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Marina86 [1]
2 years ago
11

The following is the operating section of the statement of cash flows (direct method) of Battery Builders, Inc.: Collections fro

m customers $ 28,000 Payments to suppliers for inventory purchases (13,000 ) Payments for operating expenses (9,000 ) Payments for income taxes (2,260 ) Cash provided by operating activities 3,740 The following information is obtained from the income statement of Battery Builders: Net income $ 6,740 Depreciation expense 4,000 In addition, the following information is obtained from the comparative balance sheets of Battery Builders (decreases in parentheses): Change in accounts receivable $ 3,000 Change in inventory 3,000 Change in accounts payable 2,000 Change in accrued payables (related to operating expense) (2,000 ) Change in income taxes payable (1,000 ) Required: Prepare a complete accrual-basis income statement for the current year. Compute the cash flows from operations using the indirect approach (that is, start with accrual-basis net income and adjust for various items to obtain cash flows from operations).
Business
1 answer:
Marizza181 [45]2 years ago
6 0

Answer and Explanation:

The computation is shown below:

Sales ($28,000 + $3,000)  $31,000

Less: Cost of goods sold  ($13,000 + $2,000 - $3,000)  -$12,000

Operating expenses($9,000 - $2,000)  -$7,000

Depreciation expense -$4,000

Income tax expense  ($4,000 + $1,000)  -$5,000

Amortization expense -$1,000

Gain on sale of equipment $2,000

Net income $4,000

2.  

Net income $4,000

Add:  

Depreciation $4,000

Write-off of intangibles $1,000

Less:  

Gain on sale of equipment -$2,000

Cash flow before working capital changes  $7,000

Increase in accounts receivable -$3,000

Increase in inventory -$3000

Increase in accounts payable $2000

Decrease in accrued payable -$2000

Increase in deferred income taxes payable $1,000

Net Cash from Operations $2,000

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Jones Corporation reported current assets of $191,800, current liabilities of $137,000, and total liabilities of $275,714 on its
VMariaS [17]

Based on the information given the current ratio is:1.4.

<h3>Current ratio</h3>

Using this formula

Current ratio=Current assets/Current liabilites

Where:

Current assets=$191,800

Current liabilities=$137,000

Let plug in the formula

Current ratio=$191,800/$137,000

Current ratio = 1.4

Inconclusion the current ratio is:1.4.

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4 0
2 years ago
Which factor or factors listed below are internal influences on a loan’s interest rate?
Romashka-Z-Leto [24]
There is only one factor listed here that is internal influeence on a loan's interest and that is the secind one, which is called collateral offered by the borrower. The rest of them are not internal influences, they are a little bit more of external. Hope this works
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3 years ago
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Which special advertising category has the objective of increasing visibility and increasing store traffic?
Viefleur [7K]
E. retail advertising. .
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3 years ago
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Pharoah Corporation engaged in the following cash transactions during 2020. Sale of land and building $187,600 Purchase of treas
Alla [95]

Answer:

See below

Explanation:

The computation of net cash provided is seen below

Proceeds from issuance of common stock

147,900

Less:

Purchase of treasury stock

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Less:

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Less:

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3 0
3 years ago
Ornaments, Inc., is an all-equity firm with a total market value of $663,000 and 32,800 shares of stock outstanding. Management
Dvinal [7]

EPS = $1.44 (after rounding off)

<u>Explanation:</u>

<u>The calculation of Earnings per share is as follows: </u>

Particulars                                   Amount

Earnings before interest and tax = 71325

Less: amount of interest = 0

Earnings before tax = $71325

Less : the amount of tax ( 34 percent) = 2425.05

Net income = $47074.5

The number of shares given = 32,800

The formula of calculating the earning per share is = Net income divided by the number of the shares of a company

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3 years ago
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