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In: Computer Science
The financial statements for Linked Ltd. are shown below:
The financial statements for Linked Ltd. are shown below:
During the year, the company purchased a capital asset valued at $30,000; payment was made by issuing common shares. Additional capital assets were acquired for cash. Changes in other accounts were typical transactions.
Required:
1. Prepare the SCF using the indirect method. Include required note disclosure of non-cash transactions. Omit the separate disclosure of cash flow for interest, investment income, and income tax.
2. Explain the company’s cash transactions for the year, based on the SCF.
Solutions
Expert Solution
Requirement 1
LINKED LIMITED
Statement of Cash Flows
Year ended 31 December 20x5
Non-cash transaction: Issued $30,000 of common shares for capital assets.
Requirement 2
The company had modest earnings for the year, at $110,400. However, there was a large cash flow from operations at $274,200. This difference is explained by the presence of a non-cash impairment of goodwill in earnings. Cash was raised through borrowing with a bond payable and shares were issued for cash. Cash was used to buy $579,000 in capital assets, a major investment. Cash was also used to pay $95,700 in dividends.
Junaid answered 1 year agoRelated Solutions
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2020
Net sales
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Cost of goods sold
625,000
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Gross profit
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Operating expenses
154,000
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Profit from operations
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2020
2019...
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THE CULLUMBER COMPANY LTD.
Income Statement
Year Ended December 31
2021
2020
Net sales
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Profit from operations
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140,630
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Income tax expense
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$244,671
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Comparative financial statements for Oriole and Cheyenne Ltd.
are shown below.
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Net sales
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Cost of goods sold
625,000
575,000
Gross profit
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Operating expenses
154,000
150,000
Profit from operations
121,000
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Other revenues and expenses
Interest expense
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Profit before income tax
91,000
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Balance Sheet
December 31
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2020
2019...
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The financial statements and industry norms are shown below
for Pamplin, Inc.:
a. Compute the financial ratios for Pamplin for 2014 and for
2015 to compare both against the industry norms.
b. How liquid is the firm?
c.
Areitsmanagersgeneratinganadequateoperatingprofitonthefirm’sassets?
d. How is the firm financing its assets?
e. Are its managers generating a good return on equity?
INDUSTRY NORM
Current ratio
5.00
Acid-test (quick) ratio
3.00
Inventory turnover
2.20
Average collection period
90.00
Debt ratio
0.33
Times interest earned
7.00...
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Comparative Statement of Financial Position
31 December 2018
________________________________________________________________________________________
Assets
2018
2017
Cash
..................................................................................................
$
25,000
$ 40,000
Marketable securities
...........................................................................
15,000
60,000
Accounts receivable (net)
.....................................................................
50,000
30,000
Inventory
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150,000
170,000
Property, plant and equipment (net)
......................................................
160,000
200,000
Total assets
..................................................................................
$400,000 $500,000
Liabilities and equity
Accounts payable
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$
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Short-term notes payable
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40,000
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Cost Of Goods Sold
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Other Expenses
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75,500
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Taxes (30%)
383,835
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AAA Ltd. Balance Sheet
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2018
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Financial? ratios: Financial leverage.??The financial
statements for Tyler? Toys, Inc. are shown in the table below.
Calculate the debt? ratio, times interest earned? ratio, and
cash coverage ratio for 2013 and 2014 for Tyler Toys. Should any of
these ratios or the change in a ratio warrant concern for the
managers of Tyler Toys or the? shareholders?
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Income Statement for Years Ending December 31, 2013 and
2014
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2013
Revenue
$14,146,827
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Cost of goods sold
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financial statements for Tyler Toys, Inc. are shown below.
Calculate the debt ratio, times interest earned ratio, and cash
coverage ratio for 2013 and 2014 for Tyler Toys. Should any of
these ratios or the change in a ratio warrant concern for the
managers of Tyler Toys or the shareholders?
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Income Statement for Years Ending December 31, 2013 and
2014
2014
2013
Revenue
$14,147,996
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Cost of goods sold
$-8,448,120
$-8,131,722
Selling,...
Financial ratios: Financial leverage. The financial statements for Tyler Toys, Inc. are shown below. Calculate the...
Financial ratios: Financial leverage. The
financial statements for Tyler Toys, Inc. are shown below.
Calculate the debt ratio, times interest earned ratio, and cash
coverage ratio for 2013 and 2014 for Tyler Toys. Should any of
these ratios or the change in a ratio warrant concern for the
managers of Tyler Toys or the shareholders?
Tyler Toys, Inc.
Income Statement for Years Ending December 31, 2013 and
2014
2014
2013
Revenue
$14,146,008
$13,566,936
Cost of goods sold
$-8,448,426
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Selling,...
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