33:010:272 Lecture Notes - Lecture 11: Income Statement
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31 Oct 2019
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WeaverCompany | ||||||
Comparative Balance Sheet | ||||||
2014 | 2013 | |||||
Assets | ||||||
Cash | $9 | $15 | ||||
A/R | 340 | 240 | ||||
Inventory | 125 | 175 | ||||
Prepaid Expenses | 10 | 6 | ||||
Total current assets | 484 | 436 | ||||
PPE | 610 | 470 | ||||
Less accumulated depreciation | 93 | 85 | ||||
Net PPE | 517 | 385 | ||||
Long-term investments | 16 | 19 | ||||
Total assets | $1,017 | $840 | ||||
Liabliites and S/E | ||||||
A/P | $310 | $230 | ||||
Accrued Liablities | 60 | 72 | ||||
Income taxes payable | 40 | 34 | ||||
Total current liabilities | $410 | $336 | ||||
Bonds payable | 290 | 180 | ||||
Total liabilities | $700 | $516 | ||||
Common Stock | 210 | 250 | ||||
R/E | 107 | 74 | ||||
Total S/E | 317 | 324 | ||||
Total lliabilities and S/E | $1,017 | $840 | ||||
Weaver Company | ||||||
Income Statement | ||||||
For the Year Ended December31, 2014 | ||||||
Sales | $800 | |||||
COGS | 500 | |||||
Gross Margin | 300 | |||||
Selling and admin.Expenses | 213 | |||||
Net operating income | 87 | |||||
Nonoperating items: | ||||||
Gain on sale of investments | $7 | |||||
Loss on sale of equipment | -4 | $3 | ||||
Income before taxes | $90 | |||||
Income taxes | 27 | |||||
Net income | $63 | |||||
During 2014, Weaver sold someequipment for $20 that had cost $40 and on which there | ||||||
was accumulated depreciationof $16. In addition, the company sold long-term investments | ||||||
for $10 that had cost $3 whenpurchased several years ago. A cash dividend was paid during | ||||||
2014 and the companyrepurchased $40 of its own stock. Weaver did not retire anybonds | ||||||
during 2014. | ||||||
Using the indirect method,prepare a statement of cash flows. | ||||||
Weaver Company | ||||||
Income Statement | ||||||
For the Year Ended December31, 2014 | ||||||
WeaverCompany | ||||||
Comparative Balance Sheet | ||||||
2014 | 2013 | |||||
Assets | ||||||
Cash | $9 | $15 | ||||
A/R | 340 | 240 | ||||
Inventory | 125 | 175 | ||||
Prepaid Expenses | 10 | 6 | ||||
Total current assets | 484 | 436 | ||||
PPE | 610 | 470 | ||||
Less accumulated depreciation | 93 | 85 | ||||
Net PPE | 517 | 385 | ||||
Long-term investments | 16 | 19 | ||||
Total assets | $1,017 | $840 | ||||
Liabliites and S/E | ||||||
A/P | $310 | $230 | ||||
Accrued Liablities | 60 | 72 | ||||
Income taxes payable | 40 | 34 | ||||
Total current liabilities | $410 | $336 | ||||
Bonds payable | 290 | 180 | ||||
Total liabilities | $700 | $516 | ||||
Common Stock | 210 | 250 | ||||
R/E | 107 | 74 | ||||
Total S/E | 317 | 324 | ||||
Total lliabilities and S/E | $1,017 | $840 | ||||
Weaver Company | ||||||
Income Statement | ||||||
For the Year Ended December31, 2014 | ||||||
Sales | $800 | |||||
COGS | 500 | |||||
Gross Margin | 300 | |||||
Selling and admin.Expenses | 213 | |||||
Net operating income | 87 | |||||
Nonoperating items: | ||||||
Gain on sale of investments | $7 | |||||
Loss on sale of equipment | -4 | $3 | ||||
Income before taxes | $90 | |||||
Income taxes | 27 | |||||
Net income | $63 | |||||
During 2014, Weaver sold someequipment for $20 that had cost $40 and on which there | ||||||
was accumulated depreciationof $16. In addition, the company sold long-term investments | ||||||
for $10 that had cost $3 whenpurchased several years ago. A cash dividend was paid during | ||||||
2014 and the companyrepurchased $40 of its own stock. Weaver did not retire anybonds | ||||||
during 2014. | ||||||
Using the indirect method,prepare a statement of cash flows. | ||||||
Weaver Company | ||||||
Income Statement | ||||||
For the Year Ended December31, 2014 | ||||||
Can you please explain how to get thisanswer. | ||||||
Addedlong termdebt of : | $3,75,000 | ||||
Sale of PPE:Accum deprec.= | $70,000 | ||||
Sale of PPE: Sold for: | $65,000 | ||||
Sale of PPE: Cost = $110000 | $1,10,000 | ||||
Other comprehensive income inequity increased , offset in Other current assets | $44,000 | ||||
Used Treasury Stock to buyPPE | $54,000 | ||||
Issued/sold common stock: | $8,00,000 | ||||
Paid dividend of | $60,000 | ||||
No additions to Goodwill | |||||
HW Problem | Prepare Cash FlowStatement; Indirect Method | ||||
Class Company, Inc. | |||||
Balance Sheet asof | |||||
Assets: | 12/31/2xx2 | 12/31/2xx1 | |||
Current Assets: | $s | $s | |||
Cash | 13,54,000 | 1,93,000 | |||
Accounts Receivable | 4,50,000 | 4,18,000 | |||
Prepaid Expenses | 44,000 | 19,000 | |||
Other Current Assets | 55,000 | 32,000 | |||
Total Current Assets: | 19,03,000 | 6,62,000 | |||
Plant Property &Equipment | 12,00,000 | 9,70,000 | |||
Accumulated Depreciation | 5,50,000 | 4,50,000 | |||
Net Plant Property &Equipment | 6,50,000 | 5,20,000 | |||
Other Non-Current Assets: | |||||
Goodwill | 6,10,000 | 6,10,000 | |||
Deferred Loan PlacementCosts | 25,000 | 25,000 | |||
Other Non-Current assets | 72,000 | 81,000 | |||
Total Other Non-CurrentAssets | 7,07,000 | 7,16,000 | |||
Total Assets | 32,60,000 | 18,98,000 | |||
Liabilities: | |||||
Current Liabilities | |||||
Accounts Payable | 1,29,000 | 1,39,000 | |||
Accrued Expenses | 60,000 | 72,000 | |||
Current Portion of LTdebt | 90,000 | 1,00,000 | |||
Other Current Liabilities | 40,000 | 30,000 | |||
Total Current Liabilities | 3,19,000 | 3,41,000 | |||
Non-Current Liabilities | |||||
Long Term Debt | 11,00,000 | 9,15,000 | |||
Deferred Income Taxes | 1,05,000 | 86,000 | |||
Other Non-currentLiabilities | 14,000 | 12,000 | |||
Total Non-CurrentLiabilities | 12,19,000 | 10,13,000 | |||
Total Liabilities | 15,38,000 | 13,54,000 | |||
Owners Equity | |||||
Paid-in Capital | 10,00,000 | 2,00,000 | |||
Treasury Stock | 26,000 | 80,000 | |||
Dividends paid [before closingentries] | 60,000 | 0 | |||
Other comprehensiveincome | 68,000 | 24,000 | |||
Retained Earnings | 7,40,000 | 4,00,000 | |||
Total Owners' Equity | 17,22,000 | 5,44,000 | |||
Total Liabilities and OwnersEquity | 32,60,000 | 18,98,000 | |||
0 | 0 | ||||
Class Company, Inc. | Statement ofIncome | ||||
Period Ending12/31/2xx2 | |||||
$s | $s | ||||
Revenue | 45,00,000 | 100.0% | |||
Cost of Goods Sold | 23,00,000 | 51.1% | |||
Gross Profit | 22,00,000 | 48.9% | |||
Operating Expenses: | |||||
Total Operating Expenses | 17,00,000 | 24.5% | |||
Operating Income | 5,00,000 | 11.1% | |||
Other Income ( net of(expense)) | 60,000 | 1.3% | |||
Income Before Taxes | 5,60,000 | 12.4% | |||
Provision for IncomeTaxes | 2,20,000 | 4.9% | |||
Net Income | 3,40,000 | 7.6% | |||