Question 50 of 50Among the items in the financial statements for 20X1, Kadan Company reported theinformation below. (This is not a complete list of all of the financial statement items.)Accounts receivable $200• Inventory $400Property, plant, and equipment $1,000• Accounts payable $100. Long-term loans payable $800• Sales $10,000. Cost of goods sold $7,500.Depreciation expense $250Interest expense $60In 20X2, sales are expected to increase from $10,000 to $13,000. On January 1,20X2, Kadan plans to purchase new property, plant, and equipment, increasing thebalance from $1,000 to $1,500. Also on January 1, 20X2, Kadan plans to obtain newlong-term loans, increasing the loan balance from $800 to $1,600. What is areasonable forecast of the amount of interest expense in 20X2?

Detailed explanation:The changes in the company's long-term loans and the interest expenditure…

Answered: Question 50 of 50 Among the items in…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Line Item Description 20X1 20X2 Current assets: Accounts receivable $750,000 $582,500 Inventories 300,000 320,000 Current liabilities: Wages payable 700,000 515,000 Davis CompanyIncome StatementFor the Year Ended December 31, 20X2 Line Item Description Amount Amount Revenues $3,000,000 Cost of goods sold 1,920,000 Gross margin $1,080,000 Operating expenses Depreciation 270,000 Operating income $ 810,000 Other revenues and expenses Gain on sale of equipment 100,000 Interest expense 10,000 90,000 Net income $ 900,000 Required: Compute operating cash flows using the indirect method.
Question 5 Rivertown Stores has total revenue of $285,400, cost of goods sold equal to 68 percent of sales, and a profit margin of 9.2 percent. Net fixed assets are $126,400 and current assets are $65,880. What is the total asset turnover rate? O4.81 1.48 O 1.30 O 1.01 O 1.84
Problem 1 East Company reported the following current assets at year end: Cash 3,200,000.00 Acccounts Receivable 2,000,000.00 Inventory 2,800,000.00 Deferred Charges 200,000.00 8,200,000.00 The accounts receivable consisted of the following items: Customers' accounts 1,420,000.00 Employees' accounts 240,000.00 Advances to subsidiary 260,000.00 Allowance for uncollectible accounts (120,000.00) Claim against shipper for goods lost in transit 200,000.00 2,000,000.00 Compute the amount to be reported as total current assets.
A2 aii Use the following information for Delta Corporation: Year 20X1 20X2 Net sales $1,500,000 $1,656,598 Cost of goods sold 675,000 745,469 Depreciation 270,000 298,188 Interest paid 43,600 44,000 Cash 127,500 140,811 Account’s receivable 450,000 496,980 Inventory 525,000 579,809 Net fixed assets 1,800,000 1,987,918 Accounts payable 375,000 414,150 Notes payable 45,000 50,000 Long-term debt 500,000 500,000 Common stock 1,000,000 1,000,000 Retained earnings 982,500 1,241,368 Tax rate 35% 35% Dividend payout 30% 30% Delta has 600,000 common shares outstanding. The firm is projecting a 20% increase in net sales for the coming year (20X3). Delta uses the percentage of sales approach to plan for its financing needs. In using this approach, the firm assumes that cost of goods sold, all assets (current and fixed), and accounts payable will all remain a constant…
Question 12 The following data pertain to Gliezel company on December 31, 20B: Trade accounts payable, including cost of goods received on consignment of P180,000 is 1,620,000; Accrued taxes payable, 150,000; Customers' deposit, 120,000; Cherry company as guarantor, 240,000; Bank overdraft, 66,000; Accrued electric and power bills, 72,000; Reserve for contingencies, 180,000. How much should be shown as total current liabilities? CHOICES 2,208,000 2,088,000 1,980,000 1,848,000
ES Question 6 Use your knowledge of balance sheets and common-size staterments to fill in the missing dollar amounts. (Round percentage answes Assets Cash $24,174 Accounts receivable $124,798 Inventory 27.3 % $4 Total curnent asset $350,246 Gross plant and equipment 94.9 % $4 Less accumulated cepreciation $313,000 42.5 % Net plant and equiprment Total assets $737,246 100.0 % Liabilities Accounts payable 15.8 % Notes payable $28,091 Total current liabilitiES Long-term debt $244,512 33.2 % Total liabilities S388,863 Common stock ($0.01 par, 450,000 shares) $4,500 0.6 % Paid-in capital $224,987 30.5% Retained earnings Total stockholders' equity $348,383 47.3 % Total liabilities and equity 100.0 % %24 %24 %24 %24 %24
13 S ch The Beneke Corporation reported the following data: Cash Accounts Receivable Inventory Equipment Accounts Payable Notes Payable Revenue Year 3 $6,000 900 8,900 40,000 2,800 12,400 39,500 Year 2 $4,200 700 8,200 36,000 3,100 11.500 36,000 Year 1 $3,800 600 7,800 34,000 3,000 10,300 32,400 What is the company's debt to assets ratio for Year 3? Convert your final answer to a percentage. round to one decimal place and enter without the "%" sign (e.g. a final answer of 0.105678 would be entered as 10.6).
QOLUTION TANT & T0 mana The general ledger of the Culinary Plate's Food Company provides the following information: Accounts Receivable Inventory Accounts Payable End of Beginning of Year Year $ 65,000 $ 84,000 350,000 200,000 40,000 65,000 The company's net sales for the year were $2,200,000 and cost of goods sold amounted to $1,750,000. REQUIRED: Calculate the following (Show calculations): (a) Cash receipts from customers (b) Cash payments to suppliers
D Question 10 An entity reported the following assets and liabilities at year end: Amount Property Inventory 7M Plant and Equipment 4M Liabilities 4M Tax base Accounts receivable 3M 5.5M Carrying 10M 5M 2.5M 2.4M 6M The entity had made a provision for inventory obsolescense of 1.5M. Further, an impairment loss against accounts receivable of 600,000 has been made. the tax is 30% What amount should be reported as deferred tax liability?
104-Principles of Management Acco y courses/ BUSS 104-2-20202 / TEST 2 SCHEDULED FOR 12TH APRIL 2021 IN CL The BCD Company had the following income statement on 31.12.2020 Deprecation 10000 Net income 190000 OMR The following accounts decreased during 2020: Accounts receivable 22000 inventory 15000 OMR. Rent payable 19000, Machinery 15000 OMR The following accounts increased during 2020:Notes receivable 14000 Accounts Payable 13000 long term Bonds payable 30000 OMR Calculate cash flows from operating activities Select one: O a. 245000 OMR O b. NONE OF THESE Oc. 217000 OMR O d. 249000 OMR Next page page s unit 4 Jump to.. nned in se Moor Rakhit Almaschani na uth
Changes in various accounts and gains and losses on the sale of assets during the year for Argon Company are given below: Item Amount $ 90,000 decrease $ 120,000 increase $ 3,000 decrease $ 65,000 decrease $ Accounts receivable Inventory Prepaid expenses Accounts payable Accrued liabilities Income taxes payable Sale of equipment Sale of long-term investments 8,000 increase $ 12,000 increase 7,000 gain $ 10,000 loss Required: For each item, indicate whether the dollar amount should be added to or deducted from net income under the indirect method when computing the net cash provided by operating activities for the year.
Question 1 Consider the following financial information and answer the questionsthat follow:Sales : $250,000Costs : $134,000Depreciation : $10,200Operating expenses : $6,000Interest expenses : $20,700Taxes : $18,420Dividends : $10,600Addition to Retained Earnings : $50,080Long term debt repaid : $9,300New Equity issued : $8,470New fixed assets acquired : $15,000You are required to:i) Calculate the operating cash flow ii) Calculate the cash flow to creditors iii) Calculate the cash flow to shareholders iv) Calculate the cash flow from assets v) Calculate net capital spending vi) Calculate change in NWC Question 2 The following financial information is available for Hero Sports Ltd.:Sales : $45,000Costs : $25,000Addition to retained earnings : $5,500Dividends paid : $900Interest expense : $1,450Tax rate : 40%Compute the depreciation expense. Question 3 Use the following information to answer the question that follow:Net Income : $205,000Profit margin : 7.80%A/R : $151,642Credit sales :…

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