FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Boomer Company reported sales revenue of $500,000 and total expenses of $450,000 (including
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- For 2023, Grace Enterprises reported sales of $2,700,000, cost of goods sold of $1,900,000, and its A/R days on hand were 37 days for the year, decreasing from 43 days last year. Calculate the cash impact of the change in A/R collection from 2022 to 2023, is a negative impact to cash. including a (-) sign if the change Iarrow_forwardI need to find the Free Cash Flow for Wolff Company Indirect Method.arrow_forwardAccounts receivable from sales transactions were $45,634 at the beginning of the year and $60,027 at the end of the year. Net income reported on the income statement for the year was $126,710. Exclusive of the effect of other adjustments, the net cash flows from operating activities to be reported on the statement of cash flows prepared by the indirect method would be a. $126,710 b. $112,317 c. $14,393 d. $141,103arrow_forward
- Ashley Company is a young and growing producer of electronic measuring instruments and technical equipment. You have been retained by Ashley to advise it in the preparation of a statement of cash flows using the indirect method. For the fiscal year ended October 31, 2020, you have obtained the following information concerning certain events and transactions of Ashley. 1.The amount of reported earnings for the fiscal year was $700,000, which included a deduction for a loss of $110,000 (see item 5 below). 2.Depreciation expense of $315,000 was included in the income statement. 3.Uncollectible accounts receivable of $40,000 were written off against the allowance for doubtful accounts. Also, $51,000 of bad debt expense was included in determining income for the fiscal year, and the same amount was added to the allowance for doubtful accounts. 4.A gain of $6,000 was realized on the sale of a machine. It originally cost $75,000, of which $30,000 was undepreciated on the date of sale. 5.On…arrow_forwardAccounts receivable from sales transactions were $48,847 at the beginning of the year and $66,305 at the end of the year. Net income reported on the income statement for the year was $142,809. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows prepared by the indirect method is:arrow_forwardVaughn Company completed its first year of operations on December 31, 2022. Its initial income statement showed that Vaughn had sales revenue of $196,100 and operating expenses of $89,100. Accounts receivable and accounts payable at year-end were $53,500 and $27,700, respectively. Assume that accounts payable related to operating expenses. Ignore income taxes.Compute net cash provided by operating activities using the direct method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)arrow_forward
- In 2021, Cream company reported cash basis income of P 7,800,000. Tracing back its records, accounts receivable and accounts payable on December 31, 2021 were P5,200,000 and P 1,950,000 respectively. During the year, the accounts receivable increased by 200% while accounts payable decreased by 50%. How much were net income using accrual method?arrow_forward— Your answer is partially correct. In 2020, Pronghorn Corporation reported a net loss of $67,800. Pronghorn's only net income adjustments were depreciation expense $77,900, and increase in accounts receivable $7,700. Compute Pronghorn's net cash provided (used) by operating activities. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) Net cash provided ✓by operating activities $ 3420arrow_forwardRamsay & Bell, Inc. had sales for 2019 of $180,000, and EBITDA was 36% of sales. Furthermore, depreciation was $8,400, interest was $5,760, the corporate tax rate was 21%, and the company pays 10% of its net income as dividends. Given this information and the balance sheets below, calculate the free cash flow for 2019. $24,556 $27,056 $28,556 $30,056 None of the above is within $100 of the correct answer.arrow_forward
- In 2021, Lmao company reported cash basis income of P 7,800,000. Tracing back its records, accounts receivable and accounts payable on December 31, 2021 were P5,200,000 and P 1,950,000 respectively. During the year, the accounts receivable increased by 200% while accounts payable decreased by 50%. How much were net income using accrual method?arrow_forwardsavitaarrow_forwardHansabenarrow_forward
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