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the 2nd image is a continuation of the first. thats's the order in the book. The income statement for the year ended December 31, 2014,

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the 2nd image is a continuation of the first. thats's the order in the book.
The income statement for the year ended December 31, 2014, as well as the balance sheets as of December 31, 2014, and December 31, 2013, for Lucky Lady Inc. follow. This information is taken from the financial statements of a real company whose name has been disguised. Income Statement For the Year Ended ($ in thousands) December 31, 2014 Revenues Casino $ 26,702 Rooms 2,897 Food and beverage 2,351 Other hotel/casino 5,066 Airline 20,784 Total revenues 57,800 (continued) $ in thousands For the Year Ended December 31, 2014 Operating Expenses 1,016 20.599 19.679 Rooms Food and beverage Other hotel/sasino Airline Selling general, and administrative (including bad debt expense of $3.855) Depreciation expense Hotel preopening expenses Aircraft carrying value adjustment Total operating expenses Operating income Nonoperating items: Interest income Interest expense Othernet Income before taxes Provision for income taxes Net income (loss) 45,11 68.948 181037 (120.237) 12.231 (6,596) (117,586) $(117586) Balance Sheets December 31, 2014 2013 $ 211,305 35,249 (4,733) 11.755 12.662 266.238 953.796 (86,512) $ 579,963 2.178 (1,531) 1.219 154 581,983 471,506 (21,796) 10.677 21.116 26,601 $1.160,123 $1.063.486 $ (5 in thousands) Assets Cash Gross accounts receivable Less: Allowance for desubtful accounts Prepaid expenses Inventories Total current assets Gross property, plant, and equipment Less: Accumulated depreciation Pre-opening expenses Other operating assets Total assets Liabilities and Stockholders' Equity Accounts payable Accrued salaries and wages Accrued interest on long-term debt Other accrued liabilities Construction payables Current maturities, capital leases Current maturities, long-term debt Total current liabilities Deferred revenues Deferred income taxes Long-term obligation, capital leases Long-term debt Total liabilities Common stock Capital in excess of par value Common stock in treasury Retained earnings (deficit) Total stockholders' equity Total liabilities and equity 4,322 945 9,429 9,744 32.296 289 -0- 57,025 $ 14,181 8.194 9.472 33,502 96,844 1.830 1.573 165.596 10,784 6,517 14,044 481.427 678,368 506 662,365 (29.490) (151,626) 481.755 $1,160,123 6.517 162 473.000 536,704 589.827 (29.490) (34,040) 526,782 $1,063.486 Additional Information and Author Notes: Aircraft valuation adjustment: The company reduced the book value of its aircraft and related equipment to their expected recoverable values and recognized an aircraft carrying value adjustment in the 2014 income statement. (Author Note: You may treat this item as "extra" depreciation recorded during the year due to abnormal decline in the asset value.] Property, plant, and equipment: Includes land, buildings, aircraft equipment, furniture and fixture, equipment under capital lease, and so on. During 2014, the company acquired equipment under capital leases for $16,987,000. The company also sold equipment with a net book value of $2.501,000 for $684,000 cash. (Author Note: The gain or loss on this sale is combined with some other item in the income statement. Any other change in the gross book value of Property, plant, and equipment may be attributed to outright purchase of other equipment and building construction costs.] Capital lease and long-term liabilities: [Author Note: When preparing the cash flow statement, you may find it convenient to combine the current and long-term portions of each of these liabilities.] Pre-opening expenses: Pre-opening expenses include direct project salaries, advertising, and other pre-opening services incurred during the pre-opening period of the Lucky Lady Hotel. Such expenses were expensed upon opening the facility. Stock offering: The increases in Common stock and Capital in excess of par accounts are due to a common stock offering completed on August 17, 2014. Laundry loan: On June 16, 2014, the company obtained a $10,000,000 loan from a finan- cial institution for a laundry facility in North Las Vegas, Nevada. As of December 31, 2014, $10,000,000 has been drawn down under the loan. Construction of the facility was completed in December 2014. The laundry provides the laundry and dry cleaning services for the Lucky Lady Hotel. Required: Using the indirect method, prepare the statement of cash flows for the year ended December 31, 2014, in as much detail as possible. For example, borrowing and repayment, if any, should be shown separately as financing inflow and outflow, respectively. Similarly, to the extent that information is available, separately disclose and explain the changes to each asset and each liability account that affected Lucky Lady's cash flows during 2014

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