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35.A corporation has 50,000 shares of $100 par value stockoutstanding. If the corporation issues a 4-for-1 stock split, thenumber of shares outstanding after the split will be (Points :3)
200,000 shares.
50,000 shares.
250,000 shares.
12,500 shares.

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Elin Hessel
Elin HesselLv2
3 Jul 2018

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1. Which statement is normally prepared first? (Points : 3) Income statement Balance sheet Statement of cash flows Retained earnings statement2. When a business borrows money, it incurs a(n) (Points : 3) tax. liability. cash payment. all of these.3. More than 70% of businesses are organized as what type of business? (Points : 3) Not-for-profit Corporation Partnership Sole proprietorship4. Brennan, Inc. had revenues of $234,000, expenses of $175,000, and dividends of $40,000 during 2009. Which of the following statements is correct? (Points : 3) Net income for 2009 totaled $19,000. Net income for 2009 totaled $59,000. Total retained earnings increased by $59,000 during 2009. Total retained earnings decreased by $40,000 during 2009.5. 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If the corporation issues a 4-for-1 stock split, the number of shares outstanding after the split will be (Points : 3) 200,000 shares. 50,000 shares. 250,000 shares. 12,500 shares.

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.

Foxboro Company%u2019s income statement for Year 2 follows:


Foxboro Company

Income Statement

Sales $ 710,000

Cost of goods sold 234,000

Gross margin 476,000

Selling and administrative expenses 218,000

Net operating income 258,000

Gain on sale of equipment 10,000

Income before taxes 268,000

Income taxes 80,400

Net income $ 187,600


Its balance sheet amounts at the end of Years 1 and 2 are asfollows:


Foxboro Company

Balance Sheet

Year 2 Year 1

Assets

Cash $ 143,900 $ 106,100

Accounts receivable 269,000 119,000

Inventory 318,000 270,000

Prepaid expenses 9,500 19,000

Total current assets 740,400 514,100

Plant and equipment 622,000 517,000

Accumulated depreciation 166,300 131,600

Net plant and equipment 455,700 385,400

Loan to Harker Company 47,000 0

Total assets

$ 1,243,100 $ 899,500

Liabilities and Stockholders' Equity

Accounts payable $ 310,000 $ 260,000

Accrued liabilities 46,000 59,000

Income taxes payable 85,900 80,500

Total current liabilities 441,900 399,500

Bonds payable 207,000 119,000

Total liabilities 648,900 518,500

Common stock 345,000 286,000

Retained earnings 249,200 95,000

Total stockholders' equity 594,200 381,000


Total liabilities and stockholders' equity $ 1,243,100 $ 899,500


Equipment that had cost $31,600 and on which there wasaccumulated depreciation of $11,000 was sold during Year 2 for$30,600. The company declared and paid a cash dividend during Year2. It did not retire any bonds or repurchase any of its ownstock.


Required:

1.

Using the indirect method, compute the net cash for operatingactivities for Year 2. (Negative amount should be indicated by aminus sign. Omit the "$" sign in your response.)


Net cash operating activities $


2.

Prepare a statement of cash flows for Year 2. (Amounts to bededucted should be indicated with a minus sign. Omit the "$" signin your response.)


Foxboro Company

Statement of Cash Flows

Operating activities:

$

Adjustments to convert net income to cash basis:

$

Net cash operating activities

Investing activities:

Net cash investing activities

Financing activities:

Net cash financing activities

Cash balance, beginning of year

Cash balance, end of year $


3.

Compute the free cash flow for Year 2.(Negative amount should beindicated by a minus sign. Omit the "$" sign in your response.)


Free cash flow $





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