Excel Applications for Accounting Principles
4th Edition
ISBN: 9781111581565
Author: Gaylord N. Smith
Publisher: Cengage Learning
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Chapter 14, Problem 1R
The comparative
Additional data obtained from the records of Prime Sports Gear are as follows:
- a. Net income for 2013 was $121,610.
- b.
Depreciation reported on income statement for 2013 was $46,500. - c. Purchased $165,000 of new equipment, putting $90,000 cash down and issuing $75,000 of bonds for the balance.
- d. Old equipment originally costing $19,500, with
accumulated depreciation of $7,950, was sold for $8,000. - e. Retired $60,000 of bonds.
- f. Declared cash dividends of $64,000.
- g. Issued 1,500 shares of common stock at $27 cash per share.
You have been asked to prepare a statement of
Expert Solution & Answer
To determine
Prepare the statement of cash flow for Incorporation PSG and review the worksheet.
Explanation of Solution
Prepare the statement of cash flow for Incorporation PSG and review the worksheet.
Table (1)
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Consider the following balance sheet for Go The Distance Trading Cards. Sales were $1,200,000 in the past year.
Go The Distance Trading Cards Balance Sheet, 2013:
Assets $
Current Assets $74,630.00
Net fixed Assets (Net PPE) $224,900.00
Total Assets $299,530.00
Liabilities and Shareholder Equity
Current Liabilities $43,510.00
Long-term liabilities (Long term debt) $93,200.00
Total Liabilities $136,710.00
Shareholder equity $162,820.00
Total Liabilities and Shareholder Equity $299,530.00
What is the debt-to-asset ratio for this firm?
Čardinal Industries had the following operating results for 2018: Sales = $34,621; Cost of
goods sold
Dividends paid = $2,023. At the beginning of the year, net fixed assets were $19,970,
current assets were $7,075, and current liabilities were $4,01O. At the end of the year, net
fixed assets were $24,529, current assets were $8,702, and current liabilities were
$4,700. The tax rate for 2018 was 25 percent.
$24,359; Depreciation expense =
$6,027; Interest expense
$2,725;
%3D
a. What is net income for 2018? (Do not round intermediate calculations.)
b. What is the operating cash flow for 2018? (Do not round intermediate calculations.)
c. What is the cash flow from assets for 2018? (Do not round intermediate calculations.
A negative answer should be indicated by a minus sign.)
d- If no new debt was issued during the year, what is the cash flow to creditors? (Do not
1. round intermediate calculations.)
d- If no new debt was issued during the year, what is the cash flow to stockholders? (Do…
Consider the following income statement and other information:
Luther Corporation
Consolidated Income Statement
Year ended December 31 (in $ millions)
2009
2008
Total sales
610.1
578.3
Cost of sales
(500.2)
(481.9)
Gross profit
109.9
96.4
Selling, general, and
administrative expenses
(40.5)
(39.0)
Research and development
(24.6)
(22.8)
Depreciation and amortization
(3.6)
(3.3)
Operating income
41.2
31.3
Other income
---
---
Earnings before interest and taxes (EBIT)
41.2
31.3
Interest income (expense)
(25.1)
(15.8)
Pre-tax income
16.1
15.5
Taxes
(5.5)
(5.3)
Net income
10.6
10.2
Price per share
$16
$15
Shares outstanding (millions)
10.2
8.0
Stock options outstanding (millions)
0.3
0.2
Stockholders' Equity
126.6
63.6
Total Liabilities and Stockholders' Equity
533.1
386.7
For the year ending…
Chapter 14 Solutions
Excel Applications for Accounting Principles
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