Are the results with different interest rates different? Using your results elaborate on the power of compounding and how it impacts savings in the long run.
In: Finance
The following information was taken from the records of Bridgeport Inc. for the year 2017: Income tax applicable to income from continuing operations $206,448; income tax applicable to loss on discontinued operations $27,336, and unrealized holding gain on available-for-sale securities (net of tax) $23,700.
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Gain on sale of equipment |
$97,700 |
Cash dividends declared |
$139,500 |
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Loss on discontinued operations |
80,400 |
Retained earnings January 1, 2017 |
611,500 |
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Administrative expenses |
244,100 |
Cost of goods sold |
933,800 |
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Rent revenue |
44,200 |
Selling expenses |
277,800 |
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Loss on write-down of inventory |
60,600 |
Sales Revenue |
1,981,600 |
Shares outstanding during 2017 were 109,300.
(a) Prepare a multiple-step income statement. (Round earnings per share to 2 decimal places, e.g. 1.48.)
b) prepare a comprehensive income statement for 2017, using the two statement format.
c) prepare a retained earnings statement, or 2017.
In: Accounting
| The following information is available about the company: |
| a. | All sales during the year were on account. |
| b. | There was no change in the number of shares of common stock outstanding during the year. |
| c. | The interest expense on the income statement relates to the
bonds payable; the amount of bonds outstanding did not change during the year. |
| d. | Selected balances at the beginning of the current year were: |
| Accounts receivable | $ | 340,000 |
| Inventory | $ | 450,000 |
| Total assets | $ | 1,880,000 |
| e. | Selected financial ratios computed from the statements below for the current year are: |
| Earnings per share | $ | 3.15 | |
| Debt-to-equity ratio | 0.900 | ||
| Accounts receivable turnover | 15.0 | ||
| Current ratio | 2.10 | ||
| Return on total assets | 12 | % | |
| Times interest earned ratio | 6.0 | ||
| Acid-test ratio | 1.19 | ||
| Inventory turnover | 8.0 | ||
| Required: |
|
Compute the missing amounts on the company's financial statements. (Hint: What’s the difference between the acid-test ratio and the current ratio?) (Do not round intermediate calculations.) |
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Please Fill in the last 2 charts with the correct numbers.
In: Accounting
| The following information is available about the company: |
| a. | All sales during the year were on account. |
| b. | There was no change in the number of shares of common stock outstanding during the year. |
| c. | The interest expense on the income statement relates to the
bonds payable; the amount of bonds outstanding did not change during the year. |
| d. | Selected balances at the beginning of the current year were: |
| Accounts receivable | $ | 350,000 |
| Inventory | $ | 460,000 |
| Total assets | $ | 2,560,000 |
| e. | Selected financial ratios computed from the statements below for the current year are: |
| Earnings per share | $ | 5.76 | |
| Debt-to-equity ratio | 0.920 | ||
| Accounts receivable turnover | 16.0 | ||
| Current ratio | 2.20 | ||
| Return on total assets | 12 | % | |
| Times interest earned ratio | 7.0 | ||
| Acid-test ratio | 1.20 | ||
| Inventory turnover | 9.0 | ||
| Required: |
|
Compute the missing amounts on the company's financial statements. (Hint: What’s the difference between the acid-test ratio and the current ratio?) (Do not round intermediate calculations.) |
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Please Fill in the chart with correct numbers.
In: Accounting
Below is the Statement of Cash Flows for Sintern Ltd for the financial year ending 30 June 2022 (prepared using the Direct method):
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$ 000’s |
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Cash flows from operating activities |
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Receipts from customers |
676 000 |
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Payments to suppliers and employees |
(605 000) |
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Cash generated from operations |
71 000 |
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Interest paid |
(4 000) |
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Income tax paid |
(21 000) |
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Net cash from operating activities |
46 000 |
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Cash flows from investing activities |
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Cash paid for plant |
(25 000) |
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Net cash used in investing activities |
(25 000) |
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Cash flows from financing activities |
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Proceeds from borrowings |
40 000 |
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Dividend paid |
(23 000) |
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Net cash from financing activities |
17 000 |
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Net increase in cash and cash equivalents |
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38 000 |
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Cash and cash equivalents at beginning of year |
30 000 |
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Cash and cash equivalents at end of year |
68 000 |
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REQUIRED:
In: Accounting
The records of Alaska Company provide the following information for the year ended December 31. At Cost At Retail January 1 beginning inventory $ 469,010 $ 928,950 Cost of goods purchased 3,376,050 6,381,050 Sales 5,595,800 Sales returns 42,800 Required 1.Use the retail inventory method to estimate the company’s year-end inventory at cost. Check (1) Inventory, $924,182 cost 2.A year-end physical inventory at retail prices yields a total inventory of $1,686,900. Prepare a calculation showing the company’s loss from shrinkage at cost and at retail. (2) Inventory shortage at cost, $36,873
In: Accounting
Bob is a movie start earning millions of dollars last year as an actor. He is also a 40% active owner in a nightclub business. He participates in the management and whenever he is available Bob performs playing clarinet at the club once a weekend. Last year (2019) the nightclub earned $100,000 after paying all bills including paying the owners fair compensation for their services. However the nightclub did not pay any of this income out to the owners.
What tax or taxes must Bob pay due to his ownership if the business was organized as a) a partnership b) an S Corporation or c) a C Corporation
In: Accounting
At the end of its first year of operations on December 31, 2018, the Skyway Company reported taxable income of $30,000 and a pretax financial loss of $40,000. Differences between taxable income and pretax financial income included:Environmental fine from the EPA = $20,000Warranty costs expensed for accounting purposes in excess of cash paid for warranty costs = $50,000(Those warranty costs are expected to be paid in 2019.) The enacted tax rates for 2018 and 2019 are 30% and 34%, respectively.REQUIRED:(a) Prepare the income tax journal entry for the Skyway Company on December 31, 2018, assuming that it is more likely than not the deferred tax asset will be realized.(b) Prepare the income tax journal entry for the Skyway Company on December 31, 2018, assuming that it is more likely than not that 40% of the deferred tax asset will not be realized.
In: Accounting
Question: During the year, a company recorded prepayments of expenses in asset accounts, and cash receipts of
unearned revenues in liability accounts. At the end of its annual accounting period, the company must
make three adjusting entries:
(1) Accrue salaries expense. Dr. ___ Cr. ___
(2) Adjust the Unearned Services Revenue account to recognize earned revenue. Dr. ___ Cr. ___
(3) Record services revenue earned for which cash will be received the following period. Dr. ___ Cr. ___
For each of the adjusting entries (1), (2), and (3), indicate the account to be debited and the account to be
credited—from a through i below.
a. Prepaid Salaries d. Unearned Services Revenue g. Accounts Receivable
b. Cash e. Salaries Expense h. Accounts Payable
c. Salaries Payable f. Services Revenue i. Equipment
In: Accounting
What is the present value of the following planned cash flow for a 25 year power plant project? Assume that the annual cost of money is 4.2%. Draw the cash flow diagram and present your solution. Initial Investment (construction costs) - $60,000,000 Annual operating costs - $750,000 Annual maintenance costs - $95,000 Projected decommissioning expenses – $13,000,000 Projected income from scrap - $350,000
In: Finance