Reference no: EM131191451
Presented below are the financial statements of Trahan Company. TRAHAN COMPANY Comparative Balance Sheets December 31 Assets 2010 2009 Cash $ 38,000 $ 20,000 Accounts receivable 33,000 14,000 Merchandise inventory 27,000 20,000 Property, plant, and equipment 60,000 78,000 Accumulated depreciation (32,000) (24,000) Total $126,000 $ 108,000 Liabilities and Stockholders' Equity Accounts payable $ 24,000 $ 15,000 Income taxes payable 7,000 8,000 Bonds payable 27,000 33,000 Common stock 18,000 14,000 Retained earnings 50,000 38,000 Total $126,000 $ 108,000
TRAHAN COMPANY Income Statement For the Year Ended December 31, 2010 Sales $242,000 Cost of goods sold 175,000 Gross profit 67,000 Selling expenses $18,000 Administrative expenses 6,000 24,000 Income from operations 43,000 Interest expense 3,000 Income before income taxes 40,000 Income tax expense 8,000 Net income $ 32,000
Additional data: 1. Dividends declared and paid were $20,000. 2. During the year equipment was sold for $8,500 cash. This equipment cost $18,000 originally and had a book value of $8,500 at the time of sale. 3. All depreciation expense is in the selling expense category. 4. All sales and purchases are on account. Instructions (a) Prepare a statement of cash flows using the indirect method. (b) Compute these cash-basis measures: (1) Current cash debt coverage ratio. (2) Cash debt coverage ratio. (3) Free cash flow.
|
How to organize and write a reading review
: For help on how to organize and write a reading review, there is a guideto Critical Reviews posted on the Moodle course site
|
|
Manager of a customer service center
: As manager of a customer service center, you want to help improve communications between employees and customer. In this assignment, compose an email to be sent to all CSR (customer service representatives) explaining the concept of You Attitude a..
|
|
Identity of the businesses are authenticated
: What would you do to ensure that the transactions are secured, the identity of the businesses are authenticated, and the purchase orders are fulfilled satisfactorily according to the specified terms
|
|
Describe the hrm and human capital indicators
: Describe the HRM and human capital indicators that suggest needed changes in IBM's talent management decisions. Analyze the case study's evidence supporting improving IBM's talent management.
|
|
Create a statement of cash flows using the indirect method
: Prepare a statement of cash flows using the indirect method. Compute these cash-basis measures: (1) Current cash debt coverage ratio. (2) Cash debt coverage ratio. (3) Free cash flow.
|
|
Methods of cash flows statement preparation
: How much are Warren's total liabilities at the end of April and how much were Smith's operating revenues - Prepare the adjusting entries (from (a) through (e) above) necessary to bring the company's accounts up to date on December 31, 2015 (2 points..
|
|
What is the maximum they can pay
: If Farmington outsources the Engineering Department, what is the maximum they can pay an outside vendor without increasing total costs?
|
|
Determine the effectiveness of their leadership
: A manager's decision-making ability will determine the effectiveness of their leadership. In your experience, what are some of the factors that influence a leader's decision-making process?
|
|
What processes are indispensable to be performed
: What processes are indispensable to be performed? What outcomes are required from these processes to achieve business objectives? Visit the web sites of accounting software package vendors (e.g. SAP, MYOB, Xero etc.).
|