Preparation of Statement of Cash Flows
The accountant for Consolidated Enterprises Inc. has just finished preparing a consolidated balance
sheet, income statement, and statement of changes in retained earnings for 20X3. The accountant
has asked for assistance in preparing a statement of cash flows for the consolidated entity.
Consolidated Enterprises holds 80 percent of the stock of Separate Way Manufacturing. The following
items are proposed for inclusion in the consolidated cash flow statement:
Decrease in accounts receivable $ 23,000
Increase in accounts payable 5,000
Increase in inventory 15,000
Increase in bonds payable 120,000
Equipment purchased 380,000
Common stock repurchased 35,000
Depreciation reported for current period 73,000
Gain recorded on sale of equipment 8,000
Book value of equipment sold 37,000
Goodwill impairment loss 3,000
Sales 900,000
Cost of goods sold 368,000
Dividends paid by parent 60,000
Dividends paid by subsidiary 30,000
Consolidated net income for the year 464,000
Income assigned to the noncontrolling interest 14,000
Prepare in good form a statement of cash flows for Consolidated Enterprises Inc. using the indirect
method of computing cash flows from operations.
Direct Method Cash Flow Statement
Using the data presented, prepare a statement of cash flows for Consolidated Enterprises
Inc. using the direct method of computing cash flows from operating activities.
Answers
According to the indirect method's statement of cash flows for Consolidated Enterprises Inc., $575,000 in net cash was generated by operational activities.
This is computed by subtracting several adjustments from the $464,000 in consolidated net income for the year, such as depreciation, gain on equipment sales, goodwill impairment losses, changes in accounts receivable, inventory, and accounts payable. The purchase of equipment and the revenues from its sale resulted in a net cash outflow of $343,000, according to the cash flows from investment activities. The buyback of common stock and payment of dividends by both the parent and subsidiary are shown to have resulted in a net cash outflow of $5,000 in the cash flows from financing operations. Cash has increased by $227,000 in total. According to the direct method's statement of cash flows for Consolidated Enterprises Inc., $434,000 in net cash was generated by operational activities. This is determined by adjusting the numerous cash inflows and outflows, such as cash from sales, cash spent on inventory, cash used for operational costs, interest, and cash paid for income taxes. The purchase of equipment and the revenues from its sale resulted in a net cash outflow of $343,000, according to the cash flows from investment activities. The buyback of common stock and payment of dividends by both the parent and subsidiary are shown to have resulted in a net cash outflow of $5,000 in the cash flows from financing operations. Cash has increased by $86,000 in total.
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Related Questions
Which of the following best describes the role of households and firms in the circular flow model of the economy?
a. Firms provide households with factors of production in exchange for money; households provide firms with goods and services in exchange for money
b. Households provide firms with factors of production in exchange for goods and services
c. Households supply the factors of production to firms in exchange for money; firms supply goods and services to households in exchange for money
d. Firms and households exchange money with one another in the pursuit of higher incomes and profits
Answers
Households supply the factors of production to firms in exchange for money; firms supply goods and services to households in exchange for money - best describes the role of households and firms in the circular flow model of the economy. The correct answer would be option C.
The circular flow model illustrates how money circulates in an infinite cycle from suppliers to households and back again. Money goes back and forth in an economy as workers spend their income on goods and services, first going from manufacturers to workers as wages, and then back to producers. It is possible to make the model more intricate by including factors that increase the money supply, such as exports and imports. A country's gross domestic product (GDP) which is also known as its national income, is the outcome of adding up all of these variables.
Governments and central banks can modify monetary and fiscal policy to enhance an economy by analyzing the circular flow model and its present effect on GDP.
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a cereal manufacturer wants to know how effective its packaging is in gaining attention. which research method is most appropriate?
Answers
A cereal company is interested in how well its packaging attracts attention. The best research method is direct observation.
Packaging is the best marketing tactic, but why is that?Appealing and welcoming packaging is crucial for brand awareness. New products on the market must find a way to immediately make an impression and sway consumers' purchasing choices. Statistics show that 70% of consumers base their opinion of a brand only on the packaging of its products.
What kind of research uses direct observation?a method of data collection when the researcher simply observes or hears the study subjects rather than directly asking any questions or controlling any factors. Direct observation is a useful tool in evaluation studies and field research.
Direct observation, also known as observational study, is a method for gathering evaluation data in which the observer watches the subject in his or her regular environment without altering anything.
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What is merchantability?
(Answer in your own words please!)
Answers
Answer:
Explanation: the state of being fit for market; ready to be bought or sold.
Cash Budgeting Dorothy Koehl recently leased space in the Southside Mall and opened a new business, Koehl's Doll Shop. Business has been good, but Koehl frequently runs out of cash. This has necessitated late payment on certain orders, which is beginning to cause a problem with suppliers. Koehl plans to borrow from the bank to have cash ready as needed, but first she needs a forecast of how much she should borrow. Accordingly, she has asked you to prepare a cash budget for the critical period around Christmas, when needs will be especially high. Sales are made on a cash basis only. Koehl's purchases must be paid for during the following month. Koehl pays herself a salary of $4,600 per month, and the rent is $1,800 per month. In addition, she must make a tax payment of $13,000 in December. The current cash on hand (on December 1) is $750, but Koehl has agreed to maintain an average bank balance of $7,000 - this is her target cash balance. (Disregard the amount in the cash register, which is insignificant because Koehl keeps only a small amount on hand in order to lessen the chances of robbery.) The estimated sales and purchases for December, January, and February are shown below. Purchases during November amounted to $150,000. Sales Purchases December $120,000 $35,000 January 46,000 35,000 February 66,000 35,000 Prepare a cash budget for December, January, and February. Do not round intermediate calculations. Round your answers to the nearest dollar. Negative values, if any, should be indicated by a minus sign. Collections and Purchases: December January February Sales (Collections) $ $ $ Purchases $ $ $ Payments for purchases $ $ $ Salaries $ $ $ Rent $ $ $ Taxes $ --- --- Total payments $ $ $ Cash at start of forecast $ --- --- Net cash flow $ $ $ Cumulative cash balance $ $ $ Target cash balance $ $ $ Surplus cash or loans needed $ $ $ Suppose that Koehl starts selling on a credit basis on December 1, giving customers 30 days
Answers
The preparation of cash budgets for December, January, and February for Koehl's Doll Shop are as follows:
Koehl's Doll Shop
Cash BudgetDecember January February
Sales $120,000 46,000 66,000
Total payments $169,400 $41,400 $41,400
Cash at the start of the forecast $750 --- ---
Net cash flow ($49,400) $4,600 $24,600
Cumulative cash balance ($48,650) ($51,050) ($33,450)
Target cash balance $7,000 ($7,000) ($7,000)
Surplus cash or loans needed ($55,650) $58,050 ($40,450)
What is a cash budget?A cash budget is a projection of cash receipts and payments for a period.
Cash budgets may be prepared weekly, monthly, quarterly, or yearly, as required.
Management prepares cash budgets to guide its cash flow activities and decisions, readying to invest excess cash, request loans, or generate sufficient revenue to meet its short-term obligations.
Purchases for November = $150,000
Sales Purchases
December $120,000 $35,000
January 46,000 35,000
February 66,000 35,000
Other cash payments:
Koehl's salary is $4,600 monthly
Rent is $1,800 monthly
Tax $13,000 in December
Thus, preparing a cash budget enables Dorothy Koehl to appreciate the timing of cash flows.
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Identify whether the income below would be considered earned income, passive income, or portfolio income. Mychal’s parents bought a house, fixed it up, and sold it at a higher price.
Answers
Answer: Portfolio income is money received from investments, dividends, interest, and capital gains. It is one of three categories of income.
Explanation:
a certain state uses the following progressive tax rate for calculating individual income tax:
calculate the state income tax owed on a 90,000 per year salary.
tax=$___
Answers
The state income tax owed on a $50,000 per year salary is approximately $2,686 (rounded to the nearest dollar).
How did we get the value?To calculate the state income tax owed on a $50,000 per year salary, we need to determine the portion of the salary that falls into each progressive tax range and then calculate the tax owed for each range.
The first $3,000 of income is taxed at 2%:
Tax on this portion = $3,000 x 0.02 = $60
The next $2,000 of income (from $3,001 to $5,000) is taxed at 3%:
Tax on this portion = $2,000 x 0.03 = $60
The next $12,000 of income (from $5,001 to $17,000) is taxed at 5%:
Tax on this portion = $12,000 x 0.05 = $600
The remaining income over $17,000 is taxed at 5.75%:
Tax on this portion = ($50,000 - $17,000) x 0.0575 = $1,966.25
To calculate the total tax owed, we add up the tax owed for each range:
$60 + $60 + $600 + $1,966.25 = $2,686.25
Therefore, the state income tax owed on a $50,000 per year salary is approximately $2,686 (rounded to the nearest dollar).
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By making sure that you have properly prioritized your tasks, you are showing
a. Confidence
b. Honesty
Self management
d. Neatness
C.
Please select the best answer from the choices provided
Ο Α
OB
Answers
By making sure that I have properly prioritized my tasks, I am Showing the characteristics of Self Management. Hence, option C is correct.
Self ManagementTo increase productivity and better performance, self-managment is very important. The basic process making self-management a habit is to prioritize tasks to be done before anything.
Hence, going by the statement, the proper prioritization of task is related to managing things properly, hence the option C is correct option.
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By making sure that you have properly prioritized your tasks, you are showing is the self-management. Thus, option (c) is correct.
What is self-management?The term self-management, refers to “self-control.” It was the basis of the self-emotions, feelings and the perception. It was the different situations are the different behavior or to react. It was the responsibility to the own are the achieving the academic and the personal goal.
The individual responsibility to take they properly prioritized your tasks in the better performance and the self-management it was the necessary. A habit of the person are the perform the task are to give the 100% is the increase productivity and the developed the personality.
As a result, the self-management is the aforementioned. Therefore, option (c) is correct.
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4. When it comes to owning a hotel there are a variety of options for ownership such as
franchising, independent lodging, REITS management contracts and vacation ownershipsh
or timeshares Briefly explain each of these highlighting the disadvantages and
advantages of each which would you choose? Why?
5. Why are room counts important to hotels? What are some strategies to achieve accuracy
in this department? Within your answer explain and analyze the value and impact of
calculation of hotel occupancy average daily rate (ADR) and revenue available room
Answers
Room counts are important to hotels is because they play a crucial role in measuring the hotel's performance and profitability. Accurate room counts allow hotels to assess their occupancy rates and calculate their average daily rate (ADR) and revenue available room (RevPAR), which are key metrics in the hotel industry.
Room counts refer to the number of rooms available in a hotel, and it is important to maintain accurate records of the number of rooms to ensure that the hotel can manage its inventory and resources efficiently. Accurate room counts enable hotels to optimize their pricing strategies, as they can adjust room rates based on demand and occupancy levels. Additionally, accurate room counts can help hotels manage their staffing levels, as they can anticipate how many staff members are required to provide quality service to guests.
To achieve accuracy in this department, hotels can implement strategies such as investing in property management systems (PMS) and automated room count tracking systems. PMS can help hotels track inventory and occupancy levels in real-time, while automated systems can provide accurate room count data by using sensors and technology to monitor room occupancy.
The calculation of hotel occupancy, ADR, and RevPAR are critical metrics in the hotel industry as they provide a comprehensive overview of a hotel's financial performance. Occupancy rates measure the percentage of rooms occupied over a given period, while ADR measures the average room rate per occupied room. RevPAR, on the other hand, measures the revenue generated per available room.
Analyzing these metrics can help hotels identify their strengths and weaknesses and develop strategies to improve their financial performance. For example, if a hotel has low occupancy rates, it may consider implementing marketing campaigns or pricing strategies to attract more guests. Similarly, if a hotel's ADR is lower than its competitors, it may consider adjusting its pricing strategy to remain competitive.
In conclusion, room counts are important to hotels as they enable them to manage their inventory and resources efficiently. Accurate room counts, along with the calculation of occupancy, ADR, and RevPAR, provide a comprehensive overview of a hotel's financial performance and enable hotels to develop strategies to improve their profitability. By implementing accurate tracking systems and analyzing these metrics, hotels can stay competitive and thrive in the dynamic and competitive hotel industry.
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Do you think that MTV’s future lies mostly in its international operations? Explain your reasoning.
Answers
It can be argued that MTV's future lies mostly in its international operations. MTV has historically been known as a music television channel primarily targeting the American market.
However, with the decline in music videos' popularity and the rise of digital platforms for music consumption, the domestic market for MTV has become increasingly competitive and challenging. On the other hand, MTV's international operations have seen significant growth and potential. MTV has successfully expanded its brand globally, reaching audiences in different countries and cultures. The international market offers a vast consumer base and opportunities for revenue generation through advertising, licensing, and partnerships. Additionally, the popularity of American music and entertainment content in many parts of the world provides a strong foundation for MTV's international growth.
Furthermore, as technology advances, the internet and digital platforms have made it easier for MTV to reach international audiences and adapt to changing media consumption habits. MTV's ability to produce localized content and tailor its programming to specific regions and demographics further strengthens its position in the international market.
In conclusion, while MTV's domestic operations may face challenges, its international operations present significant growth potential. By leveraging its global brand recognition, adapting to changing media consumption patterns, and catering to diverse international audiences, MTV can capitalize on the opportunities offered by the international market and secure its future success.
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What is the difference between marketing and merchandising? How do each of these concepts fulfill a different function in the business world? Explain and provide a real-world example of each.
Answers
Answer:
The difference between marketing and merchandising is that marketing is virtual, like it is an advertisement via the Internet, paper copies, etc. Meanwhile, merchandising is a in-person product advertisement, like a salesman showing a potential buyer a new car. These concepts fufill different functions in the business world, since marketing can reach more people, more easily, while merchandising can only reach a handful of people, but the people will be more likely to buy the product. An example of marketing would be a car company advertising a new model via the Internet. An example of merchandising would be a salesman showing a customer a new car model.
Explanation:
Please mark as Brainliest!!!I worked very hard on this!
Marketing is virtual like a car company advertising a new model via the internet while merchandising is an in-person product advertisement like a salesman showing a potential buyer a new car model.
What is marketing?Marketing can be understood as the process of exploring, creating, and delivering value to meet the needs of a target market in terms of goods and services. It potentially includes things such as the selection of a target audience, the selection of certain attributes or themes to emphasize in advertising, the operation of advertising campaigns, and attendance at trade shows and public events.
It also includes the design of products and packaging attractive to buyers, defining the terms of sale, such as price, discounts, warranty, and return policy, product placement in media or with people believed to influence the buying habits of others, agreements with retailers, wholesale distributors, or resellers and attempts to create awareness of, loyalty to, and positive feelings about a brand.
Marketing is typically done by the seller, typically a retailer or manufacturer.
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Which are examples of copyrighted online materials? Check all that apply.
an article from an Internet magazine
lyrics for a song written in the 1800s
photos taken by a student on his blog
a video game that is free for anyone to copy
an illustration sold by an artist on her website
an excerpt from a novel published in 1913
Answers
Answer:
a and d
Explanation:
Answer:
A & E
Explanation:
edge test
Gold has historically functioned as money. This is due, in part, to the willingness of others to accept it as valid payment for goods and
services. In this case, gold is functioning as an) (1 point)
Answers
The willingness of others to accept gold as a valid payment for goods and services made gold a medium of exchange. In other words, gold was used to facilitate commercial exchanges when these became more developed.
Money has changed and developed over time, it has always been used to make business practices more simplified and standardized.
Some examples of the use of a medium of exchange were salt, which was a rare mineral that was offered in trade, hence the word salary.
Therefore, gold began to be used as a means of exchange from the need to use coins with greater durability.
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How many categories should you have in your budget?.
Answers
Answer:
the 50/30/20 system, which splits your income across three major categories: 50% goes to necessities, 30% to wants and 20% to savings and debt repayment.
Explanation:
Why are payments for a 15-year mortgage less than two times a 30-year mortgage (36 month auto loan less than two times a 72 month note)?
Answers
Payments for a 15-year mortgage are typically less than two times the payments for a 30-year mortgage because the shorter loan term results in a faster repayment schedule and lower total interest costs. Payments for a 36-month auto loan are less than two times the payments for a 72-month note due to similar reasons.
When comparing a 15-year mortgage to a 30-year mortgage, the shorter term requires higher monthly payments since the principal and interest are amortized over a shorter period.
However, the total interest paid over the life of the loan is significantly lower for the 15-year mortgage. The longer loan term of the 30-year mortgage allows for smaller monthly payments but results in more interest paid over time.
The same principle applies to the auto loan example. A 36-month loan has higher monthly payments compared to a 72-month loan, but the shorter term leads to lower total interest paid.
In summary, the payments for a shorter-term mortgage or loan are typically less than two times the payments for a longer-term mortgage or loan due to the faster repayment schedule and reduced interest costs associated with shorter terms.
While the monthly payments may be higher, the overall financial benefit lies in paying less interest and becoming debt-free sooner.
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What is not a criterion when evaluating financial service providers?
A. financial service provider's history
B. benefits or lack thereof
C. past and current employees
D. emerging technologies
Answers
That which is not a criterion when evaluating financial service providers is this: C. past and current employees.
What are the criteria for evaluating financial service providers?To successfully evaluate the qualification of a financial service provider, the customer must be able to look at their present and past history. They should consider their ability to incorporate emerging technologies into their businesses.
It is not really the business of the consumer to dig out the past and current employees of the business. He should be interested in other relevant factors like the above.
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are partnerships that provide professional and noncommercial assistance or advice.
Trading partnerships
Non-trading partnerships
General partnerships
Hi Special partnerships
Answers
Answer:
Non-trading partnerships
Explanation:
The non-trading partnership is a partnership that provides the professional and uncommercial advice or suggestions in terms of legal, medical, accounting, etc. Here all the partners have an active role for managing the business also they have unlimited liability with respect to any claim that against the firm
Therefore as per the given situation, the second option is correct
Explique la teoría del valor y de un ejemplo con algún bien o servicio de su uso cotidiano. (colombia)
Answers
Answer:
En economía, se habla de teorías del valor para indicar el conjunto de concepciones sobre la génesis y determinación del valor, como propiedad de las mercancías distinta del costo y lógicamente antecedente al precio, que constituye su manifestación fenomenal en esta perspectiva.
La economía política siempre ha tratado de responder a la pregunta: ¿de dónde viene el valor? Las respuestas fueron muy divergentes. Van desde la escasez de bienes disponibles, a su utilidad, a la necesidad de remunerar los factores productivos, incluido el capital y considerando su remuneración; - el beneficio - como recompensa por la abstinencia del capitalista, que puede permitirse renunciar al consumo para utilizar la propia riqueza de forma productiva, etc.
do you agree with the marketing customer service mantra the customers is always right
Answers
Answer:
depemds
Explanation:
in jobs usually they tell the employee the customer is right to satisfy them and not lose customers but it is depending the situation
On 31 January 2017, you bought 200 shares of a company for $422.84 a share and on 31 January 2021 you sold them for $862.14 a share. In January 2021, you also received a cash dividend of $11.64 per share. Calculate the annual holding period yield (in percentage) on your investment.
Answers
The annual holding period yield (in percentage) on the investment of 200 shares purchased
at $422.84 a share and sold at $862.14 a share and a cash dividend of $11.24 per share is 14.27%.
Number of shares = 200
Cost per share = $422.84
Selling price per share = $862.14
Dividend per share = $11.24
To calculate the annual holding period yield of the investment, we need to determine
the holding period, the dividend, and the return on investment.
Holding period = (2021 - 2017) = 4 years
Dividend income = $11.24 x 200 = $2,248
Total revenue from selling shares = Selling price per share x Number of shares= $862.14 x 200 = $172,428
Total Cost of 200 shares = Cost per share x Number of shares= $422.84 x 200 = $84,568
Total Return on Investment = Dividend income + Total Revenue from Selling Shares - Total Cost of shares= $2,248 + $172,428 - $84,568= $90,108
Annual Holding Period Yield = ((Total Return on Investment / Total Cost of shares)^(1/number of years)) - 1= (($90,108/$84,568)^(1/4)) - 1= (1.06769^(1/4)) - 1= 0.135 = 13.5% (rounded to one decimal place)Therefore, the annual holding period yield (in percentage) on the investment of 200 shares purchased at $422.84 a share and sold at $862.14 a share and a cash dividend of $11.24 per share is 14.27%. (rounded to two decimal places).
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The context of the forecast, the relevance and availability of historical data, the level of accuracy required, the expected duration, the cost / benefit (or value) of the forecast for the business, and the time available to perform the analysis are all used. Affects your approach.
Exponential smoothing technique is used within one industry more than others. 6 major currencies that used as exchange in foreign markets are : The U.S. Dollar.
The Euro.
Answers
The main industry that commonly uses exponential smoothing technique is the financial industry, specifically in the field of forecasting exchange rates for foreign currency trading.
Exponential smoothing is a popular forecasting method that assigns weights to historical data points, with more recent data points given higher weights. This technique is especially useful in the financial industry as it helps traders and investors make informed decisions regarding currency trading by predicting future exchange rates based on past trends.
The use of exponential smoothing in the financial industry is crucial as it enables traders to minimize risks and maximize profits. By accurately forecasting exchange rates, traders can identify the best time to buy or sell currencies, ultimately resulting in financial gains. The availability of historical data and the level of accuracy required in currency forecasting make exponential smoothing a valuable tool for the financial industry.
However, it is important to note that while exponential smoothing is widely used in the financial industry, it is not limited to this sector. Other industries, such as supply chain management and inventory forecasting, can also benefit from this technique to predict demand and optimize operations.
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Read the Management Focus feature titled Did Walmart Violate the Foreign Corrupt Practices Act? What is your opinion? If you think it did, what do you think the consequences will be for Walmart?
Answers
Answer:
Following are the solution to this question:
Explanation:
The answer is yes because the corporation is the aim of this game for both the infringement of FCPA through resort to corrupt practices in order supply public officials of preferential treatment, advantages, and unfair compensation by restricting or trying to circumvent laws. Whenever major leadership in the country engages in activities and ensures that such investigations are structured to confuse and turn regulators into simple eyewashes, it becomes much more dangerous. Its activity could be cheapened, even if the bribe is done as in nations since it arises from the U.S and also has a bad reputation even when it does illegally overseas. After convicting, a company will be obliged to pay compensation and criminal penalties alongside interest on the Securities and Exchange Board. The volume of these could be measured by the seriousness of a performed crime.
the nurse should monitor for which manifestation in a client who has undergone lasik?
Answers
The nurse should monitor for any manifestation of post-operative complications after a client undergoes LASIK.
such as blurred vision, dry eyes, halos or glare around lights, sensitivity to light, eye redness, eye discomfort or pain, and a decrease in vision.The nurse should monitor for the manifestation of complications such as eye pain, vision changes, or inflammation in a client who has undergone LASIK surgery.Additionally, the nurse should assess for any signs of infection, inflammation, or abnormal healing, such as discharge, increased redness, swelling, or discomfort. Close monitoring and prompt intervention are important to prevent any potential vision-threatening complications.
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what does revenue mean in accounting?
a. cash
b. profit
c. debit
d. customer sales
Answers
Answer:
b
Explanation:
hope itttttt helps
snack Ska BMX she
well apparently i have 25 points here u go
Answers
Answer:
thank you
Explanation:
you so niceee
Answer:
ez
Explanation:
How important is money
Answers
Answer:
very important
Explanation:
money is a global income source for everyone. we all have different types but it is all still money. now say one country got rid of money and had people pay for stuff using other things. if china did that lots of different countries wouldn't be able to get stuff from there unless they had so much of that product they could just give it up.
What Economic Issue arises in this graphic due to the Max Price being below Equilibrium?
Answers
As u asked in ur question which food we should have before exercise : ANSWER is - Option (B)
cross check if u have doubt it's correct..
Computer services company gained market acceptance and shipments to customer dramatically. The company is preparing for significant increases in production. Management notes that despite increasing profits the cash balance has declined. You are hired to advise management as to specific causes of the cash deficiency and how to remedy the situation. You are given the following balance sheets of Computer service company for Years 2012 and 2011: Computer Services Company Balance Sheet 2012 2011 Assets Current Assets 55,000 Cash 33,000 Accounts receivable 222 20,000 30,000 Inventory 15,000 10,000 Prepaid expenses +10.000) (5000) (MODOT 5,000 1,000 Property, plant and equipment Land 130,000 20,000 +(moo-St Building 160,000 40,000 (120,000) (11,000) (5,000) Accumulated Depreciation (Building) Equipment 27,000 10,000 Accumulated Depreciation (equipment) (3,000) (1,000) Total Assets i ??? $ 138,000 Liability and Stockholders Equity 398000 Current liabilities Accounts payable 28,000 12,000 6,000 8,000 +160001 (2009) Income taxes payable Long-term liabilities Bonds payable Stockholders' equity Common stock 130,000 20,000 70,000 50,000 Retained earnings 164,000 48,000 Total liabilities and stockholders' equity $ 138,000 398,000 20,000 Page 1 of 2 Computer Services Company Income Statement For the year ending Dec 31, 2012 507 000 150,000 Revenues Cost of goods sold Operating expenses 1 111,000 Depreciation expense 9,000 3,000 Loss on sale of equipment 42,000 315,000 Interest expense EBT 47,000 Income tax GT EAT In addition, the following information is available: 1) Depreciation expense was comprised of $6,000 for building and $3,000 for equipment. 2) The company sold equipment with a book value of $7,000 (cost $8,000, less accumulated depreciation $1,000) for $4,000 cash. 3) Issued $110,000 of long-term bonds in direct exchange for land. 4) A building costing $120,000 was purchased for cash. Equipment costing $25,000 was also purchased for cash. 5) Issued common stock for $20,000 cash 6) The company declared and paid a $29,000 cash dividend. Required: Prepare a statement of cash flows (indirect method) for Year 2012.
Answers
Statement of Cash Flow using the indirect method for Computer Services Company for the year 2012:The Statement of Cash Flow of a company helps in analyzing the company's cash inflows and outflows from its operating, financing, and investing activities.
The statement of cash flow for Computer Services Company for the year 2012 using the indirect method is shown below: Computer Services Company Statement of Cash Flows For the year ended December 31, 2012ParticularsAmount ($)Operating Activities Net Income47,000Adjustments to reconcile net income to net cash provided by operating activities Depreciation Expense9,000Loss on sale of equipment3,000Decrease in accounts receivable(2,222)Increase in inventory(5,000)Decrease in prepaid expenses5,000Increase in accounts payable16,000Increase in income tax payable18,000Net Cash Provided by Operating Activities90,000Investing Activities Sale of equipment4,000Purchase of building(120,000)Purchase of equipment(25,000)Purchase of land(110,000) Net Cash Used in Investing Activities(251,000)Financing Activities Proceeds from issuance of bonds payable110,000Proceeds from issuance of common stock20,000Payment of dividends(29,000)Net Cash Provided by Financing Activities101,000Net Decrease in Cash Balance(60,000)Beginning Cash Balance33,000Ending Cash Balance(27,000)The statement of cash flow of Computer Services Company for the year 2012 has been prepared using the indirect method. It shows that the net cash provided by operating activities was $90,000, the net cash used in investing activities was $251,000, and the net cash provided by financing activities was $101,000.The company invested a significant amount of money in investing activities, and hence, the net decrease in the cash balance was $60,000, which resulted in a negative cash balance. To remedy the situation, the company should look for ways to increase its cash inflows or decrease its cash outflows. They can focus on increasing sales, reducing expenses, and investing in activities that provide a higher return on investment.
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There are two shows on Netflix that Jeff can watch, Show 1 and Show 2. Where ₁ measures the number of episodes watched of Show 1 and 2 measures the number of episodes watched of Show 2, Jeff's preferences can be represented by u(x1, x2) = x² + ax². Jeff has 9 hours available for watching Netflix today. Each episode of Show 1 lasts hours, while each episode of Show 2 lasts 1 hour. Draw an indifference curve for Jeff, then answer the following questions. If rounding is needed, please round to 3 decimal places. a) When a = 2, Jeff optimally watches_____ episodes of Show 1..... (fill in the blank) b) ... and he watches episodes of Show 2. (fill in the blank) c) When a = 6, Jeff optimally watches episodes of Show 1..... (fill in the blank) d) ... and he watches episodes of Show 2. (fill in the blank)
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Jeff optimally watches 3 episodes of Show 1 when a = 2 and 1.5 episodes of Show 1 when a = 6.
A utility function represents an individual's preferences by transforming two-dimensional product space into one-dimensional space known as utility space. It is possible to plot indifference curves for different levels of satisfaction using a utility function.
In this problem, Jeff's preferences can be represented by the utility function u(x1, x2) = x² + ax². We are to draw an indifference curve for Jeff, then answer the following questions.
Let's assume that each episode of Show 1 lasts x hours, while each episode of Show 2 lasts 1 hour.
This translates to x₁x + x₂ ≤ 9.
The optimal bundle, x₁* and x₂*, is the combination of x₁ and x₂ that maximizes Jeff's utility function while still adhering to his budget constraint.
The optimization problem is:
Maximize u(x₁, x₂) = x₁² + ax₂², subject to x₁x + x₂ ≤ 9.
a) When a = 2, Jeff optimally watches _3_ episodes of Show 1.
At the optimal bundle, the marginal rate of substitution (MRS) between the two shows equals the ratio of their marginal utilities.
The MRS is given by
MRS = MU₁/MU₂
= 2x₁/x₂.
The budget constraint is
x₁x + x₂ = 9.
Therefore, the optimal bundle of the two shows that Jeff should consume can be obtained by using the Lagrangian formula.
The Lagrangian formula is
L = x₁² + 2x₂² + λ(9 - x₁x₂),
where λ is the Lagrange multiplier.
Solving for the first-order conditions yields the optimal consumption bundle of
x₁ = 3, x₂ = 3.
b) He watches 6 episodes of Show 2.
c) When a = 6, Jeff optimally watches 1.5 episodes of Show 1.
At the optimal bundle, the marginal rate of substitution (MRS) between the two shows equals the ratio of their marginal utilities.
The MRS is given by
MRS = MU₁/MU₂
= 6x₁/x₂.
The budget constraint is x₁x + x₂ = 9.
Therefore, the optimal bundle of the two shows that Jeff should consume can be obtained by using the Lagrangian formula.
The Lagrangian formula is
L = x₁² + 6x₂² + λ(9 - x₁x₂),
where λ is the Lagrange multiplier.
Solving for the first-order conditions yields the optimal consumption bundle of x₁ = 1.5, x₂ = 6.
d) He watches 6 episodes of Show 2.
When a = 2, Jeff watches 6 episodes of Show 2, and when a = 6, Jeff watches 6 episodes of Show 2.
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belden, inc., acquires 30 percent of the outstanding voting shares of sheffield, inc., on january 1, 2020, for $312,000, which gives belden the ability to significantly influence sheffield. sheffield has a net book value of $800,000 at january 1, 2020. sheffield’s asset and liability accounts showed carrying amounts considered equal to fair values, except for a copyright whose value accounted for belden’s excess cost over book value in its 30 percent purchase. the copyright had a remaining life of 16 years at january 1, 2020. no goodwill resulted from belden’s share purchase.
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It's worth noting that no goodwill resulted from Belden's share purchase. Goodwill typically arises when the purchase price exceeds the fair value of net assets acquired.
Based on the given information, Belden, Inc. acquires 30% of the outstanding voting shares of Sheffield, Inc. on January 1, 2020, for $312,000. This acquisition gives Belden the ability to significantly influence Sheffield. Sheffield has a net book value of $800,000 at January 1, 2020.
The asset and liability accounts of Sheffield are considered to have carrying amounts equal to their fair values, except for a copyright. The excess cost over the book value of the 30% purchase by Belden is attributed to the copyright. The copyright has a remaining life of 16 years as of January 1, 2020.
From the given information, it can be inferred that Belden's acquisition of the 30% voting shares of Sheffield resulted in an increase in Sheffield's net book value. This increase is primarily due to the inclusion of the copyright asset and its fair value.
In this case, the excess cost over the book value is specifically attributed to the copyright asset, indicating that no additional goodwill is recognized in the acquisition.
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PLEASE HELP ASAP::::
A tip employee’s earnings most closely resemble those of which of the following?
a.
An employee working on straight commission
b.
An employee working on commission plus salary
c.
An employee working on a piece-rate basis
d.
An employee working on a fixed salary
Please select the best answer from the choices provided
A
B
C
D
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Answer: c. An employee working on a piece-rate basis
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