Public Administration - Municipal ACC106 Chapter Notes - Chapter 8.2: Negative Number, Floating Charge
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Total Current Asset Current Ratio Effect on Net Income
a | Cash is acquired through issuance of additional common stock | ____ | ____ | ____ | |||||
b | Merchandise is sold for cash | ____ | ____ | ____ | |||||
c | Federal income tax due for the previous year is paid | ____ | ____ | ____ | |||||
d | A fixed asset is sold for less than book value | ____ | ____ | ____ | |||||
e | A fixed asset is sold for more than book value | ____ | ____ | ____ | |||||
f | Merchandise is sold on credit | ____ | ____ | ____ | |||||
g | Payment is made to trade creditors for previous purchases | ____ | ____ | ____ | |||||
h | A cash dividend is declared and paid | ____ | ____ | ____ | |||||
I | Cash is obtained through short- term bank loans | ____ | ____ | ____ | |||||
J | Short- term notes receivable are sold at a discount | ____ | ____ | ____ | |||||
k | Marketable securities are sold below cost | ____ | ____ | ____ | |||||
L | Advances are made to employees | ____ | ____ | ____ | |||||
m | Current operating expenses are paid | ____ | ____ | ____ | |||||
n | Short- term promissory notes are issued to trade creditors in exchange for past due accounts payable | ____ | ____ | ____ | |||||
o | 10- year notes are issued to pay off accounts payable | ____ | ____ | ____ | |||||
p | A fully depreciated asset is retired | ____ | ____ | ____ |
4 DEBT RATIO- Bartley Barstools has an equity multiplier of 2.4, and its assets are financed with some combination of long-term debt and common equity. What is its equity ratio? What is its debt ratio?
6 MARKET/BOOK RATIO- Jaster Jets has $10 billion in total assets. Its balance sheet shows $1 billion in current liabilities, $3 billion in long-term debt and $6 billion in common equity. It has 800 million shares of common stock outstanding, and its stock price is $32 per share. What is Jaster
P12-5 (Supplement B) Preparing a Statement of Cash Flows with Gain on Sale of Equipment (Indirect Method) LO12-2, 12-4, 12-6 | |||||
XS Supply Company is developing its annual financial statements at December 31, 2014. The statements are complete except for the | |||||
statement of cash flows. The completed comparative balance sheets and income statement are summarized: | |||||
2014 | 2013 | ||||
Balance sheet at December 31 | |||||
Cash | $ 34,000 | $ 29,000 | |||
Accounts receivable | 35,000 | 28,000 | |||
Merchandise inventory | 41,000 | 38,000 | |||
Property and equipment | 121,000 | 100,000 | |||
Less: Accumulated depreciation | (30,000) | (25,000) | |||
$ 201,000 | $ 170,000 | ||||
Accounts payable | $ 36,000 | $ 27,000 | |||
Wages payable | 1,200 | 1,400 | |||
Note payable, long-term | 38,000 | 44,000 | |||
Contributed capital | 88,600 | 72,600 | |||
Retained earnings | 37,200 | 25,000 | |||
$ 201,000 | $ 170,000 | ||||
Income statement for 2014 | |||||
Sales | $ 120,000 | ||||
Gain on sale of equipment | 1,000 | ||||
Cost of goods sold | 70,000 | ||||
Other expenses | 38,800 | ||||
Net income | $ 12,200 | ||||
Additional Data: | |||||
a. | Bought equipment for cash, $31,000. | ||||
Sold equipment with original cost of $10,000, accumulated depreciation of $7,000, for $4,000 cash. | |||||
b. | Paid $6,000 on the long-term note payable. | ||||
c. | Issued new shares of stock for $16,000 cash. | ||||
d. | No dividends were declared or paid. | ||||
e. | Other expenses included depreciation, $12,000; wages, $13,000; taxes, $6,000; and other, $7,800. | ||||
f. | Accounts payable includes only inventory purchases made on credit. Because there are no liability accounts relating to taxes or other expenses, | ||||
assume that these expenses were fully paid in cash. | |||||
Required: | |||||
1 | Prepare the statement of cash flows for the year ended December 31, 2014, using the indirect method. | ||||
(List cash outflows as negative amounts.) | |||||
Possible input areas are shaded. | |||||
XS SUPPLY COMPANY | |||||
Statement of Cash Flows | |||||
For the Year Ended December 31, 2014 | |||||
Cash flows from operating activities: | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||
- | |||||
Net cash provided by operating activities | - | ||||
Cash flows from investing activities: | |||||
- | |||||
Cash flows from financing activities: | |||||
- | |||||
$ - | |||||
|
+
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Hunter Company is developing its annual financial statements at December 31, 2015. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized:
2015 | 2014 | |||||
Balance Sheet at December 31 | ||||||
Cash | $ | 51,740 | $ | 21,000 | ||
Accounts Receivable | 32,400 | 35,000 | ||||
Inventory | 35,400 | 42,000 | ||||
Equipment | 117,600 | 108,000 | ||||
Accumulated DepreciationâEquipment | (39,600 | ) | (33,000 | ) | ||
$ | 197,540 | $ | 173,000 | |||
Accounts Payable | $ | 28,600 | $ | 25,000 | ||
Salaries and Wages Payable | 740 | 1,000 | ||||
Note Payable (long-term) | 44,000 | 54,000 | ||||
Common Stock | 89,000 | 66,000 | ||||
Retained Earnings | 35,200 | 27,000 | ||||
$ | 197,540 | $ | 173,000 | |||
Income Statement for 2015 | ||||||
Sales Revenue | $ | 106,000 | ||||
Cost of Goods Sold | 64,000 | |||||
Other Expenses | 29,400 | |||||
Net Income | $ | 12,600 | ||||
Additional Data: | |
a. | Bought equipment for cash, $9,600. |
b. | Paid $10,000 on the long-term note payable. |
c. | Issued new shares of stock for $23,000 cash. |
d. | Declared and paid a $4,400 cash dividend. |
e. | Other expenses included depreciation, $6,600; salaries and wages, $10,600; taxes, $3,600; utilities, $8,600. |
f. | Accounts Payable includes only inventory purchases made on credit. Because there are no liability accounts relating to taxes or other expenses, assume that these expenses were fully paid in cash. |
Required: | |
1. | Prepare the statement of cash flows for the year ended December 31, 2015, using the indirect method. (Amounts to be deducted should be indicated with a minus sign.) |