Question
Q 27 30 Nongshin Company reported the following income statements for the year ended on Dec. 31, 2021 and the balance sheets for 2021 and
Q 27 30
Nongshin Company reported the following income statements for the year ended on Dec. 31, 2021 and the balance sheets for 2021 and 2020.
Income Statement | Year 2021 | Balance Sheet | Dec. 31, 2021 | Dec. 31, 2020 |
Net Sales Revenue | $180,000 | Cash | ? | ? |
Cost of Goods Sold | ($145,000) | Accounts Receivable | $25,000 | $33,000 |
Gross Profit | $35,000 | Merchandise Inventory | $18,000 | $15,000 |
Depreciation Expense | ($1,100) | Land | $130,000 | $80,000 |
Other Operating Expenses | ($2,600) | Equipment | $40,000 | $102,000 |
Operating Income | $31,300 | Accumulated Depreciation | ($6,000) | ($55,000) |
Interest Expense | ($500) | Accounts Payable | $9,200 | $7,000 |
Loss from Disposal | ($950) | Notes Payable (Long-term) | $45,000 | $10,000 |
Income Tax Expense | ($6,000) | Common Stock | ? | ? |
Net Income | $23,850 | Retained Earnings | $180,000 | $125,000 |
Additional information:
- Nongshin purchased land for $15,000. Of this amount, $3,000 was paid in cash and $12,000 was paid by issuing a three-year note payable.
- Nongshin sold equipment and received cash. The equipment had a cost of $11,000 and accumulated depreciation of $9,400 before disposal. The loss from the disposal is $950.
- During 2021, there were no cash payments to retire notes payable.
- During 2021, Nongshin issued common stock for $4,000 cash. Nongshin has not issued any preferred stock.
- All dividends were paid in cash during 2021.
- All of Nongshins sales were credit sales in 2021.
Q27. Find Nongshins cash flow from operating activities in 2021.
A. $22,320
B. $24,320
C. $26,320
D. $28,320
Q28. Find Nongshins cash flow from investing activities in 2021.
A. ($1,350)
B. ($2,350)
C. ($3,350)
D. ($4,350)
Q29. Find Nongshins cash flow from financing activities in 2021.
A. ($21,250)
B. ($22,250)
C. ($23,250)
D. ($24,250)
Q30. Which of the following is NOT correct?
A. Nongshins profit margin ratio is 0.13.
B. Nongshins days sales in inventory is 8.18.
C. Nongshins days sales in receivables is 6.79.
D. Nongshins dividend payout ratio is 0.84.
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