How much was the payment made to Interest

Assignment Help Accounting Basics

Reference no: EM132830241

Problem - The comparative balance sheet of Posner Company, for 2021 and the preceding year ended December 31, 2020, appears below in condensed form:

	Year 2021	Year 2020
Cash	P53,000	P50,000
Accounts receivable (net)	37,000	48,000
Inventories	108,500	100,000
Investments	-	70,000
Equipment	573,200	450,000
Accumulated depreciation-equipment	(142,000)	(176,000)
	P629,700	P542,000
Accounts payable	P62,500	P43,800
Bonds payable, due 2021	-	100,000
Common stock, P10 par	325,000	285,000
Paid-in capital in excess of par - common stock	80,000	55,000
Retained earnings	162,200	58,200
	P629,700	P542,000

The income statement for the current year is as follows:

Sales		P625,700
Cost of merchandise sold		340,000
Gross profit		P285,700
Operating expenses:
Depreciation expense	P26,000
Other operating expenses	68,000	94,000
Income from operations		P191,700
Other income:
Gain on sale of investment	P4,000
Other expense:
Interest expense	6,000	(2,000)
Income before income tax		P189,700
Income tax		60,700
Net income		P129,000

Additional data for the current year are as follows:

(a) Fully depreciated equipment costing P60,000 was scrapped, no salvage, and equipment was purchased for P183,200.

(b) Bonds payable for P100,000 were retired by payment at their face amount.

(d) Cash dividends declared and paid, P25,000.

Required -

1. What is the Tax rate used?

2. How much is the net cash flow?

3. How much was the payment of expenses?

4. How much is the total Purchases?

5. How much is the Net cash flow used for financing activities?

6. How much is the Net cash flow used for investing activities?

7. How much was the total payment made to the supplier?

8. How much was the payment made to Interest?

9. How much is the Net cash flow from operating activities?

10. ?How much is the total collection from customers?

Reference no: EM132830241

Questions Cloud

Define what a bottleneck operation represents : Define what a bottleneck operation represents. What does this operation control within a process?

Approach for the new product development : How would you justify your choice of PMLC model in either Adaptive or Extreme approach for the new product development

Analyze the effectiveness of the control : Analyze the effectiveness of the control/management systems in terms of whether the organization is achieving its purpose

How hofstede dimension of national culture can be used : Explain how Hofstede's dimension of national culture can be used to explain innovativeness or the lack of it in some national cultures.

How much was the payment made to Interest : Fully depreciated equipment costing P60,000 was scrapped, no salvage, and equipment was purchased for P183,200. How much was the payment made to Interest

What is a python program : What is a Python program that reads in 10 test scores? The test scores should be integers and should be stored in an array.

What is an organizational culture : What is an organizational culture? How is organizational culture maintained?

Discuss the role of computer-mediated applications : -Discuss the role of computer-mediated applications in digital consumer behavior, such as digital consumer decision support systems (CDSSs)

What is the purpose of a mission statement : What is the purpose of a mission statement? Should they include the organizational position on ethics and/or social responsibility? Explain.

User Account

All Pages