The comparative balance sheets for 2018 and 2017 are given below for Surmise Company.
Ne...
Business, 22.05.2020 17:00 cocoabean1981
The comparative balance sheets for 2018 and 2017 are given below for Surmise Company.
Net income for 2018 was $80 million.
SURMISE COMPANY Comparative Balance Sheets December 31, 2018 and 2017 ($ in millions)
2018 2017
Assets
Cash 55 58
Accounts receivable 89 106
Less: allowance for uncontrollable accounts (24) (4)
Prepaid expenses 19 16
Inventory 132 110
Long-term investment 89 50
Land 98 98
Buildings and equipment 400 270
Less accumulated depreciation (137) (108)
Patent 25 26
746 622
Liabilities
Accounts payable 19 42
Accrued liabilities 4 20
Notes payable 48 0
Lease liability 122 0
Bonds payable 64 132
Shareholders equity
Common stock 69 50
Paid-in capital-excess of par 261 205
Retained earnings 159 173
746 622
Required:
Prepare the statement of cash flows of Surmise Company for the year ended December 31, 2021. Use the indirect method to present cash flows from operating activities because you do not have sufficient information to use the direct method. You will need to make reasonable assumptions concerning the reasons for changes in some account balances. A spreadsheet or T-account analysis will be helpful. (Hint: The right to use a building was acquired with a seven-year lease agreement. Annual lease payments of $10 million are paid at January 1 of each year starting in 2021.) (Enter your answers in millions (i. e., 10,000,000 should be entered as 10). Amounts to be deducted should be indicated with a minus sign.)
Answers: 3
Other questions on the subject: Business
Business, 21.06.2019 15:00, jfghj
What was involved in the american express bluework program? select one: a. employees are provided with opportunities for flexible arrangements b. a system that tracks the hours each employee works in a given day c. employees can work on tasks they choose, as long as they are in the office d. employees who are wary of newer technologies e. employees are provided with better office facilities so they stay in the office longer?
Answers: 3
Business, 22.06.2019 03:30, dontworry48
Lo.2, 3, 9 lori, who is single, purchased 5-years class property for $200,00 and 7-years class property for $420,000 on may 20, 2018. lori experts the taxable income derived form the business (without regard to the amount expensed under ⧠179) to be about $550,000. lori has determined that she should elect immediate ⧠179 expensing in the amount of $520,000, but she doesn’t know which asset she should completely expense under ⧠179. she does not claim any available additional first-year depreciation. a. determine lori’s total cost recovery deduction if the ⧠179 expense is first taken with respect to the 5-year class asset. b. determine lori’s total cost recovery deduction if the ⧠179 expense is first taken with respect to the 7-year class asset. c. what is your advice for lori? d. assume that lori is in the 24% marginal tax bracket and that she uses ⧠179 on the 7-year asset. determine the present value of the tax savings from the depreciation deductions for both assets. see appendix g for present value factors, and assume a 6% discount rate. e. assume the same facts as in part (d), except that lori decides not to use ⧠179 on either asset. determine the present value of the tax savings under this choice. in addition, determine which option lori should choose. f. present your solution to parts (d) and (e) of the problem in a spreadsheet using appropriate microsoft excel formulas. e-mail your spreadsheet to your instructor with a two-paragraph summary of your findings.
Answers: 1
Business, 22.06.2019 12:50, angelrenee2000
There is a small, family-owned store that sells food and household goods in a small town. the owners have good relations with the community, especially with local farmers who supply much of the food. the farmers aren't organized into a cooperative or union, and the store deals with each individually. suppose the store wanted to buy some farms to control the supply of certain vegetables. how would you classify this strategic move? select one: a. horizontal integration b. forward integration c. backward integration d. concentric integration
Answers: 2
Business, 22.06.2019 20:30, Picklehead1166
Data for hermann corporation are shown below: per unit percent of sales selling price $ 125 100 % variable expenses 80 64 contribution margin $ 45 36 % fixed expenses are $85,000 per month and the company is selling 2,700 units per month. required: 1-a. how much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,000 and monthly sales increase by $20,000? 1-b. should the advertising budget be increased?
Answers: 1
You know the right answer?
Questions in other subjects:
Biology, 13.03.2021 01:40
Mathematics, 13.03.2021 01:40
Biology, 13.03.2021 01:40
Mathematics, 13.03.2021 01:40
Chemistry, 13.03.2021 01:40
