Reference no: EM131110795
The comparative balance sheets for Hinckley Corporation show the following information.
Additional data related to 2010 are as follows.
1. Equipment that had cost $11,000 and was 40% depreciated at time of disposal was sold for $2,500.
2. $10,000 of the long-term note payable was paid by issuing common stock.
3. Cash dividends paid were $5,000.
4. On January 1, 2010, the building was completely destroyed by a flood. Insurance proceeds on the building were $30,000 (net of $2,000 taxes).
5. Investments (available-for-sale) were sold at $1,700 above their cost. The company has made similar sales and investments in the past.
6. Cash was paid for the acquisition of equipment.
7. A long-term note for $16,000 was issued for the acquisition of equipment.
8. Interest of $2,000 and income taxes of $6,500 were paid in cash.Prepare a statement of cash flows using the indirect method. Flood damage is unusual and infrequent in that part of the country.
.PNG)
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Which there was an unamortized bond premium
: Investments (available-for-sale) that cost $12,000 when purchased 4 years earlier were sold for $10,600. The loss was considered ordinary.
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Ashley company is a young and growing producer
: The amount of reported earnings for the fiscal year was $700,000, which included a deduction for an extraordinary loss of $110,000 (see item 5 below).
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Teresa ramirez and lenny traylor are examining
: Using the data provided, prepare a statement of cash flows in proper indirect method form. The only noncash items in income are depreciation and the gain from the sale of the investment (purchase and sale are related).
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Use the indirect method to analyze the above information
: Investments (available-for-sale) were sold at $1,500 above their cost. The company has made similar sales and investments in the past.
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The company has made similar sales and investments in the pa
: Investments (available-for-sale) were sold at $1,700 above their cost. The company has made similar sales and investments in the past.
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Sullivan declared and paid cash dividends for 2010
: During 2010, Sullivan loaned $300,000 to TLC Co., an unrelated company. TLC made the first semiannual principal repayment of $50,000, plus interest at 10%, on December 31, 2010.
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Indicate in which areas johnson requires further analysis
: Use the following ratio information for Johnson International and the industry averages for Johnson's line of business to: Construct the DuPont system of analysis for both Johnson and the industry. Evaluate Johnson (and the industry) over the 3-year ..
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Break your analysis into evaluations of the firm
: Analyze its overall financial situation from both a cross-sectional and a time-series viewpoint. Break your analysis into evaluations of the firm's liquidity, activity, debt, profitability, andmarket.
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Below is the comparative balance sheet
: The short-term investments are considered available-for-sale, and no unrealized gains or losses have occurred on these securities.
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