Sales Cost of goods sold. Gross margin Selling and administrative expenses Net operating income Nonoperating items:...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Sales Cost of goods sold. Gross margin Selling and administrative expenses Net operating income Nonoperating items: Gain on sale of equipment Income before taxes Income taxes Net income Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Its balance sheet amounts at the end of Years 1 and 2 are as follows: Year 2 $ 211,860 252,000 319,000 9,500 792,360 621,000 165,800 455,200 41,000 $1,288,560 Property, plant, and equipment Less accumulated depreciation Net property, plant, and equipment Loan to Hymans Company Total assets Liabilities and Stockholders Equity Accounts payable Accrued liabilities Income taxes payable Total current liabilities Bonds payable Total liabilities Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $710,000 182,000 528,000 151,900 376,100 7,000 383,100 153,240 $229,860 2. Prepare a statement of cash flows for Year 2. 3. Compute the free cash flow for Year 2. $ 317,000 46,000 85,800 448,800 207,000 Year 1 $ 90,900 111,000 279,000 19,000 499,900 511,000 130, 100 380,900 0 $880,800 $254,000 53,000 81,800 388,800 112,000 655,800 500,800 347,000 290,000 285,760 90,000 632,760 380,000 $1,288,560 $880,800 Equipment that had cost $31,700 and on which there was accumulated depreciation of $10,800 was sold during Year 2 for $27,900. The company declared and paid a cash dividend during Year 2. It did not retire any bonds or repurchase any of its own stock. Required: 1. Using the indirect method, compute the net cash provided by/used in operating activities for Year 2. Sales Cost of goods sold. Gross margin Selling and administrative expenses Net operating income Nonoperating items: Gain on sale of equipment Income before taxes Income taxes Net income Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Its balance sheet amounts at the end of Years 1 and 2 are as follows: Year 2 $ 211,860 252,000 319,000 9,500 792,360 621,000 165,800 455,200 41,000 $1,288,560 Property, plant, and equipment Less accumulated depreciation Net property, plant, and equipment Loan to Hymans Company Total assets Liabilities and Stockholders Equity Accounts payable Accrued liabilities Income taxes payable Total current liabilities Bonds payable Total liabilities Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $710,000 182,000 528,000 151,900 376,100 7,000 383,100 153,240 $229,860 2. Prepare a statement of cash flows for Year 2. 3. Compute the free cash flow for Year 2. $ 317,000 46,000 85,800 448,800 207,000 Year 1 $ 90,900 111,000 279,000 19,000 499,900 511,000 130, 100 380,900 0 $880,800 $254,000 53,000 81,800 388,800 112,000 655,800 500,800 347,000 290,000 285,760 90,000 632,760 380,000 $1,288,560 $880,800 Equipment that had cost $31,700 and on which there was accumulated depreciation of $10,800 was sold during Year 2 for $27,900. The company declared and paid a cash dividend during Year 2. It did not retire any bonds or repurchase any of its own stock. Required: 1. Using the indirect method, compute the net cash provided by/used in operating activities for Year 2.
Expert Answer:
Answer rating: 100% (QA)
To compute the net cash provided byused in operating activities for Year 2 using the indirect method we need to adjust the net income by accounting fo... View the full answer
Related Book For
Managerial Accounting
ISBN: 9780073526706
12th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
Posted Date:
Students also viewed these accounting questions
-
1. List the number of groups to which you now belong. Include both voluntary and involuntary. 2. How do the groups you listed affect the way you think, feel, and act in your society? 3. What is your...
-
Your company sponsors a 4 0 1 ( k ) plan into which you deposit 1 1 percent of your $ 1 2 1 , 0 0 0 annual income. Your company matches 7 7 percent of the first 1 0 percent of your earnings. You...
-
Modify HashST to use a resizing array so that the average length of the list associated with each hash value is between 1 and 8 .
-
Decide which of these numbers could not possibly be probabilities. Explain your answers. a. 0.047 b. 0.047 c. 3.5 d. 1/3.5
-
Design and code a FIFO synchronizer that uses a presence bit for each register instead of head and tail pointers. When the input writes a value into a register, the corresponding presence bit is...
-
Do analytical efforts, big data examinations, and textual analyses impact compliance and fraud deterrence? Provide an explanation for your opinion.
-
Takemoto Corporation borrowed $60,000 on November 1, 2010, by signing a $61,350, 3-month, zero-interest-bearing note. Prepare Takemotos November 1, 2010, entry; the December 31, 2010, annual...
-
2. There are two kinds of people, who are those with college degrees and those without college degrees. Assume that they are all white-collar workers. The wage status is described in Table 1. Table...
-
Stock a has a beta of 1.66 and an expected return of 19.3%. Stock B has a beta of 1.06 and an expected return of 13.6%. If capm holds what should be the return on the market and risk free rate?
-
The Company AltPencils prepared the following schedule of unit costs and market prices for three items of merchandise inventory. Item Units Cost per unit Market price per unit A 1,000 $0.50 $0.55 B...
-
What rate of return should an investor expect for a stock that has a beta of 1.25 when the market is expected to yield 14% and Treasury bills offer 6%?
-
A 75 N force is applied at an angle of 60 from the horizontal to the handle of a shopping cart as shown. Determine the moments of the force about (a) the front wheel and (b) the back wheel. The...
-
How do advancements in single-cell sequencing technologies enable the elucidation of complex cellular heterogeneity within tissues and organs, and what implications does this have for understanding...
-
your client has a portfolio of $2000 invested in stock A, which has a beta of 1.50 and $5000 in stock B, which has a beta of 0.70. the market risk premium is 2% and the risk free is 2%. what is the...
-
Differentiability Consider the following piecewise defined function f(x) { f(x) = { 2x^2 - 4x - 1, { - x^2 + 14x - 28, x>3 x
-
7. Baladna wants to analyze process that includes delivery by suppliers, production inside the company, transportation to to its customers and information systems. Then it also wants to find out...
-
Medusa Products uses a job-order costing system. Overhead costs are applied to jobs on the basis of machine-hours. At the beginning of the year, management estimated that the company would incur...
-
Scalias Cleaning Service is investigating the purchase of an ultrasound machine for cleaning window blinds. The machine would cost $136,700, including invoice cost, freight, and training of employees...
-
What arguments can be advanced in favor of treating fixed manufacturing overhead costs as product costs?
-
Repeat problem 41 with the specimen of size \(100 \times 100 \times 10 \mathrm{~mm}^{3}\) and the dimensions of the cavity \(104 \times 104 \times 9 \mathrm{~mm}^{3}\). Elastic constants of the...
-
Repeat problem 41 with elastic constants of the plastic as \(E=10 \mathrm{GPa}\) and \(v=0.485\). Problem 42: A rectangular plastic specimen of size \(100 \times 100 \times 10 \mathrm{~mm}^{3}\) is...
-
A rectangular plastic specimen of size \(100 \times 100 \times 10 \mathrm{~mm}^{3}\) is placed in a rectangular metal cavity. The dimensions of the cavity are \(101 \times 101 \times 9...
Study smarter with the SolutionInn App