1 answer

Do the whole statement of cash flow Sullivan's Island Company began operating a subsidiary in a...

Question:

do the whole statement of cash flow
Sullivans Island Company began operating a subsidiary in a foreign country on January 1, 2017, by investing capital in the a
Sullivan's Island Company began operating a subsidiary in a foreign country on January 1, 2017, by investing capital in the amount of 72,000 pounds. The subsidiary immediately borrowed 148,000 pounds on a five-year note with 10 percent interest payable annually beginning on January 1, 2018. The subsidiary then purchased for 220,000 pounds a building that had a 10-year expected life and no salvage value and is to be depreciated using the straight-line method. Also on January 1, 2017, the subsidiary rented the building for three years to a group of local attorneys for 8,400 pounds per month. By year-end, rent payments totaling 84,000 pounds had been received, and 16,800 pounds was in accounts receivable. On October 1, 4,800 pounds was paid for a repair made to the building. The subsidiary transferred a cash dividend of 11,000 pounds back to Sullivan's Island Company on December 31, 2017. The functional currency for the subsidiary is the pound. Currency exchange rates for 1 pound follow January 1, 2017 October 1, 2017 December 31, 2017 Average for 2017 $ 2.30 - 2.35 - 2.38 - 2.34 - 1 Pound 1 1 1 Prepare a statement of cash flows in pounds for Sullivan's Island Company's foreign subsidiary and then translate these amounts into U.S. dollars. (Round your exchange rate answers to 2 decimal places. Amounts to be deducted and cash outflows should be Indicated with minus sign.) U.S. Dollars SULLIVAN'S ISLAND COMPANY Statement of Cash Flows Pounds Exchange Rate Operating Activities: Net income 55,400 Add: Depreciation expenses 22,000 Less: Increase in accounts receivable (16,800)| Add: Increase in interest payable 14,800 75,400 Cash flow from operating activities Investing Activities: Purchase of building Cash flow from investing activities Financing Activities:

Answers

SULLIVAN COMPANY SUBSIDIARY
Statement of Cash Flows
Pounds Exchange rate U.S. Dollars
Operating Activities:
Net income (calculated below) 59,200. 138480
Add: Depreciation 22,000. 2.34 51480
less: increase in accounts receivable ( -16,800. 2.34 -39312
Add increase in interest payable ($148,000 x 10%)payable in Jan 2018 14,800. 2.34 34632
Cash flow from operations 79,200. 185280
Investing Activities:
Purchase of building (Jan 1,2017 Rate) -220,000. 2.3 -506000
Financing Activities:
Sale of common stock 72,000. 2.3 165600
Borrowing on note 148,000. 2.3 340400
Dividends paid -11,000. 2.38 -26180
Cash from financing activities 209,000. 479820
Increase in cash 68,200. 159100
Effect of exchange rate change on cash 3216
Cash, 1/1 0. 0
Cash, 12/31 68,200. 2.38 162316
Sullivan Company
Subsidiary Income Statement
Pounds Exchange rates U.S. Dollars
Rent revenue (8,400 x 12 months) ; Average Rate 100,800. 2.34 235872
Less:
Interest Expense 148,000 x 10%; Average Rate 14,800. 2.34 -34632
Depreciation Expense  220,000/10 years;Average Rate 22,000. 2.34 -51480
Repair Expense(given),rate on Oct 1 4,800. 2.35 -11280
Net Income 59,200. 138480
.

Similar Solved Questions

1 answer
Course Home <Magnetic Induction and Maxwell's equations homework Bridging Problem: A Falling Square Loop 13 of...
Course Home <Magnetic Induction and Maxwell's equations homework Bridging Problem: A Falling Square Loop 13 of 14 Review Constants ✓ Correct The magnetic flux through the circuit does not change here A vertically oriented square loop of copper wire fails from rest in a region in which ...
1 answer
UM UILUCU-&progress=false Calculator A business operated at 100% of capacity during its first month, with the...
UM UILUCU-&progress=false Calculator A business operated at 100% of capacity during its first month, with the following results: $566,400 Sales (118 units) Production costs (147 units): Direct materials Direct labor $76,275 19,475 34,080 32,458 Variable factory overhead Fixed factory overhead 16...
1 answer
Using what you have learned about nutrition labels, label claims, and macronutrient calorie calculations, please answer...
Using what you have learned about nutrition labels, label claims, and macronutrient calorie calculations, please answer the questions below. Each question is worth 7 points, for a total of 70 points. Nutrition Facts 8 servings per container Serving size 2/3 cup (55g) Amount per 2/3 cup Calories 230 ...
1 answer
EX 12-18. Distribution of cash upon liquidation Obj. 4 Hewitt and Patel are partners, shar- ing...
EX 12-18. Distribution of cash upon liquidation Obj. 4 Hewitt and Patel are partners, shar- ing gains and losses equally. They de- cide to terminate their partnership. Prior to realization, their capital bal- ances are $28,000 and $18,000, respec- tively. After all noncash assets are sold and all li...
1 answer
Chamberlain Enterprises Inc. reported the following receivables in its December 31, 2021, year-end balance sheet: Current...
Chamberlain Enterprises Inc. reported the following receivables in its December 31, 2021, year-end balance sheet: Current assets: Accounts receivable, net of $43,000 in allowance for uncollectible accounts Interest receivable Notes receivable $313,000 16, 10e 450, eee Additional Information: 1 The n...
1 answer
This is a two part question. Part 1. To look closely at a small object, such...
This is a two part question. Part 1. To look closely at a small object, such as an insect or a crystal, you bring it close to your eye, making the subtended angle and the retinal image as large as possible. But your eye cannot focus sharply on objects that are closer than the near point, so the angu...
1 answer
Ning is suggested by Match the Meaning Synony toward the river For coch item below. choose...
ning is suggested by Match the Meaning Synony toward the river For coch item below. choose the word whose meaning is sugges the clue given. Then write the word in the space provided. d. haul For each it meaning on the lir 1. A forest fire made the frightened herd a demonstrate be stampede c. pledge ...
1 answer
How would you make a 350 ml solution of 2% Glucose (MW = 180.16) in water?...
How would you make a 350 ml solution of 2% Glucose (MW = 180.16) in water? A) 2 grams of glucose into 300 ml of water. Bring up to 350 ml total volume. B) Add 350 ml of distilled water to a beaker. Add 7 grams of glucose. C) 7 grams of glucose into 300 ml of water. Bring up to 350 ml total volume. D...
1 answer
Exercise 2-01 The conceptual framework has been created to make accounting information useful. Indicate whether the...
Exercise 2-01 The conceptual framework has been created to make accounting information useful. Indicate whether the following statements about the conceptual framework are true or false. (a) Accounting standards that rely on a body of concepts will result in useful and consistent pronouncements. Gen...
1 answer
What is the relationship between personality (psychological) factors and health? Select one health issue to illustrate...
What is the relationship between personality (psychological) factors and health? Select one health issue to illustrate this relationship? According to gerontological research, what is the relationship between alcohol consumption and age? Does problem drinking or alcohol abuse differ by age? age and ...
1 answer
Are my answers right? 6. Assuming standard conditions, indicate which of the following is true: a....
are my answers right? 6. Assuming standard conditions, indicate which of the following is true: a. H2 (g) can reduce Ag* (aq). b. H2 (g) can reduce Ni2 (aq). Falst c. Fe2 (aq) can reduce Cu (aq). Tolse - Trut d. H* (aq) can oxidize Mg(s). - True e. Pb2 (aq) can oxidize Ni(s)....
1 answer
Show all steps Problem 11 (100 points): Productio Springville Company produces a pro Cooking. In the...
show all steps Problem 11 (100 points): Productio Springville Company produces a pro Cooking. In the Blending Departmen other manufacturing inputs areas Production Report under Process Costing: ces a product that passes through two departments: Blending and Department, all materials are added at ...
1 answer
A new patient in your office reports a history of rheumatic heart disease at a very...
A new patient in your office reports a history of rheumatic heart disease at a very early age on her health questionnaire. The patient explains that her physician at the time thought that the rheumatic heart disease was a result of a streptococcal skin infection that she developed a few months prior...
1 answer
How do you prove #sin(cos^-1x)=sqrt(1-x^2)#?
How do you prove #sin(cos^-1x)=sqrt(1-x^2)#?...
1 answer
Scenario 1: Mr. Tiny was seen by Dr. Kirt, Aetna was billed out for the services;...
Scenario 1: Mr. Tiny was seen by Dr. Kirt, Aetna was billed out for the services; we accept assignment. Mr. Tiny has a coinsurance of 90/10; assume there is no deductible at this point or copayment.  Aetna responded as follows: Office Visit     Charges: 190.00 &nbs...
1 answer
Week 1 Assignment: Chemical Kinetics Introduction to Integrated Rate Laws 7 of 28> solve for concentration....
Week 1 Assignment: Chemical Kinetics Introduction to Integrated Rate Laws 7 of 28> solve for concentration. The rate constant for a certain reaction is k = 9.00x10-3 s-1 、 If the initial reactant concentration was 0.200 M, what will the concentration be after 19.0 minutes? A car starts at ...
1 answer
Homework problem: Given a string fixed at both ends of length L and linear density el....
Homework problem: Given a string fixed at both ends of length L and linear density el. The string is plucked from a height h, 1/4 of the distance from the end initial velocity of all parts of the string is zero): Part 2a (20 pts): What is the equation of motion y(x,t) for this system? 01/4L Part 2b ...
1 answer
Check Primara Corporation has a standard cost system in which it applies overhead to products based...
Check Primara Corporation has a standard cost system in which it applies overhead to products based on the standard direct labor-hours allowed for the actual output of the period. Data concerning the most recent year appear below: Total budgeted fixed overhead cost for the year Actual fixed overhead...