The income statement for the year ended December 31, 2014, as well as the balance sheets as of December 31, 2014, and December 31, 2013, for Lucky Lady Inc. follow. This information is taken from the financial statements of a real company whose name has been disguised.
Additional Information and Author Notes:
• Aircraft valuation adjustment: The company reduced the book value of its aircraft and related equipment to their expected recoverable values and recognized an aircraft carrying value adjustment in the 2014 income statement. [Author Note: You may treat this item as “extra” depreciation recorded during the year due to abnormal decline in the asset value.]
• Property, plant, and equipment: Includes land, buildings, aircraft equipment, furniture and fixture, equipment under capital lease, and so on. During 2014, the company acquired equipment under capital leases for $16,987,000. The company also sold equipment with a net book value of $2,501,000 for $684,000 cash. [Author Note: The gain or loss on this sale is combined with some other item in the income statement. Any other change in the gross book value of Property, plant, and equipment may be attributed to outright purchase of other equipment and building construction costs.]
• Capital lease and long-term liabilities: [Author Note: When preparing the cash flow statement, you may find it convenient to combine the current and long-term portions of each of these liabilities.]
• Pre-opening expenses: Pre-opening expenses include direct project salaries, advertising, and other pre-opening services incurred during the pre-opening period of the Lucky Lady Hotel. Such expenses were expensed upon opening the facility.
• Stock offering: The increases in Common stock and Capital in excess of par accounts are due to a common stock offering completed on August 17, 2014.
• Laundry loan: On June 16, 2014, the company obtained a $10,000,000 loan from a financial institution for a laundry facility in North Las Vegas, Nevada. As of December 31, 2014, $10,000,000 has been drawn down under the loan. Construction of the facility was completed in December 2014. The laundry provides the laundry and dry cleaning services for the Lucky Lady Hotel.
Using the indirect method, prepare the statement of cash flows for the year ended December 31, 2014, in as much detail as possible. For example, borrowing and repayment, if any, should be shown separately as financing inflow and outflow, respectively. Similarly, to the extent that information is available, separately disclose and explain the changes to each asset and each liability account that affected Lucky Lady’s cash flows during 2014.
The Australian Institute of Project Management (AIPM) is a national body that represents the interests of Project Management as a profession across all sectors and discip...Aug 05 2020
Several items are omitted from the income statement and cost of goods manufactured statement data for two different companies for the month of May:1Rainier CompanyYakima ...Jul 16 2021
Telecom taxes is 25 percent of the consumers bill monthly market demand is Qd = 250 - 5Pmarket supply is Qs= 4P -110 ( both in millions) where P isthe monthly price of te...May 17 2018
Compose sentences using the compound adjectives shown. Be sure that compound adjectives precede nouns. Add hyphens if needed.month by monthJul 02 2021
Find news articles on two different websites on the same topic or current event.Explain how each article incorporates techniques discussed in this chapter, including the ...Jun 21 2021
A worker-machine operation was found to involve 3.2 minutes of machine time per cycle course of 40 cycles of stopwatch study. The worker's time averaged 20 minutes per cy...Aug 23 2020
Air flowing at Mach 2.75 with a pressure of 60 kPa and a temperature of -20°C passes over a wedge which turns the flow through an angle of 4° leading to the generation of...Aug 19 2020
Airwave Corporation, an IFRS reporter, was required to write down one of its plant assets by $ 1,650,000 on December 31 of the current year because the asset’s technology...May 14 2020
Find the equation of the tangent plane to the hyperboloid at and express it in a form similar to the one in Exercise 51.Jul 09 2021
What is human resources planning? Given the fact that Graeter’s is currently increasing both production and national distribution, what changes would you expect to see in...Jun 02 2020