ACCT 001 Lecture Notes - Lecture 23: Retained Earnings, Net Income, Financial Statement

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taupesardine275

17 Sep 2020

School

College of The Sequoias

Department

Accounting (ACCT)

Course

ACCT 001

Professor

skaff

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Document Summary

The income statement for family health care reports fee revenue of ,500, total operating expenses of ,900, and net income of ,600. The ,500 of fee revenue was taken from the income statement column. Likewise, the expenses were summarized from the income statement column. The expenses are listed in order of size, beginning with the largest expense. Miscellaneous expense is usually shown as the last item, regardless of the amount. The total expenses are subtracted from the fees earned to arrive at the net income of ,600. This net income will increase retained earnings (and thus total stockholders" equity) on the balance sheet. Preparation of financial statements: retained earnings statement. Since family health care has been in operation for only one month, it has no retained earnings at the beginning of september 20x1. The ending september balance thus equals the change in retained earnings that results from the month"s net income and dividends.

Related Questions

Missing Amounts from Financial Statements

The financial statements at the end of Atlas Realty's firstmonth of operations follow:

Required:

Analyze the interrelationships among the four financialstatements and enter the missing amounts. If an amount is zero,enter "0".

AtlasRealty
IncomeStatement
For the MonthEnded May 31, 2018
Fees earned		$400,000
Expenses:
Wages expense	$
Rent expense	48,000
Supplies expense	17,600
Utilities expense	14,400
Miscellaneous expense	4,800
Total expenses		288,000
Net income		$

AtlasRealty
RetainedEarnings Statement
For the MonthEnded May 31, 2018
Retained earnings, May 1, 2018		$
Net income	$
Dividends
Change in retained earnings
Retained earnings, May 31, 2018		$

AtlasRealty
BalanceSheet
May 31,2018
Assets
Cash		$123200
Supplies		12,800
Land
Total assets		$
Liabilities
Accounts payable		$48,000
Stockholdersâ Equity
Common stock	$
Retained earnings
Total stockholders' equity
Total liabilities and stockholdersâequity		$

Use the minus sign to indicate cash outflows, decreases in cash,and cash payments.

AtlasRealty
Statement ofCash Flows
For the MonthEnded May 31, 2018
Cash flows from operating activities:
Cash received from customers	$
Cash payments for expenses and payments tocreditors	-252,800
Net cash flows from operatingactivities		$
Cash flows from investing activities:
Cash payments for acquisition of land		-120,000
Cash flows from financing activities:
Cash received from issuing commonstock	$160,000
Cash dividends	-64,000
Net cash flows from financingactivities
Net increase (decrease) in cash and May 31,2018, cash balance		$

limeworm408

he following are the financial statements of Nosker Company.

NOSKER COMPANY Comparative Balance Sheets December 31
Assets	2017		2016
Cash	$36,400		$20,800
Accounts receivable	32,700		19,500
Inventory	30,700		20,900
Equipment	59,300		77,300
Accumulated depreciationâequipment	(29,700	)	(23,300	)
Total	$129,400		$115,200

Liabilities and Stockholdersâ Equity
Accounts payable	$28,000		$ 16,600
Income taxes payable	7,000		8,300
Bonds payable	27,400		32,100
Common stock	18,200		13,700
Retained earnings	48,800		44,500
Total	$129,400		$115,200

NOSKER COMPANY Income Statement For the Year Ended December 31, 2017
Sales revenue		$241,900
Cost of goods sold		175,600
Gross profit		66,300
Operating expenses		24,700
Income from operations		41,600
Interest expense		2,600
Income before income taxes		39,000
Income tax expense		8,000
Net income		$31,000

Additional data:

1.		Dividends declared and paid were $26,700.
2.		During the year equipment was sold for $9,800 cash. Thisequipment cost $18,000 originally and had a book value of $9,800 atthe time of sale.
3.		All depreciation expense, $14,600, is in the operatingexpenses.
4.		All sales and purchases are on account.

Prepare a statement of cash flows using the indirect method.(Show amounts that decrease cash flow with either a -sign e.g. -15,000 or in parenthesis e.g.(15,000)?

Compute free cash flow.

Free cash flow?

???

mauvecattle119

I need help with the assessment below. I cannot figure it out for he life of me. Help with these parts below would be greatly appreciated!




Preparing statement of cash flow


(Preparation and Analysis of Statement of Cash Flows) Here are the financial statements of Falcon Company.

Falcon Company
Comparative Balance Sheets
December 31, 2016
Assets				2016		2015
Cash				$13,000		$16,500
Accounts receivable				14,000		7,000
Merchandise inventory				19,000		12,500
Property, plant, and equipment			$35,000		$39,000
Less: Accumulated depreciation			(13,500)	21,500	(12,000)	27,000
Total				$67,500		$63,000
Liabilities and Stockholdersâ Equity
Accounts payable				$15,500		$21,500
Income taxes payable				13,000		10,000
Bonds payable				10,000		5,000
Common stock				12,500		12,500
Retained earnings				16,500		14,000
Total				$67,500		$63,000

	Falcon Company
	Income Statement
	For the Year Ended December 31, 2016
	Sales				$143,000
	Cost of goods sold				97,000
	Gross profit				46,000
	Selling expenses			$14,000
	Administrative expenses			4,500	18,500
	Income from operations				27,500
	Interest expense				3,500
	Income before income taxes				24,000
	Income tax expense				3,500
	Net income				$20,500

Additional data:
1. Dividends of	$18,000	were declared and paid.
2. During the year equipment was sold for 5,000 cash. This equipment originally cost 7,500, and it had a book value of 5,000 at the time of sale.

3. All depreciation expense, 4,000, is in the sellling expense catagory.
4. All sales and purchases are on account.
5. Additional equipment was purchased for 3,500 cash.
Instructions:
(a) Prepare a statement of cash flows using the indirect method.



	(b)(1) Compute the current cash debt coverage ratio.







	(b)(2) Compute the cash debt coverage ratio.




	(b)(3) Compute the free cash flow.

pearkoala914

ACCT 001 Lecture Notes - Lecture 23: Retained Earnings, Net Income, Financial Statement

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