December 31, 2024 and 2023($ in millions)20242023AssetsCash$ 43$ 49Accounts receivable7680Less: Allowance for uncollectible accounts(8)(2)Prepaid expenses53Inventory169160Long-term investment5125Land7272Buildings and equipment297205Less: Accumulated depreciation.(97)(82)Patent1114$ 619$ 524LiabilitiesAccounts payable$ 5$ 15Accrued liabilities36Notes payable220Lease liabilityBonds payableCommon stock8305193Shareholders' EquityPaid-in capital-excess of parRetained earnings5650249205150$ 619155$ 524Required:Prepare the statement of cash flows of Surmise Company for the year ended December 31, 2024. Use the indirect method to presentcash flows from operating activities because you do not have sufficient information to use the direct method. You will need to makereasonable assumptions concerning the reasons for changes in some account balances. A spreadsheet or T-account analysis will behelpful. (Hint: The right to use a building was acquired with a seven-year lease agreement. Annual lease payments of $9 million arepaid at January 1 of each year starting in 2024.)

### Operating Activities1. **Net Income Adjustment** We start with the company's Net Income,…

Answered: December 31, 2024 and 2023 ($ in…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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NOPAT 8250000 EBITDA 17725000 Net Income 5050000 Capital Expenditures 6820000 After tax capital costs 6820000 Tax rate 40%Calculate the depreciation and amortization expense
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Pharoah Limited purchased a machine on account on April 1, 2024, at an invoice price of $356,620. On April 2, it paid $2,130 for delivery of the machine. A one-year, $3,970 insurance policy on the machine was purchased on April 5. On April 19, Pharoah paid $7,590 for installation and testing of the machine. The machine was ready for use on April 30. Pharoah estimates the machine's useful life will be five years or 6,212 units with a residual value of $73,690. Assume the machine produces the following numbers of units each year: 896 units in 2024; 1,400 units in 2025; 1,405 units in 2026; 1,396 units in 2027; and 1,115 units in 2028. Pharoah has a December 31 year end. - Show Transcribed Text Your answer is partially correct. Ű Ć Assume that the company, after recording depreciation using the straight-line method, for the first four months of 2026, determined on May 1, 2026 that the machine could be operated for one more year than originally estimated. Because of this, the residual…
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