1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Rainbow [258]
3 years ago
13

Sharp Screen Films, Inc., is developing its annual financial statements at December 31, current year. The statements are complet

e except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized as follows: Current Year Prior Year Balance sheet at December 31 Cash $ 66,950 $ 66,200 Accounts receivable 19,750 25,950 Merchandise inventory 25,950 20,800 Property and equipment 214,150 152,800 Less: Accumulated depreciation (63,400 ) (47,950 ) $ 263,400 $ 217,800 Accounts payable $ 13,500 $ 23,800 Wages payable 5,400 6,000 Note payable, long-term 64,000 76,200 Common stock and additional paid-in capital 104,200 67,800 Retained earnings 76,300 44,000 $ 263,400 $ 217,800 Income statement for current year Sales $ 213,000 Cost of goods sold 110,000 Depreciation expense 15,450 Other expenses 44,800 Net income $ 42,750 Additional Data: Bought equipment for cash, $61,350. Paid $12,200 on the long-term note payable. Issued new shares of stock for $36,400 cash. Dividends of $10,450 were declared and paid. Other expenses all relate to wages. Accounts payable includes only inventory purchases made on credit.
Required:

1. Prepare the statement of cash flows using the indirect method for the year ended December 31, current year.
Business
1 answer:
mixer [17]3 years ago
4 0

Answer:

Please see below for solution:

Explanation:

Mitch Company      

Statement of Cash Flow      

As of December 31, 2017      

     

CASH FLOWS FROM OPERATING ACTIVITIES     $

Net Income      42,750

<em>Adjustments to reconcile net income to       </em>

<em>net cash provided by operating activities:       </em>

Depreciation on Fixed Assets      15,450

<em>(Increase) Decrease in Current Assets:</em>      

Accounts Receivables      6,200  

Merchandise Inventory      (5,150)

<em>Increase (Decrease) in Current Assets:</em>      

Accounts Payable      (10,300)

Wages payable      (600)

NET CASH PROVIDED BY OPERATING ACTIVITIES   48,350  

     

CASH FLOWS FROM INVESTING ACTIVITIES      

Purchase of Property and equipment      (61,350)      

NET CASH USED IN INVESTING ACTIVITIES     (61,350)

     

CASH FLOWS FROM FINANCING ACTIVITIES      

Payment of Note Payable, Long Term      (12,200)

Payment of Cash Dividends      (10,450)

Issuance of Common Stock and additional paid-in capital  36,400  

NET CASH PROVIDED (USED) IN FINANCING ACTIVITIES    13,750  

NET INCREASE (DECREASE) IN CASH     750  

<em>Cash Balance, December 31 2016      66,200  </em>

<em>Cash Balance, December 31 2017      66,950  </em>

You might be interested in
What factor LEAST contributes to the success of an entrepreneur?
dlinn [17]
<h2>Family money seems to be less important</h2>

Explanation:

Creativity is important because, creative persons are successful persons

Diligence: Careful work is always expected from Entrepreneur.

Hard work: Hard work is essential for every person and not only entrepreneur.

Family money: This is the least important is the family money. You definitely need money, but there are many ways to get money say you can apply for personal loan and other corporate loans to start business.

5 0
3 years ago
We can use the Cournot model to derive an equilibrium industry structure. For this purpose, we will define an equilibrium as tha
Nina [5.8K]

Answer:

a. long run equilibrium numbers of firms in the industry are 4

b. Output of each firm will be 16

Explanation:

Under cournot’s equilibrium, the cost function of an individual firm is written as:

C(q) = F + cq

In our case, C(q) is given as

C(q) = 256 + 20q

Therefore, F = 256 and c = 20

At the same time, the demand function is written as:

P(Q) = a - bQ

In our case, P is given as

P = 100 – Q

Therefore, a = 100, b =1

a. Long run equilibrium number of firms in the industry

N = ((a-c)/(bF)^0.5) – 1

N = ((100-20)/(1*256)^0.5) – 1

N = (80/16) – 1 = 4

Therefore, long run equilibrium numbers of firms in the industry are 4

b. Output of each firm will be q = (a-c)/b*(1+N) = (100-20)/1*(1+4) = 80/5 = 16

Therefore, total output of industry is 16*4 = 64

Price = 100-64 = 36

Profit = Revenue – Cost

Revenue of each firm = Price * Output = 36*16 = 576

Cost = 256+20*16 = 576

Therefore, profit = 0

5 0
3 years ago
True or False: Market segmentation is the process of dividing the market into groups of customers based on their needs, wants, a
nalin [4]

Answer:

true

Explanation:

Market segmentation is the process of dividing prospective consumers into different groups depending on factors like demographics, behavior and various characteristics.

3 0
2 years ago
According to the rule of 72, if you have $15,000 in an account that grows at the rate of 12 percent annually, it will take appro
yulyashka [42]

Answer:

true

Explanation:

7 0
3 years ago
Identify whether each the following transactions is a primary market or a secondary market transaction: Jim Henry bought 500 sha
slamgirl [31]

Answer:

Jim Henry bought 500 shares of I.B.M. through a broker.

  • SECONDARY MARKET TRANSACTION

Peggy White bought 500 shares of Apple from another investor.

  • SECONDARY MARKET TRANSACTION

New York Life Insurance Co. bought 500,000 shares of Tioga Corp when the company issued the stock.

  • PRIMARY MARKET TRANSACTION

Primary market transactions that place when an investor purchases securities at the time the corporation or entity issued them, e.g. if you purchased Amazon's stocks at their IPO (or any other time new stocks were issued), it was a primary market transaction. But if you purchased Amazon's stocks at any other time, it is a secondary market transaction. Almost all the transactions carried out everyday are secondary market transactions.

5 0
3 years ago
Other questions:
  • Volkswagen has signaled that it is going to stay the course in russia, despite current political and economic headwinds. why do
    15·1 answer
  • ecan Theatre Inc. owns and operates movie theaters throughout Florida and Georgia. Pecan Theatre has declared the following annu
    13·1 answer
  • Which statement best explains the law of demand?
    6·2 answers
  • In case of an emergency, once you or someone already on the scene has contacted 9-1-1, the next thing to do is: A) Move them to
    15·1 answer
  • Bianca's discount home furnishings store is in a strip mall. She wants to know what other businesses in the strip mall her custo
    6·2 answers
  • Which transactions are typically accounted for by using the relative sales value method to calculate unit purchase cost?
    11·1 answer
  • How can you apply Total Quality Management, Six Sigma, Kaizen &amp; Lean principles to improve the management of an academic ins
    8·1 answer
  • You can display good customer service by
    9·2 answers
  • Mua áo thể thao, tìm hiểu được 3 mẫu áo trên thị trường.
    6·1 answer
  • Wilson Industries holds 100 Farley Enterprises bonds. The bonds pay $4,000 interest each July and January and will mature on Jan
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!