1) Is carrying value ever the same as market value?
2) What major advantage does a company that has positive freecash flow have over a company that has negative free cash flow?
1) Which statement is more useful - the income statement or thestatement of cash flows?
2) How would you respond to someone who says that the mostimportant item on the statement of cash flows is the change in thecash balance for the year?
3) If a company has positive earnings, can cash flow fromoperating activities ever be negative?
1) How are past performance and industry norms useful inevaluating a company's performance? What are their limitations?
2) What is one way a company can improve its earnings per sharewithout improving its earnings or net income?
3) Why is it essential that management compensation, includingbonuses, be linked to financial goals and strategies that achieveshareholder value?
1) Is carrying value ever the same as market value?
2) What major advantage does a company that has positive freecash flow have over a company that has negative free cash flow?
1) Which statement is more useful - the income statement or thestatement of cash flows?
2) How would you respond to someone who says that the mostimportant item on the statement of cash flows is the change in thecash balance for the year?
3) If a company has positive earnings, can cash flow fromoperating activities ever be negative?
1) How are past performance and industry norms useful inevaluating a company's performance? What are their limitations?
2) What is one way a company can improve its earnings per sharewithout improving its earnings or net income?
3) Why is it essential that management compensation, includingbonuses, be linked to financial goals and strategies that achieveshareholder value?
Related questions
Issa Manufacturing Company was started on January 1, 2014, whenit acquired $80,000 cash by issuing common stock. Issa immediatelypurchased office furniture and manufacturing equipment costing$9,500 and $27,100, respectively. The office furniture had aseven-year useful life and a zero salvage value. The manufacturingequipment had a $4,000 salvage value and an expected useful life ofthree years. The company paid $11,400 for salaries ofadministrative personnel and $15,400 for wages to productionpersonnel. Finally, the company paid $8,880 for raw materials thatwere used to make inventory. All inventory was started andcompleted during the year. Issa completed production on 4,100 unitsof product and sold 3,150 units at a price of $15 each in 2014.(Assume that all transactions are cash transactions.) |
| Required | |
| a. | Determine the total product cost and the average cost per unitof the inventory produced in 2014. (Round "Average cost perunit" answer to 2 decimal places.) |
| b. | Determine the amount of cost of goods sold that would appear onthe 2014 income statement. (Do not round intermediatecalculations. Round your answer to the nearest dollaramount.) |
| c. | Determine the amount of the ending inventory balance that wouldappear on the December 31, 2014, balance sheet. (Do notround intermediate calculations. Round your answer to the nearestdollar amount.) |
| d. | Determine the amount of net income that would appear on the 2014income statement. (Round your answer to the nearest dollaramount.) |
| e. | Determine the amount of retained earnings that would appear onthe December 31, 2014, balance sheet. (Round your answer tothe nearest dollar amount.) |
| f. | Determine the amount of total assets that would appear on theDecember 31, 2014, balance sheet.(Round your answer to thenearest dollar amount.) |
| g. | Determine the amount of net cash flow from operating activitiesthat would appear on the December 31, 2014 statement of cash flows.(List cash outflow as negative amount.) |
| h. | Determine the amount of net cash flow from investing activitiesthat would appear on the December 31, 2014 statement of cash flows.(List cash outflow as negative amount.) |
