Corporate Financial Accounting
14th Edition
ISBN: 9781305653535
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Textbook Question
Chapter 1, Problem 1.6BE
Balance sheet
Using the following data for Paradise Travel Service as well as the
Accounts payable | $18,000 |
Accounts receivable | $38,000 |
Cash | 52,000 |
Common stock | 100,000 |
Land | 450,000 |
Supplies | 3,000 |
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Good Truck Berhad
Balance Sheets as at 31 December 2019
(RM in millions)
Assets Liabilities and Equities
Cash 140 Accounts payable 1,120
Accounts rec. 780 Long-term debt 1,210
Inventory 1,520 Common stock 3,000
Total 2,440 Retained earnings 710
Net fixed assets 3,600
Total assets 6,040 Total liabilities & equity 6,040
You are required to calculate:
a. Current ratio
f. Debt ratio
b. Quick ratio
g. Time Interest Earned
c. Net working capital ratio
h. Net profit margin ratio
d. Average collection period
i. Return on Assets
e. Inventory turnover
j. Return on Equities
INCOME STATEMENT,OWNER EQUITY AND BALANCE SHEET
The following selected accounts and their current balances appear in the ledger of Kanpur Co. for the fiscal year ended June 30, 2019:
Cash
$112,500
Gerri Faber, Drawing
$67,400
Accounts Receivable
302,600
Sales
4,066,600
Merchandise Inventory
341,900
Cost of Merchandise Sold
2,383,000
Estimated Returns Inventory
13,500
Sales Salaries Expense
670,100
Office Supplies
10,600
Advertising Expense
184,300
Prepaid Insurance
8,200
Depreciation Expense—Store Equipment
35,900
Office Equipment
247,500
Miscellaneous Selling Expense
15,700
Accumulated Depreciation—Office Equipment
168,200
Office Salaries Expense
365,800
Store Equipment
772,700
Rent Expense
54,000
Accumulated Depreciation—Store Equipment
247,500
Insurance Expense
16,800
Accounts Payable
171,300
Depreciation Expense—Office Equipment
27,000
Customer Refunds Payable
27,000
Office Supplies Expense
9,900
Salaries Payable
10,900…
Prepare a vertical analysis for the balance sheet data given below. (Round to two decimal places.)
Petals, Inc.
Balance Sheet
December 31, 2019
Assets
Current Assets:
Cash and Cash Equivalents $10,000
Accounts Receivable, Net 15,600
Merchandise Inventory 38,000
Total Current Assets 63,600
Long-term Investments 15,000
Property, Plant, and Equipment, Net 195,000
Total Assets $273,600
Liabilities
Current Liabilities:
Accounts Payable $8,500
Notes Payable…
Chapter 1 Solutions
Corporate Financial Accounting
Ch. 1 - Name some users of accounting information.Ch. 1 - Prob. 2DQCh. 1 - Prob. 3DQCh. 1 - Josh Reilly is the owner of Dispatch Delivery...Ch. 1 - 5. On July 12, Reliable Repair Service extended an...Ch. 1 - Prob. 6DQCh. 1 - Describe the difference between an account...Ch. 1 - Prob. 8DQCh. 1 - Prob. 9DQCh. 1 - The financial statements are interrelated. (A)...
Ch. 1 - Cost principle On June 25, Ritts Roofing extended...Ch. 1 - Prob. 1.2BECh. 1 - Transactions Interstate Delivery Service is owned...Ch. 1 - Income statement The revenues and expenses of...Ch. 1 - Prob. 1.5BECh. 1 - Balance sheet Using the following data for...Ch. 1 - Statement of cash flows A summary of cash flows...Ch. 1 - Prob. 1.1EXCh. 1 - Prob. 1.2EXCh. 1 - Prob. 1.3EXCh. 1 - Prob. 1.4EXCh. 1 - Accounting equation The total assets and total...Ch. 1 - Accounting equation Determine the missing amount...Ch. 1 - Prob. 1.7EXCh. 1 - Asset, liability, and stockholders equity items...Ch. 1 - Effect of transactions on accounting equation What...Ch. 1 - Effect of transactions on accounting equation A. A...Ch. 1 - Prob. 1.11EXCh. 1 - Transactions The following selected transactions...Ch. 1 - Nature of transactions Teri West operates her own...Ch. 1 - Net income and dividends The income statement for...Ch. 1 - Net income and stockholders equity for four...Ch. 1 - Balance sheet items From the following list of...Ch. 1 - Income statement items From the following list of...Ch. 1 - Prob. 1.18EXCh. 1 - Prob. 1.19EXCh. 1 - Prob. 1.20EXCh. 1 - Balance sheets, net income Financial information...Ch. 1 - Financial statements Each of the following items...Ch. 1 - Prob. 1.23EXCh. 1 - Prob. 1.24EXCh. 1 - Financial statements We-Sell Realty, organized as...Ch. 1 - Transactions On September 1 of the current year,...Ch. 1 - Financial statements The amounts of the assets and...Ch. 1 - Financial statements Seth Feye established...Ch. 1 - Transactions; financial statements On August 1,...Ch. 1 - Transactions; financial statements DLite Dry...Ch. 1 - Missing amounts from financial statements The...Ch. 1 - Transactions Amy Austin established an insurance...Ch. 1 - Financial statements The amounts of the assets and...Ch. 1 - Financial statements Jose Loder established Bronco...Ch. 1 - Prob. 1.4BPRCh. 1 - Transactions; financial statements Bevs Dry...Ch. 1 - Missing amount from financial statements The...Ch. 1 - Peyton Smith enjoys listening to all types of...Ch. 1 - Prob. 1.1ADMCh. 1 - Home Depot: Ratio of liabilities to stockholders'...Ch. 1 - Lowes: Ratio of liabilities to stockholders equity...Ch. 1 - Prob. 1.4ADMCh. 1 - Prob. 1.1TIFCh. 1 - Prob. 1.3TIF
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- The following selected accounts and their current balances appear in the ledger of Clairemont Co. for the fiscal year ended May 31, 2019: Instructions 1. Prepare a multiple-step income statement. 2. Prepare a statement of owners equity. 3. Prepare a balance sheet, assuming that the current portion of the note payable is 50,000. 4. Briefly explain how multiple-step and single-step income statements differ.arrow_forwardFINANCIAL RATIOS Use the work sheet and financial statements prepared in Problem 15-8B. All sales are credit sales. The Accounts Receivable balance on January 1 was 38,200. REQUIRED Prepare the following financial ratios: (a)Working capital (b)Current ratio (c)Quick ratio (d)Return on owners equity (e)Accounts receivable turnover and the average number of days required to collect receivables (f)Inventory turnover and the average number of days required to sell inventoryarrow_forwardMultiple-Step Income Statement and Report Form of Balance Sheet The following selected accounts and their current balances appear in the ledger of Kanpur Co. for the fiscal year ended June 30, 2019: Cash $122,700 Gerri Faber, Drawing $73,500 Accounts Receivable 330,200 Sales 4,437,700 Merchandise Inventory 373,100 Cost of Merchandise Sold 2,600,500 Estimated Returns Inventory 14,750 Sales Salaries Expense 731,300 Office Supplies 11,600 Advertising Expense 201,100 Prepaid Insurance 9,000 Depreciation Expense—Store Equipment 39,200 Office Equipment 270,100 Miscellaneous Selling Expense 17,200 Accumulated Depreciation—Office Equipment 183,600 Office Salaries Expense 399,200 Store Equipment 843,200 Rent Expense 58,900 Accumulated Depreciation—Store Equipment 270,100 Insurance Expense 18,300 Accounts Payable 186,900 Depreciation Expense—Office Equipment 29,500 Customer Refunds Payable 29,500 Office Supplies Expense 10,800 Salaries Payable…arrow_forward
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