Answer only please Part 3 of 3What is Yowell's net income?Multiple Choice$33,000$4.800$17,000$71,200 Required information[The following information applies to the questions displayed below.]Yowell Company began operations on January 1, Year 1. During Year 1, the company engaged in the following cashtransactions:- of 31) issued stock for $76,0002) borrowed $43,000 from its bank3) provided consulting services for $74,0004) paid back $33,000 of the bank loan5) paid rent expense for $18,0006) purchased equipment costing $30,0007) paid $4,800 dividends to stockholders8) paid employees' salaries, $39,000What is Yowell's net income?Multiple Choice

Net Income of the business means the difference of revenues and expenses of the business. If…

Required information (The following information applies to the questions displayed below.] Yowell Company began operations on January 1, Year 1. During Year 1, the company engaged in the following cash transactions: 1) issued stock for $76,000 2) borrowed $43,000 from its bank 3) provided consulting services for $74,000 4) paid back $33,000 of the bank loan 5) paid rent expense for $18,000 6) purchased equipment costing $30,000 7) paid $4,800 dividends to stockholders 8) paid employees' salaries, $39,000 What is Yowell's net income?

Required information (The following information applies to the questions displayed below.] Yowell Company began operations on January 1, Year 1. During Year 1, the company engaged in the following cash transactions: 1) issued stock for $76,000 2) borrowed $43,000 from its bank 3) provided consulting services for $74,000 4) paid back $33,000 of the bank loan 5) paid rent expense for $18,000 6) purchased equipment costing $30,000 7) paid $4,800 dividends to stockholders 8) paid employees' salaries, $39,000 What is Yowell's net income?

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter15: Statement Of Cash Flows

Section: Chapter Questions

Problem 7DQ

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Zambrano Wholesale Corporation maintains its records on a cash basis. At the end of each year the company’saccountant obtains the necessary information to prepare accrual basis financial statements. The following cashflows occurred during the year ended December 31, 2018:Cash receipts:From customers $675,000Interest on note 4,000Loan from a local bank 100,000Total cash receipts $779,000Cash disbursements:Purchase of merchandise $390,000Annual insurance payment 6,000Payment of salaries and wages 210,000Dividends paid to shareholders 10,000Annual rent payment 24,000Total cash disbursements $640,000Selected balance sheet information:12/31/17 12/31/18Cash $ 25,000 $164,000Accounts receivable 62,000 92,000Inventory 80,000 62,000Prepaid insurance 2,500 ?Prepaid rent 11,000 ?Interest receivable 3,000 ?Note receivable 50,000 50,000Equipment 100,000 100,000Accumulated depreciation—equipment (40,000) (50,000)Accounts payable (for merchandise) 110,000 122,000Salaries and wages payable 20,000…
Moore Company is preparing its statement of cash flows for the current year. During the year, the company retired two issuances of debt and properly recorded the transactions. These transactions were as follows: Paid cash of $12,700 to retire bonds payable with a face value of $15,000 and a book value of $13,300. Paid cash of $48,000 to retire bonds payable with a face value of $45,000 and a book value of $47,000. Required: Record, in journal entry form, the entries that Moore would make for the preceding transactions on its spreadsheet to prepare its statement of cash flows. If an amount box does not require an entry, leave it blank.
BTS Inc. has recorded the following transactions on its book for the year 2021. How much total Cash Inflow from financing activities that BTS should reflected on its Statement of Cash Flow:i. Payment for interest of the issued bonds on April 1, 2021, 900.ii. Cash dividend received on the short-term investment, 5,000iii. Depreciation on plant that manufactures goods for sale, 6,000.iv. Payment of income tax on gain on sale of treasury bills, 2,000.v. Issued 500 ordinary shares for 50,000.vi. Received cash from interest on the acquired treasury bonds of BigHit Corp, 2,400.vii. Payment for marketable securities, 12,000
A company purchases equipment for $32,000 cash. This transaction should be shown on the statement of cash flows under a.financing activities. b.operating activities. c.noncash investing and financing activities. d.investing activities. On the first day of the fiscal year, a company issues a $980,000, 8%, 5-year bond that pays semiannual interest of $39,200 ($980,000 × 8% × 1/2), receiving cash of $884,177. Required: Journalize the entry to record the issuance of the bonds. Refer to the Chart of Accounts for exact wording of account titles. CHART OF ACCOUNTS General Ledger ASSETS 110 Cash 111 Petty Cash 112 Accounts Receivable 113 Allowance for Doubtful Accounts 114 Notes Receivable 115 Interest Receivable 121 Merchandise Inventory 122 Supplies 131 Prepaid Insurance 140 Land 151 Building 152 Accumulated Depreciation-Building 153 Equipment 154 Accumulated Depreciation-Equipment LIABILITIES 210…
During the current year, the following credit entries were posted to the paid-in capital accounts of Crawford Shipyards: Capital Stock . . . . . . . . . . . . . . . . . . . . . $12,000,000 Additional Paid-in Capital. . . . . . . . . . . . 43,500,000 Explain the type of cash transaction that probably caused these credit changes, and illustrate the presentation of this transaction in a statement of cash flows. At the beginning of the current year, Callifax Corporation had dividends payable of $1,500,000. During the current year, the company declared cash dividends of $4,300,000, of which $900,000 appeared as a liability at year-end. Determine the amount of cash dividends paid during this year. Prepare a statement of cash flows for the year 2012, following the proper format using following data:
Scan House, Inc. prepares financial records during the year on a cash basis. As the newly appointed controller, you have been asked to prepare the annual financial statement on an accrual basis. The following cash flows occurred during the year ended December 31, 2020: Cash receipts:From customers $765,000Interest on note 3,000Loan from a local bank 200,000Total cash receipts $968,000Cash disbursements:Purchase of merchandise $450,000Annual insurance payment 12,000Payment of salaries and wages 250,000Dividends paid to shareholders 25,000Annual rent payment 36,000Total cash disbursements $773,000 Selected balance sheet information: 12/31/19 12/31/20Cash $25,000 $220,000Accounts receivable 62,000 115,000Inventory 80,000 50,000Prepaid insurance 2,500…
Below are the account balances prepared by the bookkeeper for Torres Company as of December 31, 2021: CashAccts receivable, net Php1,765,000 930,007 Inventories 750,000 Investments, cost 763,000 Additional information: a. Included in the cash account are the following: compensating cash fund legally restricted for withdrawal of P300,000; Cash for the retirement of bonds payable of P600,000; Contingency fund of P500,000; Three-months money market funds of P250,000; short term operating funds of P50,000; currencies and coins on hand in various denominations, P65,000. b. The receivable includes, among others; Customers’ account with credit balance of P45,000; Share subscription receivable of P100,000 collectibles within two years from initial recognition. Shares were originally subscribed on June 2, 2020. Also, it included a P600,000 (which had been past due for 6 months) charged to the account of an officer who at the moment is experiencing financial…
12. Zambrano Wholesale Corporation maintains its records on a cash basis. At the end of each year the company’s accountant obtains the necessary information to prepare accrual basis financial statements. The following cash flows occurred during the year ended December 31, 2021: Cash receipts: From customers $ 670,000 Interest on note 3,920 Loan from a local bank 105,000 Total cash receipts $ 778,920 Cash disbursements: Purchase of merchandise $ 389,000 Annual insurance payment 5,880 Payment of salaries 209,000 Dividends paid to shareholders 12,000 Annual rent payment 23,500 Total cash disbursements $ 639,380 Selected balance sheet information: 12/31/2020 12/31/2021 Cash $ 24,500 $ 164,040 Accounts receivable 61,500 91,000 Inventory 79,000 61,500 Prepaid insurance 2,400 ? Prepaid rent 10,900 ? Interest receivable 2,940 ? Note receivable 49,000 49,000…
BT21 Inc. has recorded the following transactions on its book for the year 2021. How much total Cash Inflow from financing activities that BT21 should reflected on its Statement of Cash Flow:i. Payment for interest of the issued bonds on April 1, 2021, 900.ii. Cash dividend received on the short-term investment, 5,000iii. Depreciation on plant that manufactures goods for sale, 6,000.iv. Payment of income tax on gain on sale of treasury bills, 2,000.v. Issued 500 ordinary shares for 50,000.vi. Received cash from interest on the acquired treasury bonds of BigHit Corp, 2,400.vii. Payment for marketable securities, 12,000.
Riley Company borrowed $40,000 on April 1, Year 1 from the Titan Bank. The note issued by Riley carried a one year term and a 7% annual interest rate. Riley earned cash revenue of $1,060 in Year 1 and $1,500 in Year 2 Assume no other transactions. The amount of cash flow from operating activities that would appear on the Year 2 statement of cash flows would be: Multiple Choice . . $800 inflow $1,300 outflow $40,800 outflow $1,500 inflow
Zirkle Company borrowed $129,000 from Plains Bank on July 31, Year 1. The note carried a 6% interest rate with a one-year term to maturity. Required: a. Show the effects of borrowing the money and the December 31, Year 1 adjustment on the accounting equation. b. What is the amount of interest expense for Year 1? c. Prepare a statement of cash flows for the Zirkle Company for Year 1. Complete this question by entering your answers in the tabs below. Required A Required B Required C Prepare a statement of cash flows for the Zirkle Company for Year 1. Note: Cash outflows should be indicated with a minus sign. ZIRKLE COMPANY Statement of Cash Flows For the Year Ended December 31, Year 1 Cash flows from operating activities Net cash flow from operating activities Cash flows from investing activities Net cash flow from investing activities Cash flows from financing activities Net cash flow from financing activities < Required B Required C
During the current year, the following credit entries wereposted to the paid-in capital accounts of Crawford Shipyards:Capital Stock . . . . . . . . . . . . . . . . . . . . . $12,000,000Additional Paid-in Capital. . . . . . . . . . . . 43,500,000Explain the type of cash transaction that probably causedthese credit changes, and illustrate the presentation of thistransaction in a statement of cash flows.