Analysts following the Tomkovick Golf Company were given the following balance sheet information for the years ended
Question:
In addition, it was reported that the company had a net income of $3,155,848 and that depreciation expenses were equal to $212,366 during 2017. Assume amortization expense was $0 in 2017.
a. Construct a 2017 cash flow statement for this firm.
b. Calculate the net cash provided by operating activities for the statement of cash flows.
c. What is the net cash used in investing activities?
d. Compute the net cash provided by financing activities.
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Assets 2017 2016 $ 33,411 16,566 318,768 352,740 Cash and marketable securities %24 Accounts receivable 260,205 Inventory 423,819 41,251 $ 758,686 Other current assets 29,912 $ 717,986 Total current assets Plant and equipment Less: Accumulated depreciation Net plant and equipment Goodwill and other assets 1,931,719 (419,044) $1,512,675 1,609,898 (206,678) $1,403,220 412,565 382,145 $2,653,506 $2,533,771 Total assets Liabilities and Equity 2017 2016 $ 378,236 14,487 $ 332,004 7,862 16,815 $ 356,681 Accounts payable and accruals Notes payable Accrued income taxes 21,125 $ 413,848 679,981 $1,093,829 Total current liabilities Long-term debt Total liabilities 793,515 $1,150,196 Preferred stock 10,000 Common stock (10,000 shares) 10,000 975,465 398,1 10 Additional paid-in capital Retained earnings Less: Treasury stock Total common equity 975,465 587,546 (13,334) $1,559,677 $1,383,575 Total liabilities and equity $2,653,506 $2,533,771
Step by Step Answer:
a Tomkovick Golf Company Statement of Cash Flows Year Ended June 30 2017 Operating Activities Net in...View the full answer
Fundamentals of Corporate Finance
ISBN: 978-1119371403
4th edition
Authors: Robert Parrino, David S. Kidwell, Thomas Bates
Related Video
Depreciation of non-current assets is the process of allocating the cost of the asset over its useful life. The cost of the asset includes the purchase price, any additional costs incurred to bring the asset to its current condition and location, and any other costs that are directly attributable to the asset. The useful life of the asset is the period over which the asset is expected to be used by the company. To calculate the depreciation, companies use different methods such as straight-line, declining-balance, sum-of-the-years\'-digits, units-of-production, and group depreciation. The chosen method will depend on the type of asset, the company\'s accounting policies, and the accounting standards that are applicable. The straight-line method allocates an equal amount of the asset\'s cost over its useful life, while the declining-balance method calculates depreciation at a fixed rate, typically double the straight-line rate, but the amount of depreciation decreases over time. The sum-of-the-years\'-digits method is similar to the declining-balance method, but the rate of depreciation is calculated using a fraction that is based on the useful life of the asset. It\'s important to note that the depreciation expense will be recorded on the company\'s income statement and the accumulated depreciation will be recorded on the company\'s balance sheet. This will decrease the value of the asset on the balance sheet over time.
Students also viewed these Business questions
-
Analysts following the Tomkovick Golf Company were given the following information for the years ended June 30, 2013 and June 30 2012: Construct a 2013cash flow statement for this firm. Calculate the...
-
It was reported that Exabyte Corporation, a fast growing Colorado marketer of backup tape drives, has decided to purchase key components of its product from others. For example, Sony Corporation of...
-
In October 2010 it was reported that Cheryl Eckard, a quality-assurance manager at the pharmaceutical company Glaxo-SmithKline who had blown the whistle on the safety of products made in its Puerto...
-
You are an audit supervisor of PricewaterhouseCoopers (PwC) and are planning the audit of your client, Blister Pharmaceuticals co. which manufactures and imports sanitary and cleaning products...
-
An accounting clerk for Westwind Co. prepared the following bank reconciliation: a. From the bank reconciliation data, prepare a new bank reconciliation for Westwind Co., using the format shown in...
-
For the following exercises, use the information provided to graph the first five terms of the geometric sequence. Find the 5 th term of the geometric sequence {b, 4b, 16b, ...}.
-
Toyota Exports to the United Kingdom. Toyota manufactures in Japan most of the vehicles it sells in the United Kingdom. The base platform for the Toyota Tundra truck line is 1,650,000. The spot rate...
-
George Bailey Corporation experienced a fire on December 31, 2013, in which its financial records were partially destroyed. It has been able to salvage some of the records and has ascertained the...
-
The diagram shows the location of Noah and Ben after swimming in different directions fro a dock. Let \(d\) be the distance from Noah to Ben, in yards. Noah d 84 yd \(21
-
The square footages of some three-bedroom homes for sale in Akron, Ohio, are described by the dotplot in Fig. 52. a. A family wants a home with at least 1500 square feet. What proportion of the homes...
-
Vanderheiden Hog Products Corp. provided the following financial information for the quarter ending June 30, 2017: Net income: $189,425 Depreciation and amortization: $63,114 Increase in receivables:...
-
Based on the financial statements for Tomkovick Golf Company in Problem 3.32, compute the cash flow invested in net working capital and the cash flow invested in long-term assets that you would use...
-
What is market segmentation and how is it used in tar-get marketing?
-
Discuss your operating system(s). Feel free to share the tools mentioned in the description section, your computer settings, and update settings (Win11/10 (Lifewire),Links to an external site. macOS...
-
You are the director at Dello Inc., which has been appointed as auditors of Diestel ( Pty ) Ltd ( Diestel ) , a cold beverage wholesale supplier servicing the Gauteng area. You were as a designated...
-
Your company organized a team under your leadership to develop a carbon exchange platform for the Sultanate of Oman in align with National Net Zero strategy 2050. How can you contribute to develop a...
-
What would be the price of a stock that pays an annual fleed dividend of $14 for ten years, and then the dividend payment increases by 1% every year and the required rate of resim is 5% annually?
-
A firm has g(x,y) =40xy as its production function, with labor x costing $10 per hour and land y costing $3 per acre per month. If the firm has a total budget of $900 for labor and land, what amounts...
-
Mr Anwar, a taxi driver, signed an agreement with Tip Top Cabs that provided him with the use of a van-taxi licence in exchange for a monthly licence fee. He also paid a "dispatch system fee" for the...
-
What services are provided by the provincial and territorial governments?
-
Could a companys cash flow to stockholders be negative in a given year? Explain how this might come about. What about cash flow to creditors?
-
Could a companys cash flow to stockholders be negative in a given year? Explain how this might come about. What about cash flow to creditors?
-
Could a companys cash flow to stockholders be negative in a given year? Explain how this might come about. What about cash flow to creditors?
-
Required: 1. Determine each year's absorption costing operating income. Present your answer in the form of a reconciliation report. Absorption Costing Operating Incomes Year 1 Year 2 Year 3 Variable...
-
Carlos owns a property which he has rented. During 2021, the property generated $24,000 in rental income. Carlos incurred the following expenses related to rental operations: Depreciation $5,000 Real...
-
(A) Upon the completion of the audit of UPSY Company Ltd, the Engagement Partner reviewed the audit working papers and came across the following: 1) There was material inconsistency between the...
Study smarter with the SolutionInn App