Get college assignment help at uniessay writers Problem 5 Cash flow from operations activities-indirect method An analysis of the 2010 financial statements of Portside Provisions reveals the following: (a) Accounts payable to suppliers of merchandise decreased by $65,000 during 2010 (b) Dividends of $135,000 were declared in November 2010, to be paid in January 2011 (c) Dividends of $120,000, declared in November 2009, were paid in January 2010 (d) Inventory levels increased by $91,000 during 2010. (e) Depreciation expense for 2010 amounted to $53,000 (f) Land, which had a cost of S350,000, was sold in 2010 for $400,000 cash, resulting in a gain of $50,000 (g) Net income for 2010 was S745,000 Using only the above information, follow the indirect method to compute Portside Provisions net cash flows from operating activities for 2010
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1. Using direct labor hours as the basis for assigning overhead costs, determine the total production cost per unit for each product line. Overhead costs 96.00 per direct labor hour 238,560 $ Direct labor hours 2,485 OH Cost per unit Overhead Assigned Activity Driver Plantwide OH rate Total Overhead Cost Units Produced 96.00 $ Product A 2,185 209,760 110,400 1.90 96.00 $ 13,714 $ Product B 300 28,800 2.10 Total manufacturing cost per unit: Product A Product B Direct material cost per unit 1.90 S 2.10 5.75 Direct labor cost per unit 4.37 Overhead cost per unit 1.90 2.10 Total manufacturing cost 8.17 9.95 2. If the market price for Product A is $29.63 and the market price for Product B is $57, determine the profit or loss per unit for each product. Product A Product B 29.63 S Market price 57.00 Manufacturing cost per unit (8.17) (9.95) Profit(loss) per unit 21.46 47.05 3. Consider the following additional information about these two product lines. If ABC is used for assigning overhead costs to products, what is the cost per unit for Product A and for Product B? Product A Product B Number of setups required for production Number of parts required Inspection hours required setups part/unit setups part/unit 6 26 16 8 60 hours 225 hours Machine setup Overhead costs 0 per setup Number of setups Materials handling Overhead costs 0 per part Number of parts Quality control Overhead costs 0 per inspection hour Inspection hours Total Overhead Cost Overhead Assigned Activity Driver Activity Rate Product A Machine setup Materials handling Quality control 0 Product B Machine setup Materials handling Quality control Total manufacturing costs Direct Materials per unit Product B Product A Direct Labor per unit Overhead per unit Total manufacturing cost per unit 4. Determine the profit or loss per unit for each product assuming ABC costing. Product A Product B Market price
Question Six The statements of comprehensive income and changes in equity for Y and its subsidiary, AZ for the year ended December 2012 are shown below: AZ XY $000 $O00 Statement of comprehensive income for the year ended 31 December 2012 Revenue 3200 2400 Cost of sales -1800 -1400 Gross profit 1000 tve expenses Distribution costs -300 -150 750 600 Investment income (note 5) 400 -140 -110 Finance costs Profit before tax 1010 490 Income tax expense -160 -150 340 Profit for the year 850 Other comprehensive income that will not Revaluation of property, plant and equiprment Tax effect of other comprehensive income reclassified profit or loss 40 30 -12 10 Other comprehensive income for the year, net of tax 28 20 Total comprehensive income for the year 878 360 fchanges in equity for the year ended 31 December 2012 Statement XY A2 $O00 $000 Equity at 1 January 2012 12000 8200 Total comprehensive income 878 360 Dividends -600 400 Equity :31 December 2012 12278 8160 1. XY acquired 80 % of the 1 million $1 equity shares in AZ on 1 January 2009 when AZ’s retained earnings were $5,000,000. The non-controlling interest was valued sisted of the following: its fair value of $1.350,000 at the acquisition date. The consideration for the acquisition con- $1,593,000 paid on 1 January 2009; Cash 8% was applied to value the liability in the financial statements of Cash of $1,000,000 paid on 1 January 2011 (a discount rate XY); and The transfer of 1,000,000 shares in XY with a nominal value of $1 each and an agreed value on the date of acquisition of $3 each . AS dt anuary that had a fair wolu higherEame aste ry s were asse remaining useful life of 6 years from the date of acquisition. Depreciation is charged to cost of sales. . On 31 December 2012 the goodwill arising on the acquisition of AZ has heen impaired by 20 %. There have been no previous impairments and impairments are charged to administrative expenses. In the year to 31 December 2012, AZ sold goods to XY with a sales value of $300,000. 20 % the year end. AZ earns 25 % gross margin on all sales. the items remain in XY’s inventories The investment income recorded in XY’s tinancial statements relates to: Dividend income from AZ, which has been correctly treated in XY’s individual financial statements Income from a trade investment in another entity, LM. XY has a 10 % shareholding in LM. Required: (a) Prepare the consolidated statement of comprehensive income and the consolidated statement of changes in equity for the XY Group r the year ended 31 December 2012. (20 marks) On 1 February 2013, XY acquired a further investment in LM. XY now holds a total of 60 % of the equity share capital of LM. (b) Explain how this additional acquisition will impact on the preparation of the consolidated financial statements for the year to 31 December 2013. 5 marks) (Total for Question Six 25 marks)
Aug. 1 Issued share capital for $3,000 cash. 1 Borrowed $10,000 cash from the bank 1 Paid $8,000 cash for a used truck. 4 Paid $600 for a one-year truck insurance policy effective August 1. 5 Collected $2,000 fees in cash from a client for work performed today (recorded as Fees Earned) 7 Billed $5,000 fees to clients for services performed to date (recorded as Fees Earned) 9 Paid $250 for supplies used to date 12 Purchased $500 of supplies on credit (recorded as Unused Supplies) 15 Collected $1,000 of the amount billed on August 7. 16 Paid $200 for advertising in The News during the first two weeks of August. 20 Paid half of the amount owing for the supplies purchased on August 12 25 Paid cash for the following expenses: rent for August, $350; salaries, $2,150; telephone, $50; truck repairs, $250. 28 Called clients for payment of the balance owing from August 7. 29 Billed $6,000 of fees to clients for services performed to date (recorded as Fees Earned). 31 Transferred the amount of August’s truck insurance ($50) to Insurance Expense. 31 Counted $100 of supplies still on hand (recorded the amount used as Supplies Expense).
QUESTION 3 (30 MARKS: 54 MINUTES) Frenzy Sdn Bhd (FSB) makes three (3) main products FZ12, FZ34 and FZ56, using broadly the same production processs and equipment. Currently FSB is using a traditional product costing system. Details of the products and relevant information for a period are given below FZ34 2000 FZ56 500 FZ12 3000 Output in units Direct material cost per unit Direct labor hours per unit Direct labor cost per hour Machine hours (per unit) RM55 1.5 RM25 1.5 RM35 RM90 1 RM15 2 RM18 1 Currently, manufacturing overhead totalled RM138,750 is allocated on the basis of machine hours Having attended a workshop on activity-based costing (ABC) system, the Finance Director of FSB is now considering to implement ABC system to determine the product costs. In consultation with the owner, FSB identified four (4) major activities and then completed the first-stage allocations of costs to the activity cost pools. The manufacturing overhead costs allocated to four activity cost pools are: Activity Cost Pool Allocated Cost (RM) 57,000 34,875 18,750 28,125 Machining Set-up costs Quality control Materials handling The Finance Director has ascertained the cost driver to be used for the other overhead costs (For Machining activity, machine hour is still used as the cost driver) as follows: Cost pool Set-up costs Quality control Materials handling Cost driver Number of production runs Number of production runs Number of requisitions raised FZ12 FZ34 FZ56 2 8 10 2 8 10 15 10 20 Required: a) Calculate unit product cost for each product using the traditional costing system. (9 marks) Calculate unit product cost for each product using the ABC system. b) (16 marks) c) Explain why the unit product costs differ under the two costing systems (5 marks)
Account Titles and Explanation Debit Credit No. Date Aug. 31 Insurance Expense 1. 1725 Prepaid Insurance 1725 Aug. 31 Supplies Expenses 2. 4557 Supplies 4557 3. (a) Aug. 31 Depreciation Expense 1134 Accumulated Depreciation-Building 1134 3. (b) Aug. 31 Depreciation Expense 495 Accumulated Depreciation-Equipment 495 Aug. 31 Unearned Rent Revenue 4. 3778 Rent Revenue 3778 Aug. 31 Salaries and Wages Expense 5. 403 Salaries and Wages Payable 403 Aug. 31 Accounts Receivable 6. 744 744 Rent Revenue Aug. 31 Interest Expense 7. 1320 Interest Payable 1320 SPLISH RESORT Adjusted Trial Balance August 31, 2017 Debit Credit Cash 22000 $ Prepaid Insurance 5175 Supplies 443 Accounts Receivable 744 Land 26000 Buildings 12600 Accumulated Depreciation- 1134 Equipment 22000 Accumulated Depreciation- 495 Accounts Payable 6900 Unearned Rent Revenue 3222 Salaries and Wages Payabl 403 Interest Payable 1320 Mortgage Payable 66000 Common Stock 99400 Retained Earnings 9000 Dividends 5000 Rent Revenue 86722 Salaries and Wages Expen 45203 Rent Revenue 86722 Salaries and Wages Expen 45203 Utilities Expenses 9200 Maintenance and Repairs 3600 1629 Depreciation Expense 7602 Expense 27459 27459 Totals
GROUPER CORP. Income Statement For the Year Ended December 31, 2017 Revenue 13810 Sales Revenue Less Sales Returns and Allowal 15100 Sales Discounts 46000 19700 11840 Net Sales 62200 Cost of Goods Sold Gross Profit/(Loss) 56200 Operating Expenses 19500 Selling Expenses Administrative Expenses 98000 29300 Income From Operations 26900 Other Revenues and Gains Interest Revenue 87000 35600 Other Expenses and Losses Interest Expense 61000 Loss from Earthquake Da 99660 Income Before Income Tax 16066 Income Tax Expense 66416 |12892 Net Income /(Loss) 1.29 $ Earnings Per Common Share
Exercise 4-13 Your answer is partially correct. Try again At December 31, 2016, Vaughn Corporation had the following stock outstanding. 10% cumulative preferred stock, $100 par, 107,810 shares $10,781,000 Common stock, $5 par, 4,026,000 shares 20,130,000 During 2017, Vaughn did not issue any additional common stock. The following also occurred during 2017. Income from continuing operations before taxes $21,950,000 $3,505,000 $1,078,100 $2,300,000 Discontinued operations (loss before taxes) Preferred dividends declared Common dividends declared Effective tax rate 35% Compute earnings per share data as it should appear in the 2017 income statement of Vaughn Corporation. (Round answers to 2 decimal Earnings Per Share Income from Continuing Operations 14267 11989 Discontinued Operations 10911 Net Income / (Loss)
Exercise 4-15 (Part Level Submission) Bramble Corporation reported the following for 2017: net sales $1,235,200, cost of goods sold $721,800, selling and administrative expenses $338,600, and an unrealized holding gain on available-for-sale securities $15,700. (a) Your answer is correct. Prepare a statement of comprehensive income using one statement format. (Ignore income taxes and earnings per share.) BRAMBLE CORPORATION Statement of Comprehensive Income For the Year Ended December 31, 2017 Net Sales 12352 (72180 Cost of Goods Sold Gross Profit / (Loss) 51340 (33860 Selling and Administrative Expenses 17480 Net Income (Loss) 15700 Other Comprehensive Income Unrealized Holding Gain 19050 Comprehensive Income (b) Your answer is partially correct. Try again a statement of comprehensive income, using the two statement format. (Ignore income taxes and earnings per share.) Prepare BRAMBLE CORPORATION Income Statement For the Year Ended December 31, 2017 Net Sales Cost of Goods Sold Gross Profit/ (Loss) Selling and Administrative Expenses Net Income /(Loss) BRAMBLE CORPORATION Comprehensive Income Statement For the Year Ended December 31, 2017 Net Income/(Loss) Other Comprehensive Income Unrealized Holding Gain Comprehensive Income
Get college assignment help at uniessay writers Leong Corporation Balance Sheet December 31, 2017 Assets Cash 43220 10101 Accounts Receivable Supplies 1860 Prepaid Advertising 4820 5091 1 Total Current Assets 13768 Land 59450 Buildings 47510 Accumulated Depreciatio -11940 -15900 Equipment Accumulated Depreciation 62190 39829 Total Assets Liabilities
Johnston Enterprises Statement of Cash Flows For the Year Ended December 31, 2017 Cash Flows from Operating Activities 17562 Net Income Adjustments to reconcile net income to Net Cash Provided by Operating Activities 15240 Loss on Sale of Equipment Depreciation Expense 15240 75400 Decrease in Accounts Receivable Increase in Inventory -51100 Increase in Accounts Payable 89800 Increase in Tax Payable 9000 Increase in Notes Payable Net Cash used in Operating Activities 46232 Cash Flows from Investing Activities Sale of Equipment 1900 -27170 Purchase of Equipment Net Cash used by Investing Activities -26980 Cash Flows from Financing Activities -18700 Retirement of Bonds Payable Issuance of Common Stock 42500 -11820 Payment of Dividends 13170 Net Cash used by Financing Activities Net Increase in Cash 60820 Cash at Beginning of Year 11870 17952 Cash at End of the Year
Your answer is correct. Prepare a statement of cash flows for 2017. (Show amounts that decrease cash flow with either a (15,000).) sign e.g. -15,000 or in parenthesis e.g. ORIOLE CORPORATION Statement of Cash Flows For the Year Ended December 31, 2017 Cash Flows from Operating Activities 54680 Net Income Adjustments to reconcile net income to Net Cash Provided by Operating Activities Depreciation Expense 16620 Loss on Sale of Equipment 190 Patent Amortization 2500 Increase in Current Assets (Other than Cash) -29000 Increase in Current Liabilities 14810 5120 Net Cash Provided by Operating Activities 59800 Cash Flows from Investing Activities Sale of Equipment 11810 Addition to Building -28810 Investment in Stock -16000 Net Cash Used by Investing Activities -33000 Cash Flows from Financing Activities Issuance of Bonds 52710 (30000 Payment of Dividends Purchase of Treasury Stock -11000 11710 Net Cash Provided by Financing Activities Net Increase in Cash 38510 82000 Cash at Beginning of Period 12051 Cash at End of Period Click if you would like to Show Work for this question: Open Show Work ZYour answer is partially correct. Try again Prepare a balance sheet at December 31, 2017. (Show only totals for current assets and current liabilities.) (List Property, Plant and Equipment Land, Building and Equipment.) ORIOLE CORPORATION Balance Sheet December 31, 2017 Assets Land Less Less Intangible Assets Patents Total Assets Liabilities and Stockholders’ Equity Current Liabilities Long-term Liabilities Bonds Payable Total Liabilities Stockholders’ Equity Common Stock Retained Earnings Total Paid-in Capital and Retained Earnings Treasury Stock Less Total Stockholders’ Equity Total Liabilities and Stockholders’ Equity Click if you would like to Show Work for this question: Open Show Work
WRITE a trial against Mr. Baumer in Bargain by AB gunthrie
Problem 1 The following data is taken from the Financial Statements of Harrison Inc. for the year 2010. Dec. 2010 Jan. 2010 Income Statement: $634.000 Net Income Depreciation Expense Amortization of Intangibles Gain on sale of plant assets 183.000 30.000 79.000 Balance Sheet: $305.000 $279.000 Accounts Receivables 607.000 555.000 Inventory Prepaid Expenses Accounts Payables Deferred income taxes payables 32.000 74.000 131.000 254,000 180.000 143.000 Additional information: Paid $35.000 annual dividend to preferred stockholders. Repaid short-term debt in the amount of $98.000. Purchased land and a building for $450.000. Proceeds from sale of marketable securities in the amount of $75.000 Issued $300.000 of preferred stock. The balance of the cash account on January 1, 2010 was $285.000. Using the above information, prepare the statement of cash flows for the year ended December 31, 2010 showing the computation of the net cash flows from operating (by the indirect method), investing and financing activities.
QUESTION 4 (18 MARKS: 32 MINUTES) Hock-Tee-Seng Technologies is concemed that increased sales did not result in increased profits for 2017. Both variable unit and total fixed manufacturing costs for 2016 and 2017 remained constant at RM35 and RM3,500,000, respectively. In 2016, the company produced 100,000 units and sold 80,000 units at a price of RM87.50 per unit. There was no beginning inventory in 2016. In 2017, the company made 70,000 units and sold 90,000 units at a price of RM87.50. Selling and administrative expenses were all fixed at RM350,000 each year. Required: a) Prepare income statements for both years, 2016 and 2017 using absorption costing. (8 marks) Prepare income statements for both years, 2016 and 2017 using variable costing (6 marks) b) c) Explain why the income for each year was different under the two methods. Show the reconciliation. (4 marks) oureTONEISo MADKc. 10 MTLTEE
trial against and for Mr. Baumer for Slade’s death “Bargain” By A. B. Guthrie, Jr.
Problem 2 The following data is taken from the Financial Statements of Neymar Co. for 2010. Jan. 2010 Dec. 2010 Income Statement: $633.000 Net Income Depreciation Expense Amortization Expense 125.000 252.000 389.000 Gain on sale of building Balance Sheet: $323.000 $292.000 Accounts Receivables 558,000 521.000 Inventory Prepaid Expenses Accounts Payables 33.000 17.000 137.000 187.000 Income taxes payables 91.000 82.000 Additional information: Sold a building for $795.000 cash. Paid $100.000 dividend to stockholders Paid $85.000 as repayment of long-term debt. Collected the principal of a loan made to a borrower in the amount of $65.000. Invested $235.000 in marketable securities The balance of the cash account on January, 2010 was $361.000. Using the above information, prepare the statement of cash flows for the year ended December 31, 2010 showing the computation of the net cash flows from operating (by the indirect method), investing and financing activities
Problem 3 The following data is taken from the Financial Statements of Fitch Inc. for 2014. Dec. 2014 Jan. 2014 Income Statement: Net Income $447.000 314.000 235,000 152.500 Depreciation Expense Amortization of Intangibles Gain on sale of plant assets Balance Sheet: Accounts Receivables Inventory Prepaid Expenses Accounts Payables Deferred income taxes payables $125.000 610.000 $315.000 475.000 91.000 230.000 47.000 212.000 169.000 193.000 Additional information: Issued bonds payable for $100.000 cash Used $50.000 cash from the bonds to purchase land. Paid $90.000 dividend to stockholders Sold investments in another company for $40.000 cash. Purchased $180.000 in treasury stock The balance of the cash account on January, 2014 was $239.000 Using the above information, prepare the statement of cash flows for the year ended December 31, 2014 showing the computation of the net cash flows from operating (by the indirect method), investing and financing activities.
Problem 4 Cash flows from operating activities-indirect method The data below are taken from the financial statements of the Rutherford Corporation: Income Statement: 2009 Net income $840,000 170,000 30,000 110,000 Depreciation expense Amortization of patent Gain on sale of equipment Balance Sheet: 12/31/09 12/31/08 Accounts receivable $710,000 840,000 30,000 660,000 430,000 $680,000 800,000 35,000 630,000 440,000 Inventory Prepaid expenses Accounts payable Accrued expenses payable Complete the partial statement of cash flows for the year ended December 31, 2009, showing the computation of net cash flows from operating activities by the indirect method RUTHORFORD CORPORATION Partial Statement of Cash Flows For the Year Ended December 31,2009 Cash flows from operating activities (indirect method): Net income Add Subtotal S Less Net cash flows from operating activities
Assignment #3 – Chp 17
The post Question: Problem 5 Cash Flow From Operations Activities-indirect Method An Analysis Of The 2010 Financial Statements Of Portside Provisions Reveals The Following: (a) Accounts Payable To Suppliers Of Merchandise Decreased By $65,000 During 2010 (b) Dividends Of $135,000 Were Declared In November 2010, To Be Paid In January 2011 (c) Dividends Of $120,000, Declared … appeared first on uniessay writers.