ADMS 2500 Chapter Notes - Chapter 5: Income Statement, Inventory Turnover, Balance Sheet
127 views7 pages
1 Nov 2014
School
Department
Course
Professor
ishvindersinghsandhu and 38251 others unlocked
12
ADMS 2500 Full Course Notes
Verified Note
12 documents
Get access
Grade+20% off
$8 USD/m$10 USD/m
Billed $96 USD annually
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
40 Verified Answers
Class+
$8 USD/m
Billed $96 USD annually
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
30 Verified Answers
Related Documents
Related Questions
The income statement of Vince Gill Company is shown below.
Vince Gill Company | ||
Income Statement | ||
For year ended December 31, 2014 | ||
Sales Revenue | $6,947,090 | |
Cost of Goods Sold | ||
Beginning inventory | $1,890,710 | |
Purchases | 4,323,810 | |
Goods available for sale | 6,214,520 | |
Ending inventory | 1,601,450 | |
Cost of goods sold | 4,613,070 | |
Gross Profit | 2,334,020 | |
Operating expenses | ||
Selling expenses | 446,970 | |
Admin expenses | 709,920 | 1,156,890 |
Net income | 1,177,130 | |
1. | Accounts receivable decreased $316,040 during the year. | |
2. | Prepaid expenses increased $175,400 during the year. | |
3. | Accounts payable to suppliers of merchandise decreased $283,580during the year. | |
4. | Accrued expenses payable decreased $115,830 during theyear. | |
5. | Administrative expenses include depreciation expense of$54,760. |
Prepare the operating activities section of the statement ofcash flows using the direct method.
Exercise 23-3
The income statement of Pharoah Company is shownbelow.
PHAROAH COMPANY | ||||
Sales revenue | $7,430,000 | |||
Cost of goods sold | ||||
Beginning inventory | $2,090,000 | |||
Purchases | 4,770,000 | |||
Goods available for sale | 6,860,000 | |||
Ending inventory | 1,440,000 | |||
Cost of goods sold | 5,420,000 | |||
Gross profit | 2,010,000 | |||
Operating expenses | ||||
Selling expenses | 440,000 | |||
Administrative expenses | 690,000 | 1,130,000 | ||
Net income | $880,000 |
Additional information:
1. | Accounts receivable decreased $350,000 during the year. | |
2. | Prepaid expenses increased $150,000 during the year. | |
3. | Accounts payable to suppliers of merchandise decreased $260,000during the year. | |
4. | Accrued expenses payable decreased $130,000 during theyear. | |
5. | Administrative expenses include depreciation expense of$60,000. |
Prepare the operating activities section of the statement of cashflows for the year ended December 31, 2017, for Pharoah Company,using the indirect method. (Show amounts that decreasecash flow with either a - sign e.g. -15,000 or in parenthesis e.g.(15,000).)