Question
In: Accounting
For the just completed year, Hanna Company had net income of $161,000. Balances in the company’s...
For the just completed year, Hanna Company had net income of $161,000. Balances in the company’s current asset and current liability accounts at the beginning and end of the year were as follows: December 31 End of Year Beginning of Year Current assets: Cash and cash equivalents $ 62,000 $ 75,000 Accounts receivable $ 162,000 $ 186,000 Inventory $ 426,000 $ 352,000 Prepaid expenses $ 12,300 $ 14,000 Current liabilities: Accounts payable $ 358,000 $ 388,000 Accrued liabilities $ 8,400 $ 11,700 Income taxes payable $ 39,600 $ 34,000 The Accumulated Depreciation account had total credits of $52,000 during the year. Hanna Company did not record any gains or losses during the year. The company’s income statement for the year appears below: Sales $ 1,070,000 Cost of goods sold 565,000 Gross margin 505,000 Selling and administrative expenses 300,000 Income before taxes 205,000 Income taxes 44,000 Net income $ 161,000 Required: Using the direct method, convert the company's income statement to a cash basis. (Adjustment amounts that are to be deducted should be indicated with a minus sign.)
Solutions
ekkarill92 answered 2 years agoRelated Solutions
For the just completed year, Hanna Company had net income of $38,000. Balances in the company’s...
For the just completed year, Hanna Company had net income of
$38,000. Balances in the company’s current asset and current
liability accounts at the beginning and end of the year were as
follows:
December 31
End of Year
Beginning of Year
Current assets:
Cash and cash equivalents
$
55,000
$
83,000
Accounts receivable
$
156,000
$
190,000
Inventory
$
436,000
$
367,000
Prepaid expenses
$
11,500
$
14,000
Current liabilities:
Accounts payable
$
364,000
$
384,000
Accrued liabilities
$
8,500...
For the just completed year, Hanna Company had net income of $79,000. Balances in the company’s...
For the just completed year, Hanna Company had net income of
$79,000. Balances in the company’s current asset and current
liability accounts at the beginning and end of the year were as
follows:
December 31
End of Year
Beginning of Year
Current assets:
Cash and cash equivalents
$
56,000
$
80,000
Accounts receivable
$
160,000
$
190,000
Inventory
$
442,000
$
346,000
Prepaid expenses
$
11,000
$
13,500
Current liabilities:
Accounts payable
$
358,000
$
382,000
Accrued liabilities
$
9,000...
For the just completed year, Hanna Company had net income of $101,000. Balances in the company’s...
For the just completed year, Hanna Company had net income of
$101,000. Balances in the company’s current asset and current
liability accounts at the beginning and end of the year were as
follows:
December 31
End of Year
Beginning of Year
Current assets:
Cash and cash equivalents
$
57,000
$
81,000
Accounts receivable
$
164,000
$
192,000
Inventory
$
451,000
$
349,000
Prepaid expenses
$
12,500
$
13,500
Current liabilities:
Accounts payable
$
350,000
$
384,000
Accrued liabilities
$
8,500...
For the just completed year, Hanna Company had net income of $134,000. Balances in the company’s...
For the just completed year, Hanna Company had net income of
$134,000. Balances in the company’s current asset and current
liability accounts at the beginning and end of the year were as
follows:
December 31
End of
Year
Beginning of Year
Current assets:
Cash and cash equivalents
$
61,000
$
83,000
Accounts receivable
$
166,000
$
196,000
Inventory
$
435,000
$
367,000
Prepaid expenses
$
11,500
$
13,800
Current liabilities:
Accounts payable
$
356,000
$
392,000
Accrued liabilities
$
8,000...
For the just completed year, Strident Company had net income of $71,000. Balances in the company’s...
For the just completed year, Strident Company had net income of
$71,000. Balances in the company’s current asset and current
liability accounts at the beginning and end of the year were as
follows: December 31 End of Year Beginning of Year Current assets:
Cash $ 63,000 $ 80,000 Accounts receivable $ 158,000 $ 182,000
Inventory $ 430,000 $ 355,000 Prepaid expenses $ 12,000 $ 13,000
Current liabilities: Accounts payable $ 358,000 $ 390,000 Accrued
liabilities $ 8,000 $ 12,500 Income...
Exercise 13-2 Net Cash Provided by Operating Activities [LO13-2] For the just completed year, Hanna Company...
Exercise 13-2 Net Cash Provided by Operating Activities
[LO13-2]
For the just completed year, Hanna Company had net income of
$35,000. Balances in the company’s current asset and current
liability accounts at the beginning and end of the year were as
follows:
December 31
End of Year
Beginning of Year
Current assets:
Cash and cash equivalents
$
30,000
$
40,000
Accounts receivable
$
125,000
$
106,000
Inventory
$
213,000
$
180,000
Prepaid expenses
$
6,000
$
7,000
Current liabilities:
Accounts...
Your company had net income of $125,000 for the year just ended. Dividends of $77,750 were...
Your company had net income of $125,000 for the year just ended.
Dividends of $77,750 were paid on the company's beginning equity of
$1,375,000. If the company has 96,000 common shares outstanding
with a current market price of $11.75 per share, what is the
required rate of return on the shares assuming a constant
sustainable growth rate of dividends?
options: 10.04%
10.30%
10.57%
10.83%
11.09%
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Whitman Company has just completed its first year of operations. The company’s absorption costing income statement...
Whitman Company has just completed its first year of operations.
The company’s absorption costing income statement for the year
follows:
Whitman Company
Income Statement
Sales (41,000 units × $44.60 per unit)
$
1,828,600
Cost of goods sold (41,000 units × $20 per unit)
820,000
Gross margin
1,008,600
Selling and administrative expenses
471,500
Net operating income
$
537,100
The company’s selling and administrative expenses consist of
$307,500 per year in fixed expenses and $4 per unit sold in
variable expenses. The...
Whitman Company has just completed its first year of operations. The company’s absorption costing income statement...
Whitman Company has
just completed its first year of operations. The company’s
absorption costing income statement for the year appears below:
Whitman Company
Income Statement
Sales (42,000 units × $44.60 per unit)
$
1,873,200
Cost of goods
sold (42,000 units × $24 per unit)
1,008,000
Gross
margin
865,200
Selling and
administrative expenses
483,000
Net operating
income
$
382,200
The company’s selling
and administrative expenses consist of $315,000 per year in fixed
expenses and $4 per unit sold in variable...
Whitman Company has just completed its first year of operations. The company’s absorption costing income statement...
Whitman Company has
just completed its first year of operations. The company’s
absorption costing income statement for the year follows:
Whitman Company
Income Statement
Sales (38,000
units × $41.60 per unit)
$
1,580,800
Cost of goods
sold (38,000 units × $24 per unit)
912,000
Gross
margin
668,800
Selling and
administrative expenses
475,000
Net operating
income
$
193,800
The company’s selling
and administrative expenses consist of $285,000 per year in fixed
expenses and $5 per unit sold in variable expenses. The...
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