The balance sheets for Plasma Screens Corporation, along with additional information, are provided below:
PLASMA SCREENS CORPORATION
Balance Sheets
December 31, 2021 and 2020
2021 2020
Assets
Current assets:
Cash $ 112,700 $ 131,800
Accounts receivable 81,200 96,000
Inventory 103,000 87,200
Prepaid rent 5,600 2,800
Long-term assets:
Land 520,000 520,000
Equipment 822,000 710,000
Accumulated depreciation (436,000 ) (284,000 )
Total assets $ 1,208,500 $ 1,263,800
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 107,000 $ 92,200
Interest payable 6,900 13,800
Income tax payable 9,600 5,800
Long-term liabilities:
Notes payable 115,000 230,000
Stockholders' equity:
Common stock 740,000 740,000
Retained earnings 230,000 182,000
Total liabilities and stockholders' equity $ 1,208,500 $ 1,263,800
Additional Information for 2021:

Net income is $77,000.
The company purchases $112,000 in equipment.
Depreciation expense is $152,000.
The company repays $115,000 in notes payable.
The company declares and pays a cash dividend of $29,000.
Required:
Prepare the statement of cash flows using the indirect method. (List cash outflows and any decrease in cash as negative amounts.)

Answer:

Plasma Screens Corporation

Statement of Cash Flows for the year ended December 31, 2021

Operating activities:

Net income                                      $77,000

Add Non-cash flows:

Depreciation expense                    152,000

Adjusted net operating income $229,000

Changes in working capital:

Accounts receivable                        14,800

Inventory                                         -15,800

Prepaid rent                                     -2,800

Accounts payable                            14,800

Interest payable                              -6,900

Income tax payable                          3,800

Net operating cash flows         $236,900

Investing activities:

Purchase of equipment            -$112,000

Financing activities:

Repayment of Notes payable  -$115,000

Dividends payment                     -29,000

Net cash flow from financing  -$144,000

Net cash flows                            -$19,100

Reconciliation of cash:

Beginning Cash balance           $131,800

Net cash flows                            -$19,100

Ending Cash balance                $112,700

Explanation:

a) Data and Calculations:

PLASMA SCREENS CORPORATION

Balance Sheets

December 31, 2021 and 2020

                                                                              2021             2020 Change

Assets

Current assets:

Cash                                                                $ 112,700     $131,800 -$19,100

Accounts receivable                                           81,200        96,000  -14,800

Inventory                                                           103,000        87,200 +15,800

Prepaid rent                                                         5,600          2,800  +2,800

Long-term assets:

Land                                                                520,000     520,000   0

Equipment                                                      822,000      710,000  +112,000

Accumulated depreciation                           (436,000 )  (284,000) +152,000

Total assets                                              $ 1,208,500 $1,263,800

Liabilities and Stockholders' Equity

Current liabilities:

Accounts payable                                       $ 107,000   $ 92,200  +$14,800

Interest payable                                                6,900        13,800      -6,900

Income tax payable                                          9,600         5,800      +3,800

Long-term liabilities:

Notes payable                                               115,000     230,000   -115,000

Stockholders' equity:

Common stock                                            740,000     740,000    0

Retained earnings                                      230,000      182,000   +48,000

Total liabilities & stockholders' equity $ 1,208,500 $1,263,800

Additional Information for 2021:

Net income is $77,000.

The company purchases $112,000 in equipment.

Depreciation expense is $152,000.

The company repays $115,000 in notes payable.

The company declares and pays a cash dividend of $29,000

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1) Prepare the general journal entry to record this transaction, assuming that the exchange has commercial substance.
2) Assuming the same facts as in (a) except that fair value information for the assets exchanged is not determinable. Prepare the general journal entry to record this transaction.

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Q4) The price of a luxury car increased from 42.000 euros to 44.000 euros. Then the demand for
this car declined from 100 units to 20 units. Calculate the price elasticity of demand for the car.

Someone who gives money or goods to an organization
A. Donor
B. Provider

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Scarcity occurs when supply exceeds demand.
True of False

Baltimore Inc. reported pretax GAAP income of $45,000 in 2020. In analyzing differences between GAAP income and taxable income, the company determined that it had deducted $5,000 in nondeductible fines and added $2,800 in tax-exempt municipal interest revenue to GAAP income. The statutory tax rate is 25%. Determine the following:

a. Taxable income
b. Income tax payable
c. Income tax expense
d. Net income

Which of the following is NOT an example of fixed expenses?

Select the best answer from the choices provided.
A.
Health insurance premium

B.
Interest on college loans

C.
Apartment Rent

D.
The amount of gas to fill up your tank

Simon's most recent income statement is given below. Sales (8,000 units) $160,000 Less variable expenses (68,000) Contribution margin 92,000 Less fixed expenses (50,000) Net income $42,000 Required: a. Contribution margin per unit is b. If sales are doubled total variable costs will equal c. If sales are doubled total fixed costs will equal d. If 20 more units are sold, profits will increase by e. Compute how many units must be sold to break even. f. Compute how many units must be sold to achieve operating income of $60,000. g. Compute the revenue needed to achieve an after tax income of $30,000 given a tax rate of 30%.

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How many of each type of lamp must be sold to optimize total contribution margin?

a. 90,000 classic lamps; 0 fancy lamps
b. 0 classic lamps; 9,000 fancy lamps
c. 18,000 classic lamps; 0 fancy lamps
d. 0 classic lamps; 30,000 fancy lamps
e. 10,000 classic lamps; 10,000 fancy lamps

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Required:
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b. What is the probability that the project will result in a loss for the contractor?
c. Suppose the contractor has the opportunity to renegotiate the contract. What value of R should the contractor strive for in order to have a .99 probability of making a profit?

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an increase in the cost of farm equipment
a rise in demand for organic produce
an increase in customers at the market
a change in the market price for non-organic fruit
a sale on organic meats at the market

(answer is abc)

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The total cost of Martson's new equipment is ___________
a. $3,780,000
b. $4,212,000
c. $720,000

which of the following is a reason to approach smaller banks for a business loan



​

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Fixed overhead will not be affected by whether or not the special order is accepted.

1. What are the relevant costs and benefits of the two alternatives (accept or reject the special order)?

a. Special order price, direct materials, direct labor, and variable overhead.
b. Special order price, direct materials, direct labor, variable overhead, and fixed overhead
c. Normal price, direct materials, direct labor, and variable overhead.
d. Normal price, direct materials, direct labor, variable overhead, and fixed overhead.

2. By how much will operating income increase or decrease if the order is accepted?
a. increase by $_______
b. decrease by $_________

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Tables
Queries
Reports
All are available options.

Present Value of Ordinary Annuity Period/Rate 5% 6% 7% 8% 9% 10 7.7217 7.3601 7.0236 6.7101 6.4177 11 8.3064 7.8869 7.4987 7.1390 6.8052 12 8.8633 8.3838 7.9427 7.5361 7.1607 13 9.3936 8.8527 8.3577 7.9038 7.4869 Knowledge Check 01 Clean Tel, Inc. is considering investing in an 11-year project with annual cash inflows of $1,000,000. These cash inflows have an initial investment of $7,139,000. At what discount rate would this present value be the same as the initial investment

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Marcelino Co.'s March 31 inventory of raw materials is $90,000. Raw materials purchases in April are $560,000, and factory payroll cost in April is $368,000. Overhead costs incurred in April are: indirect materials, $54,000; indirect labor, $23,000; factory rent, $39,000; factory utilities, $24,000; and factory equipment depreciation, $56,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $655,000 cash in April. Costs of the three jobs worked on in April follow.
Job 306 Job 307 Job 308
Balances on March 31
Direct materials $ 31,000 $ 37,000
Direct labor 21,000 18,000
Applied overhead 10,500 9,000
Costs during April
Direct materials 135,000 200,000 $ 115,000
Direct labor 102,000 153,000 104,000
Applied overhead ? ? ?
Status on April 30 Finished (sold) Finished (unsold) In process
a. Materials purchases (on credit).
b. Direct materials used in production.
c. Direct labor paid and assigned to Work in Process Inventory.
d. Indirect labor paid and assigned to Factory Overhead.
e. Overhead costs applied to Work in Process Inventory.
f. Actual overhead costs incurred, including indirect materials. (Factory rent and utilities are paid in cash.)
g. Transfer of Jobs 306 and 307 to Finished Goods Inventory.
h. Cost of goods sold for Job 306.
i. Revenue from the sale of Job 306.
j. Assignment of any underapplied or overapplied overhead to the Cost of Goods Sold account. (The amount is not material.)
2. Prepare journal entries for the month of April to record the above transactions.
Transaction General Journal Debit Credit
a. Raw materials inventory 560,000
Accounts payable 560,000
b. Work in process inventory 450,000
Raw materials inventory 450,000
c. Work in process inventory 359,000
Cash 359,000
d. Factory overhead 23,000
Cash 23,000
e. Work in process inventory
Factory overhead
f(1). Factory overhead
Raw materials inventory
f(2). Factory overhead 24,000
Cash 24,000
f(3). Factory overhead 56,000
Accumulated depreciation-factory equipment 56,000
f(4). Factory overhead 39,000
Cash 39,000
g. Factory overhead
Work in process inventory
h. Cost of goods sold
Finished goods inventory
i. Cost of goods sold
Finished goods inventory
j. Cost of goods sold
Factory overhead

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8,464
4,630
8,635
7,485
4,047
9,614
9,260