Business, 22.02.2021 18:50 quickestlearner8562

Minutemen Law Services maintains its books using cash-basis accounting. However, the company decides to borrow $100,000 from a local bank, and the bank requires Minutemen to provide annual financial statements prepared using accrual-basis accounting as part of the credit worthiness verification. During 2021, the company records the following cash flows: Cash collected from customers $60,000
Cash paid for:
Salaries $35,000
Supplies 3,000
Rent 4,000
Insurance 6,000
Utilities 2,000 50,000
Net cash flows $10,000

You are able to determine the following information:

January 1, 2012 December 31,2012
Accounts Receivable $20,000 22,000
Prepaid Insurance 0 3200
Supplies 4000 1500
Salaries Payable 2200 34000

In addition, depreciation on the companyâ€™s equipment is $8,000 for the year.

Required:
Prepare an accrual-basis income statement for the year ended December 31, 2012.

Answers: 3

Show answers

Another question on Business

Business, 21.06.2019 13:30

Yard tools manufactures lawnmowers, weed-trimmers, and chainsaws. its sales mix and unit contribution margin are as follows. sales mix unit contribution margin lawnmowers 20 % $30 weed-trimmers 50 % $20 chainsaws 30 % $40 yard tools has fixed costs of $4,200,000. compute the number of units of each product that yard tools must sell in order to break even under this product mix.

Answers: 3

Answer

Business, 21.06.2019 14:30

The legal form of business ownership that is owned by many people is called a

Answers: 2

Answer

Business, 21.06.2019 20:40

•broussard skateboard’s sales are expected to increase by 15% from $8 million in 2016 to $9.2 million in 2017. its assets totaled $5 million at the end of 2016. broussard is already at full capacity, so its assets must grow at the same rate as projected sales. at the end of 2016, current liabilities were $1.4 million, consisting of $450,000 of accounts payable, $500,000 of notes payable, and $450,000 of accruals. the after-tax profit margin is forecasted to be 6%, and the forecasted payout ratio is 40%. use the afn equation to forecast broussard’s additional funds needed for the coming year

Answers: 2

Answer

Business, 22.06.2019 06:40

Burke enterprises is considering a machine costing $30 billion that will result in initial after-tax cash savings of $3.7 billion at the end of the first year, and these savings will grow at a rate of 2 percent per year for 11 years. after 11 years, the company can sell the parts for $5 billion. burke has a target debt/equity ratio of 1.2, a beta of 1.79. you estimate that the return on the market is 7.5% and t-bills are currently yielding 2.5%. burke has two issuances of bonds outstanding. the first has 200,000 bonds trading at 98% of par, with coupons of 5%, face of $1000, and maturity of 5 years. the second has 500,000 bonds trading at par, with coupons of 7.5%, face of $1000, and maturity of 12 years. kate, the ceo, usually applies an adjustment factor to the discount rate of +2 for such highly innovative projects. should the company take on the project?

Answers: 1

Answer

You know the right answer?

Minutemen Law Services maintains its books using cash-basis accounting. However, the company decides...

Questions