Please see attached and show all work. 6 Accounting questions due date is Sunday 13th before noon.

2Chapter 5 Balance Sheet and Statement of Cash Flows B EXERCISES E4-6B (Multiple-step and Extraordinary Items) The following balances were taken from 4 the books of Schimank Corp. on December 31, 2014. 3 Interest revenue Cash Sales Accounts receivable Prepaid insurance Sales returns and allowances Allowance for doubtful accounts Sales discounts Land Equipment Building Cost of goods sold $ 120,400 71,400 1,932,000 210,000 28,000 210,000 9,800 63,000 140,000 280,000 196,000 869,400 Accumulated depreciationequipment Accumulated depreciationbuilding Notes receivable Selling expenses Accounts payable Bonds payable Administrative and general expenses Accrued liabilities Interest expense Notes payable Loss from earthquake damage (extraordinary item) Common stock Retained earnings $ 56,000 39,200 217,000 271,600 238,000 140,000 135,800 44,800 84,000 140,000 210,000 700,000 29,400 Assume the total effective tax rate on all items is 34%. Instructions Prepare a multiple-step income statement; 100,000 shares of common stock were outstanding during the year. E4-9B (Multiple-step Statement with Retained Earnings) Presented below is information 4 related to Trieu Corp. for the year 2014. 3 5 7 8 Net sales Cost of goods sold Selling expenses Administrative expenses Dividend revenue Interest revenue $2,600,000 1,560,000 130,000 96,000 40,000 14,000 Write-off of inventory due to obsolescence Depreciation expense omitted by accident in 2013 Casualty loss (extraordinary item) before taxes Dividends declared Retained earnings at December 31, 2013 Effective tax rate of 34% on all items $ 160,000 110,000 100,000 90,000 1,960,000 Instructions (a) Prepare a multiple-step income statement for 2014. Assume that 60,000 shares of common stock are outstanding. (b) Prepare a separate retained earnings statement for 2014. one statement format. E5-5B (Preparation of a Corrected Balance Sheet) Darling Company has decided to expand its opera- tions. The bookkeeper recently completed the balance sheet in order to obtain additional funds for expansion. DARLING COMPANY BALANCE SHEET DECEMBER 31, 2014 Current assets 3Chapter 4 Income Statement and Related Information Cash Accounts receivable (net) Inventories at lower of average cost or market Available-for-sale securitiesat cost (fair value $65,000) Property, plant, and equipment Building (net) Office equipment (net) Land held for future use Intangible assets Patents Cash surrender value of life insurance Prepaid expenses Current liabilities Accounts payable Notes payable (due next month) Pension obligation Unearned revenue Premium on bonds payable Long-term liabilities Bonds payable Stockholders' equity Common stock, $1.00 par, authorized 1,000,000 shares, issued 610,000 Additional paid-in capital Retained earnings $ 105,000 411,000 561,000 50,000 1,561,000 125,000 251,000 128,000 26,000 39,000 367,000 75,000 361,000 26,000 36,000 1,500,000 610,000 200,000 ? Instructions Prepare a revised balance sheet given the available information. Assume that the accumulated deprecia- tion balance for the buildings is $302,000 and for the office equipment, $86,000. The allowance for doubt- ful accounts has a balance of $37,000. The pension obligation is considered a long-term liability E5-10B (Current Liabilities) Travis is the controller of Dave Corporation and is responsible for the prepa- ration of the year-end financial statements. The following transactions occurred during the year. (a) Credit sales for the year amounted to $5,000,000. Dave's expense provision for doubtful accounts is estimated to be 3% of credit sales. (b) On December 15, 2014, the company declared a $1.00 per share dividend on the 40,000 shares of common stock outstanding, to be paid on January 5, 2015. (c) During the year, customer advances of $80,000 were received; $25,000 of this amount was earned by December 31, 2014. (d) On December 1, 2014, the company borrowed $300,000 at 8% per year. Interest is paid quarterly. (e) On December 20, 2014, an employee filed a legal action against Dave Corporation for $50,000 for wrongful dismissal. Management believes the action to be frivolous and without merit. The likelihood of payment to the employee is remote. (f) Bonuses to key employees based on net income for 2014 are estimated to be $75,000. Instructions For each item above, indicate the dollar amount to be reported as a current liability. If a liability is not re- ported, explain why. B Exercise 4 P4-1B (Multiple-Step Income, Retained Earnings) Presented below is information related to Marlin 5 6 Company for 2014. 7 Retained earnings balance, January 1, 2014 Sales revenue Cost of goods sold Interest revenue Selling and administrative expenses Write-off of goodwill Income taxes for 2014 Loss on the sale of investments (normal recurring) Loss due to hurricane damageextraordinary item (net of tax) Gain on the disposition of the retail division (net of tax) Loss on operations of the retail division (net of tax) Dividends declared on common stock Dividends declared on preferred stock $ 2,250,000 53,000,000 33,000,000 120,000 8,900,000 2,100,000 3,650,000 53,000 1,100,000 23,000 231,000 350,000 125,000 Instructions Prepare a multiple-step income statement and a retained earnings statement. Marlin Company decided to discontinue its entire retail operations and to retain its manufacturing and wholesale operations. On Sep- tember 15, Marlin sold the retail operations to Shark Corp. During 2014, there were 700,000 shares of com- mon stock outstanding all year. P5-6B (Preparation of a Statement of Cash Flows and a Balance Sheet) Maroon Six Inc. had the balance sheet shown below at December 31, 7 2013. MAROON SIX INC. BALANCE SHEET DECEMBER 31, 2013 Cash Accounts receivable Investments Plant assets (net) Land $ 31,000 56,800 86,000 138,500 66,000 Accounts payable Notes payable (long-term) Common stock Retained earnings $ 61,000 76,000 200,000 41,300 $378,300 $378,300 During 2014, the following occurred. 1. Maroon Six Inc. sold part of its investment portfolio for $20,000. This transaction resulted in a loss of $2,100 for the firm. The company classifies its investments as available-for-sale. 2. A tract of land was purchased for $25,000 cash. 3. Long-term notes payable in the amount of $30,000 were retired before maturity by paying $30,000 cash. 4. An additional $43,000 in common stock was issued at par. 5. Dividends of $20,000 were declared and paid to stockholders. 6. Net income for 2014 was $21,000 after allowing for depreciation of $16,000. 7. Land was purchased through the issuance of $61,000 in notes payable. 8. At December 31, 2014, Cash was $46,100, Accounts Receivable was $61,800, and Accounts Payable remained at $61,000. Instructions (a) Prepare a statement of cash flows for 2014. (b) Prepare an unclassified balance sheet as it would appear at December 31, 2014. 5Chapter 4 Information Income Statement and Related (c) How might the statement of cash flows help the user of the financial statements? Compute two cash flow ratios