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Problem 5-1 5 points The following information pertains to Barstow Company for 2018. Beginning Inventory Units Purchased a. b. Ending inventory consisted of 130 units.
Problem 5-1 5 points The following information pertains to Barstow Company for 2018. Beginning Inventory Units Purchased a. b. Ending inventory consisted of 130 units. Barstow sold All purchases and sales were made with cash. Beginning inventory purchased before year started. C. a. b. Problem 5-2 25 points The following transactions apply to Amarillo Co. for 2018, its first year of operations. 1 Issued 2 Loaned 650 units @ 1950 units @ $20 $30 REQUIRED Compute the gross margin for Barstow Company using the following cost flow assumptions: (1) FIFO, (2) LIFO, and (3) weighted average. What is the dollar value of ending inventory for LIFO and Weighted Average? Determine the cash flow from operating activities in 2018, using each of the three cost flow assumptions listed in Requirement a. Ignore the effect of income taxes. Explain why these cash flows have no differences. $637,000 $240,500 and an 5% interest rate. All monies will be collected on Aug 31 2019 3 Recorded the accrued interest income on December 31, 2018 (see item 2). 4 Provided of services on account. 5 Paid 6 Uncollectible accounts expense 7 Collected 8 Paid a $500,500 $18,200 $780,000 of common stock for cash. $81,250 to Falls Co. on September 1, 2018. The note had a one-year term to maturity per unit per unit of salaries expense for the year. is estimated to be cash from accounts receivable. dividend to the stockholders. 2,470 3.0% units at of service revenue on account. REQUIRED Show the effects of the above transactions in a horizontal statements model. Prepare the income statement, balance sheet, and statement of cash flows for 2018. Make sure to include the interest impact on a separate line on the income statement for full credit. $ 50 per unit
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