Essay Title: 

Financial Questions and equations

March 24, 2016 | Author: | Posted in accounting, mathematics and economics

QUESTIONS AND ANSWERS

1 . Expanded Accounting Equation

For the following four cases , use the expanded accounting equation to compute the missing

quantity Assets Liabilities Capital Stock Retained Earnings

Case A 20 ,000 8 ,000 A 3 ,500

Case B 16 ,000 B 5 ,000 2 ,000

Case C C 11 ,000 14 ,000 32 ,000

Case D 46 ,000 30 ,000 20 ,000 D Answers

A 8 ,500 .00 20 ,000-8 ,000-3500 8500

B 9 ,000 .00

16 ,000-11 ,000-14 ,000-2 ,000 9 .000 C [banner_entry_middle]

57 ,000 .00

11 ,000 14 ,000 32 ,000 57 ,000 D -4 ,000 .00

30 ,000 20 ,000-46 ,000 -4 ,000

2 . Balance Sheet Preparation

From the following data , prepare a classified balance sheet for Simon Company at December

31 , 2006 Accounts payable 62 ,500

Accounts receivable . 123 ,000

Buildings . 418 ,500

Owners ‘ equity , 1 /1 /06 . 210 ,000

Cash . 179 ,750

Distributions to owners during 2006 . 21 ,750

Supplies . 3 ,750

Land . 130 ,000

Mortgage payable . 479 ,500

Net income for 2006 . 124 ,750

Owners ‘ equity , 12 /31 /06

ASSETS

Cash . 179 ,750

Accounts receivable . 123 ,000

Supplies . 3 ,750

Land . 130 ,000

Buildings . 418 ,500 LIABILITIES

Accounts payable . 62 ,500 .00 Mortgage payable . 479 ,500 .00 OWNERS ‘ EQUITY

Owners ‘ equity , 1 /1 /06 . 210 ,000 .00

Net income 124 ,750 .00

Distributions to owners during 2006 (21 ,750

Owners ‘ equity , 12 /31 /06 . 210 ,000 313 ,000 .00 855 ,000 .00 3 . Prepare an income statement for the year ended December 31 , 2006 (Assume that 7 ,500 shares of stock are outstanding Accounts payable 35 ,000

Accounts receivable . 65 ,000 Advertising expense . 15 ,000 Cash 19 ,500

Supplies expense . 46 ,000 Rent expense 10 ,000

Utilities expense 3 ,000

Income taxes (30 of income before taxes

Miscellaneous expense . 4 ,400 Owners ‘ equity 140 ,000

Salaries expense 61 ,000

Fees (revenues 384 ,000 Answer

Income statement

Fees (revenues 384 ,000 .00

Advertising expense . 15 ,000 .00 Supplies expense 46 ,000 .00

Rent expense 10 ,000 .00

Utilities expense 3 ,000 .00

Miscellaneous expense . 4 ,400 .00

Salaries expense 61 ,000 .00 139 ,400 .00

Net Income 244 ,600 .00

Income taxes (30 of income before taxes 73 ,380 .00 4 . Cash Flow Computations

From the following selected data , compute

1 . Net cash flow provided (used ) by operating activities 78 ,000 .00

2 . Net cash flow provided (used ) by investing activities -16 ,000 .00

3 . Net cash flow provided (used ) by financing activities 54 ,000 .00

4 . Net increase (decrease ) in cash during the year 116 ,000 .00

5 . The cash balance at the end of the year 502 ,000 .00 Cash receipts from

Customers 270 ,000

Investments by owners . 54 ,000

Sale of building . 90 ,000

Proceeds from bank loan . 60 ,000

Cash payments for

Wages 82 ,000

Utilities . 3 ,000

Advertising . 4 ,000

Rent . 36 ,000

Taxes . 67 ,000

Dividends . 20 ,000

Repayment of principal on loan . 40 ,000

Purchase of land . 106 ,000

Cash balance at beginning of year 386 ,000… [banner_entry_footer]

Comments Off on Financial Questions and equations

Author:

This author has published 9190 articles so far. More info about the author is coming soon.

Comments are closed.