P12-3B The income statement of Hubble Company is presented below. Additional information: 1. Accounts receivable decreased $290,000 during the year, and inventory increased $140,000. 2. Prepaid expenses increased $175,000 during the year. 3. Accounts payable to merchandise suppliers increased $63,000 during the year. 4. Accrued expenses payable increased $145,000 during the year. HUBBLE COMPANY Income Statement For the Year Ended December 31, 2014 Sales revenue $5,600,000 Cost of goods sold Beginning inventory Purchases $1,780,000 3,430,000 5,210,000 1,920,000 Goods available for sale Ending inventory Total cost of goods sold Gross profit Operating expenses Selling expenses Administrative expense Depreciation expense Amortization expense 3,290,000 2,310,000 420,000 525,000 105,000 15,000 1,065,000 Net income $1,245,000 Instructions Prepare the operating activities section of the statement of cash flows for the year ended December 31, 2014, for Hubble Company, using the indirect method.

P12-3B The income statement of Hubble Company is presented below. Additional information: 1. Accounts receivable decreased $290,000 during the year, and inventory increased $140,000. 2. Prepaid expenses increased $175,000 during the year. 3. Accounts payable to merchandise suppliers increased $63,000 during the year. 4. Accrued expenses payable increased $145,000 during the year. HUBBLE COMPANY Income Statement For the Year Ended December 31, 2014 Sales revenue $5,600,000 Cost of goods sold Beginning inventory Purchases $1,780,000 3,430,000 5,210,000 1,920,000 Goods available for sale Ending inventory Total cost of goods sold Gross profit Operating expenses Selling expenses Administrative expense Depreciation expense Amortization expense 3,290,000 2,310,000 420,000 525,000 105,000 15,000 1,065,000 Net income $1,245,000 Instructions Prepare the operating activities section of the statement of cash flows for the year ended December 31, 2014, for Hubble Company, using the indirect method.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 51E: Juroe Company provided the following income statement for last year: Juroes balance sheet as of...

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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.
Juroe Company provided the following income statement for last year: Juroes balance sheet as of December 31 last year showed total liabilities of 10,250,000, total equity of 6,150,000, and total assets of 16,400,000. Required: 1. Calculate the return on sales. (Note: Round the percent to two decimal places.) 2. CONCEPTUAL CONNECTION Briefly explain the meaning of the return on sales ratio, and comment on whether Juroes return on sales ratio appears appropriate.
Assume the following sales data for a company: Line Item Description Amount Current year $891,303 Preceding year 515,759 What is the percentage increase in sales from the preceding year to the current year?
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Suppose a recent income statement for McDonald’s Corporation shows cost of goods sold $4,852.7 million and operating expenses (including depreciation expense of $1,201 million) $10,671.5 million. The comparative balance sheet for the year shows that inventory increased $18.1 million, prepaid expenses increased $56.3 million, accounts payable (merchandise suppliers) increased $136.9 million, and accrued expenses payable increased $160.9 million.Using the direct method, compute (a) cash payments to suppliers and (b) cash payments for operating expenses.
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