FINANCIAL ACCOUNTING:TOOLS FOR BUSINESS
19th Edition
ISBN: 9781119493624
Author: Kimmel
Publisher: WILEY
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Consider the following abbreviated financial statements for Parrothead Enterprises:
PARROTHEAD ENTERPRISES
2020 and 2021 Partial Balance Sheets
Assets
2020 2021 Liabilities and Owners' Equity
Current liabilities
Current assets $1,212 $1,315
Net fixed assets 4,980 5,999 Long-term debt
PARROTHEAD ENTERPRISES
2021 Income Statement
Sales
Costs
a.
Depreciation
Interest paid
What is owners' equity for 2020 and 2021? (Do not round intermediate
calculations.)
b. What is the change in net working capital for 2021? (Do not round intermediate
calculations.)
c-1. In 2021, Parrothead Enterprises purchased $2,508 in new fixed assets. How much
in fixed assets did Parrothead Enterprises sell? (Do not round intermediate
calculations.)
$15,346
7,144
1,369
392
c-2. In 2021, Parrothead Enterprises purchased $2,508 in new fixed assets. What is the
cash flow from assets for the year? The tax rate is 21 percent. (Do not round
intermediate calculations.)
d-1. During 2021, Parrothead Enterprises raised $509…
Required:
Prepare the following statements of the company from the data given above:
Income Statement for the year ending at December 31, 2020
Retained Earnings Statement for the year ending at December 31, 2020
Balance Sheet as at December 31, 2020
NOTE: ADD 50,000 to revenues to correct the given entries
Lily Company's income statement contained the following condensed information.
LILY COMPANY
Income Statement
For the Year Ended December 31, 2022
Service revenue
Operating expenses, excluding depreciation
Depreciation expense
Loss on disposal of plant assets
Income before income taxes
Income tax expense
Net income
Accounts receivable
Accounts payable
Income taxes payable
2022
2021
$75,500 $61,000
28,300
Lily's balance sheets contained the comparative data at December 31, shown below.
41.000
For Income Taxes
12,200
For Operating Expenses
Cash Flows from Operating Activities
Cash Receipts from Customers
Less V cash payments:
$624,200
6,700
Net Cash Provided by Operating Activities
55,500
Accounts payable pertain to operating expenses.
Prepare the operating activities section of the statement of cash flows using the direct method. (Show amounts that decrease cash flow
with either a-sign eg. -15,000 or in parenthesis e.g. (15,000).)
25,000
$969,000
$
704,700
264,300
39,700
$224,600
LILY…
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