Cash Sokolsky Designs, Inc. Vertical Analysis Years Ended December 31, 2021, 2020, and 2019 2021 Receivables, net Inventory Prepaid expenses Property, plant and equipment, net Total assets Amount $ 10,000 35,000 240,000 15,000 200,000 $ 500,000 Percent Use the analysis to explain the reason for the cash shortage. Sokolsky's cash shortage is likely due to the dramatic plant and equipment appears to be and cash position 2.0 % 7.0 % 48.0 % 3.0 % 40.0 % 100.0 in % $ Amount 2020 4,440 23,200 177,600 21,200 217,560 $444,000 Percent due to the 1.0 % 5.2 % 40.0 % 4.8 % 49.0 % 100.0 % Amount $ 2019 3,990 23,940 131,670 15,960 223,440 $ 399,000 Percent 1.0 % 6.0 % 33.0 % 4.0 % 56.0 % 100.0 % as a percent of total assets. Property. in inventory which has led to a tight

Cash Sokolsky Designs, Inc. Vertical Analysis Years Ended December 31, 2021, 2020, and 2019 2021 Receivables, net Inventory Prepaid expenses Property, plant and equipment, net Total assets Amount $ 10,000 35,000 240,000 15,000 200,000 $ 500,000 Percent Use the analysis to explain the reason for the cash shortage. Sokolsky's cash shortage is likely due to the dramatic plant and equipment appears to be and cash position 2.0 % 7.0 % 48.0 % 3.0 % 40.0 % 100.0 in % $ Amount 2020 4,440 23,200 177,600 21,200 217,560 $444,000 Percent due to the 1.0 % 5.2 % 40.0 % 4.8 % 49.0 % 100.0 % Amount $ 2019 3,990 23,940 131,670 15,960 223,440 $ 399,000 Percent 1.0 % 6.0 % 33.0 % 4.0 % 56.0 % 100.0 % as a percent of total assets. Property. in inventory which has led to a tight

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 41E: Determining Cash Flows from Investing Activities Burns Companys 2019 and 2018 balance sheets...

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On December 31, 2022, Marizor Company believed that the assets of a cash generating unit are impaired based on an analysis of economic indicators. The assets and liabilities of the cash generating unit at carrying amount on December 31, 2022 are: Cash 4,000,000 6,000,000 1,000,000 7,000,000 22,000,000 4,000,000 Accounts receivable Allowance for doubtful accounts Inventory Property, plant and equipment Accumulated depreciation Goodwill 3,000,000 Accounts payable Loans payable The entity determined that the value in use of the cash generating unit is P28,000,000. The accounts receivable are considered collectible, except those considered doubtful. The carrying amount of the inventory is lower than fair value less cost of disposal. What is the impairment loss to be allocated to property, plant and equipment? 2,000,000 1,000,000 A. 3,600,000 В. 6,000,000 С. 3,000,000 D. 1,800,000
27. On December 31, 2022, Marizor Company believed that the assets of a cash generating unit are impaired based on an analysis of economic indicators. The assets and liabilities of the cash generating unit at carrying amount on December 31, 2022 are: Cash 4,000,000 Accounts receivable 6,000,000 Allowance for doubtful accounts 1,000,000 Inventory Property, plant and equipment Accumulated depreciation 7,000,000 22,000,000 4,000,000 Goodwill 3,000,000 2,000,000 Accounts payable Loans payable The entity determined that the value in use of the cash generating unit is P28,000,000. The accounts receivable are considered collectible, except those considered doubtful. The carrying amount of the inventory is lower than fair value less cost of disposal. What is the impairment loss to be allocated to property, plant and equipment? А. 3,600,000 1,000,000 В. 6,000,000 С. 3,000,000 D. 1,800,000
Sample Problem: Use the following data to construct a statement of cash flows using the direct and indirect methods. 2020 2019 Cash P4,000 P14,000 Accounts receivable 25,000 32,500 Prepaid insurance 5,000 7,000 Inventory 37,000 34,000 Fixed assets 316,000 270,000 Accumulated Depreciation Total assets Accounts payable P18,000 P16,000 Wages payable 4,000 7,000 Note payable 173,000 160,000 Capital stock 88,000 84,000 Retained earnings Total Liabilities & Equity Sales Cost of goods sold (123,000) Depreciation expense (15,000) Insurance expense (11,000) Wage Expense Net Income During 2020 declared and paid dividends of P2,500 During 2020, ABC paid P46,000 in cash to acquire new fixed assets. The accounts payable was used only for inventory. No debt was retired during 2020. Prepare Statement of Cash Flow using; Direct Method Indirect Method
The following selected information pertains to Brock Company:Cash balance, January 1, 20x1 P130,000Accounts receivable, January 1, 20x1 190,000Collections from customers in 20x1 2,100,000Capital account balance, January 1, 20x1 380,000Total assets, January 1, 20x1 750,000Additional cash investment, July 1, 20x1 50,000Total assets, December 31, 20x1 1,010,000Cash balance, December 31, 20x1 200,000Accounts receivable, December 31, 20x1 360,000Withdrawals made during 20x1 110,000Total liabilities, December 31, 20x1 410,0007. Net income for the year ended December 31, 20x1
Based on the following information for Pinkerly Inc., a fi ctitious company, what arethe total adjustments that the company would make to net income in order to deriveoperating cash fl ow?Year EndedIncome statement item 12/31/2009Net income $30 millionDepreciation $7 millionBalance sheet item 12/31/2008 12/31/2009 ChangeAccounts receivable $15 million $30 million $15 millionInventory $16 million $13 million ($3 million)Accounts payable $10 million $20 million $10 millionA . Add $5 million.B . Add $21 million.C . Subtract $9 million.
Xander Inc. has prepared the following sensitivity analysis: Line Item Description Amount Amount Amount Estimated Annual Net Cash Flow $500,000 $600,000 $700,000 Present value of annual net cash flows (× 4.487) $2,243,500 $2,692,200 $3,140,900 Present value of residual value 50,000 50,000 50,000 Total present value $2,293,500 $2,742,200 $3,190,900 Amount to be invested (3,000,000) (3,000,000) (3,000,000) Net present value $(706,500) $(257,800) $190,900 In addition, it has assigned the following likelihoods to the three possible annual net cash flows: $500,000, 70%; $600,000, 20%; and $700,000, 10%. Based on an expected value analysis, which of the following statements is accurate? a. The expected value of the annual net cash flow is $540,000, and the project should be accepted. b. The expected value of the annual net cash flow is $660,000, and the project should be accepted. c. The expected value of the annual net cash flow is $660,000, and the project…
Ali firm financial statements for the financial year 2020 comprise the following data. • Net income: dollar 18989 • Depreciation: 2421 • increase in inventory: 6160 • increase in accounts receivable: 7135 • decrease in accounts payable: 4742 Calculate indirect method of operating cash flow: Answer:
BIRD COMPANY has a group of machines having an aggregate carrying amount at December 31, 2021 of P1,234,500. Upon analysis, the following information about the future expected cash inflows and outflows based on the diminishing productivity expected of the machinery: Year 2022 2023 2024 2025 Expected cash inflows 850,000 700,000 580,000 450,000 Expected cash Outflows 360,000 310,000 280,000 195,000 The selling price of the machinery was determined by reference to used machinery quotations from a well-known dealer. After deducting the estimated disposal costs, the net selling price is calculated as P860,000 The pre-tax discount rate and post-tax discount rate r reflecting the specific risks of the machinery are 5% and 3% respectively The net recoverable amount of the machinery is The amount of impairment loss is
The XYZ Company had the following income statement on 31.12.2020 Deprecation 12000 Net income 85000 OMR The following accounts decreased during 2020: Accounts receivable 18000 inventory 22000 OMR, Rent payable 6000, Machinery 15000 OMR The following accounts increased during 2020 Notes receivable 12000 Accounts Payable 11000 long term Bonds payable 30000 OMR Calculate cash flows from operating activities Select one. a. 130000 OMR b. 149000 OMR C. 145000 OMR d. NONE OF THESE
The XYZ Company had the following income statement on 31.12.2020 Deprecation 10000 Net income 150000 OMR The following accounts decreased during 2020: Accounts receivable 22000 inventory 15000 OMR, Rent payable 19000, Machinery 15000 OMR The following accounts increased during 2020:Notes receivable 14000 Accounts Payable 13000 long term Bonds payable 30000 OMR Calculate cash flows from operating activities Select one: a. 145000 OMR Ob. 149000 OMR Oc. 177000 OMR Od. NONE OF THESE
Ag/ionmResponse pli=1 Consider the following statement of cash flows for Chicken Fil-A company. (in thousands) Cash flows from operating activities (CFO): 2020 2019 Net income $8,100 $6,800 Adjustments to reconcile net income to CFO Depreciation and amortization 3,100 900 (600) 1,600 Deferred income taxes 700 Other non-cash items (700) (Increase) decrease in operating assets and liabilities: Accounts receivable Inventories Other current assets Accounts payabie Income taxes payable (7,800) (2,100) (900) 1.300) (2,300) 1,700 2,000 4.100 (800) 700 13.800 400 Accrued liabilities 1,700 1500 Net CFO Cash flows from investing activities: Purchases of property and equipment Net cash used by investing activities Cash flows from financing activities: Proceeds from common stock sales Proceeds (repayments) of short-term debt Repayment of long-term debt Net cash provided by financing activities (800) (800) (1200) (1.200) 4700 4.600 (1,100) 13.300 200 4600 200 5.300 12.800 30 600 17.800 %2435.900…
The XYZ Company had the following income statement on 31.12.2020 Deprecation 10000 Net income 150000 OMR The following accounts decreased during 2020: Accounts receivable 22000 inventory 15000 OMR, Rent payable 19000, Machinery 15000 OMR The following accounts increased during 2020:Notes receivable 14000 Accounts Payable 13000 long term Bonds payable 30000 OMR Calculate cash flows from operating activities Select one: O a. 149000 OMR O b. 145000 OMR c. 177000 OMR O d. NONE OF THESE Clear my choice