Condensed Financial Data of Gorni Company Appear Below: Additional

question 224

Essay

Condensed financial data of Gorni Company appear below: Additional information:
1. New plant assets costing $85,000 were purchased for cash in 2014.
2. Old plant assets costing $25,000 were sold for $5,000 cash when book value was $13,000.
3. Bonds with a face value of $20,000 were converted into $20,000 of common stock.
4. A cash dividend of $24,000 was declared and paid during the year.
5. Accounts payable pertain to merchandise purchases.
Instructions
1. Prepare a statement of cash flows for the year using the direct method.
2. Compute the following cash basis ratios:
a. Current cash debt coverage
b. Cash debt coverage

Identify the financial statements where different accounts are reported.

Understand the components included under Workers' Compensation insurance.

Explain the preauthorization process and its importance in medical billing.

Distinguish between preauthorization and predetermination.

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Definitions:

Brainstorming

A group creativity technique designed to generate a large number of ideas for the solution to a problem in an uninhibited, non-judgmental environment.

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The process of creating, developing, and communicating new concepts or solutions.

Project Management Skills

Essential abilities required to successfully plan, execute, monitor, control, and close projects, including time management, communication, leadership, and risk management.

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The specialized knowledge or skills in a particular field or area of study.