2) Harrell Company reported net income of $320000 for the current year. Depreciation recorded on buildings and equipment amounted to $75000 for the year.
Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End of Year Beginning of Year
Cash $22000 $15000
Accounts receivable 17000 32000
Inventories 55000 65000
Prepaid expenses 7500 5000
Accounts payable 14000 18000
Income taxes payable 600 1200 Prepare the cash flows from the operating activities section of the statement of cash flows using the indirect method. 3) Indicate whether each of the following expenditures should be classified as: land land improvements buildings equipment or none of these.
Parking lots
Electricity used by a machine
Excavation costs
Interest on building construction loan
Cost of trial runs for machinery
Drainage costs
Cost to install a machine
Fences
Unpaid (past) property taxes assumed
Cost of tearing down a building when land and a building on it are purchased 4) Kw Company reports the following information (in millions) during a recent year: net sales $12408.5; net earnings $294.9; total assets ending $4312.6; and
total assets beginning $4254.3.
a) Calculate the: return on assets (to one decimal place)
b) Calculate the: profit margin ratios (to one decimal place)
c) Calculate the: profit margin ratios (to one decimal place)