Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
The SCQ Corporation manufactures specialty medical tools ranging from $10,000 to$15,000 per unit. The tools are used in hospitals, clinics, and the home hospitality market. SCQ Corporation has contracted with YOUCPA to assist in creating its cash flow statement. In the past, its income statement and balance sheet have been prepared by the internal accountant.
It would like you to assist in preparing the cash flows using both the direct and indirect method. Sales and balance sheet information for the years 2009-2010 are below:
Balance Sheet
SCQ Corporation
For period ending 12/31/2010
Assets
2010
2009
Liabilities
Cash
150
100
Account receivable
600
400
Accounts payable
300
Inventory
750
500
Accrued taxes payable
200
Current assets
1,500
1,000
Current liabilities
Land
50
Equipment
1,300
1,200
Note payable
330
Less: Acc. depreciation
700
Deferred taxes
35
20
Net fixed assets
Equity:
Total fixed assets
650
Common stock
640
Paid-in capital
80
Retain earnings
465
350
Total equity
1,185
930
Total assets
2,150
1,650
Total equity and liabilities
Income Statement
For period ending 12/31/ 2010
Items
Revenue
900
Cost of goods sold
Gross profit
550
Wages expense
110
Interest expense
40
Depreciation expense
90
Insurance expense
Other misc. expenses
Total expenses
360
Operating income
190
Taxes:
15
Taxes expense
70
67
Net income after taxes
115
103
Additions to retains earnings
The information below can be used to complete the direct method of cash flow:
Cash flows from operating activities
Cash receipts
Received from sales of goods
Paid for inventory
Paid for employees
Paid for interest
Paid for taxes
Paid for other expenses
320
Cash paid for equipment
Cash received for common stock
120
Cash received from note payable
30
Assignment Guidelines:
A. Indirect method cash flow/cash flow statement:a. What is the operational cash flow?b. What is the investing cash flow?c. What is the financing cash flow?
B. Direct method cash flow:a. What is the operational cash flow?b. What is the investing cash flow?c. What is the financing cash flow?
C. What are the differences in the cash flow concepts and procedures between the direct and indirect methods?
Cottonwood considers catalogs as advertising and expenses the catalogs at the end of the month based on find how many catalogs are sent out during the month.
What are some typical key assumptions that must be made in the "revenue sources" budgeting process of nonprofits, and what could cause these assumptions to be invalid?
Find how many umbrellas must the company produce to meet demand and have sufficient ending inventory and evaluate what is the cost of materials that must be purchased?
What is Stewarts year-end basis in his partnership interest
Evaluate Patterson's contribution margin per unit and contribution margin ratio Evaluate the number of units Patterson must sell to break even
Direct material usage budget and direct material purchases budget and manufacturing overhead cost budgets for each of the three activities
State carrying value and whether every asset/ asset class should be amortised. Identify any choice of method permitted for IP Ltd.
Ford Improvement Company and rowland Construction Company
Analyze the intent of the Sarbanes-Oxley Act of 2002
How could the selling price of the bonds be determined
Evaluate the value-added, the value-added ratio, and total lead time
Evaluate maximum opportunity cost of capital in both the Base Case and the Bicycle Scenario such that you could undertake the Segway People Mover Project?
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd