Reference no: EM131255180
Flax Corp. uses the direct method to prepare its statement of cash flows. Flax's trial balances at December 31, 20X1 and 20X0, are as follows: December 31 Debits 20X1 20X0 Cash $35,000 $32,000 Accounts receivable $33,000 $30,000 Inventory $31,000 $47,000 Property, plant & equipment $100,000 $95,000 Unamortized bond discount $4,500 $5,000 Cost of goods sold $250,000 $380,000 Selling expenses $141,500 $172,000 General and administrative expenses $137,000 $151,300 Interest expense $4,300 $2,600 Income tax expense $20,400 $61,200 $756,700 $976,100 Credits Allowance for uncollectible accounts $1,300 $1,100 Accumulated depreciation $16,500 $15,000 Trade accounts payable $25,000 $17,500 Income taxes payable $21,000 $27,100 Deferred income taxes $5,300 $4,600 8% callable bonds payable $45,000 $20,000 Common stock $50,000 $40,000 Additional paid-in capital $9,100 $7,500 Retained earnings $44,700 $64,600 Sales $538,800 $778,700 $756,700 $976,100 Additional information Flax purchased $5,000 in equipment during 20X1. Flax allocated one-third of its depreciation expense to selling expenses and the remainder to general and administrative expenses. What amounts should Flax report in its statement of cash flows for the year ended December 31, 20X1, for cash paid for goods to be sold? a. 242,500 b. 226,500 c. 257,500 d. 258,500
|
Calculated parametric estimate and analogous cost estimate
: Given the following information, calculate the bottom-up estimated costs for a wedding with 250 guests and a bridal party of six, using the methods indicated. If you had calculated Parametric estimate and Analogous cost estimate, would there have bee..
|
|
What amount of revenue should acme recognize from this sale
: On October 1, 20X1, Acme Fuel Co. sold 100,000 gallons of heating oil to Karn Co. at $3 per gallon. Fifty thousand gallons were delivered on December 15, 20X1, and the remaining 50,000 gallons were delivered on January 15, 20X2. Payment terms were: 5..
|
|
Compute maxims realized gain on the sale of the land
: In year 1, Maxim sold investment land with a tax basis of $77,000. Payment consisted of $10,000 cash down and the purchaser's note for $90,000. The note is payable in equal installments of $45,000 in years 2 and 3. Compute Maxim's realized gain on th..
|
|
What amount of allowance should stone report
: Information regarding Stone Co.'s portfolio of marketable equity securities is as follows: Stone reported an allowance of $1,500 to reduce investments to market. In its December 31, 20X2, balance sheet, what amount of allowance should Stone report?
|
|
Uses the direct method to prepare statement of cash flows
: Flax Corp. uses the direct method to prepare its statement of cash flows. Flax allocated one-third of its depreciation expense to selling expenses and the remainder to general and administrative expenses. What amounts should Flax report in its statem..
|
|
Evaluate the appropriateness of bretts plan
: Brett started a new construction business in August 2015. In connection with the new business, he purchased a new backhoe for $70,000 in September of 2015. The new businessis struggling and expecting to show a loss for 2015. Brett has been awarded a ..
|
|
Evaluate the appropriateness of bretts plan
: Brett started a new construction business in April 2016. In connection with the new business, he purchased a new backhoe for $60,000 in June 2016. The new business is struggling and expecting to show a loss for 2016. Evaluate the appropriateness of B..
|
|
Prepare journal entry to record admission to the partnership
: the partnership profit sharing ratio 3:2:5 a new partner, Harish enters the patnership bu purchasing existing interest in the partnership prepare the journal entry to record Harish's admission to the partnership, and compute the new capital balances,..
|
|
Imputed compensation income-deductible interest expense
: Janine's employer loaned her $5,000 this year (interest-free) to buy a used car. If the federal interest rate was 4%, Janine recognizes $200 of taxable interest income. Janine's employer recognizes $200 of deductible interest expense. Janine recogniz..
|