The cost of goods sold during the year was $281200. Inventory increased by $9000 during the year and accounts payable decreased by $14100 during the year. Using the direct method of reporting cash flows from operating activities, cash payments for inventory total

$295300.

$304300.

Please help clarify the steps to calculate corporate taxable income for the year based on the following financial information (book versus tax income). If any information is needed please ask before shutting down the question as incomplete.

Apex Corporation was incorporated on January 1, 2017. Here is the income & balance sheet statement for Apex Corp. for December 31, 2017.

Here are some other data:

1. The total compensation of officers is $2,500,000; other wages and salaries is $5,000,000.
2. Apex actually wrote off $27,000 of its accounts receivable as uncollectible.
3. Charitable contributions, $500,000, were all cash contributions.
4. Tax depreciation was $1,900,000.
5. Apex wrote off $30,000 of goodwill as impaired.
6. Apex’s dividends received deduction is $130,000
7. Apex made $480,000 in estimated tax payments.
8. Apex’s taxable interest income is $8,000.
9. Apex’s other deductions are 166,600.

A client earned in first year of business, in 2015 $50,000 in cash however was told that the money earned did not have to be claimed however you learned that the client actually earned $190,000 in 2015 in cash.

Is it correct that if you earned all cash it does not have to be reported?

Is the cash that the client made taxable? If so how much?

.What will you tell the client?

What laws govern this situation? (Source)

What penalties are possible? (source for the information)

The records of the Dodge Corporation show the following results for the most recent year:

Given these data, the unit contribution margin was:

$4

$5

$19

$9

Personal Budget

At the beginning of the school year, Craig Kovar decided to prepare a cash budget for the months of September, October, November, and December. The budget must plan for enough cash on December 31 to pay the spring semester tuition, which is the same as the fall tuition. The following information relates to the budget:

a. Prepare a cash budget for September, October, November, and December. Use the minus sign to indicate cash outflows, a decrease in cash or cash payments.

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b. Are the four monthly budgets that are presented prepared as static budgets or flexible budgets?

Static

c. What are the budget implications for Craig Kovar?

Craig can see that his present plan will not provide  sufficient cash. If Craig did not budget but went ahead with the original plan, he would be $ ________ short  at the end of December, with no time left to adjust.

The net income reported on the income statement for the current year was $121,900. Depreciation recorded on store equipment for the year amounted to $20,100. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows:

a. Prepare the “Cash flows from operating activities” section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments.

b. Cash flows from operating activities differs from net income because it does not use the   of accounting. For example revenues are recorded on the income statement when

The following unadjusted trial balance is for Groenke Construction Company as of year-end for the December 31, 20x7 fiscal year. The December 31, 20x6 credit balance of the stockholders’ equity account is $61,900, and the stockholders invested $45,000 cash in the company during 20x7.

1. Account Title Debit                     Credit

101         Cash                                                      $15,000

126         Supplies                                               $8,500

128         Pre-paid insurance                          $11,200

167         Equipment                                          $175,000

168         Accumulated depreciation – equipment                 $19,000

201         Accounts payable                                                               $9,250

251         Long-term notes payable                                               $45,000

301         Shareholders’ equity                                                      $106,900

302         Dividends                                            $15,750

401         Construction Revenue                                                   $153,000

623         Wage expense                                  $61,800

633         Interest expense                               $6,250

640         Rent expense                                    $15,750

683         Property tax expense                    $12,500

684         Repairs expense                                $6,100

690         Utilities expense                                $5,300

TOTALS                                                            $333,150                  $333,150

Instructions:

Use the template provided to:

1. Journalize the following adjusting entries as of fiscal year-end December 31, 20x7.
2. Post the adjusting entries to an unadjusted trial balance and prepare the adjusted trial balance.
3. Create financial statements, namely: i) the income statement, ii) statement of stockholders’ equity, and iii) the balance sheet for 20x7.

Adjustments needed:

1. The supplies available at the end of the fiscal year 20x7 are at a cost of $5,700.
2. The company's employees have earned $3.500 in accrued wages for the fiscal year.
3. The cost of expired insurance for the fiscal year is $8,600.
4. The rent expense not yet paid or recorded in the fiscal year is $2,250.
5. Annual depreciation on equipment is $8,000; no other depreciation adjustment was made in 20x7.
6. The $450 accrued interest for December has not yet been paid and reported.
7. Additional property taxes of $625 have been assessed for the fiscal year but have not yet been paid or recorded in the accounts.
8. The December utilities expense of $425 is not included in the adjusted trial balance, because the bill arrived after the trial balance was prepared. The $425 amount owed needs to be recorded.
9. The company paid dividends of $15,575 to its shareholders on record.

An engineer is planning a 15 year retirement. She has decided that she will need to withdraw $4,000 each month from her bank account to live. How much money should she have in the bank at the start of her retirement, if the bank pays 0.25% interest per month (compounded monthly)?

- During the year ended 31 December, the business made sales of merchandises of £45,000 and purchases of merchandises of £25,000. The inventory of merchandises at the beginning of the year was valued at £8,000 and, at 31 December, £4,500. The gross profit for the year was:
a) £16,500.
b) £23,500.
c). £20,000.
d) None of these amounts

- If a firm purchases an Equipment (Fixed assets), net income decreases by the amount of the equipment purchase
a)True
b)False

- Which one of the following events will reduce the cash balances of a business?   
a)Dividend proposed pending shareholder approval
b)Purchase of stock on credit
c)Purchase of fixed assets on interest free credit
d)Suppliers paid amounts owed

- Which of the following is a cash outflow?   
a)Creation of a provision
b)Sale of a fixed assets
c)Payment of dividends
d)Depreciation

- A company has a negative cash flow from operating activities. What could explain this negative cash-flow?   
a)A substantial investment in new fixed assets
b)The repayment of a loan
c)A sudden increase in credit sales
d)High levels of dividend

- The basic business equation is
a)Fixed assets + current assets – Current Liabilities = Equity + Total liabilities
b)Fixed assets + current assets – Dividends = Equity + Total liabilities – Net income
c)Fixed assets + current assets = Equity + Total liabilities
d)Total Assets – Capital = Equity + Total liabilities