The change in each of Kendall Corporation's balance sheet accounts last year follows: IncreaseDecreaseCash and cash equivalents$3,000 Accounts receivable$2,000 Inventory $3,000 Prepaid Expenses$4,000 Long-term Investments $15,000 Property, Plant and Equipment$10,000 Accumulated Depreciation$8,000 Accounts payable $9,000 Accrued Liabilities$6,000 Bonds Payable $13,000 Common Stock$5,000 Retained Earnings$4,000 Kendall Corporation's income statement for the year was: Sales$300,000Cost of goods sold 180,000Gross margin 120,000Selling and administrative expense 116,000Net income$ 4,000?There were no sales or retirements of property, plant, and equipment and no dividends paid during the year. The
company pays no income taxes and it did not purchase any long-term investments, issue any bonds payable, or repurchase any of its own common stock. The net cash provided by (used in) operating activities on the statement of cash flows is determined using the direct method.The selling and administrative expense adjusted to a cash basis would be:
A. $110,000
B. $120,000
C. $106,000
D. $112,000
Answer: C
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In the customer support center where Carl works, employees are taught to make conversation to put customers at ease. As customers don't like being kept waiting, they must also try to minimize the time that customers spend waiting for service
Thus, when there are a number of customers lined up, Carl usually has to decide whether to answer a customer's questions in detail or move on quickly to the next customer. The firm's standards are not clear on how they want him to perform. When asked, his boss answers, "You make the decision." This is an example of which service-quality gap?
The transaction amount for one unit of goods when the transaction occurs between divisions within the same company is the ________.
A) transfer price B) opportunity cost C) variable cost D) sales price
Paper Corporation holds 80 percent of the voting shares of Scissor Company. On January 1, 20X8, Scissor purchased $100,000 par value 12 percent first mortgage bonds of Paper from Cruse for $115,000. Paper originally issued the bonds to Cruse on January 1, 20X6, for $110,000. The bonds have an 8-year maturity from the date of issue. Scissor's reported net income of $65,000 for 20X8, and Paper reported income (excluding income from ownership of Scissor's stock) of $90,000.Based on the information given above, what gain or loss on the retirement of bonds should be reported in the 20X8 consolidated income statement?
A. $6,250 gain B. $7,500 loss C. $7,500 gain D. $6,250 loss
What is the name of the accounting convention that allows a firm to offset the losses that were incurred against future income rather than receive a refund of taxes paid?
A) tax credit B) itemized deductions C) tax-loss carry-forward D) a write-down