Question
Please help with the starred financial accounting questions at the bottom. 1. The Eppley Company reported a net income of $10,000 for the year just
Please help with the starred financial accounting questions at the bottom.
1. The Eppley Company reported a net income of $10,000 for the year just ended. Relevant data for the company follows:
Account | Beginning of year | End of year |
Accounts receivable (net) | $80,000 | $85,000 |
Inventory | 123,000 | 133,000 |
Prepaid expense | 7,000 | 8,000 |
Accounts payable | 50,000 | 54,000 |
Accrued liabilities | 10,000 | 14,000 |
Dividends payable | 25,000 | 30,000 |
Long term debt payable 100,000 90,000
Other items:
Depreciation for the year $40,000
Gain on the sale of equipment $5,000
*Determine the net cash flows provided by (used in) operating activities for the Eppley Company.
2.
Below is a financial accounting question regarding Depletion. If you can show each step that would be greatly appreciated so I can understand how you arrived at the final #.
In January, Manila Co., a calendar-year enterprise, purchased a mineral mine for $2,640,000 with removable ore estimated at 1.2 million tons. After it has extracted all the ore, Manila will be required by law to restore the land to its original condition at an estimated cost of $180,000. Manila believes it will be able to sell the property afterwards for $300,000. During the year, Manila incurred $360,000 of development costs preparing the mine for production and removed and sold 60,000 tons of ore. In its annual income statement, what amount should Manila report as depletion?
3.Case study (Accounting questions) solution required for questions e, g and h only regarding Chicago Corpration Case at chapter 17, the case no is 10p in (Financial Accounting Book (14th Edition). i was able to find the case but there is no answers! I have attached the financials as PDF also here is the link to the case, it includes all financial statements you need, your help is highly appreciated. here is the link to the case in Chegg websit http://www.chegg.com/homework-help/comprehensive-review-problem-exhibits-1711-1712-present-part-chapter-17-problem-10p-solution-9781111823450-exc the case from this book (Financial Accounting Book (14th Edition) here is the link to the book the case from: http://www.chegg.com/textbooks/financial-accounting-14th-edition-9781111823450-1111823456?trackid=51e6b63a&strackid=29013c2d&ii=1 all financial statements are attached available below along with the questions: :
\fChicago Corporation EXHIBIT 17.11 Consolidated Statement of Income and Retained Earnings for 2013 (Problem 10) REVENUES Sales. . .. $13,920,000 Gain on Sale of Machinery and Equipment. . .. 200,000 Equity in Earnings of Affiliates: Chicago Finance Corporation . . $1,800,000 Rosenwald Company . 125,000 Hutchinson Company . . . . 75,000 2,000,000 Total Revenues . . . $16,120,000 EXPENSES Cost of Goods Sold . . . . . . .. $ 5,000,000 Employee Payroll Expense. . . 3,000,000 Depreciation of Plant and Equipment and Amortization of Leased Property Rights.. . . . . 1,000,000 Amortization of Patent . . 125,000 Bad Debt Expense . .. 120,000 Interest Expense . . .. . 455,000 General Corporate Expenses . .. 420,000 Income Taxes-Current 1,430,000 Income Taxes-Deferred. 170,000 Total Expenses . . $11,720,000 Net Income . . $ 4,400,000 Less: Dividends on Preferred Shares . (120,000) Dividends on Common Shares .. . . (2,080,000) Increase in Retained Earnings. . . . . . $ 2,200,000 Retained Earnings, December 31, 2012. . . . . .. 2,800,000 Retained Earnings, December 31, 2013. . . . . . . . . . .... ..... . $ 5,000,000 Basic Earnings per Common Share (Based on 1,600,000 Average Shares Outstanding). .... 2.68 Cengage Lea ming 201 4 Diluted Earnings per Share (Assuming Conversion of Preferred Stock) . ..... 2.20Chicago Corporation Consolidated Balance Sheets EXHIBIT 17.12 December 31 (Problem 10) December 31: 2013 2012 ASSETS Current Assets Cash . . . $ 100,000 $ 200,000 Certificate of Deposit. ... . .. . . . 225,000 Accounts Receivable (Net of Estimated Uncollectibles of $100,000 in 2012 and $160,000 in 2013) . .. . . . . . . . . 600,000 500,000 Merchandise Inventory. . . . . . . 1,800,000 1,500,000 Prepayments . . .. 200,000 200,000 Total Current Assets. . . $ 2,925,000 $ 2,400,000 Investments Chicago Finance Corporation (40% Owned) $ 4,000,000 $ 2,200,000 Rosenwald Company (50% Owned). . . 1,025,000 900,000 Hutchinson Company (25% Owned) . . 175,000 100,000 Total Investments . . . . . . . . . $ 5,200,000 $ 3,200,000 Property, Plant, and Equipment Land . . . . . 500,000 S 400,000 Building .. . ... 4,000,000 4,000,000 Machinery and Equipment. . . 8,000,000 7,300,000 Property Rights Acquired Under Lease 1,500,000 1,500,000 Total . . . .. . $14,000,000 $13,200,000 Less Accumulated Depreciation and Amortization. . (4,000,000) (3,800,000) Total Property, Plant, and Equipment . . . . . $10,000,000 $ 9,400,000 Intangibles (at Net Carrying Value) Patent. . . . . . $ 750,000 $ 875,000 Goodwill . . . . . . . . 1,125,000 1,125,000 Total Intangibles. . $ 1,875,000 $ 2,000,000 Total Assets . . $20,000,000 $17,000,000 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities Accounts Payable . . . 550,000 400,000 Advances from Customers. . 640,000 660,000 Salaries Payable . . .. 300,000 240,000 Income Taxes Payable . . . 430,000 300,000 Rent Received in Advance 50,000 Other Current Liabilities. 460,000 200,000 Total Current Liabilities . . $ 2,430,000 $ 1,800,000 Long-Term DebtMerchandise Inventory. . . . . . . 1,800,000 1,500,000 Prepayments . . 200,000 200,000 Total Current Assets. . . $ 2,925,000 $ 2,400,000 Investments Chicago Finance Corporation (40% Owned) . $ 4,000,000 $ 2,200,000 Rosenwald Company (50% Owned). . . .. 1,025,000 900,000 Hutchinson Company (25% Owned) . . . . . . 175,000 100,000 Total Investments . . .. . . $ 5,200,000 $ 3,200,000 Property, Plant, and Equipment Land . . . . . . . . . $ 500,000 $ 400,000 Building . . . . . . 4,000,000 4,000,000 Machinery and Equipment. . . . . 8,000,000 7,300,000 Property Rights Acquired Under Lease . . . 1,500,000 1,500,000 Total . ... $14,000,000 $13,200,000 Less Accumulated Depreciation and Amortization. (4,000,000) (3,800,000) Total Property, Plant, and Equipment . . .. $10,000,000 $ 9,400,000 Intangibles (at Net Carrying Value) Patent. . .. . $ 750,000 $ 875,000 Goodwill . . . . . . . 1,125,000 1,125,000 Total Intangibles. .. $ 1,875,000 $ 2,000,000 Total Assets . .. $20,000,000 $17,000,000 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities Accounts Payable . . $ 550,000 $ 400,000 Advances from Customers. . 640,000 660,000 Salaries Payable . . . . 300,000 240,000 Income Taxes Payable . . 430,000 300,000 Rent Received in Advance 50,000 Other Current Liabilities . . . 460,000 200,000 Total Current Liabilities . $ 2,430,000 $ 1,800,000 Long-Term Debt Bonds Payable .... .. $ 3,648,000 $ 3,600,000 Equipment Mortgage Indebtedness 332,000 1,300,000 Capitalized Lease Obligation . . .. 1,020,000 1,100,000 Total Long-Term Debt. . . $ 5,000,000 $ 6,000,000 Deferred Tax Liability. . $ 1,570,000 $ 1,400,000 Shareholders' Equity Convertible Preferred Stock. $ 2,000,000 $ 2,000,000 Common Stock . . . . . . 2,000,000 2,000,000 Additional Paid-In Capital 3,000,000 2,400,000 Retained Earnings . ... 5,000,000 2,800,000 Total . .. . . . . $12,000,000 $ 9,200,000 Less Cost of Treasury Shares . . (1,000,000) (1,400,000) Total Shareholders' Equity. . .. . . . . $11,000,000 $ 7,800,000 Total Liabilities and Shareholders' Equity $20,000,000 $17,000,000Step by Step Solution
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