Q1)

Q2)

Q Co. uses the periodic method of recording inventory. A physical count reveals $ 271,000 of inventory on hand at December 31, 2020. Q Co asks you to review its December 31, 2020, inventory values. The following information is given to you: 1. Included in inventory is merchandise sold on December 30, f.o.b.destination. This merchandise was shipped after it was counted and the customer received it on January 3. The merchandise cost is:$ 2,350 2. Not included in inventory is $ 8,490 of merchandise purchased. This merchandise was received on December 31 after the inventory had been counted. 3. Not included in the physical count of inventory is $25,400 of merchandise purchased on December 25. This merchandise was shipped f.o.b. shipping point on December 29 and arrived in January. 4. Included in inventory is merchandise sold f.o.b. shipping point. This merchandise was shipped after it was counted. The cost of this merchandise was $3,450 and the customer received the merchandise on January 5. 5. Included in inventory was $7,520 of inventory held by Q Co on consignment from SMA CO. Instruction: Determine the proper inventory balance for olco Company at December 31, 2020. Consider each situation below independently: Situation A: Chenowith AG reports revenues of 200,000 and operating expenses of 110,000 in its first year of operations, 2019. Accounts receivable and accounts payable at year-end were 71,000 and 39,000, respectively. Assume that the accounts payable related to operating expenses. (Ignore income taxes.) Instructions: Using the direct method, compute net cash provided (used) by operating activities. Situation B: High Touch reported 2,700,000 of net income for 2020. The accountant, in preparing the statement of cash flows, noted several items listed below) occurring during 2020 that might affect the preparation of the statement. These items are listed below: 1. High Touch holds 25% of the Fabulous Company's ordinary shares as a long-term investment. Fabulous Company reported 53,000 loss of net income for 2020. 2. High Touch issued 750 ordinary shares with a 22.50 par value for a franchise. The fair value of the shares on the date of the transaction was 23 per share. 3. Depreciation expense is 60,000. Prepare a schedule that shows the net cash flow from operating activities using the indirect method. Assume no items other than those listed above affected the computation of 2020 net cash flow from operating activities