Kindly and urgently answer Part B only The following information was taken from the comparative financial statements of Rosso'sHardware Store prepared on an accrual basis:ROSSO'S HARDWARE STOREComparative Financial Statements20132012Sales revenue$870 000$810 000Cost of sales$340 000$319 500Expenses (including Depreciation Expense of $63 000 p.a.) $333 000$315 000Profit$180 000$175 500Year-end accounts receivable$166 500$150 000Year-end inventory$117 000$137 000$ 76 500$ 22 500Year-end accounts payable$ 70 000Year-end wages payableS 35 000RequiredPart (a) - Prepare a schedule to show the net cash flow provided by Operating Activities during2013 in accordance with AASB 107- Cash Flow Statements. Assume there is no income tax,GST or write-off of bad debts.Part (b) – Classify the following items into either Operating, Investing or Financing Activiticsand indicate whether they represent a Cash Inflow or Cash Outflow. (If any item does notappear in the Cash Flow Statement, this should be specified in your answer.)1. Cash Received from Debtors S753,000.2. Shares Issued to Shareholders $500,000.3. Purchase of new Equipment $150,000.4. Amortisation of Patents $36,000.5. Repayment of Mortgage Loan $200,000.6. Sale of Land & Buildings $900,000.7. Payment of Wages S85,000.8. Interest received on Term Deposits $7,000.9. Cash paid to Creditors $333,000.10. Depreciation of Motor Vehicles $29,000.

Cash flow statement is a statement deals with the inflow and outflow of cash between two balance…

Part (b) – Classify the following items into either Operating, Investing or Financing Activities and indicate whether they represent a Cash Inflow or Cash Outflow. (If any item does not appear in the Cash Flow Statement, this should be specified in your answer.) I. Cash Received from Debtors S753,000. 2. Shares Issued to Shareholders $500,000. 3. Purchase of new Equipment $150,000. 4. Amortisation of Patents S36,000. 5. Repayment of Mortgage Loan $200,000. 6. Sale of Land & Buildings $900,000. 7. Payment of Wages S85,000. 8. Interest received on Term Deposits $7,000. 9. Cash paid to Creditors $333,000. 10. Depreciation of Motor Vehicles $29,000.

Part (b) – Classify the following items into either Operating, Investing or Financing Activities and indicate whether they represent a Cash Inflow or Cash Outflow. (If any item does not appear in the Cash Flow Statement, this should be specified in your answer.) I. Cash Received from Debtors S753,000. 2. Shares Issued to Shareholders $500,000. 3. Purchase of new Equipment $150,000. 4. Amortisation of Patents S36,000. 5. Repayment of Mortgage Loan $200,000. 6. Sale of Land & Buildings $900,000. 7. Payment of Wages S85,000. 8. Interest received on Term Deposits $7,000. 9. Cash paid to Creditors $333,000. 10. Depreciation of Motor Vehicles $29,000.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 37E: Analyzing the Accounts Casey Company uses a perpetual inventory system and engaged in the following...

See similar textbooks

Similar questions

The following selected information is taken from the financial statements of Arnn Company for its most recent year of operations: During the year, Arnn had net sales of 2.45 million. The cost of goods sold was 1.3 million. Required: Note: Round all answers to two decimal places. 1. Compute the current ratio. 2. Compute the quick or acid-test ratio. 3. Compute the accounts receivable turnover ratio. 4. Compute the accounts receivable turnover in days. 5. Compute the inventory turnover ratio. 6. Compute the inventory turnover in days.
The following information relates to extract from financial data of Dorah Willemse Ltd for the ended 31 December 2010: Current assets - R 65000 Current liabilities - R60000 Accounts receivables - R20000 Inventory - R2000 Goodwill - R40000 Sales (on credit) - R365000 Cost of goods sold - R 280000 Calculate the Current Ratio Select one: A. 2.10 to 1 B. 0.10 to 1 C. 0.90 to 1 D. 1.08 to 1
Lucky Furniture Store has the following balances in its financial statements for the past financial year: Sales - R1,854,200 Cost of sales – R1,534,200 Gross profit – R320,000 Inventory – R122,736 Receivables – R180,270 Cash – R245,472 Non-current assets – R1,448,594 Total assets – R2,671,594 Assuming a 360-day year, the average collection period is _____ days
Here are simplified financial statements for Watervan Corporation: INCOME STATEMENT (Figures in $ millions) Net sales $ 895.00 Cost of goods sold 755.00 Depreciation 45.00 Earnings before interest and taxes (EBIT) $ 95.00 Interest expense 26.00 Income before tax $ 69.00 Taxes 14.49 Net income $ 54.51 BALANCE SHEET (Figures in $ millions) End of Year Start of Year Assets Current assets $ 383 $ 340 Long-term assets 286 236 Total assets $ 669 $ 576 Liabilities and shareholders’ equity Current liabilities $ 208 $ 171 Long-term debt 122 135 Shareholders’ equity 339 270 Total liabilities and shareholders’ equity $ 669 $ 576 The company’s cost of capital is 8.5%. Required: Calculate Watervan’s economic value added (EVA). Note: Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places. What is the company’s return on capital? (Use start-of-year rather than average capital.) Note: Do not…
Semino Beverage has the following historical financial statements: Sales Oper. Expenses Depreciation E EBIT Interest Expense $64 EBT Taxes Net Income Balance Sheet Cash Accounts receivable $405 Inventory 2021 $200 $622 Total current assets $1227 Gross plant & equip. $1740 Accum. Depreciation $1000 of Cash? 2022 __671.76 _1990_ 2021 2022 $1500 $1620 $1000 $156 $344 $280 $70 $210 180 64. Accounts payable Notes payable (plug) Accruals Current liabilities Long-term bonds Common stock 2021 $240 $53 $308 $601 $800 $285 $281 2022 $1,967 Net plant & equip. $740 Retained earnings Total assets $1,967 Total liab. & equity Next year Semino's sales are forecast to change from $1500 to $1620. Operating expenses are a constant percent of sales. Depreciation is as listed for next year. Interest expense varies directly with Long-term bonds. Notes payable, is your "plug" account, and are discount bonds and accrue no interest. The firm's tax rate will be unchanged next year. Several Balance Sheet items…
Here are simplified financial statements for Watervan Corporation: INCOME STATEMENT (Figures in $ millions) Net sales $ 895.00 Cost of goods sold 755.00 Depreciation 45.00 Earnings before interest and taxes (EBIT) $ 95.00 Interest expense 26.00 Income before tax $ 69.00 Taxes 14.49 Net income $ 54.51 BALANCE SHEET (Figures in $ millions) End of Year Start of Year Assets Current assets $ 383 $ 340 Long-term assets 286 236 Total assets $ 669 $ 576 Liabilities and shareholders’ equity Current liabilities $ 208 $ 171 Long-term debt 122 135 Shareholders’ equity 339 270 Total liabilities and shareholders’ equity $ 669 $ 576 The company’s cost of capital is 8.5%. Required: Calculate Watervan’s economic value added (EVA). Note: Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places. What is the company’s return on capital? (Use start-of-year rather than average capital.) Note: Do not…
Here are simplified financial statements for Watervan Corporation: INCOME STATEMENT (Figures in $ millions) Net sales $ 895.00 Cost of goods sold 755.00 Depreciation 45.00 Earnings before interest and taxes (EBIT) $ 95.00 Interest expense 26.00 Income before tax $ 69.00 Taxes 14.49 Net income $ 54.51 BALANCE SHEET (Figures in $ millions) End of Year Start of Year Assets Current assets $ 383 $ 340 Long-term assets 286 236 Total assets $ 669 $ 576 Liabilities and shareholders’ equity Current liabilities $ 208 $ 171 Long-term debt 122 135 Shareholders’ equity 339 270 Total liabilities and shareholders’ equity $ 669 $ 576 The company’s cost of capital is 8.5%. Required: Calculate Watervan’s economic value added (EVA).
Here are simplified financial statements for Watervan Corporation: INCOME STATEMENT (Figures in $ millions) Net sales $ 888.00 Cost of goods sold 748.00 Depreciation 38.00 Earnings before interest and taxes (EBIT) $ 102.00 Interest expense 19.00 Income before tax $ 83.00 Taxes 17.43 Net income $ 65.57 BALANCE SHEET (Figures in $ millions) End of Year Start of Year Assets Current assets $ 376 $ 326 Long-term assets 272 229 Total assets $ 648 $ 555 Liabilities and shareholders’ equity Current liabilities $ 201 $ 164 Long-term debt 115 128 Shareholders’ equity 332 263 Total liabilities and shareholders’ equity $ 648 $ 555 The company’s cost of capital is 8.5%. a. Calculate Watervan’s economic value added (EVA). (Do not round intermediate calculations. Enter your answer in millions…
Selected comparative statement data for Oriole Company are presented below. All balance sheet data are as of December 31. 20222021Net sales$1,165,000 $1,125,000Cost of goods sold705,000 645,000Interest expense20,000 15,000Net income154,945 145,000Accounts receivable145,000 125,000Inventory105,000 100,000Total assets785,000 700,000Preferred stock (6%)205,000 200,000Total stockholders’ equity635,000 525,000 Compute the following ratios for 2022. (Round answers to 1 decimal place, e.g. 1.8 or 2.5%) (a)Profit marginenter the profit margin in percentages %(b)Asset turnoverenter the asset turnover in times times(c)Return on assetsenter the return on assets in percentages %(d)Return on common stockholders’ equityenter the return on common stockholders' equity in percentages %
A company reported the following data for the year ending 2018: Description Amount Sales Sales discount Sales returns and allowances $400,000 $16,000 $13,000 $117,000 $153,000 |Cost of goods sold |Operating expense Income tax expense $23,750 Compute the amount of gross profit to be reported on the income statement. a. $101,000 b. $117,000 c. $254,000 d. $124,750 Answer O O O O
Portions of the financial statements for Peach Computer are provided below. Net sales Expenses: PEACH COMPUTER Income Statement For the year ended December 31, 2024 Cost of goods sold Operating expenses Depreciation expense Income tax expense Total expenses Net income Cash Accounts receivable Inventory Prepaid rent Accounts payable Income tax payable PEACH COMPUTER Selected Balance Sheet Data December 31 2024 $106,000 45,400 79,000 3,400 $1,090,000 600,000 54,000 44,000 49,000 5,400 2023 $87,000 51,000 57,000 5,800 39,000 12,000 $1,900,000 1,788,000 $112,000 Increase (I) or Decrease (D) $19,000 (I) 5,600 (D) 22,000 (I) 2,400 (D) 10,000 (I) 6,600 (D) Required: Prepare the operating activities section of the statement of cash flows for Peach Computer using the direct method. (Amounts to be deducted should be indicated with a minus sign.)
Prepare the nature of expense SCI for the following accounts below: Account titles Balance Account titles Balance Sales return P 5,555 Sales P 764,953 Sales discount 13,800 Purchases 467,532 Depreciation Expense 25,600 Purchase return and allowances 5,087 Amortization Expense 10,200 Gain on sale of PPE 5,800 Advertising Expense 40,000 Interest Income 8528 Purchase discount 8,000 Interest Expense 4,968 Freight In 9,800 Salaries Expense 70,000 Utilities Expense 50,000 Rent Expense 56,000 Increase in Inventory 35,800 Bad Debts 4% of net sales