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Harris Foods’ 2020 income statement reported total revenues of $500,000 and total expenses of $515,000 (including $30,000 of depreciation). The 2020 comparative balance sheet reported the following: cash- beginning balance, $65,000 and ending balance, $55,000; accounts receivable- beginning balance, $50,000 and ending balance $45,000; inventory- beginning balance, $35,000 and ending balance, $48,000; Equipment- beginning balance, $200,000 and ending balance, $225,000; accounts payable- beginning balance, $65,000 and ending balance $70,000. In addition to this information, Harris Foods also reported a $10,000 loss on the sale of equipment.  Therefore, based only on this information, 2020 net cash flow from operating activities was:

Which of the following is in the correct order from smallest to greatest number of shares?

Ryan Ltd. sold equipment with a book value of $80,000 for a $10,000 loss, sold Ryan Ltd. common stock for $40,000, received repayment on a notes receivable for $300,000 (this amount included $30,000 of interest), paid dividends of $20,000, purchased treasury stock for $15,000, purchased a piece of equipment for $200,000 by paying $50,000 in cash and signing a notes payable for the balance, and received dividends in the amount of $10,000. The net cash flow from investing activities was:

Mary Jones wants to retire in 15 years. She anticipates she will need $2,500,000 to retire. Mary has an account that currently pays 5% compounded annually.  If Mary has $900,000 in her account today how much additional money must she deposit in the account today to have $2,500,000 when she retires (use the appropriate factor table(s) to answer the question and round your answer to the nearest dollar). 

Which of the following transactions would have a net effect (overall increase or decrease) in the total amount of stockholder’s equity?

On January 1, 2020 Jinn Inc. issued 10-year, 10% $100,000 bonds for 105, because the market rate of interest on that date was 8%. The bonds pay interest annually on December 31steach year. One year later on January 1, 2021, Jinn Inc. retires the $100,000 bonds by repurchasing them in the market for $102,000. What is the amount of gain or loss that Jinn Inc. would record on the retirement of the bonds?

Which of the following would NOT appear on a statement of cash flows prepared using the direct method?

Werner Corp. purchased a new piece of equipment on January 1, 2020. The equipment had a list price of $60,000, however the seller agreed to allow Werner Corp. to pay for the equipment in 5 yearly installments of $14,000 on December 31 of each year. Assuming the note incurs interest at 6%, what amount should Werner Corp. debit the equipment account for on the date of purchase?   

Discount-Mart issues $10 million in bonds on January 1, 2021. The bonds have a ten-year term and pay interest semiannually on June 30 and December 31 each year. Below is a partial bond amortization schedule for the bonds: Date Cash Paid Interest Expense Increase in Carrying Value  Carrying Value 01/01/2021 $ 8,640,967 06/30/2021 $ 300,000 $ 345,639 $ 45,639 8,686,606 12/31/2021 300,000 347,464 47,464  8,734,070 06/30/2022 300,000 349,363 49,363  8,783,433 12/31/2022 300,000 351,337 51,337  8,834,770   What is the stated annual rate of interest on the bonds?

Congratulations! You’ve just won the lottery. Your two options are: Take $60,000 today. Take $14,000 at the end of every year, for next six years, assuming a discount rate of 12%. Which option are you better off choosing and by how much in today’s dollars?