Carl Limited has provided the statement of income for the year ended December 31, 2020, partial...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Carl Limited has provided the statement of income for the year ended December 31, 2020, partial comparative statements of financial position for the year ended December 31, 2020 and additional information below: Carl Limited Income Statement For the Year Ended December 31, 2020 $1,165,000 697,500 467,500 127,500 340,000 13,500 326,500 97,950 $ 228,550 Net sales Cost of Goods Sold Gross Profit Operating expenses Income from operations Interest expense Income before income taxes Income taxes Net income Carl Limited. Comparative Statement of Financial Position As at December 31, 2020 2020 $15,000 42,750 16,500 2,500 38,000 (16,250). $5,000 2,000 34,950 3,000 2019 $9,750 39,300 11,750 2,000 33,500 (17,750) $6,750 2,000 58,250 1,000 8,750 15,000 Cash Accounts receivable – net Inventories Prepaid insurance Equipment Accumulated depreciation-equipment Accounts payable Wages payable Deferred Revenue Income taxes payable Long-term note payable Common shares 15,000 Additional information: • Equipment that cost $8,000 was sold for its carrying amount of $3,750. • The allowance for doubtful accounts at the beginning of the year was $3,500 and the balance at the end was $4,270. Recoveries were $1,250 and accounts written off amounted to $2,150. Required: i. Prepare the cash flow of operations using the direct method. ii. Prepare the cash from investing section of the cash flow statement. Carl Limited has provided the statement of income for the year ended December 31, 2020, partial comparative statements of financial position for the year ended December 31, 2020 and additional information below: Carl Limited Income Statement For the Year Ended December 31, 2020 $1,165,000 697,500 467,500 127,500 340,000 13,500 326,500 97,950 $ 228,550 Net sales Cost of Goods Sold Gross Profit Operating expenses Income from operations Interest expense Income before income taxes Income taxes Net income Carl Limited. Comparative Statement of Financial Position As at December 31, 2020 2020 $15,000 42,750 16,500 2,500 38,000 (16,250). $5,000 2,000 34,950 3,000 2019 $9,750 39,300 11,750 2,000 33,500 (17,750) $6,750 2,000 58,250 1,000 8,750 15,000 Cash Accounts receivable – net Inventories Prepaid insurance Equipment Accumulated depreciation-equipment Accounts payable Wages payable Deferred Revenue Income taxes payable Long-term note payable Common shares 15,000 Additional information: • Equipment that cost $8,000 was sold for its carrying amount of $3,750. • The allowance for doubtful accounts at the beginning of the year was $3,500 and the balance at the end was $4,270. Recoveries were $1,250 and accounts written off amounted to $2,150. Required: i. Prepare the cash flow of operations using the direct method. ii. Prepare the cash from investing section of the cash flow statement.
Expert Answer:
Answer rating: 100% (QA)
1 Cash flow from operations using direct method Particulars Amount Amount Cash inflows Receipts from ... View the full answer
Related Book For
Managerial Accounting Tools for Business Decision Making
ISBN: 9781119403999
5th Canadian edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso, Ibrahim M. Aly
Posted Date:
Students also viewed these accounting questions
-
The net income for the year ended December 31, 2015, for Oliva Company was $1,900,000. Additional information is as follows: Depreciation on plant...
-
Comparative statements of financial position and a statement of earnings for Ponderosa Pines Ltd. follow: Ponderosa Pines Ltd. Statements of Financial Position As at December 31, 2011 and 2010...
-
Comparative statements of financial position for Eddie Murphy Company are presented below. Additional information: 1. Net income for 2011 was $125,000. 2. Cash dividends of $60,000 were declared and...
-
Find or evaluate the integral by completing the square. 3 L= dx x + 4x + 8
-
Refer to P6.5. Each unit requires one- half hour of direct labor time at $ 20 per hour. Unit- related over-head are $ 5 per machine hour and each unit requires 3 machine hours. Batch- related...
-
Which of the following statements are incorrect? (a) The conductivities of conductors and insulators vary with temperature and frequency. (b) A conductor is an equipotential body in steady state, and...
-
Water flows over a bump of height \(h=h(x)\) on the bottom of a wide rectangular channel as is indicated in Fig. P10.25. If energy losses are negligible, show that the slope of the water surface is...
-
Adriana Alvarado has decided to purchase a personal computer. She has narrowed the choices to two: Drantex and Confiar. Both brands have the same processing speed, 6.4 gigabytes of hard-disk...
-
Imagine two countries (A and B) operate in the Gold Standard era. The gold content of the country B's currency (B$) is twice that of the country A's currency (A$). The transportation cost of the gold...
-
What is Jacqueline and Keiths monthly mortgage payment prior to the refinancing?
-
Given a virtual memory system with 32-bit logical addresses and IK Byte pages. The system supports up to 1 GB of physical memory. a) Compute the required number of bits for the page number and for...
-
True Or False The right to detain someone suspected of shoplifting will be lost if the defendant is coerced into signing a confession or making payment or is publicly accused of shoplifting.
-
True Or False To defend themself against charges of false imprisonment by a customer detained for shoplifting, the merchant must show that there were reasonable grounds for the detention and that the...
-
True Or False An employer is vicariously liable for negligent acts engaged in by an employee while traveling to and from work.
-
Can a landlord use force to evict a holdover tenant?
-
True Or False Confinement for purposes of false imprisonment can be achieved by threats even if those threats consist of the defendants body language or are directed at someone other than the...
-
Compute the time complexity of the following algorithm. You must explain how many operations are performed per call, how many calls to the algorithm are made, how many operations the algorithm...
-
Read the case study Richter: Information Technology at Hungarys Largest Pharma and answer the following question: How does the organization ensure the accuracy of the data it stores?
-
Zeller Company estimates that 2020 sales will be $40,000 in quarter 1, $48,000 in quarter 2, and $58,000 in quarter 3. Cost of goods sold is 50% of sales. Management desires to have ending finished...
-
For the quarter ended March 31, 2020, Westphal Company accumulates the following sales data for its product, Garden-Tools: $350,000 budgeted; $335,000 actual. Prepare a static budget report for the...
-
The U.S. Institute of Management Accountants has developed ethical standards for managerial accountants. Explain the importance of business ethics. Instructions Identify the four specific standards.
-
Dunkirk Consulting wishes to predict the amount of overhead expense that will be incurred by a consulting contract, to develop more accurate bids for future con- tracts. Dunkirk has the following...
-
Block Commodities has gathered the following information concerning rock salt deliveries to its clients, which it believes are highly seasonal: a. Suppose Block Commodities calculated a set of...
-
The service center at a large automobile dealership is trying to boost revenue by pro- viding no-appointment-necessary oil changes to any type of vehicle that stops by the service center. To quickly...
Study smarter with the SolutionInn App