LAG Network Inc.'s balance sheet and income statement are as follows: LAG Network Inc. LAG Network...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
LAG Network Inc.'s balance sheet and income statement are as follows: LAG Network Inc. LAG Network Inc. Income Statement Comparative Balance Sheet Information For Year Ended December 31, 2017 December 31 Sales . $929,600 Assets 2017 2016 Cost of goods sold 557,200 $372,400 $ 81,200 $ 54,600 Cash.. Gross profit Accounts receivable... 43,400 37,800 Operating expenses: Depreciation expense Other expenses Merchandise inventory.. 284,200 249,200 $ 25,200 Equipment. . Accumulated depreciation ......... 155,400 138,600 233,800 (72,800) $491,400 $432,600 (47,600) Total operating expenses Profit from operations 259,000 Total assets ... $113,400 Liabilities and Equity Income taxes 19,600 $ 93,800 Accounts payable $ 32,200 $ 44,800 Profit . Income taxes payable. 12,600 11,200 Common shares.. 364,000 336,000 Retained earnings... 82,600 40,600 Total liabilities and equity... $491,400 $432,600 Additional information regarding LAG Network Inc.'s activities during 2017: a. Equipment is purchased for $16,800 cash. b. 11,200 common shares are issued for cash at $2.50 per share. c. Declared and paid $51,800 of cash dividends during the year. CHECK FIGURE: Net cash inflow from operating activities = $67,200 Required Prepare a statement of cash flows for 2017 that reports the cash inflows and outflows from operating activities according to the indirect method. Show your supporting calculations. Analysis Component: Assume that LAG Network Inc. had a loss instead of a profit. Does a loss mean that there will always be a cash outflow from operating activities on the statement of cash flows? LAG Network Inc.'s balance sheet and income statement are as follows: LAG Network Inc. LAG Network Inc. Income Statement Comparative Balance Sheet Information For Year Ended December 31, 2017 December 31 Sales . $929,600 Assets 2017 2016 Cost of goods sold 557,200 $372,400 $ 81,200 $ 54,600 Cash.. Gross profit Accounts receivable... 43,400 37,800 Operating expenses: Depreciation expense Other expenses Merchandise inventory.. 284,200 249,200 $ 25,200 Equipment. . Accumulated depreciation ......... 155,400 138,600 233,800 (72,800) $491,400 $432,600 (47,600) Total operating expenses Profit from operations 259,000 Total assets ... $113,400 Liabilities and Equity Income taxes 19,600 $ 93,800 Accounts payable $ 32,200 $ 44,800 Profit . Income taxes payable. 12,600 11,200 Common shares.. 364,000 336,000 Retained earnings... 82,600 40,600 Total liabilities and equity... $491,400 $432,600 Additional information regarding LAG Network Inc.'s activities during 2017: a. Equipment is purchased for $16,800 cash. b. 11,200 common shares are issued for cash at $2.50 per share. c. Declared and paid $51,800 of cash dividends during the year. CHECK FIGURE: Net cash inflow from operating activities = $67,200 Required Prepare a statement of cash flows for 2017 that reports the cash inflows and outflows from operating activities according to the indirect method. Show your supporting calculations. Analysis Component: Assume that LAG Network Inc. had a loss instead of a profit. Does a loss mean that there will always be a cash outflow from operating activities on the statement of cash flows?
Expert Answer:
Answer rating: 100% (QA)
A B D 1 LAG Network Inc 2 Statement of cash flow Indirect me... View the full answer
Related Book For
Fundamental Accounting Principles Volume II
ISBN: 978-1259066511
14th Canadian Edition
Authors: Larson Kermit, Jensen Tilly
Posted Date:
Students also viewed these accounting questions
-
Talware Networx Inc.s balance sheet and income statement are as follows: Additional information regarding Talwares activities during 2014: a. Equipment is purchased for $16,800 cash. b. 11,200 common...
-
LAG Network Inc.?s balance sheet and income statement are as follows: Net cash inflow from operating activities = $67,200 Additional information regarding LAG Network Inc.?s activities during 2017:...
-
LAG Network Inc.?s balance sheet and income statement are as follows: Additional information regarding LAG Network Inc.?s activities during 2020: a. Equipment is purchased for $14,400 cash. b. 8,200...
-
1) Explain what creates value and identify if there are aspects that do not create value. (Please include the citation and references) 2)What is the strength of Hyatt Hotel's Loyalty 3)What makes you...
-
What is the structure of ATCase?
-
A synthesis produced 2.05 g of NH3 from 16.5 g of N2. What is the theoretical yield and the percent yield? N2(g) + 3H2(g) ( 2NH3(g)
-
Calculate the PRESS statistic for the model developed from the estimation data in Problem 11.2. How well is the model likely to predict? Compare this indication of predictive performance with the...
-
Perreth Drycleaners has capacity to clean up to 5,000 garments per month. Requirements 1. Complete the following schedule for the three volumes shown. 2. Why does the average cost per garment change?...
-
Surfside Incorporated produces surfboard wax. Total manufacturing costs are $360,000 when 80,000 containers of wax are produced. Of this amount, total variable costs are $120,000. What are the total...
-
Company A is a global company based in the United States that operates in the financial industry. Company A serves its customers with financial products, such as checking accounts, bank cards, and...
-
You have just received an inheritance and as a result you will be getting 15 equal payments of $1 million each. The first payment will be received in 1 year and thereafter, the other 14 payments will...
-
2. A plane wave (wavelength 2) of intensity I, is propagating in the z-direction. A large cardboard is placed on the x-y plane to block all the light in the lower-half plane y <0. At a distance z...
-
Jim and Greg are both driving to the same destination, a distance of 180 miles away. Jim is driving at a constant speed of 50 mph, while Greg is driving at 80 mph. Assuming both maintain their speeds...
-
Referring to this picture for line charges, if the wire is very long (the length is unlimited), then = 8.23 nC/m and a 1.9 m, then the electric field in P is... N/C. (Write the answer with 2 numbers...
-
Q2: explain the difference between the peak input voltage Vp(in) and the output half-wave Vp(rect) Q3: Explain the difference between the peak input voltage Vp(in) and the output Full-wave Vp(rec)...
-
Question 5: If the period of a simple harmonic oscillator is halved, but its amplitude is kept the same, what happens to the angular frequency and maximum potential energy, respectively? Assume that...
-
The U.S. Department of Transportation reported the accompanying data on the number of speeding-related crash fatalities during holiday periods for the years from 1994 to 2003. Holiday Period 1994...
-
Answer the following two independent questions. a. MM Corporation is considering several proposed investments for the coming budget year. MM produces electrical apparatus for industrial complexes....
-
If a company reports a net income for the year, is it possible for the company to show a net cash outflow from operating activities? Explain your answer.
-
Shaw Media Ltd. prepares statements quarterly. Part A: Required 1. Based on 2013 results, Shaws estimated tax liability for 2014 is $285,960. Shaw will accrue 1/12 of this amount at the end of each...
-
On January 1, 2014, Lands End Construction purchased a used truck for $37,500. A new motor had to be installed to get the truck in good working order; the costs were $13,500 for the motor and $6,750...
-
When translating Acceletrons fi nancial statements into US dollars, Redline is least likely to use an exchange rate of USD per SGD: A . 0.671. B . 0.588. C . 0.654.
-
Based on Exhibit 1, what is the foreign exchange gain resulting from Transaction 3 on the December 31, 2016 fi nancial statements? A . NVK1.70 per ton B . NVK90.75 per ton C . NVK248.54 per ton
-
Which transaction would generate foreign currency transaction exposure for Ambleu? A . Transaction 1 B . Transaction 2 C . Transaction 3
Study smarter with the SolutionInn App