The following information has been extracted from the financial statements of a company. Use it to answer the 4 questions that follow it. When answering the questions (filling in the blanks), DO NOT use dollar signs, USE commas to separate thousands, DO NOT use parenthesis to denote negative numbers, USE the negative sign in front of first digit for negative numbers. Round to the nearest dollar.

1. What is the Net Cash Flow (NFC) for 2020?

2. What is the Investment in Gross Fixed Assets for 2020?

3. What is the investment in net operating working capital (Investment NOWC) for 2020?

4. What is the Free Cash Flow (FCF) for 2020?

Luxley Corporation has $150,000 of income before taxes in its 2020 accounting records. In computing income tax expense, Luxley makes the following                                          
observations of differences between the accounting records and the tax return:                                          
                                          
1.     An accelerated depreciation method is used for tax purposes. In 2020, Luxley reports $12,000 more depreciation expense for tax purposes                                           
than it shows in the accounting records. The excess depreciation is expected to reverse in 2023.                                          
                                          
2.     In 2020, Luxley collected $120,000 from a business that is renting a portion of its warehouse. The $120,000 covers the rental payment                                           
for the four years 2021-2024, and therefore no rental revenue has been recognized for 2020. However, XYZ must pay taxes on the entire                                           
amount collected in 2020.                                          
                                          
The enacted tax rate in 2020 is 21%. It is 23% in 2021 and in 2022, and is 24% in 2023 and years following.                                          
                                          
Required:                                          
a.   Calculate taxable income for 2020.                                       
                                          
b.   Prepare the journal entry necessary to record income taxes at the end of 2020.                                        
                                          
c.   How would any deferred tax amounts be reported on a classified balance sheet?                                        
                                          
d.   Assume that Luxley’s 2021 pretax accounting income is $27,000 and that Luxley reports $6,000 more depreciation expense                                       
   for tax purposes than it shows in the accounting records, expected to reverse in 2024. Also during 2021, Luxley invests in tax-free                                       
   municipal bonds that earn $9,000 interest in 2021. Prepare the journal entry necessary to record income taxes at the end of 2021.                                        
                                          
e.   What is the amount of net income or loss that Luxley would report on its 2021 income statement and how will it be reported?                    

On September 1, 2020, Myo Inc. sold goods to Khin Corporation, a new customer. Before shipping the goods, Myo's credit and collections department conducted a procedural credit check and determined that Khin is a high credit-risk customer. As a result, Myo did not provide Khin with open credit by recording the sale as an account receivable. Instead, Myo required Khin to provide a non–interest-bearing promissory note for $35,000 face value, to be repaid in one year. Khin has a credit rating that requires it to pay 12% interest on borrowed funds. Myo pays 10% interest on a loan recently obtained from its local bank. Myo has a December 31 year-end.

Prepare the entries required on Myo's books to record the sale, annual adjusting entry, and collection of the note's full face value.

b. Assume that on the note's maturity date, Khin informs Myo that it is having cash flow problems and can pay Myo only 80% of the note's face value. After extensive discussions with Khin's management, Myo's credit and collections department consider the remaining balance of the note uncollectible. Prepare the entry required on Myo's books on the note's maturity date.

c. What else could Myo have done to decrease collection risk related to the sale to Khin?

Wright Corporation had the following permanent accounts and ending balances on December 31, 2020 (before adjusting entries):

There have been no transactions recorded in Allowance for Doubtful Accounts over the year. The company should recognize bad debt expenses for $5,000 at the end of 2020. The company prepaid $20,000 for one-year insurance becoming effective on October 1, 2020. The company purchased the equipment on July 1, 2018, and estimated that the useful life of the equipment is 20 years and there is no residual value of the equipment. The company adopted straight-line method to account for depreciation. On December 31, 2020, the fair values of FV-NI investment and FV-OCI investments were $200,000 and $520,000, respectively. The company used the perpetual inventory system. There were no accrued interest and discount/premium on bonds, and other accrual items. Please do not consider the income tax effect.

Required:

Prepare a statement of financial position as at December 31, 2020, presenting assets and liabilities in order of liquidity.

KILM (Key Indicators of Labour Market) 4. Employment by sector: State datas for Turkey for the period before March 2020. ( 4 years of comparison is enough). Use ILO or TurkStat data

Headland Company reports pretax financial income of $76,500 for 2020. The following items cause taxable income to be different than pretax financial income. 1. Depreciation on the tax return is greater than depreciation on the income statement by $15,700. 2. Rent collected on the tax return is greater than rent recognized on the income statement by $23,400. 3. Fines for pollution appear as an expense of $10,500 on the income statement. Headland’s tax rate is 30% for all years, and the company expects to report taxable income in all future years. There are no deferred taxes at the beginning of 2020.

A)Compute taxable income and income taxes payable for 2020.

B)Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2020.

c)Prepare the income tax expense section of the income statement for 2020, beginning with the line “Income before income taxes.”

D)Compute the effective income tax rate for 2020

Metals Corporation reports pretax financial income of $260,000 for 2020. The following items cause taxable income to be different than pretax financial income: 1. Rental income on the income statement is less than rent collected on the tax return by $65,000. 2. Depreciation on the tax return is greater than depreciation on the income statement by $40,000. 3. Interest on an investment in a municipal bond of $6,500 on the income statement. Metal’s tax rate is 30% for all years, and the company expects to report taxable income in all future years. There are no deferred taxes at the beginning of 2020.

Compute taxable income and income taxes payable for 2020. (b) Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2020. (c) Prepare the income tax expense section of the income statement for 2020, beginning with the line “Income before income taxes.” (d) Compute the effective income tax rate for 2020.

Prior to 2019, the accounting income and taxable income for Bridgeport Corporation were the same. On January 1, 2019, the company purchased equipment at a cost of $576,000. For accounting purposes, the equipment was to be depreciated over 9 years using the straight-line method. For income tax purposes, the equipment was subject to a CCA rate of 20% (half-year rule applies for 2019). Bridgeport’s income before tax for accounting purposes for 2020 was $1,892,000. The company was subject to a 25% income tax rate for all applicable years and anticipated profitable years for the foreseeable future. Bridgeport Corporation follows IFRS.

a) Calculate taxable income and taxes payable for 2020.

b) Prepare the journal entries to record 2020 income taxes (current and deferred). (If no entry is required, select "No Entry" )

Splish Company reports pretax financial income of $66,300 for 2020. The following items cause taxable income to be different than pretax financial income.

Splish’s tax rate is 30% for all years, and the company expects to report taxable income in all future years. There are no deferred taxes at the beginning of 2020.

1. Compute taxable income and income taxes payable for 2020.

2. Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2020.

3. Prepare the income tax expense section of the income statement for 2020, beginning with the line “Income before income taxes.”

4. Compute the effective income tax rate for 2020.