Analyzing Transactions Using the Financial Statement Effects Template Following are selected transactions of Mogg Company. Record the effects of ea 1. Shareholders contribute $10,000 cash to the business in exchange for comm 2. Employees earn $500 in wages that have not been paid at period-end. 3. Inventory of $3,000 is purchased on credit. 4. The inventory purchased in transaction 3 is sold for $4,500 on credit. 5. The company collected the $4,500 owed to it per transaction 4. 6. Equipment is purchased for $5,000 cash. 7. Depreciation of $1,000 is recorded on the equipment from transaction 6. 8. The Supplies account had a $3,800 balance at the beginning of this period; a physical count at period-end shows that $800 of supplies are still available. N 9. The company paid $12,000 cash toward the principal on a note payable; als 10. The company receives $8,000 cash in advance for services to be delivered No. Cash Non-Cash Assets Liabilities Capital Stock ent Effects Template . Record the effects of each using the financial statement effects template. ess in exchange for common stock. paid at period-end. $4,500 on credit. ansaction 4. nt from transaction 6. beginning of this period; pplies are still available. No supplies were purchased during this period. al on a note payable; also, $500 cash is paid to cover this note’s interest expense for th r services to be delivered next period. Retained Earnings Revenues Expenses nterest expense for the period. Cullumber Inc. had the following balance sheet at December 31, 2016. Assets Cash Accounts Receivable Investments Net Equipment Land Liabilities 21,100 22,300 33,100 81,000 41,100 Accounts Payable Notes Payable (Long-term) Stockholders Equity Common Stock Retained Earnings Total Assets 198,600 Total Liab and SEquity During 2017, the following occurred. 1 Cullumber Inc. sold part of its equity investment portfolio for $1 2 A tract of land was purchased for $14,100 cash. 3 Long-term notes payable in the amount of $16,216 were retired 4 An additional $20,216 in common stock was issued at par. 5 Dividends of $8,416 were declared and paid to stockholders. 6 Net income for 2017 was $33,100 after allowing for depreciation 7 Land was purchased through the issuance of $36,100 in bonds. 8 At December 31, 2017, Cash was $38,100, Accounts Receivable w Prepare a Cash Flow Statement for the Year ending Dec 31st 2017. 31,100 42,100 101,100 24,300 198,600 ent portfolio for $15,216. This transaction resulted in a gain of $3,616 for the firm. 6,216 were retired before maturity by paying $16,216 cash. ssued at par. o stockholders. ng for depreciation of $11,216. $36,100 in bonds. counts Receivable was $42,700, and Accounts Payable remained at $31,100. Refer to the balance sheets and income statement below for Facebook Inc. Required a. Compute RNO b. Compute net c. Compute ROE d. Infer the non Required: a. What amount of bad debts expense will Collins report in its income statement for th b. How would you answer to the question a. change if the Allowance Account was “ove c. For your answer in a., use the financial statement effects template below to record C Cash NonCash Assets Capital Liabilities Stock Retained Earnings Revenues Expenses d. For your answer in a. what is the balance of accounts receivable on it December 31s e. Say in the next year on Jan 31st, a write-off of $1,700 occurs. What would be the val the Allowance account and Net Accounts Receivable immediately after the write-off. Use the financial statement effects template to record the above write-off for the year Cash NonCash Assets Capital Liabilities Stock Retained Earnings Revenues Expenses a. Compute the current ratio an b. Compute total liabilities-to-eq c. Compute times interest earne and free operating cash flow to “Included in Interest expense (i investment portfolio of $82 mil For this part, define EBIT as ope d. Which of the following descri operating cash flow to total deb i) Nike’s free operating cash flow from operations and a decrease ii) Nike’s times interest earned d iii) Nike’s cash from operations from operations and a decrease iv) Nike’s times interest earned e. Summarize your findings in a Do you have any concerns abou Keep your answer to within 50 w