Simulazione esame Environmental accounting

EXERCISES

1. Rose Corporation began operations at the start of 2014. During 2014, it made cash and credit sales totaling $500,000 and collected $420,000 in cash from its customers. It purchased inventory costing $250,000, paid $15,000 for dividends and the cost of goods sold was $210,000. Also, the corporation incurred the following expenses during 2014: Requirements: 1. Prepare an income statement showing revenues, expenses, income before income taxes, income tax expense, and net income for the year ended December 31, 2014. 2. Based on the above information, what is the amount of accounts receivable on the balance sheet prepared as of December 31, 2014? 3. Based on the above information, what is the amount of retained earnings on the balance sheet prepared as of December 31, 2014? 2. Cosmos Corporation was established on December 31, 2013, by a group of investors who invested a total of $1,000,000 for shares of the new corporation's common stock. During the month of January 2014, Cosmos1. The amount of cash paid for rent would be reported in the operating activities section of the statement of cash flows. 2. The amount of cash paid for the van purchase would be reported in the investing activities section of the statement of cash flows. 3. To determine the increase or decrease in cash during January 2014, we need to calculate the net cash flow. The net cash flow is calculated by subtracting the total cash outflows from the total cash inflows. In this case, the total cash inflows are the total revenue of $100,000, and the total cash outflows are the unpaid revenue of $10,000, salary expense of $20,000 (90% paid), rent expense of $5,000, other expenses of $12,000, and the van purchase of $30,000. Therefore, the net cash flow is $100,000 - $10,000 - $20,000 - $5,000 - $12,000 - $30,000 = $23,000. Since the net cash flow is positive, Cosmos's cash increased by $23,000 during January 2014. 4. To calculate Cosmos's net income or net loss for the month of January 2014, we need to subtract the expenses from the total revenue. The total revenue is $100,000 and the expenses are salary expense of $20,000, rent expense of $5,000, other expenses of $12,000, and income tax expense of $18,900. Therefore, the net income or net loss is $100,000 - $20,000 - $5,000 - $12,000 - $18,900 = $44,100. Cosmos had a net income of $44,100 for the month of January 2014. 5. The net increase or decrease in cash for a business generally depends on the cash inflows and outflows from its operating, investing, and financing activities. Cash inflows can come from sources such as sales revenue, loans, and investments, while cash outflows can come from expenses, loan repayments, and dividends. The net increase or decrease in cash is a measure of the business's ability to generate and manage cash flow. It is important for a business to have a positive net increase in cash to ensure its financial stability and ability to meet its obligations.

1. Gross profit is the difference between net sales and the cost of goods sold.

2. Operating income is the result of subtracting operating expenses from gross profit. It represents the company's profit from its core operations.

3. Net income, or net loss, is the final result after subtracting all expenses, including taxes and interest, from operating income. It represents the company's overall profit or loss for the period.

4. It is important to note that net income, or net loss, can be different than the net income, or net loss, for the same period.

5. Parker Pool Supply, Inc. reported the following items for the year ended December 31, 2014: