valuate the financial status of my icecream business chills and fruit by analyzing the general business transactions. Is the business making a profit or operating at a loss? Prospects of gain/loss. Invested in the business issuing common stock worth $100,000. Acquired an ice cream machine worth $30,000, paying $10,000 in cash, and issued a note for the remaining amount. Paid rent of the factory building for 12 months in advance worth $12,000. Purchased supplies worth $7,000 on the account. Cash sales worth $12,000. Sales on the account of $8,000. Paid salaries to staff amounting to $14,000. Received utility bill amount of $4,000, which will be paid in the following period. Made a $10,000 partial payment of the note, with accrued interest of $100. Received $4,000 from credit customers.

valuate the financial status of my icecream business chills and fruit by analyzing the general business transactions. Is the business making a profit or operating at a loss? Prospects of gain/loss. Invested in the business issuing common stock worth $100,000. Acquired an ice cream machine worth $30,000, paying $10,000 in cash, and issued a note for the remaining amount. Paid rent of the factory building for 12 months in advance worth $12,000. Purchased supplies worth $7,000 on the account. Cash sales worth $12,000. Sales on the account of $8,000. Paid salaries to staff amounting to $14,000. Received utility bill amount of $4,000, which will be paid in the following period. Made a $10,000 partial payment of the note, with accrued interest of $100. Received $4,000 from credit customers.

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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 33E: Stillwater Designs is a private company and outsources production of its Kicker speaker lines....

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Suppose you are the only owner of a chain of coffee shops near universities. Your current cafés are doing well, but you are interested in starting a fine-dining restaurant. You decide to use the cash generated from your existing business to enter into a new business. Your accountant provides you with the following data on your current financial performance: Financial update as of June 15 • Your existing business generates $87,000 in EBIT. • The corporate tax rate applicable to your business is 25%. • The depreciation expense reported in the financial statements is $16,571. • You don’t need to spend any money for new equipment in your existing cafés; however, you do need $13,050 of additional cash. • You also need to purchase $6,960 in additional supplies—such as tableclothes and napkins, and more formal tableware—on credit. • It is also estimated that your accruals, including taxes and wages payable, will increase by $4,350. Based on your evaluation you have…
Suppose you are the only owner of a chain of coffee shops near universities. Your current cafés are doing well, but you are interested in starting a fine-dining restaurant. You decide to use the cash generated from your existing business to enter into a new business. Your accountant provides you with the following data on your current financial performance: Financial update as of June 15 • Your existing business generates $123,000 in EBIT. • The corporate tax rate applicable to your business is 25%. • The depreciation expense reported in the financial statements is $23,429. • You don’t need to spend any money for new equipment in your existing cafés; however, you do need $18,450 of additional cash. • You also need to purchase $9,840 in additional supplies—such as tableclothes and napkins, and more formal tableware—on credit. • It is also estimated that your accruals, including taxes and wages…
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