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Multiple Five Accounting Problems




Question;The following information is available from the accounting records of Manahan Co. for the year ended December 31, 2013:Net cash provided by financing activities $ 122,000Dividends paid 18,200Extraordinary loss from flood, net of tax savings of $43,767 131,300Income tax expense 26,678Other selling expenses 11,400Net sales 645,400Advertising expense 46,200Accounts receivable 52,400Cost of goods sold 367,878General and administrative expenses 143,700Required:a. Calculate the operating income for Manahan Co. for the year ended December 31, 2013.b. Calculate the company's net income for 2013.________________________________________Franklin Co. has experienced gross profit ratios for 2013, 2012, and 2011 of 35.00%, 29.25%, and 31.50%, respectively. On April 3, 2014, the firm's plant and all of its inventory were destroyed by a tornado.Accounting records for 2014, which were available because they were stored in a protected vault, showed the following:Sales from January 1 thru April 2 $ 145,240January 1 inventory amount 63,660Purchases of inventory fromJanuary 1 thru April 2 118,176Required:Calculate the amount of the insurance claim to be filed for the inventory destroyed in the tornado. (Hint:Use the cost of goods sold model and a gross profit ratio that will result in the largest claim.) (Round your answer to nearest whole dollar amount.)________________________________________Insurance claimThe financial statements of Simon Co. include the following items (amounts in thousands):Income StatementFor the Year Ended December 31, 2014($000 omitted)Net income $ 433Depreciation and amortization expense 337At December 31Balance Sheets 2014 2013Accounts receivable $ 122 $ 192Inventory 200 144Accounts payable 31 148Income taxes payable 74 38Required:a. Calculate the net cash flow provided by operations for Simon Co. for the year ended December 31, 2014. (Enter your answer in thousands. (i.e., 20,000 should be entered as 20))Net cash provided by operative activitiesb. Net income and cash flows provided by operations may differ because of the timing of cash receipts and payments versus the timing of recognition on the income statement.TrueFalse________________________________________The financial statements of Pouchie Co. included the following information for the year ended December 31, 2013 (amounts in millions):Depreciation and amortization expense $ 270Cash dividends declared and paid 328Purchase of equipment 816Net income 407Beginning cash balance 140Proceeds of common stock issued 164Proceeds from sale of building (at book value) 225Accounts receivable increase 7Ending cash balance 145Inventory decrease 26Accounts payable increase 64Required:Complete the following statement of cash flows, using the indirect method. (Enter your answers in millions (i.e., 5,000,000 should be entered as 5). Amounts to be deducted should be indicated by a minus sign.)Following is a statement of cash flows (indirect method) for Hartford, Inc., for the year ended December 31, 2014. Also shown is a partially completed comparative balance sheet as of December 31, 2014 and 2013:HARTFORD, INCStatement of Cash FlowsFor the year Ended December 31, 2014Cash Flows from Operating Activities: Net income $ 9,000 Add (deduct) items not affecting cash: Depreciation expense 45,000 Decrease in accounts receivable 23,000 Increase in Inventory (7,000 )Decrease in accounts payable (6,000 )Proceeds from short-term debt 5,000 Increase in notes payable 12,000 ________________________________________Net cash provided by operating activities $ 81,000 ________________________________________Cash Flows from Investing Activities: Purchase of equipment $ (50,000 )Purchase of buildings (48,000 )________________________________________Net cash used by investing activities $ (98,000 )________________________________________Cash Flows from Financing Activities: Cash used for retirement of long-term debt $ (25,000 )Proceeds from issuance of common stock 10,000 Payment of cash dividends on common stock (3,000 )________________________________________Net cash used by financing activities $ (18,000 )________________________________________Net decrease in cash for the year $ (35,000 )________________________________________________________________________________________________________________________Required:a. Complete the December 31, 2014 and 2013, balance sheets.b. Complete the statement of changes in retained earnings for the year ended December 31, 2014.(Amounts to be deducted should be indicated by a minus sign.)


Paper#39374 | Written in 18-Jul-2015

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