Which financial statement conveys information related to the revenue and expenses of an organization quizlet?

In Year One, net assets went up $50,000 from business activities: net income of $80,000 less dividend distribution of $30,000. In Year Two, net assets went up another $60,000: net income of $100,000 less dividends of $40,000. The total increase for both previous years is $110,000 ($50,000 + $60,000). In the current year, that prior number is increased by $140,000 in net income and reduced by the $50,000 dividend (a net of $90,000). That raises the final retained earnings balance from $110,000 to $200,000

Owners put $13,000 into the business in Year 1 and another $9,000 in Year 2. Thus, capital stock (or contributed capital) is reported as $22,000. Business activities in Year 1 created $50,000 growth in net assets ($60,000 net income less $10,000 in dividends). In Year 2, the business grew another $55,000 ($70,000 net income less $15,000 dividends). Total growth from business activities is $105,000 ($50,000 + $55,000). That is reported at the end of Year 2 as retained earnings. Total stockholders' equity (and, thus, net assets) is $22,000 + $105,000 or $127,000.

The Drexel Company began operations on January 1, Year One. In Year One, the company reported net income of $23,000 and, in Year Two, reported net income of another $31,000. In the current year of Year Three, the company reported net income of $37,000. Drexel paid no dividends in Year One but paid $10,000 in Year Two and $12,000 in Year Three. On the December 31, Year Three, balance sheet, what is reported as retained earnings?

A company had a number of cash transactions this year. It paid $22,000 in dividends to its owners, borrowed $100,000 from a bank on a long-term loan, bought a building for $288,000, sold equipment for $23,000, sold inventory for $16,000, and issued capital stock to an investor for $35,000. On a statement of cash flows, what is the net amount to be reported as financing activities?

A company had a number of cash transactions this year. It paid $43,000 in dividends to its owners, borrowed $200,000 from a bank on a long-term loan, bought a building for $312,000, sold equipment for $51,000, sold inventory for $25,000, and issued capital stock to an investor for $85,000. On a statement of cash flows, what is the net amount to be reported as investing activities?

Financial Accounting

9th EditionCharles T. Horngren, Walter T Harrison, Walter T. Harrison Jr.

1,243 solutions

A company has the following account balances: revenues—$120,000, salary payable—$7,000, cost of goods sold—$50,000, dividends paid—$3,000, rent expense—$12,000, gain on sale of land—$4,000, accounts receivable—$13,000, cash—$15,000, and advertising expense—$8,000. Reported net income for the period is $54,000.

The Valdese Corporation operates a restaurant and has sales revenue of $300,000, cost of goods sold of $170,000, other expenses of $50,000, and a gain on the sale of a truck of $14,000. Which of the following statements is true?
a. Gross profit is $80,000, and net income is $80,000.
b. Gross profit is $80,000, and net income is $94,000.
c. Gross profit is $130,000, and net income is $94,000
d. Gross profit is $144,000, and net income is $80,000.

During its first year of operations, Rowling Company reported net income of $84,000 and distributed an $11,000 dividend. In its second year of operations, Rowling Company reported $92,000 in net income and distributed a $13,000 dividend. What is the retained earnings balance at the end of year two?
a. $73,000
b. $152,000
c. $176,000
d. $79,000

The Drexel Company began operations on January 1, Year One. In Year One, the company reported net income of $23,000 and, in Year Two, reported net income of another $31,000. In the current year of Year Three, the company reported net income of $37,000. Drexel paid no dividends in Year One but paid $10,000 in Year Two and $12,000 in Year Three. On the December 31, Year Three, balance sheet, what is reported as retained earnings?
a. $22,000
b. $25,000
c. $69,000
d. $91,000

The Shelby Corporation has been in business now for six years. At the end of its latest fiscal year, the company reported $560,000 in assets, $320,000 in liabilities, $100,000 in contributed capital, and $140,000 in retained earnings. What is the total of stockholders' equity?
a. $140,000
b. $240,000
c. $420,000
d. $560,00

A company reports total assets of $500,000 ($300,000 current and $200,000 noncurrent). The same company reports total liabilities of $350,000 ($75,000 current and $275,000 noncurrent). What is the amount of working capital?
a. $150,000
b. $225,000
c. $300,000
d. $500,000

A company had a number of cash transactions this year. It paid $22,000 in dividends to its owners, borrowed $100,000 from a bank on a long-term loan, bought a building for $288,000, sold equipment for $23,000, sold inventory for $16,000, and issued capital stock to an investor for $35,000. On a statement of cash flows, what is the net amount to be reported as financing activities?
a. Cash inflow of $78,000
b. Cash inflow of $113,000
c. Cash inflow of $157,000
d. Cash inflow of $265,000

A company had a number of cash transactions this year. It paid $43,000 in dividends to its owners, borrowed $200,000 from a bank on a long-term loan, bought a building for $312,000, sold equipment for $51,000, sold inventory for $25,000, and issued capital stock to an investor for $85,000. On a statement of cash flows, what is the net amount to be reported as investing activities?
a. Cash outflow of $112,000
b. Cash outflow of $176,000
c. Cash outflow of $242,000
d. Cash outflow of $261,000

The following events occurred for Gingrich's Bike Shop in the current year.
Received $360,000 in cash from customers.
Paid $36,000 in rent in the current period.
Paid employees $75,000 in salaries.
Had $7,500 in salaries to be paid to employees at the end of the year.
Borrowed $15,000 from State Bank during the year.
Repaid $6,000 to the bank for funds previously borrowed.
Sold equipment for $12,000. Equipment was purchased three years ago for $20,000.
Sold stock in the company for $50,000.
Paid stockholders $10,000 in dividends.
What is the cash inflow from operating activities?

The following events occurred for Gingrich's Bike Shop in the current year.
Received $360,000 in cash from customers.
Paid $36,000 in rent in the current period.
Paid employees $75,000 in salaries.
Had $7,500 in salaries to be paid to employees at the end of the year.
Borrowed $15,000 from State Bank during the year.
Repaid $6,000 to the bank for funds previously borrowed.
Sold equipment for $12,000. Equipment was purchased three years ago for $20,000.
Sold stock in the company for $50,000.
Paid stockholders $10,000 in dividends.
What is the cash outflow for operating activities?

The following events occurred for Gingrich's Bike Shop in the current year.
Received $360,000 in cash from customers.
Paid $36,000 in rent in the current period.
Paid employees $75,000 in salaries.
Had $7,500 in salaries to be paid to employees at the end of the year.
Borrowed $15,000 from State Bank during the year.
Repaid $6,000 to the bank for funds previously borrowed.
Sold equipment for $12,000. Equipment was purchased three years ago for $20,000.
Sold stock in the company for $50,000.
Paid stockholders $10,000 in dividends.
What is the cash inflow from investing activities?

The following events occurred for Gingrich's Bike Shop in the current year.
Received $360,000 in cash from customers.
Paid $36,000 in rent in the current period.
Paid employees $75,000 in salaries.
Had $7,500 in salaries to be paid to employees at the end of the year.
Borrowed $15,000 from State Bank during the year.
Repaid $6,000 to the bank for funds previously borrowed.
Sold equipment for $12,000. Equipment was purchased three years ago for $20,000.
Sold stock in the company for $50,000.
Paid stockholders $10,000 in dividends.
What is the cash outflow for investing activities?

The following events occurred for Gingrich's Bike Shop in the current year.
Received $360,000 in cash from customers.
Paid $36,000 in rent in the current period.
Paid employees $75,000 in salaries.
Had $7,500 in salaries to be paid to employees at the end of the year.
Borrowed $15,000 from State Bank during the year.
Repaid $6,000 to the bank for funds previously borrowed.
Sold equipment for $12,000. Equipment was purchased three years ago for $20,000.
Sold stock in the company for $50,000.
Paid stockholders $10,000 in dividends.
What is the cash inflow from financing activities?

The following events occurred for Gingrich's Bike Shop in the current year.
Received $360,000 in cash from customers.
Paid $36,000 in rent in the current period.
Paid employees $75,000 in salaries.
Had $7,500 in salaries to be paid to employees at the end of the year.
Borrowed $15,000 from State Bank during the year.
Repaid $6,000 to the bank for funds previously borrowed.
Sold equipment for $12,000. Equipment was purchased three years ago for $20,000.
Sold stock in the company for $50,000.
Paid stockholders $10,000 in dividends.
What is the cash outflow for financing activities?

Which financial statement provides information about a company's revenues and expenses during a specific period quizlet?

In which financial statement does a company report its revenues?

What are basic types of financial statements choose every correct answer quizlet?

What does an income statement show quizlet?