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The following information is for Ayayai Corporation as of December 31, 2017. Restricted Cash for Retirement of long- term debt $23,500 Additional Paid-in Capital $55,000 Equipment (cost) 111,100 Accounts Receivable 73,300 Inventory (work in process) 13,000 Inventory (raw materials) 59,600 Cash (unrestricted) 21,100 Supplies Expense 18,400 Inventory (finished goods) 33,300 Cost of Goods Sold 406,300 Equity Investments (cost) 10,000 Allowance for Doubtful Accounts 3,700 Customer Advances 12,800 Licenses 6,200 Unearned Service Revenue 36,200 Notes Receivable 19,600 Treasury Stock 13,200 The following additional information is available. 1. Inventories are valued at lower-of-cost-or-market using FIFO. 2. Treasury stock is recorded at cost. 3. Licenses are recorded net of accumulated amortization of $7,300. 4. Equipment is recorded at cost. Accumulated depreciation, computed on a straight-line basis, is $37,750. 5. The equity investments have a fair value of $9,700. (Assume they are trading securities.) 6. The allowance for doubtful accounts applies to the accounts receivable. 7. The notes receivable are due in full on March 31, 2019, with interest receivable every April 30. The notes bear interest at 7%. (Hint: Accrued interest due on December 31, 2017.)Required:Prepare the current assets section of Flint Corporation's balance sheet with appropriate disclosures on the face of the balance sheet.
Effect of Doubtful Accounts on Net Income During its first year of operations, Mack's Plumbing Supply Co. had sales of $260,000, wrote off $4,000 of accounts as uncollectible using the direct write-off method, and reported net income of $28,600. Assume that during the second year of operations Mack's Plumbing Supply Co. had sales of $312,000, wrote off $4,800 of accounts as uncollectible using the direct write-off method, and reported net income of $31,200. Determine what the net income would have been if the allowance method had been used, and the company estimated that 1-3/4% of sales would be uncollectible.
Your company is upgrading the breakroom and kitchen. It is going to include an expresso machine, a fridge with compartments for each employee, a sink, microwave, toaster oven, tables chairs, a rock wall, snacks for everyone, and maybe some other bells and whistles. Your managers think that by updating this area employees will not take as long of lunches. They understand this purchase will be at a cost. You are tasked with considering two different options and presenting them to management. Use a 5% interest rate. Walmart Kit Target First Cost $40,000 $65,000Annual Maintenance Cost $10,000 $12,000Salvage Value $12,000 $25,000Life Years 3 6 a. Using NPW (Net Present Worth Analysis) analysis determine which kitchen kit you should chooseb. Using EUAW (Equivalent Uniform Annual Worth) analysis determine which kitchen kit you should choose. C. You really want the Target kit because it looks nicer and has more bells and whistles. You are willing to keep these products around for longer and therefore extend the lives of these products. Perform the analysis to show that the Target option is the better choice. d. Now from your analysis in part b think about how ethical presenting this information to management would be. Write 2-3 sentences about how you would present this information in a way that showed your bias. You will be graded on your ability to consider two options in an ethical comparison and how you perceive your bias.
he following balance sheet contains errors. Mark Brock Services Co. Balance Sheet For the Year Ended December 31 Assets Liabilities Current assets: Current liabilities: Cash $7,170 Accounts receivable $10,000 Accounts payable 7,500 Accum. depr.-building 12,525 Supplies 2,590 Accum. depr.-equipment 7,340 Prepaid insurance 800 Net income 11,500 Land 24,000 Total current assets $42,060 Total liabilities $41,365 Owners Equity Property, plant, and equipment: Wages payable $1,500 Building $43,700 Mark Brock, capital 88,645 Equipment 29,250 Total owners equity 90,145 Total property, plant, and equipment 72,950 Total assets $131,510 Total liabilities and owners equity $131,510 Required: Prepare a corrected balance sheet. Be sure to complete the statement heading. Refer to the lists of Accounts, Labels, and Amount Descriptions for the exact wording and order of text entries. You will not need to enter colons (:) on the Balance Sheet. "Less" or "Plus" will automatically appear if it is required.