Crane Company Income Statement
For the Year Ended December 31, 2022
Sales revenue $ 145,200
Cost of goods sold 105,000
Gross profit 40,200
Selling expenses $10,800
Administrative expenses 3,600 14,400
Income from operations 25,800
Interest expense 1,800
Income before income taxes 24,000
Income tax expense 4,800
Net income $ 19,200
Additional data:
1. Depreciation expense was $10,500.
2. Dividends declared and paid were $12,000.
3. During the year equipment was sold for $5,100 cash.
This equipment cost $10,800 originally and had accumulated depreciation of $5,700 at the time of sale.
Prepare a statement of cash flows using the indirect method.

Answers

Answer 1
Answer:

Answer:

statement of cash flows using the indirect method

Cash flow from Operating Activities

Cash Receipts from Customers                                          $145,200

Cash Paid to Supplies and Employees                             ($108,900)

Net Cash from Operating Activities                                     $36,300

Cash flow from Investing Activities

Proceeds from Sale of Equipment                                         $5,100

Net Cash from Investing Activities                                         $5,100

Cash flow from Financing Activities

Dividends Paid                                                                     ($12,000)

Net Cash from Financing  Activities                                    ($12,000)

Movement during the period                                             $29,400

Cash and Cash Equivalents at Beginning of the Period       0

Cash and Cash Equivalents at the End of the Period     $29,400

Explanation:

Cash Receipts from Customers Calculation :

Sales revenue $ 145,200

Assuming Cash Sales

Cash Paid to Supplies and Employees Calculation :

Cost of goods sold                                   $105,000

Add Selling Expenses                                 $10,800

Add Administrative expenses                      $3,600

Less Depreciation                                      ($10,500)

Cash Paid to Supplies and Employees   $108,900

Answer 2
Answer:

Final answer:

The statement of cash flows for Crane Company using the indirect method starts with the net income and then adjusts for non-cash items such as depreciation and the gain/loss from equipment sale. The net Cash provided by operating activities would be $17,700. This method helps understand the cash movements within the company.

Explanation:

To prepare a statement of cash flows for Crane Company for the year ended December 31, 2022 using the indirect method, you first start with the net income from the income statement and then make adjustments for changes in non-cash items, add back depreciation expense (a non-cash item) and account for the gain/loss from the sale of equipment. The prepared statement would look like this:

  • Net Income: $19,200
  • Add: Depreciation Expense: $10,500
  • Add: Loss on Sale of Equipment (original cost - accumulated depreciation - sale price): ($10,800 - $5,700 - $5,100) = $0
  • Less: Dividends Paid: $12,000

The net Cash provided by operating activities would be $17,700 ($19,200 + $10,500 - $12,000). This method helps in revealing the sources and uses of cash within the company.

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Answers

Answer:

A buyer who has accepted goods may later revoke the acceptance if the buyer can show that the defects substantially impair the value of the goods and the buyer had a legitimate reason for the initial acceptance.

Explanation:

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Answers

Explanation:

The journal entries are shown below:

On July 15:

Purchase A/c Dr $97,020

      To Accounts payable $97,020

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= Number of tires × price per tire - discount rate

= 2,200 tires × $45 - 2%

= $99,000 - $1,980

= $97,020

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Account payable A/c Dr $97,020

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Account payable A/c Dr $97,020

Interest expense A/c Dr $1,980

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Frizzles _____ _____ _____
Kipples _____ _____ _____

Answers

Answer and Explanation:

According to the given situation, when the amount of splishy splashies decrease by 5%, quantity of frizzles increases by 4%.

So, The cross price elasticity of frizzles relative to splishy splashies = Percentage change in quantity demand for frizzles ÷ Percentage change in price for splishy splashies

= 4 ÷ -5

= -0.80

Now,

Cross-price elasticity between splishy splashies and kipples = Percentage change in quantity demand for Kipples ÷ Percentage change in price for splishy splashies

= -6% ÷ -5%

= 1.20

b. Since there is negative cross-price elasticity between splishy splashies and frizzles, these products are complementary.

The elasticity of the cross-price between splendid splashies and kipples is positive, these goods being substitutes.

c.  Here, I would therefore recommend Raskels marketing, since these two are used together.

The required Table are as shown below:-

Particulars      Cross-Price Elasticity Complements   Recommended

                               of Demand              or Substitute   Marketing with

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Frizzles                     0.80                       Complements        Yes

Kipples                      1.20                          Substitute              No

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Answers

A-D

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Answer:

Financial Records

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Explanation:

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Answers

Answer:

a. 110,000 units

b. 128,500 units

Explanation:

a. Compute the anticipated break even sales in unit

Break even point in unit = Total fixed cost / Contribution margin

Total fixed cost = $14,300,000

Contribution margin per unit = Unit selling price - Unit variable cost

= $380 - $250

= $130

Break even point in units = $14,300,000 / $130

= 110,000 units

b. Compute sales (units) required to realize income from operations of $2,405,000

Break even point + expected profits = (total fixed costs + expected profits) / Contribution margin

° total fixed cost + expected profits

= $14,300,000 + $2,405,000

= $16,705,000

°contribution margin per unit

= $380 - $250

= $130

Break even point + expected profits in unit

= $16,705,000 / $130

= 128,500 units