Prepare operating activity section of statement for rattigan

Assignment Help Financial Accounting
Reference no: EM13887731

Rattigan Company's income statement contained the condensed information below.

Rattigan Company Income Statement

For the Year Ended December 31, 2014

Sales revenue                               Operating expenses, excluding depreciation

$624,000

$970,000

Depreciation expense

55,000


Loss on disposal of plant assets

25,000

704,000

Income before income taxes


266,000

Income tax expense


40,000

Net income


$226,000

Rattigan's balance sheet contained the comparative data at December 31, shown below.

 

2014

2013

Accounts receivable

$75,000

$60,000

Accounts payable

41,000

27,000

Income taxes payable

13,000

7,000

Accounts payable pertain to operating expenses.

Instructions

Prepare the operating activities section of the statement of cash flows using the indirect method.

Reference no: EM13887731

Questions Cloud

What fraction of wealth would investor invest in risky asset : Suppose an investor’s risk aversion coefficient is 3 and his utility function is U(r) = 1/2 E(r) − 1/2 A · V ar(r). Suppose there is a risk-free asset whose return is given by ¯r = 0.04. Suppose there is a single risky asset P that has an expected re..
Explain by using supply and demand curves : Consider the market for taxi service in a city. Explain, by using supply and demand curves, how each of the following actions will affect the market. (Consider each case separately) A. Bus drivers go on strike. B. Bus fares increase after a strike by..
Find the weights on each of these stocks : Suppose stocks A, B and C have the same expected return and standard deviation. The correlations of returns are given as follows Corr(A, B) = 0.7, Corr(B, C) = −0.3 and Corr(A, C) = 0.2. Find the weights on each of these stocks (they need to add up t..
What is the investors risk aversion coefficient : Suppose an investor’s utility function is given by U(r) = 1/3 E(r) − 1/2 A · V ar(r). Suppose there is a risk-free asset whose return is given by ¯r = 0.03. Suppose there is a single risky asset P that has an expected return of 0.08 and standard devi..
Prepare operating activity section of statement for rattigan : Rattigan Company's income statement contained the condensed information. Prepare the operating activities section of the statement of cash flows using the indirect method.
Compute mrs yanks federal income tax : Mrs. Cora Yank (age 42) is divorced and has full custody of her 10-year-old son, William. From the following information, compute Mrs. Yank's federal income tax (including any AMT) and the amount due with her Form 1040 or the refund she should receiv..
The role of the automatic transfer system : Explain The Automatic Transfer System in Details Including the following : The Role of the Automatic Transfer System,Example System Description,Modes of Operation
Compute mr and mrs bensons federal income tax : On the basis of the following information, compute Mr. and Mrs. Benson's federal income tax (including any AMT), self-employment tax, and Medicare contribution tax and the amount due with their Form 1040 or the refund they should receive.
What are the advantages of parallel circuits : What are the Advantages of Parallel Circuits connection over Serie Circuit Connection ? Why Parallel Connection is Mostly Preferred over Series Connection?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Computing ending inventory and cost of goods sold under

computing ending inventory and cost of goods sold under fifo and lifo cost-flow assumptions.cost flow assumptions -

  The companys ceo just returned from a seminar on management

the companys ceo just returned from a seminar on management accounting and some new tools that can be used to assist in

  Calculate breakeven points or determine target profits

"There is no such thing as a fixed cost. All costs can be unfixed given sufficient time.". Do you agree? What is the implication of your answer for CVP analysis? How do step fixed costs complicate CVP analysis? What other issues are there when using ..

  Define recorded depreciation of building for period used

Identify the effect, if any, that each of the following transactions would have upon cash and net income. The first transaction has been completed as an example.

  Journalizing adjusting entries

Journalizing adjusting entries and Journalize the adjusting entry needed at December 31 for each of the following independent situations.

  Retire a bond before maturity

On 6/30/12, a company paid $106,000 to retire a bond before maturity. The company recorded a $6,000 loss as part of the transaction. Which of the following must be true regarding this transaction?

  Calculate their income statement using the better method

Fatimah and Ahmad, who make $50,000 per year, calculated their average tax rate at 20 percent. They contribute 15 percent of their income to charity and pay themselves 10 percent of their income. Calculate their income statement using the better meth..

  Retail installer of tires

ZZ Tire Company started as retail installer of tires on cars 10 years ago. They now have 400 retail stores, installing about 10,000 tires per store per year and selling a total of 4 million tires. 5 years ago, they decided to start manufacturing thei..

  Base transactions the consolidated statements

The focus is on the concept of red flags and how we detect these inside a corporation. This is important, as the internal controls mechanism should define a specific approach for monitoring financial statements (and the base transactions below the co..

  Prepare absorption and contribution margin income statements

Prepare absorption and contribution margin income statements for the succeeding quarter for the division and compute production costs per unit for both approaches and for both quarters

  Demonstrate using separate equations

Demonstrate using separate equations for MOS% and DOL that MOS% and DOL are functionally related. Spherically show that MOS%=1 / DOL

  Explain how much amortization expense will be on consolidate

The building had a 10-year remaining useful life and the equipment had a 5-year remaining useful life. Explain how much amortization expense will be on the consolidated financial statements for the year ended on December 31, 2009 related to the ac..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd