ACCTG414 Lecture Notes - Enbridge, Cash Flow, Earnings Before Interest And Taxes

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violetchinchilla775

8 Apr 2014

School

University of Alberta

Department

Accounting

Course

ACCTG414

Professor

Jocelyn King

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Document Summary

Chapter 3 income statement, comprehensive income statement and. A second example of a multi step using ifrs is shown below: The presentation of comprehensive income for ifrs multi industries is shown below. Net gain on hedging instruments entered into for cash flow hedges. Other comprehensive income for the year, net of tax (39,927) The presentation of the statement of changes in shareholders equity for ifrs multi. Year ended december 31, 2009, with comparative figures for 2008. Based on cica - a case study: financial statement comparisons - http://www. cica. ca/privateenterprises/resources/index. aspx#asapfs. The following example is from the annual report of shaw communications inc. for the reporting period ending august 31, 2006. This example illustrates disclosures related to the retroactive application with restatement and prospective application of changes in accounting policies. The effect of the retroactive application of a change in accounting policy is described in a note to the financial statements.

Related Questions

Financial statements for E-Perform Inc follow:

E-Perform, Inc

Balance Sheet

December 31

	2009	2008
Assets
Cash	$97,800	$48,400
Accounts Receivable	75,800	43,000
Inventories	122,500	92,850
Prepaid Expenses	38,400	26,000
Available-for-Sale Securities	128,000	114,000
Property, plant and equipment	270,000	242,500
Accumulated Depreciation	(50,000)	(52,000)
Total Assets	$682,500	$514,750
Liabilities and Shareholders' Equity
Accounts Payable	$93,000	$77,300
Accrued Expenses Payable	11,500	7,000
Notes Payable	110,000	150,000
Common Shares	220,000	175,000
Retained Earnings	234,000	105,450
Accumulated other comprehensive income	14,000	0
Total liabilities and shareholders' equity	$682,500	$514,750

Statement of Earnings:

Sales		$492,780
Cost of Goods Sold		185,460
Gross Profit		307,320
Operating Expenses
Other operating expenses	$62,410
Depreciation expense	46,500	108,910
Earnings from operations		198,410
Other expenses
Interest expense	$4,730
Loss on sale of equipment	7,500	12,230
Earnings before income tax		186,180
Income tax expense		45,000
Net Earnings		$141,180

Additional Information:

1. The available-for-sale securities were revalued to their fair value of $128,000 at the end of 2009.

2. New equipment costing $85,000 was purchased for $25,000 cash and a $60,000 note payable

3. Old equipment having an original cost of $57,500 was sold for $1,500

4. Accounts payable relate only to merchandise creditors

5. Notes payable were repaid during the year

**Instructions: Prepare the cash flow statement using the direct method.

tanwalrus385

Exercise 23-12

Condensed financial data of Headland Company for 2017 and 2016are presented below.

HEADLAND COMPANY COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016
	2017		2016
Cash	$1,810		$1,120
Receivables	1,790		1,330
Inventory	1,570		1,940
Plant assets	1,870		1,740
Accumulated depreciation	(1,230	)	(1,150	)
Long-term investments (held-to-maturity)	1,300		1,440
	$7,110		$6,420

Accounts payable	$1,220		$910
Accrued liabilities	200		260
Bonds payable	1,370		1,550
Common stock	1,860		1,740
Retained earnings	2,460		1,960
	$7,110		$6,420

HEADLAND COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2017
Sales revenue		$6,810
Cost of goods sold		4,680
Gross margin		2,130
Selling and administrative expenses		920
Income from operations		1,210
Other revenues and gains
Gain on sale of investments		80
Income before tax		1,290
Income tax expense		530
Net income		760
Cash dividends		260
Income retained in business		$500

Additional information:

During the year, $70 of common stock was issued in exchange forplant assets. No plant assets were sold in 2017.

Prepare a statement of cash flows using the direct method.(Show amounts in the investing and financing sectionsthat decrease cash flow with either a - sign e.g. -15,000 or inparenthesis e.g. (15,000).)

blushgoldfish745

Condensed financial data of Bramble Company for 2017 and 2016 are presented below.

BRAMBLE COMPANY COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016
	2017		2016
Cash	$1,800		$1,130
Receivables	1,750		1,320
Inventory	1,630		1,890
Plant assets	1,910		1,720
Accumulated depreciation	(1,190	)	(1,170	)
Long-term investments (held-to-maturity)	1,280		1,410
	$7,180		$6,300

Accounts payable	$1,230		$910
Accrued liabilities	190		240
Bonds payable	1,400		1,540
Common stock	1,930		1,680
Retained earnings	2,430		1,930
	$7,180		$6,300

BRAMBLE COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2017
Sales revenue		$6,890
Cost of goods sold		4,730
Gross margin		2,160
Selling and administrative expenses		940
Income from operations		1,220
Other revenues and gains
Gain on sale of investments		90
Income before tax		1,310
Income tax expense		550
Net income		760
Cash dividends		260
Income retained in business		$500

Additional information:

During the year, $60 of common stock was issued in exchange for plant assets. No plant assets were sold in 2017.Prepare a statement of cash flows using the indirect method.

periwinklegoldfish448

ACCTG414 Lecture Notes - Enbridge, Cash Flow, Earnings Before Interest And Taxes

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