Question
1. The following financial information isfor Chesapeake Corporationarefor the fiscal years ending 2018 & 2017 (all balances are normal): Item/Account 2018 2017 Cash $35,000 $24,000
1.The following financial information isfor Chesapeake Corporationarefor the fiscal years ending 2018 & 2017 (all balances are normal):
Item/Account
2018
2017
Cash
$35,000
$24,000
Accounts Receivable
56,000
52,000
Inventory
54,000
38,000
Current Liabilities
76,000
42,000
Net Sales (all credit)
550,000
485,000
Cost of Goods Sold
320,000
265,000
Use this information to determine the number of days in inventory for 2018: (Use a 365 day year.Round & enter your answers to one decimal place and enter the value.)
2.The following financial information isfor Chesapeake Corporationarefor the fiscal years ending 2018 & 2017 (all balances are normal):
Item/Account
2018
2017
Cash
26,000
$24,000
Accounts Receivable
50,000
52,000
Inventory
45,000
48,000
Current Liabilities
72,000
42,000
Net Sales (all credit)
550,000
485,000
Cost of Goods Sold
288,000
265,000
Use this information to determine the number of current ratio as of December 31, 2018: (Round & enter your answers to one decimal place and enter the value.)
3.The following information is related to Towson Company's fiscal year 2018.
Income Statement:
Net Income$2,200,000
Depreciation Expense550,000
Loss onSaleof Plant Assets40,000
Interest Expense5,000
Balance Sheet - 12/31/17: Increase (Decrease)
Accounts Payabledecrease40,000
Plant Assets - Purchased250,000
Plant Assets - Disposals(100,000)
Additional Information:
Common Stock exchanged for outstanding Long Term Notes Payable of $125,000
Dividends paid were $30,000
Use this information to determine Towson Company's Net Cash Flows from Operating Activities. If the amount is an outflow then enclose the amount with dollar sign inside of brackets ( ).
4.The following information is related to Somerset Company's fiscal year 2018.
Income Statement:
Net Income$4,000,000
Depreciation Expense650,000
Gain onSaleof Plant Assets50,000
Interest Expense5,000
Balance Sheet - 12/31/17: Increase (Decrease)
Accounts Receivable($45,000)
Plant Assets - Purchased250,000
Plant Assets - Disposals(100,000)
Additional Information:
Common Stock exchanged for outstanding Long Term Notes Payable of $150,000
Dividends paid were $35,000
Use this information to make a partial Statement of Cash Flows for Somerset Company. Prepare only the section related to Cash Flows from Operating Activities.
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