Question
Hi I need help answering all these questions one by one. Thanks 1. Ocean Pines Company had net income $550,000. They also had depreciation expense
Hi I need help answering all these questions one by one. Thanks
1. Ocean Pines Company had net income $550,000. They also had depreciation expense of $200,000, an increase or (decrease) in accounts receivable of $-10,000, and an increase or (decrease) in inventory of $35,000. Ocean Pines prepares their Statement of Cash Flows using the indirect method. Use this information to determine the dollar value of cash provided or (used) by operating activities. A negative number for accounts receivableor inventory indicates that the balance decreased. Enter as a whole number
2. On January 2, 2020, All Good Company purchased 6,000 shares of the stock of Big Bad Company, and DID obtain significant influence. The investment is intended as a long-term investment. The stock was purchased for $18.00 per share, and represents a 30% ownership stake. Big BadCompany made $200,000 of net income in 2020, and paid dividends to All Good Company of $35,000 on December 15, 2020. Big Bad Company's stock was trading on the open market for $20.50 per share at the end of the year. Use this information to determine the book value of the investment that should be reported at year end by All Good Company. Round to nearest whole number
3. Annapolis Company purchased a $4,000, 4%, 10-year bond at 95 and held it to maturity. The straight line method of amortization is used for both premiums & discounts. What is the net cash received over the life of the bond investment?
4.At fiscal year end, December 31, 2018, Somerset Corporation had total stockholders' equity of $3,200,000. On FY 2018 year end, Somerset Corporation had Common Stock account of $1,200,000 of $10 par value common stock and Preferred Stock account of $250,000 of $100 par value stock. There was no treasury stock. The preferred stock was noncumulative and non-callable. Use this information to determine the book value per share of Common Stock as of end of the FY 2018:
5. On January 1, 2020, Baltimore Company issued $200,000 face value, 8%, 10-year bonds at 102. Interest is paid annually on January 1. Baltimoreuses the straight-line method for amortization. Use this information to determine the dollar value of the interest expense for the 2020 calendar year. Round your answer to the nearest whole number
6. On January 1, 2021, Baltimore Company issued $200,000 face value, 5%, 5-year bonds at 105. Baltimoreuses the straight-line method for amortization. Use this information to determine the dollar value of the annual bond premium amortization. Round your answer to the nearest whole number
7.Allstar Company signed a $300,000 mortgage on July 1, 2021 for the purchase of their new garage building. The mortgage entailed equal monthly payments of $2,500 at the end of each month. The interest rate is 8% per year. How much interest expense will be paid on August 31, 2021? Do not use actual days; assume a 360 day year and 30 day months. Round your answer to the nearest whole number
8. On January 2, 2019, All Good Company purchased 5,000 shares of the stock of Big Bad Company, and DID NOT obtain significant influence. The investment is intended as a long-term investment. The stock was purchased for $12.00 per share, and represents a 10% ownership stake. Big BadCompany made $20,000 of net income in 2020, and paid dividends to All Good Company of $87,500 on December 15, 2020. On December 31, 2020, Big Bad Company's stock was trading on the open market for $19.50 per share at the end of the year. Use this information to determine the unrealized gain or loss on the investment that should be reported at year end by All Good Company. If it is a loss, enter as a negative number. Round to nearest wholenumber
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