The writer is very fast, professional and responded to the review request fast also. Thank you.
Presentation/PPT
27/08/2022
Need help with B & C as soon as possible!
Part B (30 points)
The following Income Statement and Operating Cash Flow information pertain to Receivership Inc.’s operations for the year ended December 31, 2014. Prepare the net cash flow from operating activities section of the cash flow statement using the direct method.
Income statement for the year ended December 31, 2014
Revenues 1,328
COGS 587
Rent expenses 152
Wages expenses 136
Insurance expenses 53
Other SG&A (includes depreciation expenses) 198
Interest expenses 30
Gain on sale of asset (5)
1,151
Income before tax 177
Tax 62
Net income 115
Cash flow provided by operating activities (indirect method), for the year ended December 31, 2014
Net income 115
Depreciation 32
Gain on sale of asset (5)
142
Increases/decreases in A/R 26
Inventories (35)
Prepaid rent 13
A/P 28
Wages payable (20)
Tax payable 5
Interest payable (2)
Advances from customers (3)
Other accrued SG&A 5
17
Net cash provided by operating activities 159
Part C (40 points)
The following information and financial statements excerpts pertain to Liquidity Inc.
a. All short term investments (securities available for sale) were purchased on 12/31/14 and sold during 2015.
b. The company entered a lease agreement on 12/31/15.
c. Fixed assets with a net book value of $15 were sold during the year.
d. The company repaid the current portion of long-term debt during the year.
e. Dividend was declared and partially paid.
2014 2015
Assets
Cash 54 45
Short term investments 95 0
Accounts receivable 45 85
Inventory 52 75
Prepaid general expenses 11 15
Fixed assets under capital lease, net 0 50
Fixed assets, net 165 228
422 498
Liabilities and stockowners’ equity
Accounts payable 38 48
Wages payable 12 6
Tax payable 3 5
Dividend payable 0 4
Current portion of long term debt 10 12
Obligations under capital leases 0 50
Long term debt 183 180
Common stock 150 163
Retained earnings 26 30
422 498
2014 2015
Revenues, net 426
Cost of goods sold 310
Gross margin 116
General expenses 30
Wages expenses 42
Depreciation expense 24
Interest expense 11
Loss on sale of fixed assets 3
Gain on sale of securities available for sale –12
Tax expenses 8
106
Net income 10
1. Prepare the statement of cash flows for the year 2015 using the direct method.
2. Reconcile net income and net cash flows from operating activities for the year 2015.
The writer is very fast, professional and responded to the review request fast also. Thank you.
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more