Instant Brake Inc.’s comparative balance sheet information at
December 31, 2020 and 2019, and its income statement for the year
ended December 31, 2020, are as follows:
| Instant Brake Inc. | ||||||
| Income Statement | ||||||
| December 31, 2020 | ||||||
| Sales | $ | 879,000 | ||||
| Cost of goods sold | 571,000 | |||||
| Gross profit | $ | 308,000 | ||||
| Operating expenses | $ | 132,670 | ||||
| Depreciation expense | 41,230 | 173,900 | ||||
| Operating Profit | 134,100 | |||||
| Loss on sale of equipment | 12,110 | |||||
| Investment income | 19,020 | |||||
| Profit before taxes | 141,010 | |||||
| Income taxes | 17,000 | |||||
| Profit | $ | 124,010 | ||||
| Instant Brake Inc. | |||||||||
| Balance Sheet Information | |||||||||
| December 31 | |||||||||
| 2020 | 2019 | Net Change | |||||||
| Cash | $ | 43,000 | $ | 23,960 | $ | 19,040 | |||
| Cash equivalents | 24,780 | 8,600 | 16,180 | ||||||
| Accounts receivable | 87,320 | 32,440 | 54,880 | ||||||
| Inventory | 113,240 | 78,520 | 34,720 | ||||||
| Investment | 0 | 24,780 | 24,780 | ) | |||||
| Land | 75,800 | 75,800 | 0 | ||||||
| Building and equipment | 420,530 | 439,550 | (19,020 | ) | |||||
| Accumulated depreciation | 113,050 | 91,960 | 21,090 | ||||||
| Accounts payable | 11,900 | 36,800 | (24,900 | ) | |||||
| Dividends payable | 1,800 | 1,100 | 700 | ||||||
| Bonds payable | 19,000 | 0 | 19,000 | ||||||
| Preferred shares | 80,600 | 80,600 | 0 | ||||||
| Common shares | 405,080 | 405,080 | 0 | ||||||
| Retained earnings | 133,240 | 68,110 | 65,130 | ||||||
During 2020, the following transactions occurred:
Required:
1. How much cash was paid in dividends?
2. Prepare a statement of cash flows for Instant
Brake for the year ended December 31, 2020, using the indirect
method. (List any deduction in cash and cash outflows as
negative amounts.)
In: Accounting
The financial statements of the Precious Company appear below:
PRECIOUS COMPANY
Comparative Balance Sheet December 31,
_________________________________________________________________________
|
Assets |
2020 |
2019 |
|
Cash ............................................................................................. |
$ 25,000 |
$ 40,000 |
|
Debt investments .......................................................................... |
20,000 |
60,000 |
|
Accounts receivable (net) .............................................................. |
50,000 |
30,000 |
|
Inventory ....................................................................................... |
140,000 |
170,000 |
|
Property, plant and equipment (net) .............................................. |
170,000 |
200,000 |
|
Total assets ............................................................................. |
$405,000 |
$500,000 |
|
Liabilities and stockholders' equity |
||
|
Accounts payable .......................................................................... |
$ 25,000 |
$ 30,000 |
|
Short-term notes payable .............................................................. |
40,000 |
90,000 |
|
Bonds payable .............................................................................. |
75,000 |
160,000 |
|
Common shares ............................................................................ |
160,000 |
145,000 |
|
Retained earnings ......................................................................... |
105,000 |
75,000 |
|
Total liabilities and shareholders' equity ................................... |
$405,000 |
$500,000 |
PRECIOUS COMPANY
Income Statement
For the Year Ended December 31, 2020
|
Net sales (all on credit) ................................................................. |
$360,000 |
|
|
Cost of goods sold ........................................................................ |
184,000 |
|
|
Gross profit ................................................................................... |
176,000 |
|
|
Expenses |
||
|
Interest expense ...................................................................... |
$11,000 |
|
|
Selling expenses ..................................................................... |
30,000 |
|
|
Administrative expenses .......................................................... |
20,000 |
|
|
Total expenses .................................................................. |
61,000 |
|
|
Income before income taxes ......................................................... |
115,000 |
|
|
Income tax expense ...................................................................... |
35,000 |
|
|
Net income .................................................................................... |
$ 80,000 |
Additional information:
Required
Using the financial statements and additional information above, compute the following ratios for the Precious Company for 2020. Show all formulas and computations.
The end of the assignment
In: Accounting
A manufacturing area needs to forecast workhours. This is a slightly different project. The data for several months is supplied below. Beside each of the actual numbers in black, the forecast is provided in red. The goal is to calculate three stats on the data: MAD, MAPE, and the tracking signal. Be careful since the data is listed beginning with the most recent. Please round to two decimal places. For MAPE, please convert to a percentage before rounding. Do not enter the percent sign.
| Jul 2020: 1693, 1591 | Jun 2020: 1408, 1281 | May 2020: 1945, 2237 | Apr 2020: 1197, 1125 | Mar 2020: 1985, 2084 | Feb 2020: 1584, 1378 |
| Jan 2020: 1117, 1050 | Dec 2019: 1660, 1743 | Nov 2019: 1113, 968 | Oct 2019: 1127, 958 | Sep 2019: 1075, 1204 | Aug 2019: 1253, 1103 |
| Jul 2019: 1633, 1437 | Jun 2019: 1552, 1443 | May 2019: 1689, 1486 | Apr 2019: 1775, 1988 | Mar 2019: 1523, 1355 | Feb 2019: 1634, 1879 |
| Jan 2019: 1675, 1910 | Dec 2018: 1488, 1637 | Nov 2018: 1399, 1581 | Oct 2018: 1071, 975 | Sep 2018: 1721, 1807 | Aug 2018: 1389, 1195 |
| Jul 2018: 1656, 1457 | Jun 2018: 1342, 1409 | May 2018: 1022, 910 | Apr 2018: 1599, 1391 | Mar 2018: 1558, 1636 | Feb 2018: 1440, 1310 |
| Jan 2018: 1903, 2169 | Dec 2017: 1637, 1833 | Nov 2017: 1052, 999 | Oct 2017: 1092, 1256 | Sep 2017: 1955, 1740 | Aug 2017: 1623, 1866 |
| Jul 2017: 1682, 1917 |
| Please enter MAD here---> | |
| Please enter MAPE % here---> | |
| Please enter the tracking signal here---> |
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