Homework Answers
Answer :- (C) 30,000;14,000
| Total assets = $30,000 |
| net Income = $12,000 |
| Gross profit = Sales - Cost of goods sold |
| Cost of Goods sold = Opening inventory+Purchasing- Closing inventory |
| Since Opening inventory was overstated by $2,000 , cost of goods sold would also have overstated by $2,000 resulting in less gross profit by $2,000 and understated net income by $2,000 |
| So correct amount of net income is $12000+$2000 = $14,000 |
| Total Amount of Assets will be intact as $30,000 |
True Statement
(C) FIFO ending inventory is at current cost
Since under FIFO, goods come first goes out first, so ending inventory represents mostly current cost.
(2) Answer (B) $28,000;$20000
It seems Total assets given in question of $50,000 is incorrect. Comparing the answer Total asset should be $30,000 and,solution is provided by taking it as $30,000
| Total assets = $30,000 |
| net Income = $22,000 |
| Gross profit = Sales - Cost of goods sold |
| Cost of Goods sold = Opening inventory+Purchasing- Closing inventory |
| Since Closing inventory was overstated by $2,000 , cost of goods sold would also have understated by $2,000 resulting in more gross profit by $2,000 and overstated net income by $2,000 |
| So correct amount of net income is $22000- $2000 = $20,000 |
| Total Amount of Assets will be intact as $30,000 - $2000 = $28,000 |
Add Answer to:
BobCat reported total assets of $30,000 at the end of 2019 and net income of $12,000...
77) Given the following data: Ending inventory at cost $24,000 Ending inventory at current net realizable...
77) Given the following data: Ending inventory at cost $24,000 Ending inventory at current net realizable value 23,600 Cost of goods sold (before consideration of the lower-of-cost-and-net-realizable-value rule) 37,000 Which of the following depicts the proper account balance after the application of the lower-of-cost-and-net realizable value rule? A) Cost of goods sold will be $37,400. B) Cost of goods sold will be $36,400. C) Cost of goods sold will be $37,000. D) Ending inventory will be $24,000. 78) Inventory at...
LOGIC COMPANY Comparative Income Statement For Years Ended December 31, 2019 and 2020 2019 2020 Gross...
LOGIC COMPANY Comparative Income Statement For Years Ended December 31, 2019 and 2020 2019 2020 Gross sales $19,000 1,000 $18,000 12,000 $6,000 $15,000 100 Sales returns and allowances Net sales Cost of merchandise (goods) sold Gross profit Operating expenses: Depreciation Selling and administrative Research $14,900 9,000 $5,900 $ $ 2,000 500 600 700 2,200 550 Miscellaneous Total operating expenses Income before interest and taxes Interest expense Income before taxes Provision for taxes 360 300 $3,810 $ 2,190 $3,400 2,500 560...
On January 1, total assets and liabilities had a fair market value of $30,000 and $12,000,...
On January 1, total assets and liabilities had a fair market value of $30,000 and $12,000, respectively. On December 31, total assets and liabilities were $28,000 and $20,000, respectively. During the year, $7,000 of dividends were declared and paid and no stock was purchased or issued. Calculate the amount of net income or loss for the year.
LOGIC COMPANY Comparative Income Statement For Years Ended December 31, 2019 and 2020 2020 2019 Gross...
LOGIC COMPANY Comparative Income Statement For Years Ended December 31, 2019 and 2020 2020 2019 Gross sales $15,000 $19,000 1,000 $18,000 12,000 $ 6,000 Sales returns and allowances 100 $14,900 9,000 Net sales Cost of merchandise (goods) sold Gross profit Operating expenses: Depreciation Selling and administrative $ 5,900 $ 2,200 550 360 700 600 2,000 Research Miscellaneous Total operating expenses Income before interest and taxes Interest expense Income before taxes Provision for taxes 500 300 $ 3,400 $ 2,500 $3,810...
Cornerstone Exercise 6-28 (Algorithmic) Inventory Errors Airdrive Corporation reported net income of $150,000 for 2019 and...
Cornerstone Exercise 6-28 (Algorithmic) Inventory Errors Airdrive Corporation reported net income of $150,000 for 2019 and $165,000 for 2020. Early in 2020, Airdrive discovers that the December 31, 2019 ending inventory was overstated by $7,600. For simplicity, ignore taxes. Required: 1. What is the correct net income for 2019? For 2020? Net Income 2019 2020 2. Assuming the error was not corrected, what is the effect on the balance sheet at December 31, 2019? At December 31, 2020? December 31,...
Question 5 of 10 < > Current assets Total assets Current liabilities Total liabilities Net income...
Question 5 of 10 < > Current assets Total assets Current liabilities Total liabilities Net income Net cash provided by operating activities Preferred dividends Common dividends Expenditures on property, plant, and equipment 2017 $ 65,800 260,000 28,000 85,800 113,375 90,000 4,000 4,000 29,000 2016 $49,590 210,000 34,200 105,000 40,000 56,000 4,000 2,000 12,000 Shares outstanding at beginning of year Shares outstanding at end of year 45,000 80,000 35,000 45,000 (a) Compute earnings per share for 2017 and 2016 for Culver....
The Hummel Corporation reported the following income statement and balance sheet amounts and additional information for...
The Hummel Corporation reported the following income statement and balance sheet amounts and additional information for the end of the current year. End of prior year End of current year Net sales revenue (all credit) Cost of goods sold Gross profit Selling/general expenses $800,000 $504,000 $296,000 $184,000 $32,000 $80,000 $71,000 $329,000 $400,000 Interest expense Net income Current assets $20,000 Long - term assets $280,000 Total assets $300,000 Current liabilities $56,000 $16.000 Total assets $400,000 $300,000 $16,000 Current liabilities $56,000 Long...
Omicron Inc. reported net income of $120,000 for 2019. In addition, the income statement reported $12,000...
Omicron Inc. reported net income of $120,000 for 2019. In addition, the income statement reported $12,000 of depreciation expense and a $15,000 loss on the disposal of equipment. The current operating assets and liabilities from the company's comparative balance sheet are as follows: 12/31/2019 12/31/2018 Accounts receivable $18,240 $13,240 Accounts payable $11,200 $13,200 Prepare the Cash Flows from Operating Activities section of the statement of cash flows
FIND THE CASH FLOW STATEMENT Seatwork 2.1 CASH FLOW STATEMENT The following financial statements are from...
FIND THE CASH FLOW STATEMENT
Seatwork 2.1 CASH FLOW STATEMENT The following financial statements are from Lucena Company in ($): Cash Accounts Receivable (net) Inventories Fixed Assets (net) Dec. 31, 2018 14,000 22,000 65,000 85,000 Dec. 31, 2019 16,000 28,000 55,000 79,000 TOTAL ASSETS 186,000 178,000 Accounts Payable Bonds Payable Common Stock (par value of $10) Retained Earnings 30,000 60,000 60,000 36,000 15,000 75,000 60,000 28,000 TOTALL AND SE 186,000 178,000 INCOME STATEMENT FOR 2019 Sales Cost of Goods Sold...
LOGIC COMPANY Comparative Income Statement For Years Ended December 31, 2016 and 2017 2017 2016 Gross...
LOGIC COMPANY Comparative Income Statement For Years Ended December 31, 2016 and 2017 2017 2016 Gross sales $ 19,000 $ 15,000 Sales returns and allowances 1,000 100 Net sales $ 18,000 $ 14,900 Cost of merchandise (goods) sold 12,000 9,000 Gross profit $ 6,000 $ 5,900 Operating expenses: Depreciation $ 700 $ 600 Selling and administrative 2,200 2,000 Research 550 500 Miscellaneous 360 300 Total operating expenses $ 3,810 $ 3,400 Income before interest and taxes $ 2,190 $ 2,500...
LOGIC COMPANY Comparative Income Statement For Years Ended December 31, 2019 and 2020 2019 2020 Gross sales $19,000 1,000 $18,000 12,000 $6,000 $15,000 100 Sales returns and allowances Net sales Cost of merchandise (goods) sold Gross profit Operating expenses: Depreciation Selling and administrative Research $14,900 9,000 $5,900 $ $ 2,000 500 600 700 2,200 550 Miscellaneous Total operating expenses Income before interest and taxes Interest expense Income before taxes Provision for taxes 360 300 $3,810 $ 2,190 $3,400 2,500 560...
LOGIC COMPANY Comparative Income Statement For Years Ended December 31, 2019 and 2020 2020 2019 Gross sales $15,000 $19,000 1,000 $18,000 12,000 $ 6,000 Sales returns and allowances 100 $14,900 9,000 Net sales Cost of merchandise (goods) sold Gross profit Operating expenses: Depreciation Selling and administrative $ 5,900 $ 2,200 550 360 700 600 2,000 Research Miscellaneous Total operating expenses Income before interest and taxes Interest expense Income before taxes Provision for taxes 500 300 $ 3,400 $ 2,500 $3,810...
Cornerstone Exercise 6-28 (Algorithmic) Inventory Errors Airdrive Corporation reported net income of $150,000 for 2019 and $165,000 for 2020. Early in 2020, Airdrive discovers that the December 31, 2019 ending inventory was overstated by $7,600. For simplicity, ignore taxes. Required: 1. What is the correct net income for 2019? For 2020? Net Income 2019 2020 2. Assuming the error was not corrected, what is the effect on the balance sheet at December 31, 2019? At December 31, 2020? December 31,...
Question 5 of 10 < > Current assets Total assets Current liabilities Total liabilities Net income Net cash provided by operating activities Preferred dividends Common dividends Expenditures on property, plant, and equipment 2017 $ 65,800 260,000 28,000 85,800 113,375 90,000 4,000 4,000 29,000 2016 $49,590 210,000 34,200 105,000 40,000 56,000 4,000 2,000 12,000 Shares outstanding at beginning of year Shares outstanding at end of year 45,000 80,000 35,000 45,000 (a) Compute earnings per share for 2017 and 2016 for Culver....
The Hummel Corporation reported the following income statement and balance sheet amounts and additional information for the end of the current year. End of prior year End of current year Net sales revenue (all credit) Cost of goods sold Gross profit Selling/general expenses $800,000 $504,000 $296,000 $184,000 $32,000 $80,000 $71,000 $329,000 $400,000 Interest expense Net income Current assets $20,000 Long - term assets $280,000 Total assets $300,000 Current liabilities $56,000 $16.000 Total assets $400,000 $300,000 $16,000 Current liabilities $56,000 Long...
Omicron Inc. reported net income of $120,000 for 2019. In addition, the income statement reported $12,000 of depreciation expense and a $15,000 loss on the disposal of equipment. The current operating assets and liabilities from the company's comparative balance sheet are as follows: 12/31/2019 12/31/2018 Accounts receivable $18,240 $13,240 Accounts payable $11,200 $13,200 Prepare the Cash Flows from Operating Activities section of the statement of cash flows
FIND THE CASH FLOW STATEMENT
Seatwork 2.1 CASH FLOW STATEMENT The following financial statements are from Lucena Company in ($): Cash Accounts Receivable (net) Inventories Fixed Assets (net) Dec. 31, 2018 14,000 22,000 65,000 85,000 Dec. 31, 2019 16,000 28,000 55,000 79,000 TOTAL ASSETS 186,000 178,000 Accounts Payable Bonds Payable Common Stock (par value of $10) Retained Earnings 30,000 60,000 60,000 36,000 15,000 75,000 60,000 28,000 TOTALL AND SE 186,000 178,000 INCOME STATEMENT FOR 2019 Sales Cost of Goods Sold...
Most questions answered within 3 hours.
-
Include at least one psychology theory, model or concept
discussed in Chapter 1, 2 or the...
asked 30 seconds from now -
Need help in drawing out a map pathway of pentose phosphate
pathway and pyruvate dehydrogenase/citric acid...
asked 6 minutes ago -
Question 1
At the end of Year 6,
South Co.'s tax department estimates that they will...
asked 8 minutes ago -
Use standard enthalpies of formation to determine
ΔHorxn for:
1. 3NO2(g) + H2O(l) → 2HNO3(aq)
+...
asked 12 minutes ago -
Abigail Adams was hired as an associate professor of economics
at Heartland University. She was the...
asked 15 minutes ago -
consider the overall reaction: AB(g) + CB(g) ⟶ A(g) + CB2(g)
A proposed mechanism for this...
asked 21 minutes ago -
In fruit flies, assume bright red eyes (r) and curly wing (w)
are encoded by two...
asked 37 minutes ago -
Consider the compounds represented by the following names:
Compound A: 2,3-dimethylpentane Compound B: 3,4-dimethyl-3-pentene
Compound C:...
asked 42 minutes ago -
C3H8 + 5O2 produces 3CO2 + 4
H2O
How many grams of CO2 are
produced by...
asked 42 minutes ago -
Select a target behavior from your list of potential target
behaviors. State your target behavior in...
asked 56 minutes ago -
Guns make a unique marking on the bullets they fire and their
shell casings. These markings...
asked 59 minutes ago -
Bourque Enterprises is considering a new project. The project
will generate sales of $1.5 million, $2.2...
asked 1 hour ago