This post is currently awaiting moderation.
Question
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
Comparative financial statements for Wildhorse and Novak Ltd. are shown below. WILDHORSE AND NOVAK LTD. Income...
Comparative financial statements for Wildhorse and Novak Ltd.
are shown below.
WILDHORSE AND NOVAK LTD.
Income Statement
Year Ended December 31
2021
2020
Net sales
$900,000
$840,000
Cost of goods sold
625,000
575,000
Gross profit
275,000
265,000
Operating expenses
154,000
150,000
Profit from operations
121,000
115,000
Other revenues and expenses
Interest expense
30,000
20,000
Profit before income tax
91,000
95,000
Income tax expense
27,000
20,000
Profit
$64,000
$75,000
WILDHORSE AND NOVAK LTD.
Balance Sheet
December 31
Assets
2021
2020
2019...
Comparative financial statements for The Cullumber Company Ltd. are shown below. THE CULLUMBER COMPANY LTD. Income...
Comparative financial statements for The Cullumber Company Ltd.
are shown below.
THE CULLUMBER COMPANY LTD.
Income Statement
Year Ended December 31
2021
2020
Net sales
$1,779,530
$1,819,610
Cost of goods sold
1,091,290
1,028,920
Gross profit
688,240
790,690
Operating expenses
521,960
422,530
Profit from operations
166,280
368,160
Interest expense
25,650
18,630
Profit before income tax
140,630
349,530
Income tax expense
42,189
104,859
Profit
$98,441
$244,671
- / 1
View Policies
Current Attempt in Progress
Comparative financial statements for The Cullumber Company...
Comparative financial statements for Oriole and Cheyenne Ltd. are shown below. ORIOLE AND CHEYENNE LTD. Income...
Comparative financial statements for Oriole and Cheyenne Ltd.
are shown below.
ORIOLE AND CHEYENNE LTD.
Income Statement
Year Ended December 31
2021
2020
Net sales
$900,000
$840,000
Cost of goods sold
625,000
575,000
Gross profit
275,000
265,000
Operating expenses
154,000
150,000
Profit from operations
121,000
115,000
Other revenues and expenses
Interest expense
30,000
20,000
Profit before income tax
91,000
95,000
Income tax expense
27,000
20,000
Profit
$64,000
$75,000
ORIOLE AND CHEYENNE LTD.
Balance Sheet
December 31
Assets
2021
2020
2019...
Financial statements for Askew Industries for 2021 are shown below (in thousands):
Financial statements for Askew Industries for 2021 are shown below (in thousands):
2021 Income StatementNet sales ....................................$ 9,000Cost of goods sold .....................(6,300)Gross profit .................................2,700Operating expenses .................(2,100)Interest expense .........................(200)Income tax expense ...................(100)Net income ................................$ 300
Required:Calculate the following ratios for 2021.1. Inventory turnover ratio2. Average days in inventory3. Receivables turnover ratio4. Average collection period5. Asset turnover ratio6. Profit margin on sales7. Return on assets8. Return on equity9. Equity multiplier10. Return on equity (using the DuPont framework)
The financial statements and industry norms are shown below for Pamplin, Inc.: a. Compute the financial...
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...
The financial statements of Morgan Ltd appear below: Morgan LTD Comparative Statement of Financial Position 31...
The financial statements of Morgan Ltd appear below:
Morgan LTD
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
............................................................................................
150,000
170,000
Property, plant and equipment (net)
......................................................
160,000
200,000
Total assets
..................................................................................
$400,000 $500,000
Liabilities and equity
Accounts payable
................................................................................
$
20,000
$ 30,000
Short-term notes payable
.....................................................................
40,000
90,000
Bonds payable...
Financial information on AAA Ltd. is shown below. AAA Ltd. Income Statement For the Year Ended...
Financial information on AAA Ltd. is shown below.
AAA Ltd. Income Statement
For the Year Ended December 31st,
2019
2018
Sales
5,375,250
4,025,350
Cost Of Goods Sold
2,835,450
2,105,837
Other Expenses
1,100,500
1,058,600
Depreciation
75,500
67,800
Earnings Before Interest and Taxes
1,363,800
793,113
Interest Expense
84,350
68,925
Earnings Before Taxes
1,279,450
724,188
Taxes (30%)
383,835
217,256
Net Income
$ 895,615
$ 506,932
AAA Ltd. Balance Sheet
As at December 31st,
ASSETS
2019
2018
Cash & Equivalent
67,250
53,925
...
Financial? ratios: Financial leverage.??The financial statements for Tyler? Toys, Inc. are shown in the table below....
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?
Tyler Toys, Inc.
Income Statement for Years Ending December 31, 2013 and
2014
2014
2013
Revenue
$14,146,827
$13,567,406
Cost of goods sold
$-8,447,289...
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
$14,147,996
$13,566,458
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
$-8,131,134
Selling,...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Question 1: What is For Loop? Explain with 2 Examples. You can write code in any...
- If a corporation has limited capital to use for project investment, but it has more projects...
- I have a problem with my code. It does not run. Please can someone check the...
- As discussed in the text, in the absence of market imperfections and tax effects, we would...
- //This is an ArrayReverser Problem.. import java.util.Scanner; public class Main { public static void main(String[] args)...
- After completing its capital spending for the year, Carlson Manufacturing has $1,100 extra cash. Carlson’s managers...
- Question 2: How can we find the real root of a polynomial with one variable? Also...
ADVERTISEMENT