Accounting: What the Numbers Mean
11th Edition
ISBN: 9781259535314
Author: David Marshall, Wayne William McManus, Daniel Viele
Publisher: McGraw-Hill Education
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Chapter 9, Problem 9.19P
Problem 9.19
LO 5
Calculate operating income and net income The following information is available from the accounting records of Manahan Co. for the year ended December 31, 2016:
| Net cash provided by financing activities | $168,000 |
| Dividends paid | 27,000 |
| Loss from discontinued operations, net of tax savings of $70,000 | 155,000 |
| Income tax expense | 39,000 |
| Other selling expenses | 20,000 |
| Net sales | 966,000 |
| Advertising expense | 67,000 |
| Accounts receivable | 186,000 |
| Cost of goods sold | 552,000 |
| General and administrative expenses | 214,000 |
Required:
- Calculate the operating income for Manahan Co. for the year ended December 31, 2016
- Calculate the company’s net income for 2016.
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Question 24
Muscarella Inc. has the following balance sheet and income statement data:
Cash
$ 14,000
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$ 42,000
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Inventories
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Total CL
$ 70,000
Total CA
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Long-term debt
70,000
Net fixed assets
126,000
Common equity
280,000
Total assets
$420,000
Total liab. and equity
$420,000
Sales
$280,000
Net income
$ 21,000
The new CFO thinks that inventories are excessive and could be lowered sufficiently to cause the current ratio to equal the industry average, 2.70, without affecting either sales or net income. Assuming that inventories are sold off and not replaced to get the current ratio to the target level, and that the funds generated are used to buy back common stock at book value, by how much would the ROE change?
a.
4.28%
b.
5.21%
c.
4.73%
d.
4.50%
e.
4.96%
LS
5
Following are the income statement and some additional information for Carolina Consulting Company.
Carolina Consulting Company
Income Statement
For the Year Ended December 31, 2024
Net sales
Cost of goods sold
Gross margin
Operating expenses
Depreciation expense
Income before taxes
Income taxes
Net income
$ 3,400
1,600
Cash flows from operating activities:
$ 17,000
(2,900)
14,100
All sales were on credit and accounts receivable decreased by $1,040 in 2024 compared to 2023.
Merchandise purchases were on credit with a decrease in accounts payable of $840 during the year.
Ending inventory was $640 larger than beginning inventory. Income taxes payable increased $440
during the year. All operating expenses were paid for in cash.
Net cash flows from operating activities
(5,000)
9,100
(3,000)
$ 6,100
Required:
Prepare the cash flows from operating activities section of the statement of cash flows using the direct
method.
Note: Amounts to be deducted should be indicated with a minus…
7 / 9
Sales
Cost of sales
Gross profit
Operating expenses
66,7%
REQUIRED
Use the information provided below to prepare the Cash Flow Statement of Nascar Limited for the year
ended 31 December 2021.
Depreciation
Other operating expenses
Operating profit
Interest on mortgage loan
Profit before tax
▼
INFORMATION
The following Information was extracted from the records of Nascar Limited for the past two years:
STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER:
Company tax
Profit after tax
16
2021 (R)
18 560 000
(12 800 000)
5 760 000
(2 912 000)
300 000
2 612 000
2 848 000
(240 000)
2 608 000
(782 400)
1 825 600
DELL
2020 (R)
12 000 000
(7 500 000)
4 500 000
(2 120 000)
260 000
1 860 000
2 380 000
(720 000)
1 660 000
(498 000)
1 162 000
Addre
Chapter 9 Solutions
Accounting: What the Numbers Mean
Ch. 9 - Prob. 9.1MECh. 9 - Mini-Exercise 9.2 LO 5 Calculate operating income...Ch. 9 - Mini-Exercise 9.3 LO 6 Calculate basic EPS Net...Ch. 9 - Mini-Exercise 9.4
LO 10
Calculate cash flows from...Ch. 9 - Exercise 9.5
LO 1
Calculate earned revenues Big...Ch. 9 - Exercise 9.6 LO 1 Calculate earned revenues...Ch. 9 - Exercise 9.7 LO 2 Effects of inventory error If...Ch. 9 - Exercise 9.8 LO 2 Effects of inventory error...Ch. 9 - Prob. 9.9ECh. 9 - Prob. 9.10E
Ch. 9 - Exercise 9.11 LO 5 Operating income versus net...Ch. 9 - Prob. 9.12ECh. 9 - Prob. 9.13ECh. 9 - Prob. 9.14ECh. 9 - Prob. 9.15ECh. 9 - Prob. 9.16ECh. 9 - Prob. 9.17ECh. 9 - Prob. 9.18ECh. 9 - Problem 9.19 LO 5 Calculate operating income and...Ch. 9 - Prob. 9.20PCh. 9 - Problem 9.21
LO 3
Use gross profit ratio to...Ch. 9 - Prob. 9.22PCh. 9 - Prob. 9.23PCh. 9 - Problem 9.24
LO 10
Prepare a statement of cash...Ch. 9 - Problem 9.25
LO 10
Cash flows from operating,...Ch. 9 - Prob. 9.26PCh. 9 - Prob. 9.27PCh. 9 - Problem 9.28 LO 10. 11 Complete balance sheet and...Ch. 9 - Prob. 9.29PCh. 9 - Prob. 9.30PCh. 9 - Prob. 9.31CCh. 9 - Prob. 9.32CCh. 9 - Prob. 9.33C
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