Question

In: Accounting

Terry Company’s 1994 income statement and comparative balance sheets at December 31, 1994 and 1993, are...

Terry Company’s 1994 income statement and comparative balance sheets at December 31, 1994 and 1993, are as follows (SHOW YOUR WORK WITH THE ACCOUNTING TITLES):

Terry Company

Income Statement

For the Year Ended December 31, 1994

Sales $876,000

Dividend Income 5,000

$881,000

Cost of Goods Sold $486,000

Wages Expense 92,000

Advertising Expense 10,000

Depreciation Expense 22,000

Income Tax Expense 27,000

Loss on Sale of Investments 2,000 639,000

$242,000

Terry Company

Balance Sheet

Assets Dec. 31, 1994 Dec. 31, 1993

Cash $ 92,000 $ 22,000

Accounts Receivable 42,000 38,000

Inventory 107,000 141,000

Prepaid Advertising 17,000 19,000

Long-term Investments 30,000 41,000

Plant Assets 378,000 330,000

Accumulated Depreciation (183,000) (161,000)

Total Assets $483,000 $430,000

Liabilities and Stockholder’s Equity

Accounts Payable $ 27,000 $ 54,000

Wages Payable 6,000 12,500

Income Tax Payable 3,000 8,500

Common Stock 345,000 325,000

Retained Earnings 102,000 30,000

Total Liabilities and Stockholder’s Equity $483,000 $430,000

Cash dividends of $170,000 were declared and paid during 1994. Plant assets were purchased for cash, and later in the year, additional common stock was issued for cash. Investments costing $11,000 were sold for cash at a $2,000 loss.

Terry’s cash flow from FINANCING Activities in 1994 was (3 points):

Terry’s Cash flow from INVESTING Activities in 1994 was (3 points):

Terry’s cash flow from OPERATIONS in 1994 was (6 points):

Cash Collected From Customers (3 points):

Determine the amount of free cash flows (3 points):

Expert Solution

Answer A.

Answer B.

Proceed from sale of investments = Cost of investments sold - Loss on sale of investment
Proceed from sale of investments = $11,000 - $2,000
Proceed from sale of investments = $9,000

Answer C.

Answer D.

Cash collected from customers = Beginning accounts receivable + Sales - Ending accounts receivable
Cash collected from customers = $38,000 + $876,000 - $42,000
Cash collected from customers = $872,000

Answer E.

Free cash flows = Net cash provided by operating activities - Net capital spending - Dividends
Free cash flows = $259,000 - $48,000 - $20,000
Free cash flows = $191,000

ekkarill92 answered 1 year ago

1. Terry company's 2019 income statement and comparative balance sheets at December 31 of 2018 and...

1. Terry company's 2019 income statement and comparative balance sheets at December 31 of 2018 and 2019are shown. Terry Company Income Statement For the year Ended December 31, 2019 Sales $ 390,000 Cost of Goods Sold 235,000 _______ Gross Profit $ 155,000 Wages Expenses $ 63,000 Depreciation Expense 14,000 Other Operating Expenses 26,000 Income Tax Expense 17,000 120,000 ______ ________ Net Income $ 35,000 T Terry Company Balance Sheets Dec. 31, Dec. 31, ...

Terry company's 2017 income statement and comparative balance sheets at December 31 of 2016 and 2017are...

Terry company's 2017 income statement and comparative balance sheets at December 31 of 2016 and 2017are shown. Terry Company Income Statement For the year Ended December 31, 2017 Sales $ 390,000 Cost of Goods Sold 235,000 _______ Gross Profit $ 155,000 Wages Expenses $ 63,000 Depreciation Expense 14,000 Other Operating Expenses 26,000 Income Tax Expense 17,000 120,000 ______ ________ Net Income $ 35,000 Terry Company Balance Sheets...

The Rainbow Company’s income statement and comparative balance sheets as of December 31 of 2013 and...

The Rainbow Company’s income statement and comparative balance sheets as of December 31 of 2013 and 2012 follow: RAINBOW COMPANY Income Statement For the Year Ended December 31, 2013 Sales Revenue $750,000 Dividend Income 15,000 765,000 Cost of Goods Sold $440,000 Wages and Other Operating Expenses 130,000 Depreciation Expense 39,000 Patent Amortization Expense 7,000 Interest Expense 13,000 Income Tax Expense 44,000 Loss on Sale of Equipment 5,000 Gain on Sale of Investments (10,000) 668,000 Net Income $97,000 RAINBOW COMPANY Balance...

Quiz #10 Husky Company’s 2016 income statement and comparative balance sheets as of December 31 of...

Quiz #10 Husky Company’s 2016 income statement and comparative balance sheets as of December 31 of 2016 and 2015 are shown below: HUSKY COMPANY Income Statement For Year Ended December 31, 2016 Sales revenue…………………………………………………... $1,270,000 Cost of goods sold……………………………………………... $860,000 Wages expense………………………………………………… 172,000 Insurance expense…………………………………………….. 16,000 Depreciation expense………………………………………….. 34,000 Interest expense……………………………………………….. 18,000 Income tax expense…………………………………………… 58,000 1,158,000 Net income…………………………………………………….. $ 112,000 HUSKY COMPANY Balance Sheets Dec. 31, 2016 Dec. 31, 2015 Assets Cash…………………………………………………………….. $ 22,000 $ 10,000 Accounts receivable……………………………………………. 82,000...

Rainbow Company’s income statement and comparative balance sheets follow.

Preparing a Statement of Cash Flows (Indirect Method) Rainbow Company’s income statement and comparative balance sheets follow. RAINBOW COMPANYIncome StatementFor Year Ended December 31, 2016 Sales $750,000 Dividend Income 15,000 Total Revenue 765,000 Cost of Goods Sold $440,000 Wages and Other Operating Expenses 130,000 Depreciation Expense 39,000 Patent Amortization Expense 7,000 Interest Expense 13,000 Income Tax Expense 44,000 Loss on...

Sunland Company’s comparative balance sheets are presented below. Sunland Company Comparative Balance Sheets December 31 2019...

Sunland Company’s comparative balance sheets are presented below. Sunland Company Comparative Balance Sheets December 31 2019 2018 Cash $ 15,000 $ 10,200 Accounts receivable 21,400 23,800 Land 19,800 26,400 Buildings 70,100 70,100 Accumulated depreciation—buildings (15,300 ) (10,800 ) Total $111,000 $119,700 Accounts payable $ 12,800 $ 27,800 Common stock 74,600 73,400 Retained earnings 23,600 18,500 Total $111,000 $119,700 Additional information: 1. Net income was $22,800. Dividends declared and paid were $17,700. 2. No noncash investing and financing activities occurred during...

Pharoah Company’s comparative balance sheets are presented below: Pharoah Company Comparative Balance Sheets December 31 2020...

Pharoah Company’s comparative balance sheets are presented below: Pharoah Company Comparative Balance Sheets December 31 2020 2019 Cash $ 17,000 $ 17,500 Accounts receivable 25,000 22,400 Investments 19,850 16,050 Equipment 60,050 69,750 Accumulated depreciation—equipment (13,750 ) (10,400 ) Total $108,150 $115,300 Accounts payable $ 14,750 $ 11,250 Bonds payable 10,400 30,000 Common stock 49,500 45,200 Retained earnings 33,500 28,850 Total $108,150 $115,300 Additional information: 1.Net income was $18,450. Dividends declared and paid were $13,800. 2.Equipment which cost $9,700 and had...

SportsNet Corporation’s recent comparative balance sheet and income statement follow: Balance Sheets, December 31 2019 2020...

SportsNet Corporation’s recent comparative balance sheet and income statement follow: Balance Sheets, December 31 2019 2020 Assets Cash $ 51,200 $102,400 Accounts receivable 179,200 166,400 Allowance for doubtful accounts (19,200) (16,000) Other receivables (nontrade) 9,600 6,400 Inventory 96,000 102,400 Equipment 256,000 246,400 Accumulated depreciation (19,200) (16,000) Intangibles, net 176,000 169,600 Total assets $729,600 $761,600 Liabilities and Stockholders' Equity Accounts payable $160,000 $192,000 Income taxes payable 224,000 160,000 Interest payable 6,400 3,200 Bonds payable 102,400 — Discount on bonds payable (6,400)...

Statement of Cash Flows (Direct Method) The Wolff Company’s income statement and comparative balance sheets at...

Statement of Cash Flows (Direct Method) The Wolff Company’s income statement and comparative balance sheets at December 31 of 2016 and 2015 are shown below: WOLFF COMPANY Income Statement For the Year Ended December 31, 2016 Sales Revenue $645,000 Cost of Goods Sold $430,000 Wages Expense 86,000 Insurance Expense 12,000 Depreciation Expense 13,000 Interest Expense 12,000 Income Tax Expense 29,000 582,000 Net Income $63,000 WOLFF COMPANY Balance Sheets Dec. 31, 2016 Dec. 31, 2015 Assets Cash $52,000 $8,000 Accounts Receivable...

Statement of Cash Flows (Indirect Method) The Wolff Company’s income statement and comparative balance sheets at...

Statement of Cash Flows (Indirect Method) The Wolff Company’s income statement and comparative balance sheets at December 31 of 2016 and 2015 are shown below: WOLFF COMPANY Income Statement For the Year Ended December 31, 2016 Sales Revenue $645,000 Cost of Goods Sold $430,000 Wages Expense 86,000 Insurance Expense 12,000 Depreciation Expense 13,000 Interest Expense 12,000 Income Tax Expense 29,000 582,000 Net Income $63,000 WOLFF COMPANY Balance Sheets Dec. 31, 2016 Dec. 31, 2015 Assets Cash $52,000 $8,000 Accounts Receivable...