You work as a freelance accounting professional and have bee recently engaged by the auditors of Life-Positive Inc. for a assignment. In examining the company's records, you have extracte the following information: Life-Positive's Account 2021 ($) 2022 ($) Balances Accounts Payable 24,600.00 21,250.00 Accounts receivable 15,700.00 12,340.00 Cash 23,450.00 28,600.00 Cost of goods sold 19,700.00 23,000.00 Depreciation 3,090.00 4,590.00 Dividends 5,800.00 10,800.00 Interest 2,340.00 2,890.00 Inventory 7,050.00 8,640.00 Long-term debt 28,000.00 30,000.00 Net fixed assets 41,500.00 48,000.00 Other expenses 2,400.00 2,800.00 Sales 58,000.00 62,500.00 Short-term Notes Payable 2,890.00 2,340.00 Shares outstanding 85,000.00 90,000.00 The tax rate is 32%
You work as a freelance accounting professional and have bee recently engaged by the auditors of Life-Positive Inc. for a assignment. In examining the company's records, you have extracte the following information: Life-Positive's Account 2021 ($) 2022 ($) Balances Accounts Payable 24,600.00 21,250.00 Accounts receivable 15,700.00 12,340.00 Cash 23,450.00 28,600.00 Cost of goods sold 19,700.00 23,000.00 Depreciation 3,090.00 4,590.00 Dividends 5,800.00 10,800.00 Interest 2,340.00 2,890.00 Inventory 7,050.00 8,640.00 Long-term debt 28,000.00 30,000.00 Net fixed assets 41,500.00 48,000.00 Other expenses 2,400.00 2,800.00 Sales 58,000.00 62,500.00 Short-term Notes Payable 2,890.00 2,340.00 Shares outstanding 85,000.00 90,000.00 The tax rate is 32%
Chapter14: Corporation Accounting
Section: Chapter Questions
Problem 12PA: You are the accountant for Kamal Fabricating, Inc. and you oversee the preparation of financial...
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1. Prepare a balance sheet for 2021 and 2022 for the company, clearly showing information about each line item. (
2. Prepare an income statement for 2021 and 2022 for the company.
3. For the year ending 2022, determine the Net New Equity, Change in Net
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4. Calculate the cash flow from assets, cash flow to creditors, and cash flow to stockholders for 2022.
5. Calculate the Dividends per Share and Earnings per Share for each year for Brown Company.
6. Briefly comment on the company’s cash flows for 2022 in light of an expansion plan which will be financed by both debt and equity.
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