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Dimas [21]
3 years ago
6

Comparative balance sheets for Pina Colada Corp. are presented as follows. Pina Colada Corp. Comparative Balance Sheets December

31 Assets 2020 2019 Cash $72,950 $22,400 Accounts receivable 84,350 76,050 Inventory 180,500 188,250 Land 75,450 100,300 Equipment 249,600 199,800 Accumulated depreciation—equipment (66,250 ) (41,250 ) Total $596,600 $545,550 Liabilities and Stockholders’ Equity Accounts payable $33,400 $46,350 Bonds payable 149,200 199,900 Common stock ($1 par) 213,600 164,700 Retained earnings 200,400 134,600 Total $596,600 $545,550 Additional information: 1. Net income for 2020 was $134,100. 2. Cash dividends of $68,300 were declared and paid. 3. Bonds payable amounting to $50,700 were redeemed for cash $50,700. 4. Common stock was issued for $48,900 cash. 5. Depreciation expense was $25,000. 6. Sales revenue for the year was $977,800. 7. Land was sold at cost, and equipment was purchased for cash. Prepare a worksheet for a statement of cash flows for 2020 using the indirect method. Enter the reconciling items directly on the worksheet.
Business
1 answer:
DerKrebs [107]3 years ago
7 0

Answer and Explanation:

The Preparation of cash flows for 2020 using the indirect method is shown below:-

Cash flow from Operating Activities

Net income $134,100

Add: Adjustments to reconcile   net income

Add; Depreciation on property, plant  and equipment $25,000  ($66,250 - $41,250)

Less: Increase in Accounts receivable ($8,300)    ($84,350 - $76,050)

Add: Decrease in Inventory $7,750   ($180,500 - $188,250)

Less: Decrease in Accounts payable ($12,950)    ($33,400 - $46,350)

Net cash provided by  Operating Activities   $145,600

Cash flow from Investing Activities

Add:Sale of Land $24,850

Less: Purchase of equipment ($49,800)    ($249,600 - $199,800)

Net cash used in Investing Activities ($24,950)

Cash flow from Financing Activities

Issue of common stock $48,900

Less: Redemption of bonds ($50,700)

Less: Dividend paid ($68,300)

Net cash used in Financing Activities ($70,100)

Net increase in Cash and Cash Equivalents $50,550

Cash in the beginning of the period $22,400

Ending cash balance for the year $72,950

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Answer: Relationship Marketing

Explanation:

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3 0
3 years ago
Inflation is 20 percent. Debt is $2 trillion. The nominal deficit is $300 billion. What is the real deficit or surplus
algol13

Answer:

Real deficit is -$100 billion.

Explanation:

Since we have a nominal deficit in the question, what we are to calculate is the real deficit.

The real deficit can be described as the actual or nominal deficit that has been adjusted for the effect of inflation on the debt. Therefore, the real deficit can be calculated using the following formula:

Real deficit  = Nominal deficit - (Debt * Inflation rate) ................. (1)

From the question, we have:

Inflation rate = 20%

Debt = $2 trillion = $2,000,000,000,000

Nominal deficit = $300 billion = $300,000,000,000

Substituting the values into equation (1), we have:

Real deficit = $300,000,000,000 - ($2,000,000,000,000 * 20%)

Real deficit = $300,000,000,000 - $400,000,000,000 = -$100,000,000,000 = -$100 billion

Therefore, real deficit is -$100 billion.

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3 years ago
When the effective-interest method of amortization is used for a bond premium, the amount of interest expense for an interest pe
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The amount of interest expense for an interesting period is calculated by multiplying the carrying value of the bonds at the beginning of the period by the effective interest rate.

Amortization is an accounting approach used to periodically decrease the ebook value of a loan or an intangible asset over a fixed time frame. Concerning a mortgage, amortization focuses on spreading out mortgage bills through the years. When applied to an asset, amortization is similar to depreciation.

Amortized price is an accounting approach in which all economic properties need to be suggested on a stability sheet at their amortized fee that is identical to their acquisition general minus their essential payments and any reductions or charges minus any impairment losses and change variations.

Input the corresponding values in cells B1 thru B3. In cellular B4, input the components "=-PMT(B2/1200, B3*12, B1)" to have Excel routinely calculate the monthly charge. As an example, in case you had a $25,000 mortgage at 6.5 percent annual hobby for 10 years, the month-to-month fee could be $283.87.

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5 0
2 years ago
How donfederal student loans differ from private student loans ​
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Federal student loans are made by the government, with terms and conditions that are set by law, and include many benefits (such as fixed interest rates and income-driven repayment plans) not typically offered with private loans.

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3 years ago
Raphael Corp. incorrectly expensed a major addition to equipment when the company should have capitalized the expenditure. What
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When Raphael Corp. incorrectly mentioned an expense of equipment addition instead of capitalizing the effect of the same, then in such case, the net income of the company is understated in the financial statements.

<h3>What is net income?</h3>

The income which is left at the end of an organization at the end of a financial period after making all the regulatory and compliant payments and deductions, such as taxes and depreciation, it is known as net income.

Hence, the significance of net income is aforementioned.

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7 0
2 years ago
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