year's and last year's balance sheets reveals an increase in accounts receivable of $27,000, an increase in inventory of $16,000, and a decrease in accounts payable of $47,000. Required: Prepare the operating activities section of the statement of cash flows using the indirect method. (Amounts to be deducted should be indicated with a minus sign.) Cash flows from operating activities: GEMSTONE SUPPLIERS Statement of Cash Flows (partial) Adjustments to reconcile net income to net cash flows from operating activities: Net cash flows from operating activities
Q: Chin, who is not married, provides a home for his 21-year-old daughter who attends college full-time…
A: A tax credit is something that helps a person decrease his or her overall tax liability. There are…
Q: Compute for the approximate after tax-cost of debt.
A: Part-1 The after-tax cost of debt is the interest paid on debt less any tax savings due to claim…
Q: A corporation declared a 40% share capital dividend on its 60,000 shares of P20 par ordinary shares…
A: Introduction: Current profits less any dividends or even other distributions to shareholders are a…
Q: The accounting information collected from the MCM company is detailed in the attached tables.…
A: (Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the…
Q: uired information e following information applies to the questions displayed below.] k's Novelties,…
A: Simple rate of return is percentage of net income generated on initial investment. If actual rate on…
Q: Presented below is information related to equipment owned by Davis Company at December 31, 2020.…
A: Impairment of asset is done when carrying value of asset is higher than it's recoverable value. This…
Q: The following data are available for X Corp: Margin of safety 300; MS ratio 20%; Profit of 100 and…
A: Margin of safety: Margin of safety is the point after which profit will be happen in multiple of…
Q: 2.) A company is considering purchasing a new automated machine that is expected to generate an…
A: A Company is considering of purchasing a new automated machine that is expected to generate…
Q: Motorcycle Manufacturers, Inc., projected sales of 50,700 machines for the year. The estimated…
A: Inventory refers to the stock the company has held for resale or the good is not sold yet. It can be…
Q: The adjusted trial balance for Zahurak Company follows. Adjusted Trial Balance December 31 Account…
A: ZAHURAK COMPANY Income Statement For year Ended December 31 Plumbing fees earned $…
Q: On January 1, 2021, Farmer Fabrication issued stock options for 260,000 shares to a division…
A: Stock options are defined as the benefits that the employees avail from the company in addition to…
Q: Saxon Products, Incorporated, is investigating the purchase of a robot for use on the company’s…
A: Note: Hi! Thank you for the question, As per the honor code, we are allowed to answer three…
Q: As of December 31, 2020, Dayton Industries had $2,000 of raw materials Inventory. At the beginning…
A: Inventory is the value of goods manufactured, bought, kept or sold by a business entity. It includes…
Q: Mandy Corporation sells a single product. Budgeted sales for the year are anticipated to be 649,000…
A: The answer is option a. Firstly we need to find the produced units by using the following formula:…
Q: The higher the debt-to-equity ratio, the less debt a company is using co finance its assets. O True…
A: Debt to equity ratio is an important leverage ratio that we use in the world of accounting and…
Q: A firm can purchase a centrifugal separator (5-year MACRS property) for $22,000. The estimated…
A: Net Present Value=(Present Value of Cash Inflows-Present Value of Cash Outflows)
Q: Materials requisitioned: $5,000 for Job #600 and $6,250 for Job #601 and $400 for indirect…
A: Note: Hi! Thank you for the question, As per the honor code, we are allowed to answer three…
Q: Mandy Corporation sells a single product. Budgeted sales for the year are anticipated to be 680,000…
A: Introduction: Direct materials are materials and resources used in the production of a product that…
Q: Please help me to solve this problem
A: Here discuss about the accrual basis accounting treatment of the vacation payable liability which…
Q: Kansas Enterprises purchased equipment for $78,000 on January 1, 2021. The equipment is expected to…
A: Depreciation rate as per double declining balance method = (100/useful life)×2 Depreciation expense…
Q: On December 31, 2020, Berclair Inc. had 600 million shares of common stock and 3 million shares of…
A: Introduction Convertible bond: An investment fixed-income corporate bonds asset known as a…
Q: In your words, explain special types of Business ownership. Also, explain when and why would you…
A: Organization - A collection of people getting together to carry out a certain work or achieve a…
Q: Fred Clark earned $55,940 in 2021 for Weather Gurus in Concord, New Hampshire. Weather Gurus' SUTA…
A: For the year 2021, the Social security tax rate is 6.2% and the Medicare tax rate is 1.45% FUTA and…
Q: Mr Jose Peralta, a Filipino merchant residing in Greenhils, made the following gifts in 2021 and…
A: Mr Jose Peralta, a Filipino merchant residing in Greenhils has given a few gifts during the year…
Q: A homeowner planning a kitchen remodeling can afford a $300 monthly payment. How much can the…
A: The homeowner can borrow an amount equal to the present value of the monthly payment, calculated…
Q: Calculate the Margin of Safety, expressed as a percentage of Sales, given the following data: Sales…
A: Formula, Margin of Safety (Dollars) = Actual Sales - Break Even Sales Margin of Safety…
Q: The FASB concepts statement relating to cash flow information introduces the concept of expected…
A: Present Value: Given a certain rate of return, the present value (PV) of a future sum of money or…
Q: If Genie went ahead with the acquisition of Aladdin, what is the total value of the acquisition? (…
A: Value of acquisition means the price paid by an organization to acquire a new purchaser or for the…
Q: Liman Corporation has a single product whose selling price is $140 and whose variable expense is $60…
A: The target profit refers to the expected amount of profit that the entity wants to achieve. The…
Q: Before Action $1,269,000 $ equity $232,000 657,000 380,000 1,037,000 $1269,000 300,000 $ $ After…
A: Introduction Cash Dividend: A cash dividend is a payment made from the firm's current income or…
Q: The company has Fixed cost of 500,000 and CMR of 30%. If the company projected that net loss of…
A: Given Contribution margin ratio= 30% Let Projected sales in 2020 = S Contribution margin = S×30% =…
Q: Magic Realm, Incorporated, has developed a new fantasy board game. The company sold 38,800 games…
A: Contribution: The number of profits that are left over after all direct expenditures have been…
Q: Daley Company prepared the following aging of receivables analysis at December 31. Days Past…
A: Allowance for Doubtful Debt: Because it lowers the total value of an asset, in this example the…
Q: (a) Required: Prepare an extract from the Statement of Financial Position at 31st December 2021…
A: Assets refer to tangible objects or intangible rights of an enterprise that carry probable future…
Q: On December 1, 2022, Splish Brothers Inc. had the following account balances. Cash Accounts…
A: The income statement is the financial statement of the business. It tells about the profit or losses…
Q: Common-size and trend percents for Roxi Company's sales, cost of goods sold, and expenses follow.…
A: Current Year 1 Year Ago 2 Year Ago Sales $104,000 $102,600 $100,000 ($100,000 x 104%)…
Q: Required information [The following information applies to the questions displayed below.] At the…
A: Predetermined Overhead rate: Manufacturing overhead is applied to work-in-process inventories at a…
Q: Stephanie Corporation sells a single product. Budgeted sales for the year are anticipated to be…
A: Number of units to be produced is based on the budgeted sales units, taking into consideration…
Q: On January 1, Year 8, Shuswap Inc. and Kalamalka Inc. formed a new joint venture, Okanagan Inc.…
A: Date Account Titles Debit Credit 01 Jan Year 8 Shuswap Inc Equipment A/c $2,100,000 To…
Q: (Quiz 2.2) Please help me answer the last question (multiple choice) if you can, all in bold! Thank…
A: The contribution margin in percentage is determined by dividing the sum of fixed cost and the…
Q: Colorado Pte Ltd commenced its first non-structural renovation works in accounting year 2017 at the…
A: According to Section 14Q, the maximum capping limit for the consecutively three years is $300,000.…
Q: Mr. Lion, who is in the 37 percent tax bracket, is the sole shareholder of Toto Inc., which…
A: Note: “Since you have posted a question with multiple sub-parts, we will solve the first three…
Q: Ivanhoe Home Supply Company received proceeds of $627000 on 10-year, 7% bonds issued on January 1,…
A: Introduction: A bondholder is a person who invests in or owns debt instruments, which are typically…
Q: Answer only b and c
A: Depreciation - Depreciation is the term used to describe the gradual decline in asset value caused…
Q: The cash payments expected for Finch Company in the month of April are a.$122,895 b.$119,475…
A: Usually cash flow analysis is important for survival of any organization. Hence, organization need…
Q: Perez Company sells lamps and other lighting fixtures. The purchasing department manager prepared…
A: Introduction: A purchasing budget is created in order to monitor the value of the company's…
Q: 7. Assuming direct labor is a variable cost: a. Determine the number of WVD drums (if any) that…
A: Answered required 7 (a) and (b), some data were taken from previous answered question. Please refer…
Q: Assume that Demand (D)= 10,000 units and Ordering Cost (S) = $10 (per order). Suppose that we order…
A: Economic order quantity indicates the number of units to be ordered, So that company can minimize…
Q: 3 total cash dividends 4 total cash dividends ding stock consists of 90,000 shares of noncumulative…
A: Non cumulative preferred shares holders receive a fixed dividend amount each year . If a company is…
Q: Required: 1. Prepare the ordinary share capital account for the year. Prepare the Retained Earnings…
A: Finance is blood for Every Business Organization. Business Entities need finance to start its…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- The following information was reported by Amuse Yourself Parks (AYP): Net fixed assets (beginning of year) Net Fixed assets (end of year) Net sales for the year Net income for the year Required: Compute the company's fixed asset turnover ratio for the year. Numerator Denominator Fixed Asset Turnover Ratio 11 $ 8,490,000 8,290,000 4,111,100 1,930,000 "1Fitz Company reports the following information. Selected Annual Income Statement Data Selected Year-End Balance Sheet Data Net income $ 391,000 Accounts receivable decrease $ 27,200 Depreciation expense 44,200 Inventory decrease 46,000 Amortization expense 8,000 Prepaid expenses increase 6,400 Gain on sale of plant assets 7,100 Accounts payable decrease 8,200 Salaries payable increase 1,900 Use the indirect method to prepare the operating activities section of its statement of cash flows for the year ended December 31. Note: Amounts to be deducted should be indicated with a minus sign.Exercise 11 -9 (Algo) Calculate operating activities-indirect method (LO11-3) Portions of the financial statements for Peach Computer are provided below. PEACH COMPUTER Income Statement For the year ended December 31, 2024 Net sales $2,025, 000 Expenses: Cost of goods sold $1,140,000 Operating expenses 650,000 Depreciation expense 59,000 Income tax expense 49,000 Total expenses 1,898,000 Net income $127,000 PEACH COMPUTER Selected Balance Sheet Data December 31 2024 2023 Increase (1) or Decrease (D) Cash $ 111,000 $89,500 $21,500 (1) Accounts receivable 45, 900 53, 500 7,600 (D) Inventory 84,000 59,500 24,500 (1) Prepaid rent 3, 900 6,800 2,900 (D) Accounts payable 54,000 41, 500 12,500 (1) Income tax payable 5, 900 14, 500 8,600 (D) Required: Prepare the operating activities section of the statement of cash flows for Peach Computer using the indirect method. (Amounts to be deducted should be indicated with a minus sign.)
- An entity reported the following data for the current year. What amount should be reported as income from continuing operations? Net Sales $ 9.500,000 Cost of Goods Sold 4.000.000 Selling Expenses 1,000,000 Administrative Expenses 1,200.000 Interest Expense 700.000 Gain from expropriation of Land 500.000 Income Tax 800.000 Income from Discontinued Operations 600,000 Unrealized Gain on Equity Investment at FVOCI 900,000 Unrealized Loss on future contracts designated as Cash Flow Hedge 400.000 Increase in projected benefit obligation due to actuarial assumptions 300,000 Foreign Translation Adjustment – Debit 100,000 Revaluation Surplus 2.500.000McDonald’s Corporation (MCD) reported the following balance sheet and income statement data for two recent years: (amounts are in $ millions) Total assets Net Income SalesYear 1: $33,803.70 $5,192.30 $22,820.40Year 2: $32,811.20 $5,924.30 $21,025.20 What was McDonald’s asset turnover ratio for Year 2?es Exercise 11-9 (Algo) Calculate operating activities-indirect method (LO11-3) Portions of the financial statements for Peach Computer are provided below. Net sales Expenses: PEACH COMPUTER Income Statement For the year ended December 31, 2024 Cost of goods sold Operating expenses Depreciation expense Income tax expense Total expenses Net income Cash Accounts receivable Inventory Prepaid rent Accounts payable Income tax payable PEACH COMPUTER Selected Balance Sheet Data December 31 $1,030,000 540,000 48,000 38,000 2024 $100,000 46,200 73,000 2,800 43,000 4,800 Cash flows from operating activities: 2023 $84,000 50,000 54,000 4,600 36,000 9,000 PEACH COMPUTER Statement of Cash Flows (partial) For the Year Ended December 31, 2024 $1,750,000 1,656,000 $94,000 Increase (I) or Decrease (D) $16,000 (I) 3,800 (D) 19,000 (I) 1,800 (D) (I) (D) Required: Prepare the operating activities section of the statement of cash flows for Peach Computer using the indirect method. (Amounts to be deducted…
- Problem 9-13 (IAA) Corazon Company provided the following information for the current year: Sales Sales returns and allowances Cost of goods sold Utilities expense Interest revenue Income tax expense Casualty loss due to earthquake Finance cost Salaries expense Loss on sale of investments 7,000,000 100,000 2,800,000 1,000,000 150,000 800,000 50,000 200,000 600,000 50,000 What amount should be reported as income from continuing operations? a. 1,550,000 b. 1,600,000 c. 2,350,000 d. 1,400,000SE9-10 Return on Assets and Asset Turnover Last Year, the Miller Company reported on assets of 15 percent and an asset turnover of 1.6. In the current year, the company reported a return on assets of 19 percent but an asset turnover of only 1.2. If sales revenue remained unchanged from last year to the current year, what would explain the ratio results?SE9-8 Return on Assets The Kingwood Company reported net income of $50,000 and average total assets of $450,000. Calculate the company’s return on assets.
- Q. No. 1. From the following information of Albert Company as on 31t December 2018: Noncurrent asset $25,00,000 Working capital Current ratio Non-current assets tumover ratio Gross profit Trade receivable turnover ratio Loss on sale of plant assets Trade payable turnover ratio Interest expenses Income tax Inventory turnover ratio 10,00,000 2:1 8 times 20% on sales 10 times $10,000 15 times S50,000 20% 10 times 10% of turn over 15% of the net income 1:1 S10,000 Net income General Reserve Capital gearing ratio Depreciation expenses Amortization on patent Doubtful expenses Derecognizing expenses $8,000 $5,000 $15,000 Required: A. Prepare a statement of Financial Performance for the year ended 31t December 2018 B. Prepare a Statement of Financial Position as of 31* December 2018.The following income statement and additional year-end information is provided. SONAD COMPANYIncome StatementFor Year Ended December 31 Sales $ 2,420,000 Cost of goods sold 1,185,800 Gross profit 1,234,200 Operating expenses Salaries expense $ 331,540 Depreciation expense 58,080 Rent expense 65,340 Amortization expenses—Patents 7,260 Utilities expense 26,620 488,840 745,360 Gain on sale of equipment 9,680 Net income $ 755,040 Accounts receivable $ 36,900 increase Accounts payable $ 10,425 decrease Inventory 36,800 increase Salaries payable 3,050 decrease Prepare the operating activities section of the statement of cash flows using the indirect method. (Amounts to be deducted should be indicated with a minus sign.) Statement of Cash Flows (partial) Cash flows from…The Income Statement and additional data of Crawford Properties, Inc., follows:CRAWFORD PROPERTIES Inc.Income StatementFor Year Ended June 30, 20X6Revenues:Sales revenue $237,000Expenses:Cost of goods sold $103,000Salary expense 58,000Depreciation expense 29,000Income taxes expense 9,000 199,000Net Income $38,000Additional data:a) Acquisition of plant assets is $116,000. Of this amount $101,000 is paid in cash and$15,000 by signing a note payable.b) Proceeds from sale of land total $24,000c) Proceeds from issuance of common stock total $30,000d) Payment of long-term note payable is $15,000e) Payment of dividends is $11,000f) From the balance sheet30/6/X 6 30/6/X 5Current Assets:Cash & cash equivalents $27,000 $20,000Accounts receivable 43,000 58,000Inventories 92,000 85,000Current Liabilities:Accounts payable $35,000 $22,000Accrued liabilities 13,000 21,000Required:Prepare Crawford Properties, Inc.’s statement of cash flows for the year endedJune 30, 20X6, using the indirect…