FA-required in excelmaestro
Question 3: Sheffer
The Sheffer Company’s statement of cash flows for 2012 showed the following calculation of
the cash flow from operating activities:
Collections from customers $ 2,245
Payments to suppliers (1,375)
Payments to employees ( 688)
Payments to the IRS (for income tax) ( 72)
Cash flow from operating activities $ 110
The company’s balance sheet at the beginning and end of 2012 showed the following:
of year of year
Accounts payable $ 92 $ 103
Accounts receivable 218 262
Accumulated depreciation 93 122
Income tax payable 142 180
Merchandise inventory 141 189
Plant and equipment (at cost) 338 371
Wages payable 36 37
A note to the financial statements showed that the company bought plant and equipment during
the year for $33.
a. Prepare an income statement for the Sheffer Company for 2012.
b. Did the Sheffer Company use the direct or the indirect method in preparing its statement of
c. Recently, the FASB has decided to eliminate goodwill amortization. Suppose certain
goodwill was recognized in 2012, and consider the financial statements for a subsequent
year, say 2017, under the assumption there is no impairment. Will the proposed change
result in an increase or a decrease to the Retained Earnings account? Explain.
- 8 years ago
- 1/4 0f 4=
- Decribe a busy scene (2-3 paragraphs) use metaphores, similies, personification and so on ...... show what the busy scene is...
- A man has 5 coins in his pocket. He can make 13 different amounts of money with his coins The amounts of...
- I need help in my assignment.please look
- Managerial Economics Question1
- Can you share personal experiences on the significance of successful implementation of a strategic plan
- Information Communication Technology
- Separation of Fact From Fiction
- English Homework
- Office Policies and Procedures