The following occurred during 20X1. A $35,000 note payable was issued. Land was purchased for $50,000. Bonds payable (maturing in 20X5) in the amount of $30,000 were retired by paying $30,000 cash. Capital stock in the amount of $40,000 was issued at par value. The company sold surplus equipment for $14,000. The equipment had a book value of $14,000 at the time of the sale. Net income was $35,500. Cash dividends of $5,000 were paid to the stockholders. 100 shares of stock of another company (considered short-term investments) were purchased for $8,300. $75,000 in bonds were issued. The next day, the proceeds were used to purchase a new building. $12,000 of depreciation was recorded on the plant and equipment. At December 31, 20X1, Cash was $93,200, Accounts receivable had a balance of $41,500, Inventory had increased to $73,000, and Accounts payable had fallen to $25,500. Long-term investments and Taxes payable were unchanged from 20X0. Required: Prepare a statement of cash flows for 20X1. Prepare the December 31, 20X1, balance sheet for Kay Wing, Inc.

Answer and Explanation:

The preparation of the statement of cash flow is shown below:-

                                     Kay wing, Inc.

                                Statement of Cash Flows

                          For the Year Ended December 31,2021

Particulars                                                          Amount

Cash flows from operating activities:

Net income                                                       $35,500

Adjustment

Depreciation expense              $12,000

Changes in current asset and liabilities  

Increase in accounts receivable -$4,500  

Increase in Inventory                   -$3,000

Decrease in accounts payable    -$7,500   -$3,000

Net Cash Provided by Operating activities  $32,500

Cash flows from Investing activities

Purchase of land                     -$50,000  

Sale of Equipment                   $14000

Purchase of short-term

investment                              -$8,300  

Net Cash Used by Investing

Activities                                                          -$44,300

Cash flows from Financing activities

Common Stock Issued          $40,000  

Bond payable                        -$30,000

Dividend paid                        -$5,000

Notes payable                       $35,000

Net Cash Provided by Financing activities   $40,000

Net increase (decrease) in cash                    $28,200

Cash Balance at December 31, 2020           $65,000

Cash Balance at December 31, 2021            $93,200

2. The Preparation of balance sheet is shown below:-

                                        Kay wing, Inc.

                                     Balance Sheet

                       For the Year Ended December 31,20X1

Asset  

Cash                               $93,200

Accounts receivable      $41,500

Inventory                        $73,000

Long-term investments $20,000

Land                               $89,000

Plant and equipment    $158,000

Short-term investment   $8,300

Total assets                    $483,000

Liabilities

Accounts payable          $25,500

Taxes payable                $4,000

Note payable                 $35,000

Bonds payable              $125,000

Stockholders equity

Capital stock                    $130,000

Retained earnings            $163,500

Total liabilities and stockholders

equity                               $483,000

Note:

Plant and equipment - Sale of equipment - Depreciation + Purchase of building

Plant and equipment =  $109,000 - $14,000 - $12,000 + $75,000

= $158,000

Retained earnings = Opening Retained earning + net income - dividend

= $133,000 + $35,500 - $5,000

= $163,500

Everyone uses money, and it is important to understand what factors affect the cost of money.
Consider the following scenario:
Due to recent political and economic events, general prices of goods and services are expected to increase significantly over the next five years. You were about to purchase a five-year bond. You now require a higher return on the bond than you did before you found out about these expected price increases.
Determine which of these fundamental factors is affecting the cost of money in the scenario described:______.
a. Inflation
b. Time preferences for consumption
c. Risk

Which of the following is an example of external-operational communication?
a. Discussions that senior management holds to determine the goals and processes of the business
b. The orders and instructions that supervisors give employees about dealing with angry customers
c. Advertisements that companies put up on their websites for the general public
d. The reports that employees prepare concerning sales, production, inventories, finance and maintenance
e. The messages that employees write to their supervisors regarding the progress of their work

Agency conflicts between managers and shareholders Consider the following scenario and determine whether an agency conflict exists: Alexander and Akiko equally own and manage A New Beginning (ANB), a store that sells preowned clothing and furniture. Alexander is responsible for ANB's back-office activities, and Akiko staffs the store and makes deliveries to customers. Both have equal decision- making authority and, under the terms of their partnership agreement, both are prohibited from making personal purchases using company funds without prior approval of the other partner. Alexander, without Akiko's knowledge, used the company's bank account recently to purchase a new sports car. Alexander has acknowledged that the car will not be used to support the business. Is this a potential agency conflict between Alexander and Akiko? A. Yes; Alexander is misappropriating some of Akiko's wealth by unilaterally purchasing a nonbusiness asset using ANB's funds. B. No; Alexander and Akiko are both authorized to spend ANB's money, so no conflict of interest can occur. C. No; Alexander and Akiko co-own and co-manage ANB and have a partnership agreement that makes them equal, so an agency conflict cannot exist. D. Yes; it should have been Akiko who purchased the car. Consider the following scenario and determine whether an agency conflict exists: Five years ago, Tae created a plant-care business that grew, stocked, and maintained fresh plants in office buildings throughout Houston. Over time, The Green Zone Inc. (TGZ) has grown from a proprietorship into a corporation, now reaching far beyond Houston. To finance and support this growth, TGZ issued shares that were sold to TGZ employees, Tae's family members, and selected outsiders. Tae is TGZ's chairman of the board of directors and CEO, but he is no longer the largest shareholder. At the latest annual meeting, two mutually exclusive proposals were placed on the ballot for discussion and vote. The first was put forth by Tae and TGZ's management team, and the second was proposed by a small group of other shareholders. Both groups are adamantly opposed to the other group's proposal, even though both proposals would likely have the same effect on TGZ's value and riskiness. Does an agency conflict exist between TGZ's management and the small group of opposing shareholders? A. Yes; any conflict or disagreement between the firm's managers and its shareholders constitutes an agency conflict. B. No; although an agency relationship exists between TGZ's management-including Tae as TGZ's chairman and CEO and the firm's shareholders-there is no agency conflict, because no expropriation or wasting of the shareholders' wealth has occurred. C. Yes; an agency relationship exists, and an agency relationship always gives rise to agency conflicts, regardless of the actual behavior of the participants. D. No; Tae was the original owner of TGz, so he would always be sensitive to the concerns of the firm's current owners (shareholders) and would not engage in an agency conflict. For the past 40 years, companies have attempted to attract, retain, and encourage managers by developing attractive compensation packages. These compensation packages have also been intended to reduce potential agency conflicts between these managers and the firm's shareholders. In the best interest of shareholders, compensation packages should be structured in a way such that managers have an incentive to maximize the______value of the company's common stock price. In addition to well-designed executive compensation packages, two other motivational forces can align the interests of managers with those of their shareholders. Which of the following actions could be used to reduce the potential for these agency conflicts and ensure that the firm's managers will pursue the long-term wealth interests of their shareholders? In the late 1980s and early 1990s, Congress passed legislation making it more difficult for outside investors to stage hostile takeovers. This legislation likely______conflicts between managers and stockholders.

Jim Brown, a tax practitioner, received a complaint from the IRS for disreputable conduct. Which of the following items was not required to be listed in the complaint?
A. The unit and employee of the Internal Revenue Service that recommended the action against Jim
B. Clear and concise description of the facts that constitute the proceeding
C. Clear and concise description of the law that constitute the proceeding
D. Specific sanction sought

In the bona fide need obligation rule for requesting funds to fund warfighters, what critical questions do you ask to ensure adherence to this rule? A) Who is responsible for enforcing the bona fide need rule and rules of engagement for funding warfighters? B) Is there a valid requirement for the goods or services as well as the quantity and duration of the services or supplies provided? C) Does a bona fide need exist in the year of execution authorized by the appropriation? D) Does the proposed dollar amount exceed authorizations?

The stock of North American Dandruff Company is currently selling at $80 per share. The firm pays a dividend of $2.50 per share.a. What is the dividend yield?b. If the firm has a payout rate of 50 percent, what is the firms P/E ratio?

McDonald’s pressed on with the strategic plan of offering all-day breakfast in spite of initial struggles because strategic decisions require long-term commitment.a. Trueb. False

Which of the following best describes a liability? A. Liabilities are future economic benefits to which a company is entitled. B. Liabilities are a form of share capital. C. Liabilities are accounts receivable of the company. D. Liabilities are economic obligations to creditors to be paid at some future date by the company.

The experience gained by first-line managers as they perform their jobs enables them to acquire all the skills they will need when promoted to higher levels of management.
a. True
b. False

Ron Landscaping's income statement reports net income of $73,300, which includes deductions for interest expense of $10,500 and income taxes of $32,900. Its times interest earned is:

Chuck, a single taxpayer, earns $58,500 in taxable income and $20,800 in interest from an investment in City of Heflin bonds. (Use the U.S tax rate schedule.)Required: How much federal tax will he owe? What is his average tax rate? What is his effective tax rate? What is his current marginal tax rate?

You have ten workers who are all equally skilled and who can do each other worker's job
with the same efficiency. The first worker does a task worth $100, the second, $90, and so on
until the last whose task is worth $10. Worker number one comes to you, demands a raise,
and threatens to quit if the raise is not forth coming. How much at most should you be
willing to pay worker number one?

How are manufacturing companies and service companies alike? a. They both produce products. b. They both have product-production costs. c. They both have labor, material, and overhead costs. d. They both have manufacturing costs.

The _____ is the starting point in creating a marketing mix. a. priceb. productc. distribution channeld. promotional mediae. production line

Consider the following transactions for Thomas Company and their effect ont he accounting equation. Determine the new balance for each component of the accounting equation from the transactioon. If an amount box does not require an entry, leave it blank.1. Investment in the business= $17,010
2. Borrow cash= $7620
3. Purchase equipment= the list price was $8700 but the final price was $8300
4. Revenues earned = $298,600, the cash has been collected from the customers for all revenue earned
5. Expenses incurred= total $210,900 during the same year, all expenses paid in cash
6. Dividens= end of each quarter, the company distributed cash to stockholders, the sum of those quarterly distributions was $15,000
Transaction Assets =Liabilities Stockholders' Equity
Beginning $0 $0 $0
1. Investment in the business $17,010
2. Borrow cash $7620
3. Purchase equipment
4. Revenues earned
5. Expenses incurred
6. Dividends

One of the strengths of the sole proprietorship is its ability to sustain rapid growth by raising large amounts of financial resources.a) trueb) false

In most businesses, what is the most costly factor of production?

Pearse Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one day is counted as one tenant-day. During December, the kennel budgeted for 3,000 tenant-days, but its actual level of activity was 2,980 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for December:

Data used in budgeting:

Fixed Variable
per month per tenant-day
Revenue $32.10
Wages & Salaries $2,400 $ 7.00
Food & Supplies $ 900 $11.30
Facitlity Expenses $8,600 $ 3.50
Admin Expenses $6,700 $ 0.30
Total Expenses $18,600 $22.10
Actual results for December:

Revenue $97,978
Wages & Salaries $23,530
Food & Supplies $35,224
Facility Expenses $19,780
Admin. Expenses $ 7,404
1. The activity variance (show any unfavorable variance as a negative number) for net operating income in December would be:

2. The net operating income in the planning budget for December would be:

3. The net operating income in the flexible budget for December would be:

What is the relationship between the costs of child care and the quality of
experience for the children and teachers?

(Analyzing the cash flow​Statement) ​Google, Inc.​ (GOOG), is one of the most successful Internet​ firms, and it experienced very rapid growth in revenues from 2011 through 2014. The cash flow statements for​ Google, Inc. spanning the period are found​ here: .Answer the following questions using the information found in these​ statements:a. Is Google generating positive cash flow from its​operations?b. How much did Google invest in new capital expenditures over the​ period?c. Describe​ Google's sources of financing in the financial markets over the​ period?d. Based solely on the cash flow statements for 2011 through​2014, write a brief narrative that describes the major activities of​ Google's management team over the period.Is Google generating positive cash flow from its​ operations?​ (Select the best choice​ below.)a. Google has generated positive cash flow from its operations during the years​ 2012, 2013, and 2014.b. Google has generated positive cash flow from its operations during the years​ 2011, 2012, and 2014.c. Google has generated positive cash flow from its operations during the years​ 2011, 2013, and 2014.d. Google has generated positive cash flow from its operations during the years​ 2011, 2012,​ 2013, and 2014.(US$ millions) 12/31/2014 1 2/31/2013 12/31/2012 12/31/2011Net income $14,463 $12,898 $10,786 $9,720Depreciation 3,470 2,780 1,909 1,357Amortization 1,470 1,131 914 483Deferred taxes (179) (441) (298) 332Noncash items 2,664 2,234 2,310 2,024Changes in working capital 349 (29) 860 631Cash from operating activities $22,237 $18,573 $16,481 $14,547Capital expenditures $(10,937) $(7,345) $(3,201) $(3,437)Other investing cash flow items (10,086) (6,327) (9,821) (15,612)Cash from investing activities $(21,023) $(13,672) $(13,022) $(19,049)Interest and financing cash flow items $(1,449) $(282) $(98) $88Total cash dividends paid 0 0 0 0Issuance (retirement) of stock 4 0 50 0Issuance (retirement) of debt (15) (532) 1,341 793Cash from financing activities $(1,460) $(814) $1,293 $881Foreign exchange effects $(467) $(3) $2 $20Net change in cash $(713) $4,084 $4,754 $(3,601)

QUESTION 7 of 10: Which is NOT one of the five steps in conducting market research?
ОООО
a) Apply for government funding
b) Identify problem
c) Obtain data
d) Choose the best solution
Submit

Predetermined Factory Overhead Rate Exotic Engine Shop uses a job order cost system to determine the cost of performing engine repair work. Estimated costs and expenses for the coming period are as follows: Engine parts $959,000 Shop direct labor 700,000 Shop and repair equipment depreciation 46,100 Shop supervisor salaries 128,300 Shop property taxes 23,300 Shop supplies 17,900 Advertising expense 19,200 Administrative office salaries 82,500 Administrative office depreciation expense 10,500 Total costs and expenses $1,986,800 The average shop direct labor rate is $25.00 per hour. Determine the predetermined shop overhead rate per direct labor hour. Round the answer to nearest whole cent. $ per direct labor hour

Finance managers tend to be more customer centric than marketers
True or false?

Over 1.5 million different species have been discovered on Earth, and scientists discover about 15,000 new species each year. These species are very different, ranging from bacteria and algae to whales and redwood trees. Select four characteristics that all of these species have in common.

A

All species have metabolic functions.

B

All species have cell walls.

C

All species are composed of cells.

D

All species reproduce.

E

All species use sunlight to make food.

F

All species require energy.



THE SUBJECT IS SCIENCE!!!!!!!

Why is Business process reengineering and organizational change seen to have a pain-pleasure relationship

You work for a drywall company and are trying to secure a contract with a large commercial builder. The purchasing agent from the commercial builder is in town and staying at the Ramada Inn. You contact him by phone and set up a meeting. You tell him, "I’ll meet you at your hotel in an hour." You arrive at the Ramada Inn’s lobby a few minutes early. You take a seat, watching the elevator for the purchasing agent. You wait. Twenty minutes later, you’re still waiting. You ask the front desk to ring the agent’s room. The agent answers, "You’re late. I’ve been waiting for you for 15 minutes."

What communication barrier is described in this situation?

a. Distractions
b. Bypassing
c. Lack of language skills

What can McDonald’s do to win customers over?

Handyman Services has total assets for the year of and total liabilities of $9,400.Requirements
1. Use the accounting equation to solve for equity.
2. If next year assets increased by $3,700 and equity decreased by $1,740​, what would be the amount of total liabilities for Hill CountryHill Country Handyman​ Services?

________ decisions involve higher level issues concerned with the overall direction of the organization; these decisions define the organization’s overall goals and aspirations for the future.

Supply has the potential to contribute to: ___________a. Cost management, profitability, return on assets, competitive position and corporate social policy. b. Cost management, profitability, return on assets and competitive position. c. Cost management, profitability and return on assets. d. Cost management and profitability. e. Cost management.