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    Session 11,12&13 Assignment

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    Mardi Sutioso
    Document 2 provides partial financial information salvaged for Santo Corporation for the ends of 2020 and 2019 after records were partially destroyed in a fire. It provides additional financial metrics and ratios. The instructions are to compute cost of goods sold, net sales, net income, and total assets for Santo Corporation for 2020.

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    © All Rights Reserved
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    Session 11,12&13 Assignment

    Uploaded by

    Mardi Sutioso
    236 views3 pages
    Document 2 provides partial financial information salvaged for Santo Corporation for the ends of 2020 and 2019 after records were partially destroyed in a fire. It provides additional financial metrics and ratios. The instructions are to compute cost of goods sold, net sales, net income, and total assets for Santo Corporation for 2020.

    Original Title

    202301162231291060005094_Session 11,12&13 Assignment

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    Document 2 provides partial financial information salvaged for Santo Corporation for the ends of 2020 and 2019 after records were partially destroyed in a fire. It provides additional financial metrics and ratios. The instructions are to compute cost of goods sold, net sales, net income, and total assets for Santo Corporation for 2020.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    236 views3 pages

    Session 11,12&13 Assignment

    Uploaded by

    Mardi Sutioso
    Document 2 provides partial financial information salvaged for Santo Corporation for the ends of 2020 and 2019 after records were partially destroyed in a fire. It provides additional financial metrics and ratios. The instructions are to compute cost of goods sold, net sales, net income, and total assets for Santo Corporation for 2020.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    Soal 1

    Powell Corporation's comparative statements of financial position are presented below.


    POWELL CORPORATION
    Comparative Statement of Financial Position
    December 31
    2020 2019
    Land €18,000 €26,000
    Buildings 70,000 70,000
    Accumulated depreciation-buildings (15,000) (10,000)
    Accounts receivable 18,200 23,400
    Cash 21,570 10,700
    Total €112,770 €120,100

    Share capital-ordinary €75,000 €69,000


    Retained earnings 25,400 20,000
    Accounts payable 12,370 31,100
    Total €112,770 €120,100

    Additional information:
    1. Net income was €27,900. Dividends declared and paid were €22,500.
    2. All other changes in non-current account balances had a direct effect on cash flows,
    except the change in accumulated depreciation. The land was sold for €5,900.

    Instruction
    (a) Prepare a statement of cash flows for 2020 using the indirect method.
    (b) Compute free cash flow.

    Soal 2
    Santo Corporation experienced a fire on December 31, 2020, in which its financial records
    were partially destroyed. It has been able to salvage some of the records and has
    ascertained the following balances.
    December 31, 2020 December 31,
    2019
    Cash $ 30,000 $ 10,000
    Accounts receivables (net) 84,000 126,000
    Inventory 200,000 180,000
    Accounts payable 50,000 90,000
    Notes payable 30,000 60,000
    Share capital – ordinary, $100 par 400,000 400,000
    Retained earnings 130,000 101,000

    Additional information:
    1. The inventory turnover is 5 times
    2. The return on ordinary shareholders' equity is 18%. The company had no share
    premium.
    3. The accounts receivable turnover is 9.4 times.
    4. The return on assets is 16%.
    5. Total assets at December 31, 2019, were $585,000.
    Instructions
    Compute the following for Santo Corporation.
    (a) Cost of goods sold for 2020.
    (b) Net sales (credit) for 2020.
    (c) Net income for 2020.
    (d) Total assets at December 31, 2020

    Soal 3
    Condensed financial data of Popler Company appear below:
    POPLER COMPANY
    Comparative Statements of Financial Position
    December 31
    2020 2019
    Assets

    Plant assets $315,000 $250,000


    Accumulated depreciation (65,000) (60,000)
    Investments 90,000 75,000
    Prepaid expenses 19,000 25,000
    Inventories 120,000 132,000
    Accounts receivable 85,000 53,000
    Cash 71,000 35,000
    Total $635,000 $510,000

    Equity and Liabilities

    Share capital-ordinary $245,000 $170,000


    Retained earnings 138,000 81,000
    Bonds payable 130,000 160,000
    Accounts payable 93,000 75,000
    Accrued expenses payable 29,000 24,000
    Total $635,000 $510,000

    POPLER COMPANY
    Income Statement
    For the Year Ended December 31, 2020
    Sales revenue $470,000
    Less:
    Cost of goods sold $280,000
    Operating expenses (excluding depreciation) 60,000
    Interest expense 18,000
    Depreciation expense 17,000
    Income taxes 15,000
    Loss on sale of plant assets 3,000 393,000
    Net income $ 77,000

    Additional information:
    1. New plant assets costing $90,000 were purchased for cash in 2020.
    2. Old plant assets costing $25,000 were sold for $10,000 cash when book value was
    $13,000.
    3. Bonds with a face value of $30,000 were converted into $30,000 of ordinary shares.
    4. A cash dividend of $20,000 was declared and paid during the year.
    5. Accounts payable pertain to merchandise purchases.
    Instructions
    Prepare a statement of cash flows for the year using the direct method.

    Soal 4
    Howell Company has the following selected accounts after posting adjusting entries:
    Accounts Payable €75,000
    Notes Payable, 3-month 80,000
    Accumulated Depreciation—Equipment 14,000
    Salaries and Wages Payable 27,000
    Notes Payable, 5-year, 8% 30,000
    Warranty Liability 34,000
    Salaries and Wages Expense 6,000
    Interest Payable 3,000
    Mortgage Payable 200,000
    Sales Taxes Payable 21,000

    Instructions
    (a) Prepare the current liability section of Howell Company's statement of financial position,
    assuming €25,000 of the mortgage is payable next year. (List liabilities in magnitude
    order, with largest first.)
    (b) Comment on Howel's liquidity, assuming total current assets are €500,000, and
    prepare the Current Ratio.

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