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GenaCL600 [577]
2 years ago
5

Harlan Mining Co. has recently decided to go public and has hired you as an independent CPA. One statement that the enterprise i

s anxious to have prepared is a statement of cash flows. Financial statements of Harlan Mining Co. for 2022 and 2021 are provided below. Cash Accounts receivable Inventory Property, plant and equipment Less accumulated depreciation
BALANCE SHEETS
12/31/22 12/31/21
Cash $408,000 192,000
Accounts receivable 360,000 216,000
Inventoy 384,000 $480,000
Property, plant and equipment $608,000 $960,000
Less accumulated depreciation (320,000) 288,000 (304,000) 656,000
$1.440.000 $1.544.000
Accounts payable $176,000 $96.000
Income taxes payable 352,000 392,000
Bonds payable 360,000 600,000Common stock 216,000 216,000
Retained earnings 336.000 240.000
$1,544.000 $1.440.000
INCOME STATEMENT
For the Year Ended December 31, 2022
Sales revenue $8,400,000
Cost of sales 7,152.000
Gross profit 1,248,000
Selling expenses $600,000
Administrative expenses 192.000 792,000
Income from operations 456,000
Interest expense 72,000
Income before taxes 384,000
Income taxes 96,000
Net income $288.000
The following additional data were provided:
1. Dividends for the year 2019 were $192,000.
2. During the year, equipment was sold for $240,000. This equipment cost $352,000 originally and had a book value of $288,000 at the time of sale. The loss on sale was incorrectly charged to cost of sales.
3. All depreciation expense is in the selling expense category.
Under the direct method, the cash received from customers is:____.
Business
1 answer:
cupoosta [38]2 years ago
5 0

Answer:

The cash received from customers under the direct method is $8,256,000.

Explanation:

Given:

Beginning accounts receivable = Accounts receivable on 12/31/21 = $216,000

Ending accounts receivable = Accounts receivable on 12/31/22 = $360,000

Sales revenue = $8,400,000

Therefore, we have:

Cash received from customers = Beginning accounts receivable + Sales revenue - Ending accounts receivable = $216,000 + $8,400,000 - $360,000 = $8,256,000

Therefore, the cash received from customers under the direct method is $8,256,000.

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Wyatt Oil is contemplating issuing a 20-year bond with semiannual coupons, a coupon rate of 7%, and a face value of $1000. Wyatt
enyata [817]

Complete question:

Security Term (years) Yield (%)

Treasury 2 0 5.5%

AAA Corporate 2 0 7.0%

BBB Corporate 20 8.0%

B Corporate 2 0 9.6%

Wyatt Oil is contemplating issuing a 20-year bond with semiannual coupons, a coupon rate of  7%, and a face value of $1000. Wyatt Oil believes it can get a BBB rating from Standard and  Poor's for this bond issue. If Wyatt Oil is successful in getting a BBB rating, then the issue price  for these bonds would be closest to:

A) $891 B) $901 C) $1,000 D) $800

Answer:

If Wyatt Oil is successful in getting a BBB rating, then the issue price  for these bonds would be closest to:  $901

Solution:

Given,

FV = 1000,

N = 40,

I = 4,

PMT = 35

Compute PV ,

PV = FV \frac{1}{( 1+r)^{n} }

PV = 901.04

If Wyatt Oil is successful in getting a BBB rating, then the issue price for these bonds would be closest to: $901

5 0
3 years ago
Susan is initially offered a new SUV for $24,000 and agrees to buy it. But when the sales manager comes back after getting some
Olin [163]

The increase of the new SUV from $24,000 to $26,000 after the agreement illustrates a low-balling technique.

<h3>What is a low-balling technique?</h3>

This is a tactics used when the persuader gets a person to commit to a low offer that they have no intention of keeping and then, the price is suddenly increased.

Hence, the increase of the new SUV from $24,000 to $26,000 after the agreement illustrates a low-balling technique.

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6 0
1 year ago
Regarding the four-step closing process under the periodic inventory​ system, ________. A. Sales Revenue is closed with a credit
ziro4ka [17]

Answer:

The correct answer is D. the ending merchandise inventory balance must be recorded as a debit via the Income Summary account

Explanation:

In the permanent inventory system, all purchases, sales, discounts and returns on purchases and sales are recorded at cost, in the account Goods not Manufactured by the Company. Thus: Purchases: the acquisition of merchandise is accounted for with a debit in the Merchandise not Manufactured by the Company account and a credit in Banks or Suppliers, as the case may be.

The initial inventory represents the value of the stock of merchandise on the date the accounting period began. This account is opened when the control of the inventories, in the Major General, is carried out based on the speculative method, and does not return to movement until the end of the accounting period when it will be closed with charge at cost of sales or by Profit and Loss directly. And it is the detailed and detailed relationship of the stock of merchandise that a company has when starting its activities, after making a physical count.

The final inventory is made at the end of the accounting period and corresponds to the physical inventory of the merchandise of the company and its corresponding valuation. By relating this inventory to the initial one, with the net purchases and sales of the period, you will obtain the Gross Profits or Losses in Sales of that period. is the list of stocks at the end of an accounting period.

6 0
3 years ago
If buyers’ incomes increase, the demand curve will shift to the _____ and the prices will _____.
taurus [48]

Answer:

Demand curve will shift to the right, the prices will increase.

Explanation:

An increase in the income of the consumer of will cause the demand curve of the consumer to shift to the right. This rightward shift in the demand curve will cause the demand curve to intersect the supply curve at a higher point.  

As a result, the equilibrium price level and the equilibrium quantity will increase. A decline in the income, on the other hand, will cause both quantity and price to decline because of a leftward shift in the demand curve.

8 0
3 years ago
If the file containing your student information appears in two different places with two different birth dates, your data would
trapecia [35]
Your data would not be considered duplicated.
7 0
3 years ago
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