Question.4388 - Ch. 4 Written Assignment - Due Feb. 14DetailsResolve the following problems and show your calculations:1 .Padma’s Pools Inc. paid $500 for office supplies. What was the impact of this transaction on Padma’s cash flow?2 .Sally’s BigBox Store issued 1,000 shares of common stock with par value of $10 each and market value of $16 each in exchange for a new building. What was the impact of this transaction on Sally’s cash flow?3 .Jose sells $500 worth of merchandise to a client on June 1. He delivers the product and invoices the customer on June 10. The customer pays Jose on July 9. What is Jose’s revenue for June and July, respectively, under the cash and accrual methods of accounting?4 .Jamal’s Car Repair purchases a new piece of equipment with a 10-year useful life for $10,000. What is the impact to Jamal’s net income in the year of purchase if he expenses the equipment? If he capitalizes it using straight-line depreciation?5 .Mariela’s Shop had revenues of $10,000 and expenses of $6,000 and has cash on hand of $5,000. What is Mariela’s net income or net loss?
Answer Below:
Ch xxxxxxx AssignmentQuincy xxxxxxxxxx - xxxxxxxxxx of xxxxxxx February xx Written xxxxxxxxxxxxxxxxx Padma's xxxxx Inc xx cash xxxx saw x decrease xx due xx the xxxxxxxx of xxxxxx supplies xxxx is xxxxxxx the xxxxxxxxxxx involved xxxxxx out xxxx for xxxxxxxx reducing xxxxx readily xxxxxxxxx cash xx hand xxxxxxx Issuing xxxxxx stock xxxxxxx directly xxxxxx Sally's xxxxxx Store's xxxx flow xxxxx they're xxx receiving xxxx but xxxxxx creating x new xxxxxxxxx shares xx exchange xxx an xxxxx the xxxxxxxx While xxxx avoid x cash xxxxxxx they xxxx don't xxxxxxx a xxxx inflow xxx impact xx on xxx balance xxxxx increasing xxxxxxxxxxxxx equity xx the xxx value xxx adding xxx building xx a xxx asset xx its xxxxxx value xxxxxxx Under xxx cash xxxxxx Jose xxxxxxxx recognize xxx revenue xx June xxxxx he xxxxxx received xxxxxxx yet xx July xxxx the xxxxxxxx pays xx would xxxxxx in xxxxxxx for xxxx Under xxx accrual xxxxxx however xxxx recognizes xxx sale xx revenue xx June xxxxxxx he xxxxxx it xxxx he xxxxxxxxx the xxxxxxx and xxxxxxxx the xxxxxxxx regardless xx the xxxxxxx date xx Jose's xxxxxxx would xx for xxxx under xxxx accounting xxx for xxxx under xxxxxxx accounting xxxx revenue xx July xxx both xxxxxxx upon xxxxxxxxx the xxxxxxx Problem xx Jamal xxxxxxxx the xxxxxxxxx his xxx income xxx the xxxx of xxxxxxxx would xx reduced xx the xxxx cost xx the xxxxxxx hits xxx profit xxxxxxxxxxx However xx he xxxxxxxxxxx the xxxxxxxxx using xxxxxxxxxxxxx depreciation xxx impact xx net xxxxxx is xxxxxx out xxxx the xxxxx useful xxxx In xxx first xxxx he xxxxx only xxxxxx a xxxxxxx of xxx cost xx depreciation xxxxxxx typically xxxx years xxx year xxxxxxxxx in x smaller xxxxxxxx in xxx income xxx the xxxx of xxxxxxxx compared xx expensing xxx equipment xxxxxxxx Problem xxxxxxxxx Shop xxx a xxx income xx calculated xx follows xxx Income xxxxxxxx - xxxxxxxxxxx Income x Net xxxxxx Cash xx hand xx is x balance xxxxx item xxx a xxxxxxxx piece xx information xxxxxxx to xxx available xxxx Still xx does xxx directly xxxxxx net xxxxxx which xxxxxxx on xxxxxxxxxxxxx Net xxxxxx tells xx how xxxx profit xxxxxxxxx Shop xxxxxxxxx after xxxxxxxxxx for xxxxxxxx from xxx revenuesMore Articles From FIN 320 91 - Principles of Finance
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