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Update now Comments Share x W79 fx B C D E F G H I J K L M N P Q R S T U V W Y Z AA AB AC AD AE AR AG AH Module 4: Coopie Awards ended the year 20XX with the following balance: Coopie Awards Comparative Balance Sheet December 31, 20XX 20XX 20WW Increase (Decrease) Coopie Awards Comparative Income Statement For the Year Ended 20XX 20XX ASSETS Current Assets: Revenues: sales 0 Cash and cash equivalents 140,350 95,900 44,450 Cost of Goods Sold 1 Accounts receivable 95,300 102,300 -7,000 Gross Profit 1,100,000 710,000 390,000 2 Inventory 165,200 157,900 7,300 3 Prepaid expenses 6,240 5,860 380 Operating Expenses: Depreciation 23,500 4 Investments (long term) 35,700 84,700 -49,000 Patent Amortization 7,000 5 Plant Assets: 6 Land 75,000 90,000 -15,000 Other operating expenses Operating Expenses: 196,000 7 7 Buildings (net) 303,700 201,700 102,000 Income from operations 226,500 163,500 8 Equipment, net 279,800 290,300 -10,500 Other Income: 9 Patents 58,000 65,000 -7,000 Gain on sale of investments 11,000 0 Total Assets 1,159,290 1,093,660 65,630 Other Expenses: 1 Interest Expense 26,000 -15,000 2 LIABILITIES Income before income tax 148,500 3 Current Liabilities: Income tax expense 50,000 4 Accounts Payable 43,500 46,700 -3,200 Net Income 98,500 5 Accrued Liabilities 14,000 12,500 1,500 6 Income Taxes Payable 7,900 8,400 -500 Dividends Payable 14,000 10,000 4,000 8 Long Term Liabilities: 0 9 Mortgage note payable 40,000 0 Bonds Payable 150,000 250,000 40,000 -100,000 -1 Total Liabilities 269,400 327,600 -58,200 2 STOCKHOLDER'S EQUITY 0 4 Common Stock 450,000 375,000 75,000 5 6 Retained Earnings -7 Additional paid in capital-common Total Stockholders' Equity 66,250 41,250 25,000 373,640 349,810 23,830 889,890 766,060 123,830 8 Total Liabilities and Stockholders' Equity 1,159,290 1,093,660 65,630 9 -0 An examination of the accounting records revealed the following for 20XX: Land costing $15,000 was sold for $15,000 A mortgage note was issued for $40,000 A building costing $115,000 was constructed 2,500 shares of common stock were issued at 40 in exchange for the bonds payable 5 -6 Cash dividends declared were $74,670 -7 8 SCF worksheet File Home Insert Page Layout Formulas Data Review View Help (i) UPDATES AVAILABLE Updates for Office are ready to be installed, but first we need to close some apps. Update now Comments Share W79 fx B C D E F G H J K L M N P Q R S T U V W X Y Z AA AB AC AD AE AF AG AH 47 48 49 50 1 51 52 Using the indirect method, prepare the statement of cash flows for Coopie Awards for the year ended 20XX. Coopie Awards Statement of Cash Flows-Indirect Method 53 For the Year Ended 20XX 54 Cash Flows From Operating Activities: 55 Net Income 56 Depreciation Amortization $ 98,500.00 $ 23,500.00 $ 7,000.00 58 59 60 61 Gain on sale of investments Decrease in A/R Increase in Inventory Increase in PPD Expenses S (1,100.00) $ 7,000.00 $ (7,300.00) $ (380.00) 62 Decrease in A/P $ (3,200.00) 63 Increase in Accrued Expenses $ 1,500.00 64 Increase in dividends payable $ 4,000.00 65 Decrease in income taxes payable $ (500.00) $ 16,620.00 66 Net cash flow from operating activities $ 115,120.00 67 68 Cash Flows From Investing Activities: 69 Sale of Investments $ 60,000.00 70 Sale of Land 15,000.00 71 cash paid for construction on building S (115,000.00) Net cash flow for investing activities S (40,000.00) Cash Flows From Financing Activities: 75 Cash received from issuing mortgage note payable 76 cash paid for dividends Net cash flow for financing activities 78 Net increase in Cash 79 Cash balance Beginning of year 80 Cash balance End of year $ 40,000.00 $ (70,670.00) $ (30,670.00) $ 44,450.00 $ 95,900.00 $ 140,350.00 81 Schedule of noncash investing and financing activities: 82 83 84 85 1. What is the Cash conversion Cycle for Coopie Awards? (show your work). What does the cash conversion cycle indicate for Coopie Awards? 86 87 Cash conversion Cycle = Inventory Turnover + Accounts Receivable Turnover - Accounts Payable Turnover 161,550 710,000 x365 83.05 89 90 91 92 93 SCE worksheet Coopie Award's Cash conversion cycle indicates that they are slow to earn from their inventory T File Home Insert Page Layout Formulas Data Review View Help (i) UPDATES AVAILABLE Updates for Office are ready to be installed, but first we need to close some apps. W79 fx A B D F G H 67 68 69 Cash Flows From Investing Activities: Sale of Investments I Update now J K L M N P Q R S T U V W X Y Z AA $ 60,000.00 Sale of Land S 15,000.00 cash paid for construction on building $ (115,000.00) 72 Net cash flow for investing activities $ (40,000.00) 73 74 Cash Flows From Financing Activities: 75 76 77 78 Net increase in Cash 79 80 Cash received from issuing mortgage note payable cash paid for dividends Net cash flow for financing activities Cash balance Beginning of year Cash balance End of year $ 40,000.00 S (70,670.00) $ (30,670.00) S 44,450.00 $ 95,900.00 S 140,350.00 81 Schedule of noncash investing and financing activities: 82 83 84 85 1. What is the Cash conversion Cycle for Coopie Awards? (show your work). What does the cash conversion cycle indicate for Coopie Awards? 86 87 Cash conversion Cycle = Inventory Turnover + Accounts 161,550 88 x365 = 83.05 89 Receivable Turnover - Accounts Payable Turnover 710,000 90 91 92 93 94 95 2. What can you surmise about the free cash flows for Coopie Awards? AB Comments Shar AC AD AE AF AG AH Coopie Award's Cash conversion cycle indicates that they are slow to earn from their inventory 98 99 100 101 102 103 104 What is the Cash Flow on Assets for Coopie Awards? (show your work). What does the cash flow on assets indicate for Coopie Awards? 105 106 Cash Flow on Total Assets Cash flow from operations / Average 107 Total Assets 108 163,500 1,126,475 = 0.15 109 110 111 This cash flow on assets indicate that Coopie Awards income per $1 of assets is 15 cents 112 113 114 SCF worksheet Help 2. . T