Concept explainers
The following information was taken from the accounting records of ATLANTA Company for the year ended December 31, 2021:
Net income during the year, P2,250,000
Proceeds from the issuance of
Dividends paid on preference shares, P400,000
Bonds payable converted to ordinary shares, P2,000,000
Payment for purchase of machinery, P500,000
Proceeds from sale of plant building, P1,200,000
Retirement of bonds payable at face value, P2,500,000
2% bonus issue on ordinary shares, P300,000
Purchase of ordinary treasury shares, P120,000
Payment for the purchase of debt securities at amortized cost, P450,000
Gain on sale of plant building, P200,000
Doubtful accounts expense, P87,000
Increase in
Decrease in merchandise inventory, P129,000
Increase in investments in equity securities at FVTPL, P440,000
Increase in accounts payable, P90,000
Decrease in accrued expenses, P225,000
Increase in income tax payable, P117,000
How much is the net cash from/(used in) operating activities?
How much is the net cash from/(used in) investing activities?
How much is the net cash from/(used in) financing activities?
Assume that the cash and cash equivalents at January 1, 2021 amounted to P550,000. How much is the cash and cash equivalents at December 31, 2021?
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- Presented in alphabetical order, the following data are from the accounting records of Monty Corporation, a public company, at April 30, 2021: Accounts payable $64,000 Accounts receivable 47,000 Accumulated depreciation—equipment 69,000 Accumulated other comprehensive income 12,000 Bonds payable, due 2025 150,000 Cash 100,480 Common shares (no par value, unlimited authorized, 200,000 issued) 300,000 Depreciation expense 21,000 Dividend revenue 10,000 Equipment 210,000 Income tax expense 81,060 Income tax payable 25,000 Interest expense 7,400 Interest receivable 1,680 Interest revenue 3,360 Investment in associate 140,000 Investment Income or (Loss) 3,000 Investments at amortized cost, bonds due 2023 24,000 Investments at FVTOCI—equity 280,000 Investments at FVTPL—bonds 60,000 Investments at FVTPL—equity 15,000 OCI—holding gain or (loss), net of $3,600 tax (11,000) Rent expense 72,000 Retained…arrow_forwardPlease help mearrow_forwardPresented below is certain information pertaining to Edson Company. Assets, January 1 P240,000; Assets, December 31 230,000; Liabilities, January 1 150,000; Share capital, December 31 80,000; Retained earnings, December 31 31,000; Ordinary shares sold during the year 10,000; Dividends declared during the year 13,000; Compute the net income for the year. 24,000 11,000 37,000arrow_forward
- The balance sheet for Stuart Corporation follows: Current assets Long-term assets (net) Total assets Current liabilities Long-term liabilities Total liabilities Common stock and retained earnings Total liabilities and stockholders' equity Working capital Current ratio Debt-to-assets ratio Debt-to-equity ratio $ 94,000 1.7 $ Required Compute the following. (Round "Ratios" to 1 decimal place.) % 238,000 770,000 $1,008,000 $ 144,000 441,000 585,000 423,000 $1,008,000arrow_forwardThe current year financial statements for Blue Water Company and Prime Fish Company are presented below. Balance sheet Cash Accounts receivable (net) Inventory Property & equipment (net) Blue Water Prime Fish $ 42,400 45,000 $ 19,600 35,200 Other assets Total assets Current liabilities Long-term debt (interest rate: 10%) Capital stock ($10 par value) Additional paid-in capital Retained earnings Total liabilities and stockholders' equity $ 425,800 Income statement Sales revenue (1/3 on credit) Cost of goods sold Operating expenses Net income Other data Per share stock price at end of current year Average income tax rate $ 426,000 (234,000) (163,800) 92,000 161,000 85,400 $ 425,800 $ 92,000 74,800 157,800 30,400 70,800 48,400 417,800 319,000 $ 840,000 $ 70,000 62,800 526,000 107,400 73,800 $ 840,000 $ 788,000 (401,400) (312,400) $ 28,200 $ 74,200 $ 23.4 30% $ 29 30% Dividends declared and paid in current year $ 34,400 $ 155,000 Both companies are in the fish catching and manufacturing…arrow_forwardFall Corporation's capital structure consists of 500,000 authorized shares of common stock, of which 100,000 have been issued and are still outstanding. At December 31, 2022, an analysis of the accounts and discussions with company officials revealed the following information: Accounts payable...... Accounts receivable (trade accounts). Accumulated depreciation..... Accumulated other comprehensive income. Allowance for uncollectible accounts. Amortization expense.. Cash....... Common stock ($1 par value) Cost of goods sold Deferred revenue.. Depreciation expense. Dividend revenue.. Fair value adjustment (trading securities - debit balance). Gain on investments (Unrealized, NI).... General and administrative expenses. Interest expense... Interest payable..... Inventory, December 31, 2022. Investments in trading securities (cost)... Land held for future plant site.... 4% Notes payable (maturity 7/1/26 - $40,000 due July 1, 2023)... Paid in capital in excess of par.. Patents...... Pension…arrow_forward
- The year-end balance sheet of Pointe Company shows average Pointe shareholders’ equity attributable to controlling interest of $7,997 million, net operating profit after tax of $2,308 million, net income attributable to Pointe of $2,513 million, and common shares issued of 760.035 million. Assume the company has no preferred shares issued. Calculate Pointe’s ROE for the year.arrow_forwardThe income statement for Cullumber, Inc. is as follows: CULLUMBER, INC. Income Statement For the Year Ended December 31, 2021 Sales revenue $442,000 Cost of goods sold 264,000 Gross profit 178,000 Expenses (including $19,000 interest and $36,700 income taxes) 114.000 Net income $64,000 Additional information: 1 2 Common stock outstanding January 1, 2021 was 44,000 shares and 54,000 shares were outstanding at December 31, 2021. The market price of Cullumber, Inc., stock was $16 in 2021. 3. Cash dividends of $17,130 were paid, $1,770 of which were to preferred stockholders. Compute the following measures for 2021: (Round Earnings per share to 2 decimal places, eg. 52.75. Round other answers to 1 decimal place, e.g. 52.7.) (a) Earnings per share $ (b) Price-earnings ratio (c) Payout ratio (d) Times interest earned 1.31 12.2 times 26.7 % timesarrow_forwardIn 2023, Chen Corporation purchased treasury stock with a cost of $54,000. During the year, the company declared and paid dividends of $12,000 and issued bonds payable for $900,000. Net cash provided by financing activities for 2023 is: A. $834,000. B. $900,000. C. $846,000. D. $888,000.arrow_forward
- Selected information from the accounts of Arch Inc. on December 31, 2021 reveals that the total income since incorporation is $42,000; the total cash dividends paid is $13,000; the total value of property dividends distributed is $3,000; and the excess of proceeds over cost of treasury shares sold is $11,000. In its December 31, 2021 statement of changes in equity, what amount should the firm report as accumulated profits (retained earnings)?arrow_forwardSpicer Inc. showed the following alphabetized list of adjusted account balances at December 31, 2023. Assume that the preferred shares are non-cumulative. Accounts Payable Accounts Receivable Accumulated depreciation, Equipment Accumulated depreciation, Warehouse Cash Cash Dividends Common Shares Equipment Income Tax Expense Land Notes Payable, due in 2026 Operating Expenses Preferred Shares Retained Earnings Revenue Warehouse Current assets $ 26,760 40,200 11,140 22,280 9,400 20,600 Required: Prepare a classified balance sheet at December 31, 2023. (Enter all amounts as positive values.) Assets 122,000 79,400 41,600 127,600 34,600 110,200 40,200 28,720 282,100 138,800 SPICER INC. Balance Sheet December 31, 2023 Karrow_forwardThe balance sheet for Stuart Corporation follows: Current assets Long-term assets (net) Total assets Current liabilities Long-term liabilities Total liabilities Common stock and retained earnings Total liabilities and stockholders' equity Working capital Current ratio Debt-to-assets ratio Debt-to-equity ratio $ 238,000 770,000 $1,008,000 Required Compute the following. (Round "Ratios" to 1 decimal place.) % 144,000 441,000 585,000 423,000 $1,008,000arrow_forward
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