Answer To: Sample Final - Sample Final.pdf Acct 210 Final Exam - Supporting Material Dow Chemical - Sample...
Tanmoy answered on Apr 03 2021
Principles of Financial Accounting – J23 Final Exam – Spring 2021 Professor Ilan Guttman
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I pledge my honor that I have not violated the Stern Student Code of Conduct in the completion of this examination. I have neither given nor received any unauthorized assistance on this exam.
Signature:
Last Name (Print) First Name (Print)
(
Name
Andrew Blumstein
)
(
Page
14
of
14
)
Parts II - V pertain to the enclosed excerpts from the 2014 financial statements of
Cisco Systems, Inc. – (“Cisco”)
In Answering all of the questions ignore any tax effects.
Part I
Statement of Cash Flows
(12 points)
Part II
Accounts Receivables
(23 points)
Part III
Fixed Assets
(23 points)
Part IV
Intangibles
(19 points)
Part V
Total
Stockholders’ Equity
(23 points)
(100 points)
Part I – Statement of Cash Flows (9 points)
Below are the Balance Sheet and the Income statement of ABC Inc. for fiscal year 2019. Prepare the Operating section of the Statement of Cash Flows for ABC Inc. for the year ended December 31, 2019 (using the indirect method).
ABC Inc. Balance Sheet
12/31/ 2018 12/31/ 2019
Assets
Current Assets:
Cash and cash equivalents
$150,000
$130,000
Accounts Receivable, net
250,000
270,000
Prepaid Rent
270,000
290,000
Inventory
310,000
300,000
Total Current Assets
980,000
990,000
Property & Equipment - at cost
450,000
480,000
Less Accumulated depreciation
(120,000)
(152,000)
Net Property & Equipment
330,000
328,000
Total Assets
Liabilities and Equity
$1,310,000
$1,318,000
Current Liabilities: Accounts payable
$125,000
$100,000
Wages payable
120,000
130,000
Total Current Liabilities
245,000
230,000
Long-term Debt
340,000
362,000
Common Stock
500,000
500,000
Retained Earnings
225,000
226,000
Total Liabilities and Equity
1,310,000
1,318,000
ABC Inc.
Income Statement
For year ended December 31, 2019
Revenues
$1,300,000
Cost of Goods Sold
850,000
Gross Profit
450,000
Wages and Salaries
300,000
Depreciation Expense
80,000
Total operating expense
380,000
Operating Profit
70,000
Loss on Sale of Equipment
(10,000)
Income before tax
60,000
Income Tax Expense
20,000
Net Income
$40,000
ABC Inc.
Statement of Cash flows Year ended on December 31, 2019
ABC Inc.
Statement of Cash flows
December 31, 2019
CFFO section-indirect method
Net Income
40000
Adjustments
(+) Depreciation
80000
(-) Loss on sale of equipments
-10000
(-) Change in A/R
-20000
(+) Change in Inventory
10000
(-) Change in A/P
-25000
(+) Change in Deferred Revenue
10000
Net CFFO
85000
Change in A/R = 270000- 250000 = 20000
Change in Inventory = 300000-310000 = -10000
Change in A/P = 100000-125000 = -25000
Change in Wages...