The draft financial statements of Socket Limited for the year ended 31 December 2017 are as below:
Statement of profit or loss and other comprehensive income for the
year ended 31 December 2017
| ? | ? | ? | ? | $m | |
| Revenue | ? | ? | ? | ? | 168,300 |
| Cost of sales | ? | ? | ? | ? | -115,850 |
| Gross profits | ? | ? | ? | ? | 52,450 |
| Administration expense | ? | ? | ? | ? | -2,750 |
| Distribution expense | ? | ? | ? | ? | -1,200 |
| Profits before tax | ? | ? | ? | ? | 48,500 |
| Taxation | ? | ? | ? | ? | -10,340 |
| Profits for the year (Note 1) | ? | ? | ? | ? | 38,160 |
| Other comprehensive income | ? | ? | ? | ? | ? |
| Revaluation of property (net of tax) | ? | ? | ? | ? | 8,400 |
| Total comprehensive income for the year | ? | ? | ? | ? |
46,560 |
Statement of financial position as at 31 December 2017 (with comparative figures)
| 2017 | 2016 | |||||
| $m | $m | |||||
| Non-current assets | ||||||
| Property, plant and equipment | 198,250 | 125,040 | ||||
| Investment properties | 5,000 | 4000 | ||||
| Intangibles assets | 6,000 | 6500 | ||||
| Inventories | 4,545 | 4900 | ||||
| Trade receivables (net) | 7,410 | 8600 | ||||
| Short-term investments | 500 | |||||
| Cash and bank | 13,650 | 8000 | ||||
| Total assets | 235,355 | 157040 | ||||
| Equity and liabilities | ||||||
| Share capital | 54,500 | 42,800 | ||||
| Other reserves | 12,700 | 4,300 | ||||
| Retained profits | 57,300 | 22,900 | ||||
| Long term bank loans | 82,500 | 62,500 | ||||
| Deferred tax liabilities | 13,885 | 9,800 | ||||
| Trade payables | 8,745 | 9,340 | ||||
| Other payables | 1,100 | 800 | ||||
| Interest payables | 2,900 | 3,000 | ||||
| Tax payables | 1,725 | 1,100 | ||||
| Bank overdraft | 500 | |||||
| Total equity and liabilities | 235,355 | 157,040 |
The following information is available:
1 Profits for the year have been arrived at after charging (crediting):
| $m | |||||
| Interest expense | 5,650 | ||||
| Depreciation charge | 6,300 | ||||
| Rental income received | 20,000 | ||||
| Change in fair value of investment properties | -1,000 | ||||
| Loss on sale of property, plant and equipment | 160 | ||||
| Impairment loss on intangible assets | 500 | ||||
| Inventories written down | 270 | ||||
| Decrease in provision for bad debts | -120 |
2 In September 2017, an equipment with a carrying amount of $480 million was sold for a loss of $160 million.
3 The short-term investments represented marketable securities purchased on 25 December 2017. They matured on 28 February 2018.
4. Socket made a rights issue in November 2017 generating additional share capital. There was no other issue of ordinary shares during the year
5. It is Socket Limited’s policy to perform an impairment loss test on its assets at year end. Impairment losses, if any, were written off immediately as expenses
Required:
Prepare the statement of cash flows for the year ended 31 Decemb er 2017, using the indirect method to determine the cash flows from operating activities, for Socket Limited in accordance with HKAS 7 Statement of cash flows.
In: Accounting
Forecast the Balance Sheet
Following is the balance sheet for Medtronic PLC for the year ended April 29, 2016.
| Medtronic plc | |||||
|---|---|---|---|---|---|
| Consolidated Balance Sheets | |||||
| ($ millions) | Apr. 29, 2016 | Apr. 24, 2015 | |||
| Current assets | |||||
| Cash and cash equivalents | $2,768 | $4,843 | |||
| Investments | 9,758 | 14,637 | |||
| Accounts receivable | 5,562 | 5,112 | |||
| Inventories | 3,473 | 3,463 | |||
| Tax assets | 697 | 1,335 | |||
| Prepaid expenses and other current assets | 1,234 | 1,454 | |||
| Total current assets | 23,492 | 30,844 | |||
| Property, plant, and equipment, net | 4,841 | 4,699 | |||
| Goodwill | 41,500 | 40,530 | |||
| Other intangible assets, net | 26,899 | 28,101 | |||
| Long-term tax assets | 1,383 | 774 | |||
| Other assets | 1,559 | 1,737 | |||
| Total assets | $99,674 | $106,685 | |||
| Current liabilities | |||||
| Short-term borrowings | $885 | $2,434 | |||
| Accounts payable | 1,709 | 1,610 | |||
| Accrued compensation | 1,712 | 1,611 | |||
| Accrued income taxes | 566 | 935 | |||
| Deferred tax liabilities | - | 119 | |||
| Other accrued expenses | 2,185 | 2,464 | |||
| Total current liabilities | 7,057 | 9,173 | |||
| Long-term debt | 30,247 | 33,752 | |||
| Long-term accrued compensation | 1,759 | 1,535 | |||
| Long-term accrued income taxes | 2,903 | 2,476 | |||
| Long-term deferred tax liabilities | 3,729 | 4,700 | |||
| Other long-term liabilities | 1,916 | 1,819 | |||
| Total liabilities | 47,611 | 53,455 | |||
| Shareholders’ equity | |||||
| Ordinary shares | - | - | |||
| Retained earnings | 53,931 | 54,414 | |||
| Accumulated other comprehensive (loss) | (1,868) | (1,184) | |||
| Total shareholders’ equity | 52,063 | 53,230 | |||
| Total liabilities and shareholders’ equity | $99,674 | $106,685 | |||
Use the following assumptions to forecast the company’s balance sheet for FY2017.
| Forecasted FY2017 net income | $4,839 |
million |
||||||
| Forecasted FY2017 net sales | $34,079 |
million |
||||||
| Accounts receivable | 19.3% |
of net sales |
||||||
| Inventories | 12.0% |
of net sales |
||||||
| Tax assets | 2.4% |
of net sales |
||||||
| Prepaid expenses and other current assets | 4.3% |
of net sales |
||||||
| Long-term tax assets | 4.8% |
of net sales |
||||||
| Other assets | 5.4% |
of net sales |
||||||
| Accounts payable | 5.9% |
of net sales |
||||||
| Accrued compensation | 5.9% |
of net sales |
||||||
| Accrued income taxes | 2.0% |
of net sales |
||||||
| Other accrued expenses | 7.6% |
of net sales |
||||||
| Long-term accrued income taxes | 10.1% |
of net sales |
||||||
| Long-term deferred tax liabilities | 12.9% |
of net sales |
||||||
| Other long-term liabilities | 6.6% |
of net sales |
||||||
| Investments | No change | |||||||
| Goodwill | No change | |||||||
| Long-term accrued compensation and retirement benefits | No change | |||||||
| Ordinary shares | No change | |||||||
| Accumulated other comprehensive (loss) | No change | |||||||
| CAPEX | 3.6% |
of net sales |
||||||
| Depreciation expense | 18.9% |
of prior year PPE, net |
||||||
| Amortization expense in FY2016 | $1,931 |
million |
||||||
| Current maturities of debt due in FY2017 | $885 |
million |
||||||
| Current maturities of debt due in FY2018 | $6,176 |
million |
||||||
| Dividend payout ratio | 60.5% |
Round your answers to the nearest whole number.
Do not use negative signs with any of your answers.
| Medtronic plc | ||||
|---|---|---|---|---|
| Forecasted Consolidated Balance Sheet | ||||
| ($ millions) | EST. 2017 | |||
| Current assets | ||||
| Cash and cash equivalents | $Answer | |||
| Investments | Answer | |||
| Accounts receivable | Answer | |||
| Inventories | Answer | |||
| Tax assets | Answer | |||
| Prepaid expenses and other current assets | Answer | |||
| Total current assets | Answer | |||
| Property, plant, and equipment, net | Answer | |||
| Goodwill | Answer | |||
| Other intangible assets, net | Answer | |||
| Long-term tax assets | Answer | |||
| Other assets | Answer | |||
| Total assets | $Answer | |||
| Current liabilities | ||||
| Short-term borrowings | $Answer | |||
| Accounts payable | Answer | |||
| Accrued compensation | Answer | |||
| Accrued income taxes | Answer | |||
| Other accrued expenses | Answer | |||
| Total current liabilities | Answer | |||
| Long-term debt | Answer | |||
| Long-term accrued compensation | Answer | |||
| Long-term accrued income taxes | Answer | |||
| Long-term deferred tax liabilities | Answer | |||
| Other long-term liabilities | Answer | |||
| Total liabilities | Answer | |||
| Shareholders’ equity | ||||
| Ordinary shares | - | |||
| Retained earnings | Answer | |||
| Accumulated other comprehensive (loss) | Answer | |||
| Total shareholders’ equity | Answer | |||
| Total liabilities and shareholders’ equity | $Answer | |||
In: Accounting
In: Finance
Waterways Corporation is preparing its budget for the coming
year, 2020. The first step is to plan for the first quarter of that
coming year. The company has gathered information from its managers
in preparation of the budgeting process.
| Sales | ||
| Unit sales for November 2019 | 112,000 | |
| Unit sales for December 2019 | 101,000 | |
| Expected unit sales for January 2020 | 114,000 | |
| Expected unit sales for February 2020 | 112,000 | |
| Expected unit sales for March 2020 | 115,000 | |
| Expected unit sales for April 2020 | 127,000 | |
| Expected unit sales for May 2020 | 136,000 | |
| Unit selling price | $12 |
Waterways likes to keep 10% of the next month’s unit sales in
ending inventory. All sales are on account. 85% of the Accounts
Receivable are collected in the month of sale, and 15% of the
Accounts Receivable are collected in the month after sale. Accounts
receivable on December 31, 2019, totaled $181,800.
Direct Materials
Direct materials cost 80 cents per pound. Two pounds of direct
materials are required to produce each unit.
Waterways likes to keep 5% of the materials needed for the next
month in its ending inventory. Raw Materials on December 31, 2019,
totaled 11,380 pounds. Payment for materials is made within 15
days. 50% is paid in the month of purchase, and 50% is paid in the
month after purchase. Accounts Payable on December 31, 2019,
totaled $102,875.
| Direct Labor |
| Labor requires 12 minutes per unit for completion and is paid at a rate of $9 per hour. |
| Manufacturing Overhead | ||||
| Indirect materials | 30¢ | per labor hour | ||
| Indirect labor | 50¢ | per labor hour | ||
| Utilities | 40¢ | per labor hour | ||
| Maintenance | 30¢ | per labor hour | ||
| Salaries | $41,000 | per month | ||
| Depreciation | $16,200 | per month | ||
| Property taxes | $3,000 | per month | ||
| Insurance | $1,100 | per month | ||
| Maintenance | $1,100 | per month | ||
| Selling and Administrative | |||
| Variable selling and administrative cost per unit is $1.50. | |||
| Advertising | $15,000 | a month | |
| Insurance | $1,400 | a month | |
| Salaries | $71,000 | a month | |
| Depreciation | $2,300 | a month | |
| Other fixed costs | $3,000 | a month | |
Other Information
The Cash balance on December 31, 2019, totaled $101,000, but
management has decided it would like to maintain a cash balance of
at least $800,000 beginning on January 31, 2020. Dividends are paid
each month at the rate of $2.40 per share for 5,340 shares
outstanding. The company has an open line of credit with Romney’s
Bank. The terms of the agreement requires borrowing to be in $1,000
increments at 9% interest. Waterways borrows on the first day of
the month and repays on the last day of the month. A $460,000
equipment purchase is planned for February.
For the first quarter of 2020, prepare a cash budget.
(Round answers to 0 decimal places, e.g.
2,520.
In: Accounting
Please show formula and show all work.
In: Finance
End of the year, The Vulcan Community Hospital's some parts of the balance sheet, the income statement, and cash flow statement is provided below. Based on the provided information, What is the hospital's the Debt Service Coverage?
|
Some Accounts From The Balance Sheet |
Some Accounts From The Income Statement |
||
|
Current Assets |
Revenues |
||
|
Cash |
$ 569,000.00 |
Net Patient Services Revenue |
$400,000.00 |
|
Accounts Receivable,Net |
$ 185,000.00 |
Other Operating Revenue |
$ - |
|
Inventory |
$ 95,000.00 |
Total Reveneues from Operations |
$400,000.00 |
|
Prepaid Expense |
$ 5,000.00 |
Operating Expenses |
|
|
Total Current Assets |
$ 854,000.00 |
Salaries and Benefits |
$ 18,000.00 |
|
Liabilities & Net Assets |
Medical Supplies and Drugs |
$100,000.00 |
|
|
Current liabilities |
Insurance |
$ 36,000.00 |
|
|
Accounts Payable |
$ 320,000.00 |
Depreciation |
$ 40,000.00 |
|
Wages Payable |
$ 13,000.00 |
Interest |
$ 75,000.00 |
|
Total Current Liabilities |
$ 333,000.00 |
Provision for Bad Debts |
$ 40,000.00 |
|
Other Operating Expenses |
$ - |
||
|
Some Accounts From The Cash Flow Statement |
|||
|
Cash Flows from Financing Activities |
|||
|
Payment of mortgage principal |
$ (35,000.00) |
||
|
Net Cash from Financing Activities |
$ (35,000.00) |
||
In: Accounting
The units of an item available for sale during the year were as follows:
| Jan. 1 | Inventory | 1,000 | units at $15 |
| Feb. 17 | Purchase | 1,375 | units at $16 |
| July 21 | Purchase | 1,500 | units at $17 |
| Nov. 23 | Purchase | 1,125 | units at $18 |
There are 1,100 units of the item in the physical inventory at December 31. The periodic inventory system is used.
a. Determine the inventory cost by the
first-in, first-out method.
$fill in the blank 1
b. Determine the inventory cost by the last-in,
first-out method.
$fill in the blank 2
c. Determine the inventory cost by the weighted
average cost method.
$fill in the blank 3
In: Accounting
Bruce and Amanda are married during the tax year. Bruce is a botanist at Green Corporation. Bruce earns a salary of $70,000 per year.
Amanda owns an accounting practice as a sole proprietor (it qualifies as a full trade or business). Amanda generates $100,000 of revenues during the year. She has the following business payments associated with her firm:
They also have the following personal expenses during the year:
· Medical Expenses: $15,500
· State & Local Taxes (personal): $11,000
· Federal Income Tax Payments (personal): $10,000
· Cash Charitable Contributions: $20,000
The standard deduction amounts are listed below:
· Single: $12,200
· Head of Household: $18,350
· Married Filing Jointly: $24,400
Calculate the appropriate amounts for Bruce and Amanda on the following page. Please show your work for maximum points.
In: Accounting
The following information applies to the questions displayed
below.]
This year, Leron and Sheena sold their home for$1,372,500 after all selling costs. Under the following scenarios, how much taxable gain does the home sale generate for Leron and Sheena? (Leave no answer blank. Enter zero if applicable.)
a. Leron and Sheena bought the home three years ago for $225,000 and lived in the home until it sold.
b. Leron and Sheena bought the home one year ago for $1,125,000 and lived in the home until it sold.
c. Leron and Sheena bought the home five years
ago for $877,500. They lived in the home for three years until they
decided to buy a smaller home. Their home has been vacant for the
past two years.
In: Accounting
Periodic Inventory by Three Methods
The units of an item available for sale during the year were as follows:
| Jan. 1 | Inventory | 9 units @ $49 |
| Feb. 17 | Purchase | 10 units @ $51 |
| Jul. 21 | Purchase | 19 units @ $54 |
| Nov. 23 | Purchase | 9 units @ $55 |
There are 14 units of the item in the physical inventory at December 31. The periodic inventory system is used. Round average unit cost to one decimal and final answers to the nearest whole dollar, if required.
a. Determine the inventory cost by the
first-in, first-out method.
$fill in the blank 1
b. Determine the inventory cost by the last-in,
first-out method.
$fill in the blank 2
c. Determine the inventory cost by the weighted
average cost method.
$fill in the blank 3
In: Accounting