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Ne4ueva [31]
3 years ago
7

Concord Corporation’s balance sheet at the end of 2019 included the following items. Current assets (Cash $82,000) $236,770 Curr

ent liabilities $151,770 Land 32,190 Bonds payable 101,770 Buildings 121,770 Common stock 182,190 Equipment 92,190 Retained earnings 46,190 Accum. depr.-buildings (31,770 ) Total $481,920 Accum. depr.-equipment (11,000 ) Patents 41,770 Total $481,920 The following information is available for 2020. 1. Net income was $60,100. 2. Equipment (cost $21,770 and accumulated depreciation $9,770) was sold for $11,770. 3. Depreciation expense was $5,770 on the building and $10,770 on equipment. 4. Patent amortization was $2,500. 5. Current assets other than cash increased by $29,000. Current liabilities increased by $14,770. 6. An addition to the building was completed at a cost of $28,770. 7. A long-term investment in stock was purchased for $16,000. 8. Bonds payable of $52,190 were issued. 9. Cash dividends of $30,000 were declared and paid. 10. Treasury stock was purchased at a cost of $11,000.Collapse question part(a)Prepare a statement of cash flows for 2017. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
Business
1 answer:
xenn [34]3 years ago
5 0

Answer:

Cash flow generated for the year: 71,790

Explanation:

From the information given we use the indirect method, we adjust net income for the non-monetary terms and then, adjust for the changes in working capital

The sale of assets will be enter under investing activities for the cash received regardless of the gain/loss at disposal

the stock transactions are considered financing from the firms perspective.

<u>Operating Activities:</u>

Net income           60,100

depreciation          16,540

loss at disposal          230

(21,770 - 9,770 = 12,000 against 11,770)

amortization            2,500

adjusted income:                        79,370

<em>changes in working capital:</em>

increase in current assets:        (29,000)

increase in current liabilities:  <u>     14,770  </u>

net change in working capital     14,230

from operating activities:            93,600

<u>Investing Activities</u>

sale of equipment                    11 ,770

purchase of stocks                 (16,000)

Building improvements        <u>  (28,770)  </u>

from investing activities         (33,000)

<u>Financing Activities</u>

Issuance of bonds payable     52, 190

Cash dividends                       (30,000)

Purchase of treasury Stocks <u>  (11, 000)   </u>

from financing activities           11,  190

Cash flow generated for the year:

93,600 - 33,000 + 11,190 = 71,790

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Answer:Option A

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Auditing is an independent examination of the financial statement of an audit client to express a true and fair view on the statement examined.

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3 years ago
On June 30, Collins Management Company purchased land for $460,000 and a building for $520,000, paying $360,000 cash and issuing
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Answer:

See Explanation

Explanation:

(a)

Journal entry to record the transaction is,

Particulars                                                                  Debit      Credit

Land and Building (460000 + 520000)                 $980,000

Cash Paid                                                                           $360,000

Mortgage Payable (980,000 - 360,000)                         $620,000

We assume that 4% interest is chargeable each semiannual payment and that each subsequent payment is charged 4% on the remaining amount of principal minus any preceding principal payments.

(b)

First installment = Principal + Interest payable

= 31,000 + (620,000 * 0.04) = $55,800

(c)

Second payment = 31,000 + [(620,000 - 31000) * 0.04] = $54,560

Since the chart of accounts is not provided you can confirm the the account headings.

Hope that helps.

5 0
3 years ago
Kelly has decided to start his own business giving sailing lessons. To purchase equipment for the business, Kelly withdrew $1,00
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Answer:

The total opportunity cost of investing in the business  is explained below:

Explanation:

Opportunity cost is also known as alternative cost, the cost incurred from giving up one benefit for an alternative. Kelly withdrew 1000$ from his account, which was giving him a 3% profit annually, and the total opportunity cost of withdrawing 1000$ is  30$ annually. Similarly, he withdrew another 2000$ at 7% interest rate that is 140$which he has to pay annually.

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2 years ago
Rank the steps of the (sandwich) ELISA procedure from first step to last step. Do not overlap any steps.
Anvisha [2.4K]

Answer and Explanation:

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The ELISA procedure in sequence form is shown below:

1. The capture antibody is added and then clean it

2. Now adding the blocking buffer and then clean it

3. Now add the samples with controls, Hatch it and clean it

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8 0
3 years ago
Kelly Company sells its only product for $250 per unit. It has variable costs of $90 per unit. Annual fixed operating costs amou
zhuklara [117]

Answer:

the break even point in units is 120,000 units

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hence, the break even point in units is 120,000 units

We simply applied the above formula so that the correct value could come

And, the same is to be considered

4 0
3 years ago
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