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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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In May 2020, Falcon Corporation sold to Eagle Company 5 computers which Eagle paid a total of $5,000. Eagle paid $1,000 cash and promised to pay the other $4,000 in June 2021. What is the impact to the
Assets increased $5,000 and |
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Assets increased $1,000, Liabilities Increased $4,000 and Stockholders' Equity decreased $3,000 |
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Assets increased $1,000 and Stockholders' Equity increased $1,000 |
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Assets increased $4,000, Liabilities increased $4,000 |
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- Please do not give solution in image format thankuarrow_forwardIsaac Inc. began operations in January 2021. For some property sales, Isaac recognizes income in the period of sale for financial reporting purposes. However, for income tax purposes, Isaac recognizes income when it collects cash from the buyer's installment payments. In 2021, Isaac had $676 million in sales of this type. Scheduled collections for these sales are as follows: 2021 $ 83 million 2022 137 million 2023 129 million 2024 162 million 2025 165 million $ 676 million Assume that Isaac has a 25% income tax rate and that there were no other differences in income for financial statement and tax purposes. Ignoring operating expenses, what deferred tax liability would Isaac report in its year-end 2021 balance sheet?arrow_forwardDietrich Corp. disclosed the following information for 2021. The firm issued $65,000 new equity and $4,790 in dividends. The firm acquired $23,186 in new fixed assets and sold $17,600 of old fixed assets. Net working capital increased by $2,470 during the year. Dietrich Corp. had sales revenue of $264,596, cost of goods sold of $63,864, selling expenses of $53,200, depreciation of $6,780, and tax rate is 20%. a) What is the cash flow from assets of Dietrich Corp. in 2021? b) What is the cash flow to creditors of Dietrich Corp. in 2021? without excelarrow_forward
- help mearrow_forward2. For the year 2021, Rattner Robotics had $5 million in operating income (EBIT). Its depreciation expense was $1.5 million, its interest expense was $1 million, and its corporate tax rate was 35%. At the end of year 2021, it had $10 million in operating current assets, $3 million in accounts payable, $1 million in accruals, and $2 million in notes payable. Assume Rattner has no excess cash and no other current liabilities. Assume that Rattner's only noncash item was depreciation. a) What was the company's net income for the year 2021?tion bona 158 b) What was its net operating working capital (NOWC) for the year 2021? c) Rattner reported $4 million in capital expenditure for the year of 2021. Rattner's NOWC for the prior year (year 2020) is $5.5 million. What is the company's free cash flow (FCF) for the year of 2021? (Hint: you need your results from part b to calculate this question).arrow_forwardDuring 2022 Sheffield Corp. had sales on account of $709000, cash sales of $307000, and collections on account of $508000. In addition, they collected $9400 which had been written off as uncollectible in 2021. As a result of these transactions the change in the accounts receivable indicates a $191600 increase. $201000 increase. $516000 increase. $508000 increase.arrow_forward
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