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ludmilkaskok [199]
2 years ago
13

The income statement and the cash flows from the operating activities section of the statement of cash flows are provided below

for Syntric Company. The merchandise inventory account balance neither increased nor decreased during the reporting period. Syntric had no liability for insurance, deferred income taxes, or interest at any time during the period. SYNTRIC COMPANY Income Statement For the Year Ended December 31, 2021 ($ in thousands) Sales $ 292.3 Cost of goods sold (177.6 ) Gross margin 114.7 Salaries expense $ 29.0 Insurance expense 18.7 Depreciation expense 11.5 Depletion expense 5.4 Interest expense 12.3 (76.9 ) Gains and losses: Gain on sale of equipment 17.5 Loss on sale of land (7.3 ) Income before tax 48.0 Income tax expense (24.0 ) Net income $ 24.0 Cash Flows from Operating Activities: Cash received from customers $ 228.0 Cash paid to suppliers (165.0 ) Cash paid to employees (24.0 ) Cash paid for interest (10.4 ) Cash paid for insurance (14.3 ) Cash paid for income tax (12.4 ) Net cash flows from operating activities $ 1.9 Required: Prepare a schedule to reconcile net income to net cash flows from operating activities. (Enter your answers in thousands rounded to 1 decimal place (i.e., 5,500 should be entered as 5.5). Amounts to be deducted should be indicated with a minus sign.)
Business
1 answer:
Natasha_Volkova [10]2 years ago
6 0

Answer and Explanation:

The preparation of the schedule to reconcile the net income to net cash flow from operating activities is presented below:

Cash from operating activities    

Net income           $24

Adjustment to reconcile    

Add: Depreciation expense         $11.5

Add: Depletion expense         $5.4

Less: Gain on sale of Equipment      -$17.5

Add:  Loss on sale of land         $7.3

Less: increase in account receivable ($292.30 - $228) -$64.30

Add:  increase in accounts payable ($177.60 - $165)   $12.6

Add: increase in salaries payable ($29 - $24)  $5

Add: decrease In prepaid insurance ($18.7 - $14.3) $4.4

Add: Decrease in bond discount ($12.3 - $10.4)  $1.9

Add: increase in income tax payable ($24 - $12.4) $11.60

net cash flow from operating activities  $4.20

The cash outflow represents in a negative sign while the cash inflow represents in a positive sign

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The welding department supplies parts to the final assembly line. Management decides to implement a kanban system and has collec
const2013 [10]

Answer:

25 containers

Explanation:

The computation of the number of kanban containers required is shown below:

= (Lead time demand + Safety stock) ÷ Container size

where,

Lead time demand is

= 2,000 units × 4 days

= 8,000 units

Container size = 400 units

Safety Stock is

= 1 day × 2,000 units

= 2,000 units

So, the number of kanban containers required is

= (8,000 units + 2,000 units) ÷ (400 units)

= 25 containers

We simply applied the above formula

6 0
3 years ago
The cash account for American Medical Co. at April 30 indicated a balance of $334,985. The bank statement indicated a balance of
Bas_tet [7]

Answer:

1. Cash balance according to bank statement $370,000

Cash balance according to company’s records $370,000

2. a. April 30

Dr Cash $42,000

Cr Notes Receivable $40,000

Cr Interest Income / Interest Revenue $2,000

b. April 30

Dr Accounts Payable - Targhee Supply Co $6,840

Dr Miscellaneous Expenses [Bank service charge] $145

Cr Cash $6,985

3. $370,000

Explanation:

1. Preparation of a bank reconciliation

AMERICAN MEDICAL COMPANY

Bank Reconciliation

April 30

Cash balance according to bank statement $388,600

Add: Deposit of April 30, Not recorded by bank $42,500

Add: Bank Error in Charging check as $420 instead of $240 [$420 - $240] $180

Deduct: Outstanding Checks $61,280

Adjusted balance $370,000

Cash balance according to company’s records $334,985

Add: Note and Interest Collected by bank $42,000

Deduct: Error in Recording Check [$7,600 - $760] $6,840

Deduct: Bank Service Charges $145

Adjusted balance $370,000

2. Preparation of Journal entries.

Journal entries

a. April 30

Dr Cash $42,000

Cr Notes Receivable $40,000

Cr Interest Income / Interest Revenue $2,000

b. April 30

Dr Accounts Payable - Targhee Supply Co [$7,600 - $760] $6,840

Dr Miscellaneous Expenses [Bank service charge] $145

Cr Cash $6,985

($6,840+$145)

3. Based on the information given If a balance sheet is prepared for American Medical Co. on April 30, the amount that should be reported as cash will be $370,000

8 0
2 years ago
A factory produces product A according to the production function QA = 100XA, where XA denotes the amount of input and QA is the
Ostrovityanka [42]

Answer:

Option (B) is correct.

Explanation:

XA + XB = 100

QA = 100XA

QB = 200XB - XB^2

Use the fact that,

XA = 100 - XB

Now total production is Q = QA + QB

Q = 100XA + 200XB - XB^2

Q = 100 × (100 - XB) + 200XB - XB^2

Q = 10,000 + 100XB - XB^2

Output is maximum when Q'(XB) = 0

100 = 2XB = 0

XB = 50

XA = 50

Therefore, the firm’s profit-maximizing allocation of input X is 50 units of XA and 50 units of XB.

5 0
2 years ago
You and your friends want to buy a condo at the beach to time share. Each of you has single peaked preferences with a most prefe
Gemiola [76]

Answer:

Individual                   Cost                                Shares to be enjoyed

Mabel                      $10,000                            10000 / 150000 =  6.67%

Gertrude                 $20000                            20000 / 150000 = 13.3%

Myron                      $30000                            30000 / 150000 = 20%

Wilber                      $40000                            40000 / 150000 = 26.6%

You                          $50000                            50000 / 150000 = 33.3%

Explanation:

peaked preferences

Most preferred value to spend :

Mabel = $10,000

Gertrude = $20,000

Myron = $30,000

Wilber = $40,000

you = $50,000

cost of Condo = $150,000

<u>Implementing a Uniform rule mechanism to allocate costs and shares </u>

The uniform rule ; ∑ j∈I Uj (p) = Ω.

where Ω = fixed amount of resource

hence the summation of all allotment should = Ω ( $150,000 )

Number of friends = 5

cost of condo  = $150,000

If divide equally each person will have to pay ; $150,000 / 5 = $30,000

Total money to be spent by friends = 10,000 + 20,000 + 30,000 + 40,000 + 50,000  = $150,000

Individual                   Cost                                shares to be enjoyed

Mabel                      $10,000                            10000 / 150000 =  6.67∑%

Gertrude                 $20000                            20000 / 150000 = 13.3%

Myron                      $30000                            30000 / 150000 = 20%

Wilber                      $40000                            40000 / 150000 = 26.6%

You                          $50000                            50000 / 150000 = 33.3%

∑shares ≈ 100% ( 150,000 )

6 0
3 years ago
Tandy Company was issued a charter by the state of Indiana on January 15 of this year. The charter authorized the following: Com
Maslowich

Answer:

$327,400

Explanation:

Preparation of the stockholders' equity section of the balance sheet at the end of the year.

TANDY, INCORPORATED Balance Sheet (Partial) At December

TANDY, INCORPORATED

Balance Sheet (Partial)

At December 31, this year

Stockholders' equity:

Contributed capital:

Common stock $149,100

(21,300*$7)

Additional paid-in capital, common stock $106,500

[21,300 x (12-7)]

Common stock - Contributed capital $255,600

($149,100+$106,500)

Preferred stock $11,400

(1,900*$6)

Additional paid-in capital, Preferred stock $19,000

[1,900 x (16-6)]

Preferred stock - Contributed capital $30,400

($11,400+$19,000)

Total Contributed Capital $286,000

($255,600+$30,400)

Retained earnings $41,400

Total Stockholders' equity $327,400

($286,000+$41,400)

Therefore the stockholders' equity section of the balance sheet at the end of the year will be $327,400

5 0
3 years ago
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