Cash Flow_ P14-14A_P14-15A_P14-19A
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July 6, 2020Laurentian Lodge_CVP Analysis
July 6, 2020Cash Flow_ P14-14A_P14-15A_P14-19A
Given Data P14-14A:
| TOP BRANDS, INC. | |||
| Account Title | 2012 | 2011 | |
| Accounts Receivable | $ 24,000 | $ 26,000 | |
| Merchandise Inventory | 56,000 | 52,000 | |
| Prepaid Insurance | 19,000 | 24,000 | |
| Accounts Payable | 23,000 | 20,000 | |
| Salaries Payable | 4,600 | 4,200 | |
| Unearned Service Revenue | 1,000 | 2,700 | |
| Income Statement | |||
| 2012 | |||
| Sales | $ 6,03,000 | ||
| Cost of goods sold | (3,83,000) | ||
| Gross margin | 2,20,000 | ||
| Service revenue | 4,000 | ||
| Insurance expense | (40,000) | ||
| Salaries expense | (1,60,000) | ||
| Depreciation expense | (6,000) | ||
| Operating income | 18,000 | ||
| Gain on sale of equipment | 3,000 | ||
| Net income | $ 21,000 | ||
Given Data P14-15A:
| DESOTO COMPANY | ||||
| Account Title | 2012 | 2011 | ||
| Investment securities | $33,500 | $30,000 | ||
| Equipment | 2,35,000 | 2,20,000 | ||
| Buildings | 8,45,000 | 9,62,000 | ||
| Land | 80,000 | 69,000 | ||
| Additional information for 2012: | ||||
| Cost of investment securities sold | $5,600 | |||
| Loss on sale of investment securities | $600 | |||
| Cost of equipment purchased | $50,000 | |||
| Equipment sold: | ||||
| Gain on sale | $6,000 | |||
| Accumulated depreciation | $8,000 | |||
| Original cost of demolished building | $1,58,000 | |||
| Cost of land sold | $25,000 | |||
| Selling price of land | $22,000 | |||
Given Data P14-19A:
| REDWOOD CORPORATION | ||||
| Balance Sheets | ||||
| As of December 31 | ||||
| 2012 | 2011 | |||
| Assets | ||||
| Cash | $68,800 | $40,600 | ||
| Account Receivable | 30,000 | 22,000 | ||
| Merchandise Inventory | 1,60,000 | 1,76,000 | ||
| Prepaid Rent | 2,400 | 4,800 | ||
| Equipment | 2,56,000 | 2,88,000 | ||
| Accumulated Depreciation | (1,46,800) | (2,36,000) | ||
| Land | 1,92,000 | 80,000 | ||
| Total Assets | $5,62,400 | $3,75,400 | ||
| Liabilities | ||||
| Accounts Payable (Inventory) | $67,000 | $76,000 | ||
| Salaries Payable | 28,000 | 24,000 | ||
| Stockholders’ Equity: | ||||
| Common Stock, $25 par value | 2,50,000 | 2,00,000 | ||
| Retained Earnings | 2,17,400 | 75,400 | ||
| Total Liabilities and Equity | $5,62,400 | $3,75,400 | ||
| REDWOOD CORPORATION | ||||
| Income Statement | ||||
| For the Year Ended December 31, 2012 | ||||
| Sales | 15,00,000 | |||
| Cost of Goods Sold | 7,97,200 | |||
| Gross Profit | 7,02,800 | |||
| Operating Expenses: | ||||
| Depreciation Expense | (22,800) | |||
| Rent Expense | (24,000) | |||
| Salaries Expense | (2,56,000) | |||
| Other Operating Expenses | (2,58,000) | |||
| Net Income | $1,42,000 | |||
| Additional Information: | ||||
| Land purchase | $1,12,000 | |||
| New equipment purchase | $1,00,000 | |||
| Old equipment: | ||||
| Cost | $1,32,000 | |||
| Accumulated depreciation. | $1,12,000 | |||
| Sales price | $20,000 | |||
| Common stock issued | $50,000 | |||
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