Colorado Mining paid $750,000 to acquire a mine with 50,000 tons of coal reserves. The financial statements model shown on the last tab reflects Colorado Mining’s financial condition just prior to purchasing the coal reserves. The company extracted 26,250 tons of coal in year 1 and 22,500 tons in year 2. RequiredCompute the depletion charge per unit.b-1. Compute the depletion expense for years 1 and 2 in a financial statements.b-2. Record the acquisition of the coal reserves and the depletion expense for years 1 and 2 in a financial statements model. Complete this question by entering your answers in the tabs below.Req AAssetsRecord the acquisition of the coal reserves and the depletion expense for years 1 and 2 in a financial statements model. (In the Cash Flow column, use OA to designateoperating activity, IA for investment activity, or FA for financing activity. If the element is not affected by the event, leave the cell blank. Enter any decreases to accountbalances and cash outflows with a minus sign. Round final answers to the nearest whole dollar amount. Not all cells will require entry.)Req B1CoalReservesCashAcquisition of coal reserves708,400 +Depletion for Year 1Depletion for Year 2Reg B2Balance SheetLiabilities ++++COLORADO MININGHorizontal Statements ModelStockholders' EquityCommonStock708,400 ++Income Statement< Req B1Revenue Expenses =RetainedEarningsNetIncome1-Req B2 >Statement of CashFlowsShow less

Depletion Cost Is a Method Of Allocating The Cost To Natural Resources Extracted. Depletion Charge…

Colorado Mining paid $750,000 to acquire a mine with 50,000 tons of coal reserves. The financial statements model shown on the last tab reflects Colorado Mining’s financial condition just prior to purchasing the coal reserves. The company extracted 26,250 tons of coal in year 1 and 22,500 tons in year 2. Required Compute the depletion charge per unit. b-1. Compute the depletion expense for years 1 and 2 in a financial statements.

Colorado Mining paid $750,000 to acquire a mine with 50,000 tons of coal reserves. The financial statements model shown on the last tab reflects Colorado Mining’s financial condition just prior to purchasing the coal reserves. The company extracted 26,250 tons of coal in year 1 and 22,500 tons in year 2. Required Compute the depletion charge per unit. b-1. Compute the depletion expense for years 1 and 2 in a financial statements.

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

Chapter14: Statement Of Cash Flows

Section: Chapter Questions

Problem 34E

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Match (by letter) the following items with the description or example that best fits. Each letter is used only once.Terms1. Operating activities.2. Investing activities.3. Financing activities.4. Noncash activities.5. Indirect method.6. Direct method.7. Depreciation expense.8. Cash return on assets.Descriptionsa. Begins with net income and then lists adjustments to net income in order to arrive at operating cash flows.b. Item included in net income, but excluded from net operating cash flows.c. Net cash flows from operating activities divided by average total assets.d. Cash transactions involving lenders and investors.e. Cash transactions involving net income.f. Cash transactions for the purchase and sale of long-term assets.g. Purchase of long-term assets by issuing stock to seller.h. Shows the cash inflows and outflows from operations such as cash received from customers and cash paid for inventory, salaries, rent, interest, and taxes.
a. Recreate the income statement and balance sheet using formulas wherever possible. Each statement should be on a separate worksheet. Try to duplicate the formatting exactly. b. On another worksheet, create a statement of cash flows for 2020. Do not enter any numbers directly on this worksheet. All formulas should be linked directly to the source on previous worksheets. C. Using Excel's outlining feature, create an outline on the statement of cash flows that, when collapsed, shows only the subtotals for each section. d. Suppose that sales were $425,000 in 2020 rather than $412,500. What is the 2020 net income and retained earnings? e. Undo the changes from part d, and change the tax rate to 20%. What is the 2020 net income and retained earnings?
This is an accounting question about reconciling direct-method cash flow from operations to net income. I have read that generally for a simple noninventory situation the approach would be something like: Net Income Plus depreciation Minus Change in Current Assets Plus Change in Current Liabilities --> Should equal cash flows from operations in the cash flow statement. My question is about purchasing a long-term asset on account. A journal entry is made: credit accounts payable/debit long-term asset. If I generate a cash flow statement, the increase in current liabilities caused by that entry will be a part of the equation above. But that amount is not an operating cash flow, it is an investing cash flow. So my reconciliation to operating activities will be off by that amount. It seems like there's a missing adjustment in the equation, like "Minus assets purchased on account" or something like that. Example: Say my company just started and so far only has $5K contibuted cash in the…
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Garage, Inc., has identified the following two mutually exclusive projects. a. What is the IRR for each project? b. If the required return is 11 percent, what is the NPV for each project? c. What is the crossover rate between these two projects? Year 0 Year 1 Year 2 Year 3 Year 4 Required return SSSSS A (43,500) 21,400 18,500 13,800 7,600 $ ESSASALA $ $ $ $ B (43,500) 6,400 14,700 22,800 25,200 11% Complete the following analysis. Do not hard code values in your calculations. You must use the built-in Excel functions to answer this question.
How do you find "Cash Payment for Acquisition of Plant Assets"? Requirement 1. Prepare the 2024 Statement of Cash Flows by the direct method. (Use a minus sign or parentheses for amounts that result in a decrease in cash. If a box is not used in the statement, leave the box empty; do not select a label or enter a zero.) Complete the statement one section at a time, beginning with the cash flows from operating activities. Sweet Valley, Inc. Statement of Cash Flows Year Ended December 31, 2024 Cash Flows from Operating Activities: Receipts: Collections From Customers $443,700 Interest Received $8,200 Total Cash Receipts $451,900 Payments: To Suppliers (197,700) To Employees (77,400) For Interest (21,100) For Income Tax (19,400)…
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using the indirect method, prepare a statement of cash flows. Can you spell out the calculation around the equipment when solving the problem?
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Refer to the information for Booth Manufacturing above.Required:1. Calculate the cash flows from operations using the indirect method.2. Prepare a statement of cash flows.3. CONCEPTUAL CONNECTION Search the Internet to find a statement of cash flows.Which method was used—the indirect method or the direct method? How does the netincome reported compare to the operating cash flows? To the change in cash flows?
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