Homework Answers
Part 3
Answer is option D
D. expenditures required to replace long-lived assets are greater than depreciation expense.
When capital expenditures are higher than revenue expenses, the divided is not distributed.
Part 4
Answer is option D
Retire plant assets at salvage value
When plan assets is retired or sold, there is a cash inflow.
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A company which complains that although their income is quite satisfactory, cash is not available for...
Biblio... Saved Williams Company is a manufacturer of auto parts having the following financial statements for 2018-2019 Balance Sheet December 31 2819 2018 Cash $ 270,000 145,000 160,866 395,0...
Biblio... Saved Williams Company is a manufacturer of auto parts having the following financial statements for 2018-2019 Balance Sheet December 31 2819 2018 Cash $ 270,000 145,000 160,866 395,000 Accounts receivable 235,008 185,006 Inventory Total current assets $ 825,000 565,000 1,748,901,600,e89 $2,565,0e0 $2,165,0e0 Long-lived assets Total assets Current liabilities 275,000 900,000 990,00 320,000 900,000 1,345,009 Long-term debt Shareholders' equity $2,565,000 $2,165,000 Total debt and equity Income Statement For the years ended December 31 2019 2018 $3,600,000 $3,700,000 2,700,000 2,800,000 900,000...
Teal Company, a major retailer of bicycles and accessories, operates several stores and is a publicly...
Teal Company, a major retailer of bicycles and accessories,
operates several stores and is a publicly traded company. The
comparative balance sheet and income statement for Teal as of May
31, 2020, are as follows. The company is preparing its statement of
cash flows.
TEAL COMPANY
COMPARATIVE BALANCE SHEET
AS OF MAY 31
2020
2019
Current assets
Cash
$28,100
$20,000
Accounts
receivable
75,000
58,300
Inventory
220,600
247,900
Prepaid
expenses
9,100
7,000
Total current assets
332,800
333,200
Plant assets
Plant
assets...
7) A company pays tax at a rate of 15% on its first $50,000 of income....
7) A company pays tax at a rate of 15% on its first $50,000 of income. If it has $60,000 of 7) taxable income and an average tax rate of 18%, what is the marginal tax rate on its last $10,000 of income? A) 25% ?) 18% C) 33% D) 15% 8) According to the statement of cash flows, cash flows from financing could be positive 8) ?f: A) the firm added more debt than it repaid. B) interest rates...
The cash flow statement reports the cash purchases for property, plant and equipment. How much did...
The cash flow statement
reports the cash purchases for property, plant and equipment. How
much did the company purchase and sell?
Property, Plant and Equipment Property, plant and equipment, which includes assets under capital leases, are carried at cost less accumulated depreciation. Cost includes all direct costs necessary to acquire and prepare assets for use, including internal labor and overhead in some cases. Depreciation is computed using the straight-line method over estimated useful lives of the assets, generally ranging from...
Prepare the statement of cash flows using the indirect method CANYON CANOE COMPANY Comparative Balance Sheet...
Prepare the statement of cash flows using the indirect method
CANYON CANOE COMPANY Comparative Balance Sheet December 31, 2018 and 2019 2019 2018 Assets Current Assets: Cash Short-term Investments, net Accounts Receivable, net S 523,693 12,125 23,840 2,422 355 60 7,600 Office Supplies Prepaid Rent 165 2,000 Property, Plant, and Equipment: 155,000 610,000 12,000 150,000 (35,180) 85,000 35,000 12,000 Office Furniture and Equipment Accumulated Depreciation-PP&E (850) Total Assets 1,442,190 153,040 Liabilities Current Liabilities: Accounts Payable Utilities Payable Telephone Payable Wages...
Cash Flow Summary (in $000s) Company Name: Pacesetters, Inc. Target Line Number 20Y2 Sales revenue (net)...
Cash Flow Summary (in $000s) Company Name: Pacesetters, Inc. Target Line Number 20Y2 Sales revenue (net) A Accounts receivable (1) (2) (3) 9,000 (190) 8,810 Cash collected from sales Cash cost of goods sold (4) (6,199) A Inventory A Accounts payable (5) (134) (6) 168 Cash paid for production (7) (6.165) Cash from trading activities (3) + (7) (8) 2,645 Cash SG&A expense (9) (10) (1,559) A Prepaid expenses A Accrued expenses 31 (11) 22 Cash paid for operating costs...
Brooks Plumbing Products Inc. (BPP) manufactures plumbing fixtures and other home improvement products that are sold...
Brooks Plumbing Products Inc. (BPP) manufactures plumbing fixtures and other home improvement products that are sold in Home Depot and Walmart as well as hardware stores. BPP has a solid reputation for providing value products, good quality, and a good price. The company has been approached by an investment banking firm representing a third company, Garden Specialties Inc. (GSI), that is interested in acquiring BPP. The acquiring firm (GSI) is a retailer of garden supplies; it sees the potential synergies...
An increasing inventory turnover ratio indicates that a company: has reduced the time it takes to...
An increasing inventory turnover ratio indicates that a company: has reduced the time it takes to purchase and sell inventory. is having trouble selling its inventory. may be holding too much inventory. is selling inventory at a higher than normal profit. For the year ended December 31, ABC Company cost of goods sold was $48,000. Inventory at the beginning of the year was $6,000. Ending inventory was $10,000. Compute inventory turnover for the year. 8.0 4.8 8.4 6.0 Firms are...
In a recent 10-K report, Speedy Delivery Service states it is the world's largest package delivery...
In a recent 10-K report, Speedy Delivery Service states it is the world's largest package delivery company, a leader in the U.S. less- than-truckload industry, and the premier provider of global supply chain management solutions." The following note and data were reported: Note 1–Summary of Accounting Policies Property, Plant and Equipment We review long-lived assets for impairment when circumstances indicate the carrying amount of an asset may not be recoverable based on the undiscounted future cash flows of the asset....
Which of the following costs related to a company car would NOT be expensed? (A) The...
Which of the following costs related to a company car would NOT be expensed? (A) The cost to install an engine with higher horsepower (B) The cost to change car's oil (C) The cost to replace a broken windshield (D) The cost of new tires (2 marks) 8. Daniel Construction Company paid S45,000 for equipment with a market value of $95,000. At which of the following amounts should the equipment be recorded? (A) $95,000 (B) $45,000 (C) $42,500 (D) $5,000...
Biblio... Saved Williams Company is a manufacturer of auto parts having the following financial statements for 2018-2019 Balance Sheet December 31 2819 2018 Cash $ 270,000 145,000 160,866 395,000 Accounts receivable 235,008 185,006 Inventory Total current assets $ 825,000 565,000 1,748,901,600,e89 $2,565,0e0 $2,165,0e0 Long-lived assets Total assets Current liabilities 275,000 900,000 990,00 320,000 900,000 1,345,009 Long-term debt Shareholders' equity $2,565,000 $2,165,000 Total debt and equity Income Statement For the years ended December 31 2019 2018 $3,600,000 $3,700,000 2,700,000 2,800,000 900,000...
Teal Company, a major retailer of bicycles and accessories,
operates several stores and is a publicly traded company. The
comparative balance sheet and income statement for Teal as of May
31, 2020, are as follows. The company is preparing its statement of
cash flows.
TEAL COMPANY
COMPARATIVE BALANCE SHEET
AS OF MAY 31
2020
2019
Current assets
Cash
$28,100
$20,000
Accounts
receivable
75,000
58,300
Inventory
220,600
247,900
Prepaid
expenses
9,100
7,000
Total current assets
332,800
333,200
Plant assets
Plant
assets...
7) A company pays tax at a rate of 15% on its first $50,000 of income. If it has $60,000 of 7) taxable income and an average tax rate of 18%, what is the marginal tax rate on its last $10,000 of income? A) 25% ?) 18% C) 33% D) 15% 8) According to the statement of cash flows, cash flows from financing could be positive 8) ?f: A) the firm added more debt than it repaid. B) interest rates...
The cash flow statement
reports the cash purchases for property, plant and equipment. How
much did the company purchase and sell?
Property, Plant and Equipment Property, plant and equipment, which includes assets under capital leases, are carried at cost less accumulated depreciation. Cost includes all direct costs necessary to acquire and prepare assets for use, including internal labor and overhead in some cases. Depreciation is computed using the straight-line method over estimated useful lives of the assets, generally ranging from...
Prepare the statement of cash flows using the indirect method
CANYON CANOE COMPANY Comparative Balance Sheet December 31, 2018 and 2019 2019 2018 Assets Current Assets: Cash Short-term Investments, net Accounts Receivable, net S 523,693 12,125 23,840 2,422 355 60 7,600 Office Supplies Prepaid Rent 165 2,000 Property, Plant, and Equipment: 155,000 610,000 12,000 150,000 (35,180) 85,000 35,000 12,000 Office Furniture and Equipment Accumulated Depreciation-PP&E (850) Total Assets 1,442,190 153,040 Liabilities Current Liabilities: Accounts Payable Utilities Payable Telephone Payable Wages...
Cash Flow Summary (in $000s) Company Name: Pacesetters, Inc. Target Line Number 20Y2 Sales revenue (net) A Accounts receivable (1) (2) (3) 9,000 (190) 8,810 Cash collected from sales Cash cost of goods sold (4) (6,199) A Inventory A Accounts payable (5) (134) (6) 168 Cash paid for production (7) (6.165) Cash from trading activities (3) + (7) (8) 2,645 Cash SG&A expense (9) (10) (1,559) A Prepaid expenses A Accrued expenses 31 (11) 22 Cash paid for operating costs...
An increasing inventory turnover ratio indicates that a company: has reduced the time it takes to purchase and sell inventory. is having trouble selling its inventory. may be holding too much inventory. is selling inventory at a higher than normal profit. For the year ended December 31, ABC Company cost of goods sold was $48,000. Inventory at the beginning of the year was $6,000. Ending inventory was $10,000. Compute inventory turnover for the year. 8.0 4.8 8.4 6.0 Firms are...
In a recent 10-K report, Speedy Delivery Service states it is the world's largest package delivery company, a leader in the U.S. less- than-truckload industry, and the premier provider of global supply chain management solutions." The following note and data were reported: Note 1–Summary of Accounting Policies Property, Plant and Equipment We review long-lived assets for impairment when circumstances indicate the carrying amount of an asset may not be recoverable based on the undiscounted future cash flows of the asset....
Which of the following costs related to a company car would NOT be expensed? (A) The cost to install an engine with higher horsepower (B) The cost to change car's oil (C) The cost to replace a broken windshield (D) The cost of new tires (2 marks) 8. Daniel Construction Company paid S45,000 for equipment with a market value of $95,000. At which of the following amounts should the equipment be recorded? (A) $95,000 (B) $45,000 (C) $42,500 (D) $5,000...
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