QUESTION A/B
1. Calculating the amount of sales:
Sales = receipts from AR - AR (start year) + AR (end year) + write-offs
2. Calculate uncollectible accounts expense
3. Calculating amount of purchases
Purchases = payment on AP - AP (begin) + AP (end)
4. Calculating accounts payable
5. Calculating ending balance of merchandise
inventory Inventory end = inventory (begin) +
purchases - COGS
QUESTION C
6. Calculating the receipt of the re-issue of treasury
stock Reissue value of stocks + Additional paid in capital
Treasury Stock
7. Calculating the repayment of long
term debt Long term debt / repayment
years
8. Calculate the interest
paid Long term debt * interest
percentage
9. Calculate the dividend paid
(Waarde common stock start year / par value) + any new issued shares
(ADDITIONAL:
- treasury stock) * dividend per share
10. Calculate the payment of the new machinery
payment of the new machinery = Only the part that is paid out in cash, if
the rest is paid in stocks
, QUESTION D - INCOME STATEMENT
11. Calculate salary expense:
salary expense = salary payable (end of year) + salaries paid - salary payable
(begin of year)
12. Calculate Depreciation expense - building
Depreciation expense = Building, net (begin year) - Building, net (end year)
19. Calculate Long term debt
Long term debt (start year) - Long term debt payment
20. Calculate interest payable
Long term debt * interest * months still to pay (e.g. Apr-May to Nov-Dec =
9/12)
21. Calculate Unearned rental revenues (rental revenues
for next year) Rent / 12 * months paid upfront for next year
22. Calculate Common stock
Total amount of stocks (stocks start year + additional deployed stocks) * par
value
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