Cash flow from assets. Use the data from the following financial statements in the popup​ window, LOADING.... The company paid interest expense of $ 17 comma 300 for 2017 and had an overall tax rate of 40 % for 2017. Find the cash flow from assets for 2017​, and break it into its three​ parts: operating cash​ flow, capital​ spending, and change in net working capital.

Prepare the financing section of the statement of cash flows for the year ended December 31, 2018.

13) Dakota Telescopes Company uses the indirect method to prepare the statement of cash flows. Refer to the following income statement:

                                   Dakota Telescopes Company

                                             Income Statement

                                 Year Ended December 31, 2019

Sales Revenue                                                   $275,000

Interest Revenue                                                     2,600

Total Revenues                                                                                   $277,600

Cost of Goods Sold                                             135,000

Salary Expense                                                      66,500

Depreciation Expense                                          32,000

Other Operating Expenses                                 35,900

Interest Expense                                                      2,400

Income Tax Expense                                              6,500

Loss on Sale of Plant Assets                                 2,000

Total Expenses and Losses                                                                280,300

Net Loss                                                                                                ($2,700)

Additional information provided by the company includes the following:

Current assets other than cash decreased by $25,000.

Current liabilities increased by $3,000.

Prepare the operating activities section of the statement of cash flows.

Dividends on preferred stock.

In each of the following independent cases, it is assumed that the corporation has $800,000 of 6% preferred stock and $3,200,000 of common stock outstanding, each having a par value of $10. No dividends have been declared for 2013 and 2014.

(a) As of 12/31/15, it is desired to distribute $250,000 in dividends. How much will the preferred stockholders receive if their stock is cumulative and nonparticipating?

(b) As of 12/31/15, it is desired to distribute $800,000 in dividends. How much will the preferred stockholders receive if their stock is cumulative and participating up to 11% in total?

(c) On 12/31/15, the preferred stockholders received a $240,000 dividend on their stock which is cumulative and fully participating. How much money was distributed in total for dividends during 2015?

Explain the distinction between a direct-financing lease and a sales-type lease for a lessor.

Alphabet Company, which uses the periodic inventory method, purchases different letters for resale. Alphabet had no beginning inventory. It purchased A thru G in January at $4 per letter. In February, it purchased H thru L at $6 per letter. It purchased M thru R in March at $7 per letter. It sold A, D, E, H, J and N in October. There were no additional purchases or sales during the remainder of the year.

If Alphabet Company uses the specific identification method, what is the cost of its ending inventory?

Multiple Choice

• $31

• $69

• $76

• $100

ESSAY. Write your answer in the space provided or on a separate sheet of paper.

12) Nashville Records Company uses the indirect method to prepare its statement of cash flows. Refer to the following sections of the comparative balance sheet:

                                                                   Nashville Records Company

                                                                    Comparative Balance Sheet

                                                                   December 31, 2018 and 2017

                                                                                              2018                      2017    Increase (Decrease)

Accounts Payable                                                         $ 6,000                   $ 9,000                    $(3,000)

Accrued Liabilities                                                          3,000                      1,500                        1,500

Long-term Notes Payable                                         126,000                  135,000                      (9,000)

Total Liabilities                                                         $135,000                $145,500                  $(10,500)

Common Stock                                                              45,000                      3,000                       42,000

Retained Earnings                                                       169,500                  111,000                       58,500

Treasury Stock                                                            (12,000)                   (7,500)                        (4,500)

Total Equity                                                                  202,500                  106,500                       96,000

Total Liabilities and Stockholders' Equity          $337,500                $252,000                     $85,500

Additional information for 2018:

•    No stock was retired.

•    No treasury stock was sold.

•    The company repaid $60,000 of long-term notes payable.

•    The company borrowed $51,000 on a new long-term note payable.

•    Net income for the year was $68,000.

QUESTION 22

Colin and Jane form a partnership on 1 July 2016.

Colin’s contribution is $20,000 cash and $80,000 inventory. Jane’s contribution is $16,000 cash and land that cost $125,000 but has a market value of $200,000.

Required:

1. Prepare the necessary journal entries to set up the partnership on 1 July 2016.

The partnership of Colin and Jane has been in operation for one month and they have made a net profit of $23,000.

The partnership agreement provides for the following:

• An interest allowance of 5% of their capital balances.

(There has been no change in the partners’ capital balance since the partnership was set up).

• Salaries of $2,300 for Colin and $1,900 for Jane.
• Residual profits are to be divided equally.

Required:

2. Calculate the amount of profit allocated to each partner showing all workings.

3. Prepare the general journal entries to allocate the profit for the month to each of the partners.

Ajax Company bought equipment for $2,500. The company estimates that the equipment’s period of useful life will be 5 years. After 5 years the residual value is $500. Calculate depreciation expense and complete a depreciation schedule

A company had the following purchases during its first year of operations:
  

On December 31, there were 45 units remaining in ending inventory. These 45 units consisted of 6 from January, 7 from February, 11 from May, 5 from September, and 16 from November. Using the specific identification method, what is the cost of the ending inventory?

Multiple Choice

• $5,434.

• $5,440.

• $6,160.

• $6,316.

• $6,472.

Select one of these provisions of Sarbanes Oxley Act: 302; 401; 402; 806; and 906. Write a brief description of the requirements of that section of the Act and briefly describe processes that a company would put in place to meet the requirements.

Part A:  In each of the following circumstances, determine whether the disposal would qualify as a discontinued operation.  All companies are calendar year companies and the transactions are occurring in 2018. Give citations from the ASC to justify your answer.

1.      An entity manufactures and sells consumer products that are grouped into five major product lines. Each product line includes several individual products that comprise the lowest where operations and cash flows that can be clearly distinguished, operationally and for financial reporting purposes, from the rest of the entity.  Product line 1 is made up of almost 100 different individual products. Due to declining sales, 3 products in Product line 1 were discontinued during the year.

2.         An entity manufactures and sells consumer products that are grouped into       five major product lines. Each product line includes several brands that       comprise the lowest where operations and cash flows that can be clearly            distinguished, operationally and for financial reporting purposes, from the           rest of the entity.  Product line 3 which makes up between 20 & 25% of the            entity’s total revenues has experienced significant market declines while the   other product lines have been growing.  As a result, the entity has decided to           sale its operations associated with Product line 3.

3.         An entity operates restaurants in several states. For that entity, each   restaurant comprises operations and cash flows that can be clearly distinguished, operationally and for financial reporting purposes, from the       rest of the entity.  As a result of an above market offer for two of its   restaurants in the state of Alabama, the entity sold these restaurants. These            two restaurants produced between 1 & 3% of the entity’s total revenues and            comprised about 1.5% of the entity’s total assets.

Part B. ABC Co. decided on March 3, 2018 to dispose of their Widget Segment. The sale of the segment was completed on November 13, 2018.  The disposal of this segment qualifies as a discontinued operation.  Income Statement data for ABC for calendar years 2016-2018 are as follows:

                                                               2018                          2017                          2016   

Sales                                                  $3,000,000               $2,700,000               $2,500,000

Cost of goods sold                             1,800,000                  1,593,000                  1,525,000

Operating expenses                             700,000                     680,000                     650,000

These amounts include the operating results for the Widget Segment through its disposal on November 13, 2018.  Income Statement data for the Widget Segment separately for 2016-2018 are as follows:

                                                               2018                          2017                          2016   

Sales                                                  $450,000                   $600,000                   $700,000

Cost of goods sold                            315,000                     408,000                     455,000

Operating expenses                          120,000                     150,000                     130,000

The book value of the assets and liabilities of Widget on November 13, 2018 was 4,800,000.  The sales price was 6,210,000.  ABC has a tax rate of 28% for 2016 & 2017 and a rate of 25% for 2018.

Required:  Prepare, in good form, complete comparative Income Statements for ABC for the years 2016-2018.

on April 1 2018, company sold 10,000 bonds ($1,000 face value) at 11% semi-annually. they are due April 1 2028.

proceeds from the bonds were 9,156,946 and their coupon dates are april 1 and october 1

on april 1 2020 , the company bough back 6,000 bonds for 5,331,000 cash.

- prepare journal entries for the bonds from sale (april 1, 2018 to the end of year 2020 (12/31/20)

- what are the 12/31/20 balances in the related bonds, discount, and interest payable (from T accounts)

- what amounts related to the bonds will appear in the income statement for 2020 and how will they be reported/classified?