The following accounts balances and other financial information are drawn from the records of the Fenway Company for 2022. Fenway Company 2022 Net sales Revenue 38,800 Unearned Revenue 2600 Accounts Receivable 8,000 Cost of Goods Sold 26,000 Inventory Accounts Payable 5,800 Notes Payable Supplies 5,000 Office Equipment 6,000 50 Supplies Expense 750 3,500 Depreciation Expense Accumulated Depreciation Operating Expenses Cash-Ending Land Common Stock Cash received from customers Purchased Office Equipment Received Cash from Issuing Stock Beginning Balance Retained Earnings 8500 Paid Cash for Dividends 500 Paid Cash for Operating Expenses 1000 4500 4400 20000 12000 6400 2500 3000 2000 1000 Instructions As the Chief Financial Officer (CFO) of a publicly traded company you are charged with evaluating companies in a similar industry as your own for acquisition. The President of the corporation has requested that you evaluate the overall financial health of the Fenway Company and report to the Board of Directors whether or not you should purchase the Fenway Company. In connection with this endeavor, provide responses to the following short answer and essay questions.
The following accounts balances and other financial information are drawn from the records of the Fenway Company for 2022. Fenway Company 2022 Net sales Revenue 38,800 Unearned Revenue 2600 Accounts Receivable 8,000 Cost of Goods Sold 26,000 Inventory Accounts Payable 5,800 Notes Payable Supplies 5,000 Office Equipment 6,000 50 Supplies Expense 750 3,500 Depreciation Expense Accumulated Depreciation Operating Expenses Cash-Ending Land Common Stock Cash received from customers Purchased Office Equipment Received Cash from Issuing Stock Beginning Balance Retained Earnings 8500 Paid Cash for Dividends 500 Paid Cash for Operating Expenses 1000 4500 4400 20000 12000 6400 2500 3000 2000 1000 Instructions As the Chief Financial Officer (CFO) of a publicly traded company you are charged with evaluating companies in a similar industry as your own for acquisition. The President of the corporation has requested that you evaluate the overall financial health of the Fenway Company and report to the Board of Directors whether or not you should purchase the Fenway Company. In connection with this endeavor, provide responses to the following short answer and essay questions.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter12: Intangibles
Section: Chapter Questions
Problem 10MC
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3. Calculate the cash flow from operations for the Fenway Company.
4. Calculate the total assets for the Fenway Company.
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