Pad FF10:34 d. $130,000 Phony Company Income Statement For year ended 12/31/2017
ID: 2410863 • Letter: P
Question
Pad FF10:34 d. $130,000 Phony Company Income Statement For year ended 12/31/2017 Net Sales Revenue Expenses Phony Company Statement of Cash Flows For year ended 12/31/2017 Receipts $200 from sale of buildings from issuance of note from customers $110 150 190 450 Depreciation expense 10 Income tax expense Interest expense Selling & Admin. Exp 40 Cost of Goods Sold Net Income 20 30 Total receipts Payments (120) (140) on Capital Expenditures on Selling & Admin costs on Treasury Stock Total Payments Increase in Cash + beginning cash Cash at end of 2017 90 Phony Company Balance Sheet As of 12/31/2017 $120 Accounts Receivable, net Buildings Cash Goodwill Inventory Treasury Stock TOTAL $180 300 120 40 60 Accounts Payable Accruals Payable Accumulated Depreciation Contributed Capital Note Payable (due 2020) Retained Earnings as of 12/31/2017 20 TOTAL $ 70 130 50 380 150 10 $800Explanation / Answer
14.) income tax / net income before income tax *100 = 20/(40+20) *100 = 33.33%
hence option b is the answer
15.) the age is equal to 300/ 10 = 30 years
hence option d is the answer
16.) gross margin = 60/200 = 30 percent
hence option c is the answer
17.) cash coverage of 120/800 = 14 percent
hence optioj c is the answer
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