FA-required in excel
Question 3: Sheffer
The Sheffer Companyâ€™s statement of cash flows for 2012 showed the following calculation of
the cash flow from operating activities:
Collections from customers $ 2,245
Payments to suppliers (1,375)
Payments to employees ( 688)
Payments to the IRS (for income tax) ( 72)
Cash flow from operating activities $ 110
The companyâ€™s balance sheet at the beginning and end of 2012 showed the following:
of year of year
Accounts payable $ 92 $ 103
Accounts receivable 218 262
Accumulated depreciation 93 122
Income tax payable 142 180
Merchandise inventory 141 189
Plant and equipment (at cost) 338 371
Wages payable 36 37
A note to the financial statements showed that the company bought plant and equipment during
the year for $33.
a. Prepare an income statement for the Sheffer Company for 2012.
b. Did the Sheffer Company use the direct or the indirect method in preparing its statement of
c. Recently, the FASB has decided to eliminate goodwill amortization. Suppose certain
goodwill was recognized in 2012, and consider the financial statements for a subsequent
year, say 2017, under the assumption there is no impairment. Will the proposed change
result in an increase or a decrease to the Retained Earnings account? Explain.
Study Acers provides students with tutoring and help them save time, and excel in their courses. Students LOVE us!No matter what kind of essay paper you need, it is simple and secure to hire an essay writer for a price you can afford at StudyAcers. Save more time for yourself. Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more