Below is information from Roma, Inc.’s balance sheet for 2023.  Using the information below, calculate Roma, Inc.’s working capital. Goodwill $210,000 A/D – equipment $467,000 Long-term Equity investments        375,000 Inventory     425,000 Long-term debt (due 2026)        500,000 Accrued liabilities        40,000 Cash          75,000 Income taxes payable     110,800 Current maturities of long-term debt        51,000 Common stock     250,000 Notes receivable (current)        185,000 Prepaid expenses        68,760 Accounts payable        340,000 Equipment  1,386,000

A company sold $12,000 of merchandise to a customer with terms 2/10, n/30.  Assuming the company records their receivables using the net method, what amount would they credit to accounts receivable if their customer paid the invoice within the discount period?

During 2022, Fleissner Industries constructed a specialized piece of equipment for use in their manufacturing facility. Construction began on January 1 and finished on December 31.  Expenditures were $400,000 on February 1, $600,000 on June 1 and $500,000 on November 1. Fleissner Industries borrowed $1,000,000 on January 1 on a 3-year, 8% note to help finance construction of the equipment.  In addition, the company had outstanding all year a 9%, 5-year, $6,000,000 note payable and a 6%, 4-year, $10,000,000 note payable. Calculate Fleissner’s avoidable interest:

Vivitar purchased a piece of manufacturing equipment for $200,000 with a five-year useful life and no salvage value.  If Vivitar sells the machine for $150,000 at the end of the third year, which of the following statements is true? I: The gain on sale will be larger if Vivitar uses the double-declining balance method versus the straight-line method of depreciation  II: The gain on sale will be larger if Vivitar depreciates the machinery using the straight-line method of depreciation versus the double-declining balance method  III: The gain on sale will be the same regardless of depreciation method   IV: Vivitar will incur more depreciation over the first three years of the useful life using the double-declining balance method versus the straight-line method of depreciation 

On December 31, 2023, Stella Corp. reported current assets of $200,000 and current liabilities of $150,000.  As the Accountant was reviewing the financial records, it was found that $4,500 of freight-in had been expensed as a period cost in 2023.  Additionally, Stella Corp. is currently holding $10,000 worth of inventory items on consignment from Lauren’s Candle Company.  Stella Corp. has agreed to help Lauren’s Candle Company by trying to sell her candles in the Stella Corp. store.  This $10,000 of inventory was excluded from inventory at December 31, 2023.  What is Stella Corp.’s current ratio after any necessary correcting entries for the transactions described above? (Round your answer to two decimal points)

In January 2023, Bradley, Corp. purchased a patent for a new product for $850,000.  At the time of purchase, the patent was legally valid for another 13-years.  Due to the competitive nature of the industry, however, Bradley estimated the patent’s economic life to be 11-years from the date of purchase.  How much patent amortization should Bradley record on their financial statements for 2023?

Rainy Day, Inc. shows the following information on a partial balance sheet: Liabilities and Owners’ Equity 2023 2022 Difference Current Liabilities         206,600         180,000           26,600 Bonds Payable         195,000         120,000           75,000 Common Stock         216,000         216,000                    –   Treasury Stock          (13,200)                    –           (13,200) Retained Earnings           82,800           52,800           30,000 Total Liabilities and Owners’ Equity         687,200         568,800         118,400 Cash dividends of $36,000 were declared and paid in 2023 Bonds payable of $75,000 were issued in 2023 Rainy Day re-purchased $13,200 of Treasury Stock in 2023. What is the cash provided by (used in) financing activities?

In January 2023, Jerry Corp. purchased a patent for a new product for $800,000.  At the time of purchase, the patent was legally valid for another 12-years.  Due to the competitive nature of the industry, however, Jerry estimated the patent’s economic life to be 5-years from the date of purchase.  How much patent amortization should Jerry record on their financial statements for 2023?

Bradley, Corp. owns machinery with a book value of $445,000.  It is estimated that the machinery will generate future cash flows of $335,000.  The machinery has a fair value of $395,000.  Bradley should recognize a loss on impairment of:

In January 2023, Bradley, Corp. purchased a patent for a new product for $850,000.  At the time of purchase, the patent was legally valid for another 13-years.  Due to the competitive nature of the industry, however, Bradley estimated the patent’s economic life to be 11-years from the date of purchase.  How much patent amortization should Bradley record on their financial statements for 2023?