Need A Tutor?    |   Need Homework Help?                                                                             Help and Support     | Join or Cancel

Net income of Mansfield Company was $41,000. The accounting records reveal depreciation expense of $76,000 as well as
increases in prepaid rent, salaries payable, and income taxes payable of $56,000, $19,000, and $16,000, respectively.
 
Prepare the cash flows from operating activities section of Mansfield’s statement of cash flows using the indirect method.
(Amounts to be deducted should be indicated with a minus sign.)
 

   
The following are summary cash transactions that occurred during the year for Hilliard Healthcare Co. (HHC):
 

Cash received from:
Customers	$	790,000
Interest on notes receivable		25,000
Collection of notes receivable		230,000
Sale of land		53,000
Issuance of common stock		330,000
Cash paid for:
Interest on notes payable		31,000
Purchase of equipment		185,000
Operating expenses		505,000
Dividends to shareholders		43,000

 
Prepare the cash flows from investing and financing activities sections of HHC’s statement of cash flows.
(Amounts to be deducted should be indicated with a minus sign.)

   
 Excerpts from Hulkster Company's December 31, 2021 and 2020, financial statements are presented below:
 

	2021				2020
Accounts receivable	$	40,000			$	36,000
Merchandise inventory	$	28,000				35,000
Net sales		190,000				186,000
Cost of goods sold		114,000				108,000
Total assets		425,000				405,000
Total shareholders' equity		240,000				225,000
Net income		32,500				28,000

Hulkster's 2021 inventory turnover is (rounded):
 
3.62  
Which of the following profit amounts usually will be listed in both the single-step and multiple-step formats of the income statement?

Income before taxes.
   
Excerpts from Dowling Company's December 31, 2021 and 2020, financial statements and key ratios are presented below
(all numbers are in millions):
 

	2021				2020
Accounts receivable (net)	$	20			$	16
Net sales	$	115			$	100
Cost of goods sold	$	60			$	55
Net income	$	20			$	17
Inventory turnover		5.22
Return on assets		10.3	%
Equity multiplier		2.36

Dowling's 2021 profit margin is (rounded):
17.4
  Present and future value tables of $1 at 3% are presented below:
 
N          FV $1   PV $1   FVA $1             PVA $1            FVAD $1          PVAD $1
1          1.03000           0.97087           1.0000             0.97087           1.0300             1.00000
2          1.06090           0.94260           2.0300             1.91347           2.0909             1.97087
3          1.09273           0.91514           3.0909             2.82861           3.1836             2.91347
4          1.12551           0.88849           4.1836             3.71710           4.3091             3.82861
5          1.15927           0.86261           5.3091             4.57971           5.4684             4.71710
6          1.19405           0.83748           6.4684             5.41719           6.6625             5.57971
7          1.22987           0.81309           7.6625             6.23028           7.8923             6.41719
8          1.26677           0.78941           8.8923             7.01969           9.1591             7.23028
9          1.30477           0.76642           10.1591           7.78611           10.4639           8.01969
10        1.34392           0.74409           11.4639           8.53020           11.8078           8.78611
11        1.38423           0.72242           12.8078           9.25262           13.1920           9.53020
12        1.42576           0.70138           14.1920           9.95400           14.6178           10.25262
13        1.46853           0.68095           15.6178           10.63496         16.0863           10.95400
14        1.51259           0.66112           17.0863           11.29607         17.5989           11.63496
15        1.55797           0.64186           18.5989           11.93794         19.1569           12.29607
16        1.60471           0.62317           20.1569           12.56110         20.7616           12.93794
 
 
On January 1, 2021, you are considering making an investment that will pay three annual payments of $10,000.
he first payment is not expected until December 31, 2023. You are eager to earn 3%.
What is the present value of the investment on January 1, 2021?

  $26,662
   
John has an investment opportunity that promises to pay him $12,500 in four years.
He could earn a 5% annual return investing his money elsewhere.

(FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)

(Use appropriate factor(s) from the tables provided.)
 
What is the maximum amount he would be willing to invest in this opportunity?
(Round your final answers to nearest whole dollar amount.)
 
 
Present and future value tables of $1 at 11% are presented below.
 
            PV of $1          FV of $1        PVA of $1     FVA of $1
1          0.90090           1.11000           0.90090           1.0000
2          0.81162           1.23210           1.71252           2.1100
3          0.73119           1.36763           2.44371           3.3421
4          0.65873           1.51807           3.10245           4.7097
5          0.59345           1.68506           3.69590           6.2278
6          0.53464           1.87041           4.23054           7.9129
 
Titanic Corporation leased executive limousines under terms of $140,000 to be paid at the inception of the lease,
and three equal annual payments of $150,000 to each be paid thereafter on the anniversary date of the lease.
The interest rate implicit in the lease is 11%. The first year's interest expense would be:
(Round your intermediate calculations and final answers to the nearest dollar amount.)

    $40,321.
   
The Field Detergent Company sold merchandise to the Abel Company on June 30, 2021.
Payment was made in the form of a noninterest-bearing note requiring Abel to pay $85,000 on June 30, 2023.
Assume that a 10% interest rate properly reflects the time value of money in this situation.

(FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)

(Use appropriate factor(s) from the tables provided.)
 
Required:
Calculate the amount at which Field should record the note receivable and corresponding sales revenue on June 30, 2021.
(Round your final answers to nearest whole dollar amount.)
 

  Answer each of the following independent questions.
 
Alex Meir recently won a lottery and has the option of receiving one of the following three prizes:
(1) $82,000 cash immediately,
(2) $30,000 cash immediately and a six-period annuity of $9,000 beginning one year from today, or
(3) a six-period annuity of $17,000 beginning one year from today.
(FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)
(Use appropriate factor(s) from the tables provided.)
 
1. Assuming an interest rate of 7%, determine the present value for the above options. Which option should Alex choose?

2. The Weimer Corporation wants to accumulate a sum of money to repay certain debts due on December 31, 2030.
    Weimer will make annual deposits of $160,000 into a special bank account at the end of each of 10 years beginning
    December 31, 2021.

    Assuming that the bank account pays 8% interest compounded annually,
    what will be the fund balance after the last payment is made on December 31, 2030?
 


   
Brewer Inc. is owed $200,000 by Carol Co. under a 10% note with two years remaining to maturity.
Due to financial difficulties Carol Co. did not pay the prior year's interest. Brewer agrees to settle the receivable
(and accrued interest) in exchange for a cash payment of $150,000. The journal entry that Brewer would make to
record this transaction would include a loss on troubled debt restructuring as bad debt expense in the amount of:

$70,000
   
Camden Hardware’s credit sales for the year were $672,000.
Accounts receivable at the beginning and end of the year were $60,000 and $80,000, respectively.

a. Calculate the accounts receivable turnover ratio.
b. Calculate the average collection period for the year.
(Round your answers to 2 decimal places. Use 365 days a year.)
 

   
Calistoga Produce estimates bad debt expense at 0.40% of credit sales.
The company reported accounts receivable and allowance for uncollectible accounts of $481,000 and $1,560, respectively,
at December 31, 2020. During 2021, Calistoga's credit sales and collections were $326,000 and $315,000, respectively,
and $1,840 in accounts receivable were written off.
 
Calistoga's accounts receivable at December 31, 2021, are:

$490,160
   
The Salamander Company has evaluated its receivables, and has identified the following possible credit losses:

Note #1 has recently deteriorated in credit quality. For Note #1, Salamander estimates the present value of credit losses
occurring in the next twelve months is $50,000, and the present value of credit losses occurring after twelve months is $20,000.

Note #2 has not deteriorated in credit quality. For Note #2, Salamander estimates the present value of credit losses occurring
in the next twelve months is $5,000, and the present value of credit losses occurring after twelve months is $10,000.
 
If Salamander is using the CECL model, it would recognize a bad debt expense of:
 
$50,000.
$55,000.
$75,000
$85,000.
 
50,000 + 20,000 + 10,000 + 5,000 = 85,000
   
The O'Hara Group is owed $1,000,000 by Hilton Enterprises under an 8% note with three years remaining to maturity.
The prior year of interest was unpaid. O'Hara agrees to restructure the note under terms that yield a present value of $880,000.
The journal entry that O'Hara would make to record this transaction would include a loss on troubled debt restructuring as bad debt expense in the amount of:
 
$200,000
   
Loucks Company established a $230 petty cash fund on October 2, 2021.
The fund is replenished at the end of each month.
At the end of October 2021, the fund contained $49 in cash and the following receipts:
 

Office supplies	$	82
Advertising		54
Postage		23
Miscellaneous		22

Required:
Prepare the necessary general journal entries to establish the petty cash fund on October 2 and to replenish the fund on October 31.
(If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
 

   
Colorado Rocky Cookie Company offers credit terms to its customers.
At the end of 2021, accounts receivable totaled $695,000.

The allowance method is used to account for uncollectible accounts.

The allowance for uncollectible accounts had a credit balance of $46,000 at the beginning of 2021 and $28,000 in receivables
were written off during the year as uncollectible. Also, $2,600 in cash was received in

December from a customer whose account previously had been written off. The company estimates bad debts by applying a
percentage of 10% to accounts receivable at the end of the year.
 
Required:
 
Prepare journal entries to record the write-off of receivables, the collection of $2,600 for previously written off receivables,
and the year-end adjusting entry for bad debt expense.
 
How would accounts receivable be shown in the 2021 year-end balance sheet?
 


   
On June 30, 2021, the Esquire Company sold merchandise to a customer and accepted a noninterest-bearing note in exchange.
The note requires payment of $46,000 on March 31, 2022. The fair value of the merchandise exchanged is $41,860.
Esquire views the financing component of this contract as significant.
 
Required:
 
1. Prepare journal entries to record the sale of merchandise(omit any entry that might be required for the cost of the goods sold),
any December 31, 2021 interest accrual, and the March 31, 2022 collection.


2. What is the effective interest rate on the note?
 


   
The current asset section of the Moorcroft Outboard Motor Company’s balance sheet reported the following amounts:
 

	12/31/2021			12/31/2020
Accounts receivable, net	$	590,000		$	490,000

The average collection period for 2021 is 73 days.
 
Required:
Determine net sales for 2021.
(Use 365 days in a year. Do not round intermediate calculations.)