5 ABC prepares statements on the cash basis. The balance sheet as of December 31,2021 and income statement for the year ended December 31, 2021are as follows:P 1,800,000.00 Professional FeesCashFurniture and EquipmentTotal AssetsNotes PayableCapital, January 1Net Income, 2021WithdrawalsTotal Liabilities and Owner'sEquity2,200,000.00 Rent ExpensePDecember 31, 2021December 31, 20204,000,000.001,600,000.00P 1,000,000.00 Net Income2,250,000.00850,000.00P4,000,000.00You also gathered the following information:Supplies ExpenseOther OperatingExpensesP 5,000,000.00P 750,000P 500,000-1,200,000.00800,000.00750,000.00The furniture and fixture were acquired on July 1, 2020. The estimatedlife is 10 years.The 12% notes payable is dated April 1, 2021 and matures in one year.Interest is payable on the date of maturity.Accrued rent expense on December 31, 2021 amounts to P 100,000.Accounts Receivable balances are as follows:P2,250,000.00 December 31, 2021December 31, 20201,640,000How much is the adjusted / accrual basis net income for the year ended December 31,2021?Group of answer choices1,540,000O2,140,000• Unused office supplies balances are as follows:O2,040,000P 250,000P 300,000

Accrual basis: Under accrual basis accounting, revenue and expenses are recognized when they are…

ABC prepares statements on the cash basis. The balance sheet as of December 31, 2021 and income statement for the year ended December 31, 2021are as follows: Cash P 1,800,000.00 Professional Fees Furniture and Equipment Total Assets Notes Payable Capital, January 1 Net Income, 2021 Withdrawals Total Liabilities and Owner's Equity 2,200,000.00 Rent Expense • P 4,000,000.00 December 31, 2021 December 31, 2020 1,600,000.00 P 1,000,000.00 Net Income 2,250,000.00 850,000.00 You also gathered the following information: P 4,000,000.00 Supplies Expense Other Operating Expenses P 5,000,000.00 P 750,000 P 500,000 -1,200,000.00 800,000.00 The furniture and fixture were acquired on July 1, 2020. The estimated life is 10 years. • The 12% notes payable is dated April 1, 2021 and matures in one year. Interest is payable on the date of maturity. Accrued rent expense on December 31, 2021 amounts to P 100,000. Accounts Receivable balances are as follows: - 750,000.00 P 2,250,000.00

ABC prepares statements on the cash basis. The balance sheet as of December 31, 2021 and income statement for the year ended December 31, 2021are as follows: Cash P 1,800,000.00 Professional Fees Furniture and Equipment Total Assets Notes Payable Capital, January 1 Net Income, 2021 Withdrawals Total Liabilities and Owner's Equity 2,200,000.00 Rent Expense • P 4,000,000.00 December 31, 2021 December 31, 2020 1,600,000.00 P 1,000,000.00 Net Income 2,250,000.00 850,000.00 You also gathered the following information: P 4,000,000.00 Supplies Expense Other Operating Expenses P 5,000,000.00 P 750,000 P 500,000 -1,200,000.00 800,000.00 The furniture and fixture were acquired on July 1, 2020. The estimated life is 10 years. • The 12% notes payable is dated April 1, 2021 and matures in one year. Interest is payable on the date of maturity. Accrued rent expense on December 31, 2021 amounts to P 100,000. Accounts Receivable balances are as follows: - 750,000.00 P 2,250,000.00

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter21: The Statement Of Cash Flows

Section: Chapter Questions

Problem 14E: Interest and Income Taxes Staggs Company has prepared its 2019 statement of cash flows. In...

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Interest and Income Taxes Staggs Company has prepared its 2019 statement of cash flows. In conjunction with this statement, it plans to disclose the interest and income taxes it paid during 2019. The following information is available from its 2019 income statement and beginning and ending balance sheet: Required: 1. Compute the amounts of interest paid and income taxes paid by Staggs for 2019. 2. Next Level Under IFRS, how would interest paid and income taxes paid be reported?
Cash Receipts from Customers Singleton Inc. had accounts receivable of $22,150 at January 1, 2019, and $26,850 at December 31, 2019. Net income for 2019 was $125,300 and sales revenue was $1,240,000. Required: Compute the amount of cash collected from customers using the direct method.
Selected information from Brook Corporations accounting records and financial statements for 2019 follows: On the statement of cash flows for the year ended December 31, 2019, Brook should disclose a net increase in cash in the amount of: a. 1,700,000 b. 2,400,000 c. 3,700,000 d. 4,200,000
Below are the financial statements for the financial year 2020 and 2021. Statement of Financial Position as at January 31, 2019 and 2020 2021 2020 Current Assets Cash and cash balane:es 33,500 2,550 Account rocoivable 110.100 108,150 Inventories 17.000 7,140 Olher Teceivubles and prepaid experises 83,700 176.320 228.500 167,240 461,400 Fixod doposits with licenscd banks Total current assets 472,800 Properly, plant and cxquiprnenl 1,860,000 619,500 Total Assets 2,332,800 1,080,900 Current Liabilities Account Payables 60,400 27.410 Other payables and accriies expenses 65.600 56,390 Notes payables 27.800 46,800 Total current liabilities 153,800 130,600 Long term Liabilities Long term barrowings 490.500 144,700 Conveitible bonds 342.980 Hire purchase payables 106.920 76,600 Total long term liabilities 940,400 221,300 Shareholders' equity: Issued capital 253.500 201,000 Sharo promium 541.800 425.000 Retaincd carnings 443.300 103,000 Total liabilities and owners' equity 2,332,800 1,080,900
The accounting records of Nettle Distribution show the following assets and liabilities as of December 31,2018 and 2019.December 31 2018 2019Cash . . . . . . . . . . . . . . . . . . . . . . . . $ 64,300 $ 15,640Accounts receivable . . . . . . . . . . . 26,240 19,100Office supplies . . . . . . . . . . . . . . . . 3,160 1,960Office equipment . . . . . . . . . . . . . . 44,000 44,000Trucks . . . . . . . . . . . . . . . . . . . . . . . 148,000 157,000December 31 2018 2019Building . . . . . . . . . . . . . . . . . . . . . $ 0 $80,000Land . . . . . . . . . . . . . . . . . . . . . . . . 0 60,000Accounts payable . . . . . . . . . . . . . 3,500 33,500Note payable . . . . . . . . . . . . . . . . . 0 40,000Required1. Prepare balance sheets for the business as of December 31, 2018 and 2019. Hint: Report only total equityon the balance sheet and remember that total equity equals the difference between assets and liabilities.2. Compute net income for 2019 by comparing total equity amounts for these…
Following are the current asset and current liability sections of the balance sheets for Freedom Inc. at January 31, 2020 and 2019 (in millions): Current Assets Cash Accounts receivable Inventories Total current assets Current Liabilities Note payable Accounts payable Other accrued liabilities Total current liabilities January 31, 2020 Working capital Current ratio 6 EL EL $ 21 $ 15 January 31, 2019 01/31/2020 01/31/2019 9 18 $ 25 Required: a. Calculate the working capital and current ratio at each balance sheet date. (Enter "Working capital" in millions of dollars (1.e.. 10,000,000 should be entered as 10). Round your "Current ratio" to 2 decimal places.) $12 b. Evaluate the firm's liquidity at each balance sheet date. Based on the working capital and current ratio measures, the firm has become more liquid over the 2-year period. O Based on the working capital and current ratio measures, the firm has become less liquid over the 2-year period. c. Assume that the firm operated at a loss…
Prepare the income statements and balance sheets for years 2018 and 2019 for Thompson Company using the following information. The balance sheet numbers are at the end of year figures.Item20182019Accounts Payable120.0150.0Accounts Receivable150.0180.0Accumulated Depreciation330.0360.0Cash & Cash Equivalents10.012.0Common Stock150.0200.0Cost of Goods Sold750.0850.0Depreciation25.030.0Interest Expense30.033.0Inventory200.0180.0Long-term Debt150.0150.0Gross Plant & Equipment650.0780.0Retained Earnings208.5225.0Sales1,500.01,700.0SG&A Expenses500.0570.0Notes Payable51.567.0Tax Rate21%21%(2) Answer the following questions:(a) How much did Thompson Company spend in acquiring fixed assets in 2019?(b) How much dividend did Thompson Company pay out during 2019?(c) Using the end of year numbers, did the long-term solvency ratios improve or deteriorate from 2018 to 2019? Answer this question using at least two long-term solvency ratios.(d) Using the end of year numbers, did the asset…
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Ahmad Co. had the following balances on Dec,31 2019: cash flow provided by operating activities $ 120000, cash flow used by operating activities $ 75000, liabilities $ 100000, non-current liabilities $ 60000, compute the Financial Liquidity ratio: Select one: a..75 b..45 C..888 d. 1.125
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Following are the current asset and current liability sections of the balance sheets for Freedom Incorporated at January 31, 2023 and 2022 (in millions): Current Assets Cash Accounts receivable Inventories Total current assets Current Liabilities Note payable Accounts payable Other accrued liabilities Total current liabilities Req A January 31, 2023 $12 8 7 $ 27 Req B and C Working capital Current ratio 4 3 $ 11 January 31, 2022 Required: a. Calculate the working capital and current ratio at each balance sheet date. b. Evaluate the firm's liquidity at each balance sheet date. c. Assume that the firm operated at a loss during the year ended January 31, 2023. How could cash have increased during the year? $ 9 11 11 $ 31 Complete this question by entering your answers in the tabs below. 1 3 01/31/2023 01/31/2022 $8 Calculate the working capital and current ratio at each balance sheet date. Note: Enter "Working capital" in millions of dollars (i.e., 10,000,000 should be entered as 10).…
21. Mahal Mo Co. reported revenue of P3,100,000 in its accrual basis income statement for the year ended December 31, 2020. Additional information are as follows: Accounts receivable, December 31, 2019, P700,000 and Accounts receivable, December 31, 2020, P1,100,000. Under the cash basis, how much should Mahal Mo Co. report as revenue for 2020? Choices: P3,500,000 P2,000,000 P2,700,000 P2,400,000