During 2010, Raines Umbrella Corp. had sales of $770,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $610,000, $125,000, and $180,000, respectively. In addition, the company had an interest expense of $56,000 and a tax rate of 35 percent. (Ignore any tax loss carryback or carryforward provisions.) a. What is Rainesâs net income for 2010? (Input the amount as a positive value.) $ 201000 b. What is its operating cash flow? Operating cash flow $
During 2010, Raines Umbrella Corp. had sales of $770,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $610,000, $125,000, and $180,000, respectively. In addition, the company had an interest expense of $56,000 and a tax rate of 35 percent. (Ignore any tax loss carryback or carryforward provisions.) a. What is Rainesâs net income for 2010? (Input the amount as a positive value.) $ 201000 b. What is its operating cash flow? Operating cash flow $
Related questions
| A comparative balance sheet and income statement for Groton Company follow: |
| Groton Company Comparative Balance Sheet December 31, 2011 and 2010 | ||||
| 2011 | 2010 | |||
| Assets | ||||
| Cash | $ | 1 | $ | 12 |
| Accounts receivable | 306 | 229 | ||
| Inventory | 158 | 196 | ||
| Prepaid expenses | 8 | 6 | ||
| Total current assets | 473 | 443 | ||
| Property, plant, and equipment | 509 | 430 | ||
| Less accumulated depreciation | (85) | (71) | ||
| Net property, plant, and equipment | 424 | 359 | ||
| Long-term investments | 25 | 32 | ||
| Total assets | $ | 922 | $ | 834 |
| Liabilities and Stockholders' equity | ||||
| Accounts payable | $ | 301 | $ | 225 |
| Accrued liabilities | 70 | 80 | ||
| Income taxes payable | 72 | 63 | ||
| Total current liabilities | 443 | 368 | ||
| Bonds payable | 198 | 172 | ||
| Total liabilities | 641 | 540 | ||
| Common stock | 163 | 202 | ||
| Retained earnings | 118 | 92 | ||
| Total stockholdersâ equity | 281 | 294 | ||
| Total liabilities and stockholders' equity | $ | 922 | $ | 834 |
| Groton Company Income Statement For the Year Ended December 31, 2011 | ||||
| Sales | $ | 754 | ||
| Cost of goods sold | 448 | |||
| Gross margin | 306 | |||
| Selling and administrative expenses | 222 | |||
| Net operating income | 84 | |||
| Non operating items: | ||||
| Gain on sale of investments | $ | 6 | ||
| Loss on sale of equipment | (2) | 4 | ||
| Income before taxes | 88 | |||
| Income taxes | 23 | |||
| Net income | $ | 65 | ||
| During 2011, Groton sold some equipment for $19 that had cost $31 and on which there was accumulated depreciation of $10. In addition, the company sold long-term investments for $13 that had cost $7 when purchased several years ago. A cash dividend was paid during 2011 and the company repurchased $39 of its own stock. Groton did not retire any bonds during 2011. |
Problem 23-4
Blossom Company had the following information available at theend of 2017.
BLOSSOMCOMPANY | ||||||
2017 | 2016 | |||||
| Cash | $9,930 | $4,010 | ||||
| Accounts receivable | 20,450 | 12,910 | ||||
| Short-term investments | 22,070 | 30,030 | ||||
| Inventory | 42,300 | 35,310 | ||||
| Prepaid rent | 3,020 | 12,090 | ||||
| Prepaid insurance | 2,090 | 90 | ||||
| Supplies | 1,010 | 75 | ||||
| Land | 124,270 | 175,470 | ||||
| Buildings | 353,500 | 353,500 | ||||
| Accumulated depreciationâbuildings | (105,150 | ) | (87,890 | ) | ||
| Equipment | 526,140 | 396,090 | ||||
| Accumulated depreciationâequipment | (129,450 | ) | (111,310 | ) | ||
| Patents | 45,390 | 49,550 | ||||
| Total assets | $915,570 | $869,925 | ||||
| Accounts payable | $21,800 | $32,080 | ||||
| Income taxes payable | 5,020 | 3,970 | ||||
| Salaries and wages payable | 4,950 | 3,000 | ||||
| Short-term notes payable | 10,060 | 10,060 | ||||
| Long-term notes payable | 60,060 | 69,370 | ||||
| Bonds payable | 397,380 | 397,380 | ||||
| Premium on bonds payable | 30,200 | 32,145 | ||||
| Common stock | 239,140 | 221,530 | ||||
| Paid-in capital in excess of parâcommon stock | 24,850 | 17,400 | ||||
| Retained earnings | 122,110 | 82,990 | ||||
| Total liabilities and stockholdersâequity | $915,570 | $869,925 | ||||
BLOSSOM COMPANY | ||||||
| Sales revenue | $1,157,060 | |||||
| Cost of goods sold | 748,200 | |||||
408,860 | ||||||
| Gross margin | ||||||
| Operating expenses | ||||||
| Selling expenses | $78,550 | |||||
| Administrative expenses | 156,290 | |||||
| Depreciation/Amortization expense | 39,560 | |||||
| Total operating expenses | 274,400 | |||||
| Income from operations | 134,460 | |||||
| Other revenues/expenses | ||||||
| Gain on sale of land | 7,950 | |||||
| Gain on sale of short-term investment | 3,980 | |||||
| Dividend revenue | 2,380 | |||||
| Interest expense | (51,810 | ) | (37,500 | ) | ||
| Income before taxes | 96,960 | |||||
| Income tax expense | 39,460 | |||||
| Net income | 57,500 | |||||
| Dividends to common stockholders | (18,380 | ) | ||||
| To retained earnings | $39,120 | |||||
1 - Prepare a statement of cash flows for Blossom Company using thedirect method accompanied by a reconciliation schedule. Assume theshort-term investments are debt securities, classified asavailable-for-sale. (Show amounts in the investing andfinancing sections that decrease cash flow with either a - signe.g. -15,000 or in parenthesis e.g. (15,000).)
2- Reconciliation Schedule
