Consider the following transactions pertaining to Retail Traders Company. Amounts in parentheses indicate a decrease in the
Question:
Required:
1. Based on this information, prepare an income statement and statement of cash flows.
2. Provide an intuitive explanation of how the adjustments made to net income in the cash flow statement convert the accrual numbers to cash flownumbers.
Transcribed Image Text:
Assets LiabilitiesOwners' Equity Accounts Common Stock Retained Explanation Cash Inventory Payable Earnings $3,000 2,000 115,000 10,000 100,000 5,000 100,000 Beginning balance Credit purchases Cash sales Cost of goods sold Cash paid to suppliers(85,000) Ending balance S115,000 (90,000) (90,000) (85,000) 20,000 oo 30,000 20,000 3,000 $27,000
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 73% (15 reviews)
Requirement 1 Accrual Accounting Cash Flow Accounting Sales revenue 115000 Cash collected from custo...View the full answer
Answered By
Pushpinder Singh
Currently, I am PhD scholar with Indian Statistical problem, working in applied statistics and real life data problems. I have done several projects in Statistics especially Time Series data analysis, Regression Techniques.
I am Master in Statistics from Indian Institute of Technology, Kanpur.
I have been teaching students for various University entrance exams and passing grades in Graduation and Post-Graduation.I have expertise in solving problems in Statistics for more than 2 years now.I am a subject expert in Statistics with Assignmentpedia.com.
4.40+
3+ Reviews
10+ Question Solved
Related Book For
Financial Reporting and Analysis
ISBN: 978-0078025679
6th edition
Authors: Flawrence Revsine, Daniel Collins, Bruce, Mittelstaedt, Leon
Question Posted:
Students also viewed these Accounting questions
-
The income statement and statement of cash flows for ABC Equipment Company for 2017 are provided below. ABC Equipment Company Income Statement for the Year Ended December 31, 2017 ($ in millions)...
-
Based on Problem 2-9A, prepare an income statement for Jay Pembroke for the month of April 20--. Problem 2-9A: Jay Pembroke started a business. During the first month (April 20--), the following...
-
1. An auditor selected a product maintained in the finished goods Warehouse. The auditor counted the product and compare this amount what the amount in the finished goods Perpetual inventory...
-
Air is cooled and dehumidified as it flows over the coils of a refrigeration system at 85 kPa from 35oC and a humidity ratio of 0.023 kg/kg dry air to 15oC and a humidity ratio of 0.015 kg/kg dry...
-
The production supervisor of the Machining Department for Niland Company agreed to the following monthly static budget for the upcoming year: Niland Company Machining Department Monthly Production...
-
Who was the 14th president of the United States: Taylor, Fillmore, Pierce, or Buchanan? If you make a random guess for the answer to that question, what is the probability that your answer is the...
-
The following information pertains to Wise Corp. at January 1, 2013: Common stock , $10 par, 50,000 shares authorized, 3,000 shares issued and outstanding .......... $30,000 Paid-in capital in excess...
-
Convert the integral equation where to a boundary value problem. o(r) A K K(r,y)o(y)dy K(x, y) { cos r sin y, cos y sin a, 0 x y: y < r < # Ac Go
-
To use the wage-bracket method, follow the steps illustrated below. Step 1 Select the withholding table that applies to the employee's marital status and pay period. Adrienne Huff is married and...
-
A December 31, 2014, post-closing trial balance for Short Erin Company follows. .:. Additional information about Short Erins account balances: 1. Cash includes $12,000 in U.S. treasury bills...
-
The common-size balance sheets from four companies follow: Amazon.com, an Internet book retailer; Alcoa, a major producer of aluminum products; Wendys, a fast-food services organization; and Delta...
-
List all the forms of pay you receive from work. Compare your list to someone elses list. Explain any differences.
-
1- In the graphics used in material selection, the size of the material bubbles is displayed on the horizontal/vertical axes It also appears to be getting longer. Briefly explain the reason for this...
-
20xx-70x-0xx Let d, d2, d3, d4 be the 4th, 8th, 10th, and 11th digits of your ID. Example: 20##-070#-0## | | || d d d3d4 Example: ID=20240705010 ==> d = 4, d = 5, d3 = 1, d4 = 0. Then, define a = d +...
-
What are the 4 stages of the Carnot Cycle? Select four answers. Partial credit will be given for correct marks, and negative marks applied for incorrect answers. An overall score lower than zero...
-
1. Find vector c. Express this vector in any (reasonable) way you see fit. c = a + 3b = [3 m] + [-2 m]y b = [-1 m] + [4 m] 2. Find vector c. Express your answer in terms of magnitude and angle. c =...
-
3)The mathematical model of a dynamic system is defined by x" +4x' + 4x = 2e-t. a) Find the general solution of the homogeneous equation with initial conditions x(0) = = 1 and x'(0) = 0 b) Find a...
-
An oil-water mixture from a pilot-plant reactor is separated in a horizontal decanter 0.6 m in diameter and 3 m long. The residence time needed in the decanter is found to be 20 minutes. (a) If a...
-
Figure displays a 12.0 V battery 3 four uncharged capacitors of capacitances C1 = 4.00F, C2 = 6.00F, and C3 = 3.00F. The switch is thrown to the left side until capacitor 1 is fully charged. Then the...
-
Let \(\mathbf{X}_{1}, \ldots, \mathbf{X}_{n}\) be a set of independent and identically distributed \(d\) dimensional random vectors from a distribution \(F\) with real valued parameter \(\theta\)...
-
Neighborhood Supermarkets is preparing to go public, and you are asked to assist the firm by preparing its statement of cash flows for 20X1. Neighborhoods balance sheets at December 31, 20X0, and...
-
Karr Inc. reported net income of $300,000 for 20X1. Changes occurred in several balance sheet accounts as follows: Equipment ................................. $25,000 increase Accumulated...
-
The balance sheets of Global Trading Company follow: Additional Information: The company reported a net loss of $279,500 during 20X1. There are no income taxes. Goodwill as of December 31, 20X0,...
-
Metallica Bearings, Inc., is a young start-up company. No dividends will be paid on the stock over the next 10 years because the firm needs to plow back its earnings to fuel growth. The company will...
-
3. The ABX Company is interested in conducting a study to identify factors that affect absenteeism among its production employees. After reviewing the literatures on absenteeism and interviewing...
-
Now assume the AT&T post merger equity beta is 0.75. The marginal tax rate is to drop from 35% to 22%, the effective tax rate from 20% to 13%. What is the tax shield? Risk-free rate: 2.31%; MRP 5.00%...
Study smarter with the SolutionInn App