IF YOU CANNOT ANSWER ALL QUESTIONS WITHOUT PLAGIARISM AND WITHIN 2 HOURS DO NOT ACCEPT THE QUESTIONS.

Please answer the question and also show how you got the answer (if there is a formula, post it along with the math of how you got it).

3.(TCO 3) A sale on account would be recorded by (Points : 5)

• debiting revenue
• crediting assets
• crediting liabilities
• debiting assets.

4. Review Brenda's Cash Flow (in millions)

Cash Received from

Sale of Land $300

Issuance of Stock 400

Issuance of Debt Securities800

Interest on investments300

Cash Collected from Customers2,100

Cash Paid for:

Income Tax$60

Purchase of Equipment400

Debt Principal Reduction 800

Purchase of inventory200

Dividends on capital stock40

Interest on debt60

Operating Expenses300

Brenda's would report net cash inflows (outflows) from operating activities in the amount of

(Points : 5)

• 1,780
• 1,580
• 2,680
• 3,200

1.(TCO 5) Misty Company reported the following before-tax items during the current year:

• Sales - $600
• Operating expenses - $250
• Restructuring charges - $20
• Discontinued Item - $50

Misty's effective tax rate is 40%, and there were 1,000 shares of common stock outstanding.

What would be Misty's net income for the current year? (Points : 15)

2.(TCO 4) Listed below are account balances (in millions of dollars) taken from the records of Symphony Stores. The dates of the account balances are 12/31/2016.The installment receivables are current. Symphony uses a perpetual inventory system.

Debit

Credit

Accounts receivable-trade

680

Building and equipment

920

Cash-checking

34

Installment receivables

50

Interest receivable Due on 6/1/17.

30

Inventory

16

Land

150

Note receivable (Due in installments).$350,000 due 5 months from the balance sheet date.The remainder is due on 12/31/2019.

450

Petty cash funds

5

Prepaid Rent. (Rent paid for the next 2 years)

20

Supplies

8

Trademark

40

Accounts payable-trade

560

Accumulated depreciation

80

Additional paid-in capital, common

485

Allowance for uncollectable accounts

20

Cash dividends payable

30

Common stock, at par

15

Income tax payable

65

Notes payable (Due in installments)$ 400,000 due on 06/01/17, and remainder due on 12/31/2020.

800

Retained earnings

48

Unearned revenues

40

Trading Securities

120

Salaries Payable

380

TOTALS

2523

2523

What would Symphony report as total current assets?(Points : 15)

1.(TCO 4) Briefly explain the purpose of the disclosure note on significant accounting policies. Provide two examples of what might be found in this note. (Points : 20)

3.(TCO 5) What is the purpose of the statement of cash flows? List the three major categories of cash flows, and give two examples of a cash transaction for each category.Also explain what is meant by a non cash transaction. (Points : 25)