The following information is extracted from a recent year's financial records of a company which makes a single product: Sales 486,500 Production cost of sales 328,450 Purchase of raw materials 256,250 Stocks: raw materials 49,150 work-in-progress 23.400 finished goods 58,500 Trade debtors 106,640 Trade creditors 35,120 Bank overdraft 21,960 All sales and purchases were made on credit. Assume that 1 year = 365 days. %3! REQUIRED (a) Calculate for the year, the: (i) current and acid-test (quick) ratios (each rounded to 1 decimal place) (i) working capital cycle (rounded to whole days) (iii) Advise the company on what steps may be taken to reduce its working capital cycle.
Q: A review of the ledger of Flint Co. at December 31, 2022, produces the following data pertaining to ...
A: The adjustment entries are prepared at year end to adjust the revenue and expenses of the current pe...
Q: 3. Last year, Bagger Company had sales revenue of $1,250,000, direct materials of $280,000, direct l...
A: Cost of goods sold = Direct material + Direct labor + Overhead = 280,000 + 310,700 + 449,...
Q: What did Dennis Kozlowski of Tyco do that was so unethical or illegal in the world of business and a...
A: The answer for the question on unethical or illegal doings of Dennis Kozlowski of Tyco is discussed ...
Q: Studying AIS helps students understand business processes from an accounting perspective. Which of t...
A: AIS Accounting information systems involves collection, storage and processing of finance and accoun...
Q: XYZ Co had the following accounts at the time it was acquired by ABC Inc (see image below). ABC paid...
A: Cost of acquisition means total expenses incurred by entity to purchase new entity or assets. Here ...
Q: ers 7-9) Saved Westway Company pays Suzie Chan $3,100 per week. Assume Social Security is 6.2% on $1...
A: Tax refers to the amount charged by the government on individuals, partnership firms, HUF’s or any c...
Q: acquisition date, the acquirer could only determine a provisional fair value for the Plant. On March...
A: Cash 50000 Furniture & fittings 20000 Accounts receivable 5000 Plant 131000 Less...
Q: Selected transactions for Martinez, an interior decorator corporation, in its first month of busines...
A: Increase in assets should be debited and decrease in assets should be credited. Increase in liabilit...
Q: Chrom Company manufactures two models, the XL and RD. It also has two departments, assembly and fini...
A: The predetermined overhead rate using single plantwide method is calculated as estimated overhead co...
Q: Indicate the financial statement on which each of the following items appears: income statement, sta...
A: In income statement we should record all Incomes (credited to income statement) and all expenses (To...
Q: August 1 8 $140 $ 1,120 August 4 August 11 August 13 August 20 August 26 August 29 inventory Sale ($...
A: Inventory Valuation Methods are methods of valuation of inventory. There are three methods of invent...
Q: Compute for the amount of gain on reversal of inventory write-down on December 31,2021.
A: Inventory write down method refers to an accounting method which is used by the company to record th...
Q: P3.1 (LO 2, 4) (Transactions, Financial Statements—Service Company) Listed below are the transaction...
A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question...
Q: Freeflight Airlines is presently operating at 70 percent of capacity. Management of the airline is c...
A: The division may be incurring losses on individual level but on whole it may be providing benefit to...
Q: ou are a merchandising company. Please make a random list of accounts with their balances that you ...
A: Merchandising company is that company which deals in purchase and sale of merchandise and this type ...
Q: On December 1, 2021, ABC Company acquired all the assets and liabilities of XYZ Inc. issuing 100,000...
A:
Q: Indicate the financial statement on which each of the following items appears: income statement, sta...
A: Balance Sheet includes asset and liability of the Company Income Statement includes revenue and expe...
Q: ABC and XYZ Inc had the following balance sheets on December 31, 2021: (see image below) On January ...
A: Consolidated financial statements are those statements which are prepared for the consolidation of t...
Q: What is the difference between ‘Cash’ basis and ‘Accrual’ basis of accounting.
A: Since you have asked multiple questions, we will solve the first question for you. If you want any s...
Q: purchase price. It costs the Book Shop $500 to place a single order. The maximum sale for the Book S...
A:
Q: Using the data provided, perform the steps below to complete the final project. On December ...
A: The question is based on the concept of Financial Accounting. As per the Bartleby guidelines we are ...
Q: ulie, a single taxpayer, has completed her 2020 Schedule C and her net loss is $40,000. Her only oth...
A: Taxable income is the portion of a person's or a company's income that is used to calculate how much...
Q: On quesiton C: Johnson’s borrowed $282,000 at a(n) 9 percent annual interest rate on April 1 of the...
A: Adjusting entries are those journal entries which are passed at the end of accounting period in orde...
Q: ABC and XYZ Inc had the following balance sheets on December 31, 2021: (see image below) On January ...
A: solution given Purchase price 40000 Fair value of current assets of XYZ 26000 Fair v...
Q: BC and XYZ Inc had the following balance sheets on December 31, 2021: (see image below) On January 1...
A: solution given Purchase price 40000 Fair value of current assets of XYZ 26000 Fair v...
Q: 1. Journal Entries 2. Cost of Production Report for Department 1 and 2 for the month of June 2021 3....
A: The question provides us with the data of units and the costs incurred under various elements in bot...
Q: XYZ Co had the following accounts at the time it was acquired by ABC Inc (see image below). ABC pai...
A: Fair value of net identifiable assets = Fair value of identifiable assets - Fair value of identifiab...
Q: General journal for coffee machine
A: Fixed asset is written off in the books of accounts, when there is obsolescence, or the asset is sol...
Q: Activity Cost Pools Customer Product Customer Total Cost Orders Development Relations Other Total Pr...
A: For allocating the cost pools we will multiply the percentage of Activity cost pools with the amount...
Q: B6. LO 7.3Record the following transactions in the purchases journal: Feb. 2 Purchased inventory...
A: Solution Concept Purchase journal A purchase journal is a prime book of entry It is used to record t...
Q: What is the future value of a $900 annuity payment over five years if interest rates are 8 percent? ...
A: The accumulated value can be calculated as future value of annuity
Q: 22. The controller for Mitchell Supply Company has established the following overhead pools and cost...
A: The predetermined overhead rate is calculated as estimated overhead cost divided by base activity.
Q: What is a compensating balance?
A: As per the guidelines, only one qustion s allowed to be solved. Please resubmit the questions separa...
Q: In preparation for a new season, a buyer determined a 58% initial markup was required for total purc...
A: Introduction:- In order to fulfil her 50 percent gross margin objective, the buyer concluded that a ...
Q: elocity, a publicly traded corporation with a calendar fiscal year, entered into an agreement with W...
A: The transaction price includes both the fixed amount and the variable amount. The fixed amount in th...
Q: Allan has a gross income of P400,000 in 2020. His employer deducted P5,000 SSS, P4,000 PHIC, P3,000 ...
A: Answer: The final tax due is calculated on the net income of the person. The deductions is allowed f...
Q: Denzel Brooks opened a Web consulting business called Venture Consultants and completed the followin...
A: A journal entry is used to record a business deal in a company's accounting records. A journal entr...
Q: Fat Crane's Service Shop started the year with total assets of $324000 and total liabilities of $232...
A: Revenue = $639000 Expenses = $431000
Q: BC and XYZ Inc hahow much is the Goodwill arising from this Business Combination? *d the following b...
A: solution given Purchase price 40000 Fair value of current assets of XYZ 26000 Fair v...
Q: REQUIRED 1. Prepare the January 1 journal entry on Son's books to record push-down values. 2. Prepar...
A: Push-down accounting refers to an accounting method which is used by the company while purchasing an...
Q: $ 11,500 I. Lawson, Withdrawals 5,800 Services revenue 7,800 Rent expense 4,170 Wages expense 19,130...
A: Solution: Balance is a financial statement which summarizes all the assets, liabilities and equity o...
Q: Westinghouse Company manufactures major appliances. Because of growing interest in its product, it h...
A: >Mixed Cost is a cost that has the features of BOTH - Variable cost as well as Fixed Cost. &g...
Q: Inventory information for Part 311 of Sunland Corp. discloses the following information for the mont...
A: solution concept periodic method of inventory Under this method the inventory is not...
Q: P Corporation acquired an 80% interest in S Company on January 1, 2020 for P425,000. On this date, t...
A: Calculation of Goodwill recognized at January 1, 2020: Amount (P) Share capital 175,000 Ret...
Q: Help Brian May, guitarist for Queen, does not know how to price his signature Antique Cherry Special...
A: Markup = 80% on cost = 290×80% = 232
Q: XYZ Co had the following accounts at the time it was acquired by ABC Inc (see image below). ABC paid...
A: Fair value of net identifiable assets = P133,000 + P900,000 - P10,000 = P1,023,000
Q: а. Record the appropriate journal entry on December 31, 20X1. b. Where on the financial statements a...
A: Mark to market accounting is made to ensure that the financial statement consists of true amounts. T...
Q: Which of the following is not a true statement with regard to a merger? a. one entity continues to ...
A: Merger refere to the unity of two companies to a single company under one name. It is formed as a se...
Q: b. and d. Enter a debit balance of $840 as of September 1, 2019 in the supplies general ledger accou...
A: Ledgers - After recording transactions in the journal next step is to transfer them into ledgers. Le...
Q: A company makes the payment of a one-year insurance premium of $4,440 on March 1, 2019. Exercise...
A: Insurance expense is the amount money that has been incurred by the entity to buy the insurance. Ins...
Step by step
Solved in 2 steps with 2 images
- Corporation.Gross income $25,240,000Total sales 24,324,000Total credit sales 18,785,000Net income 2,975,000Cost of goods sold 12,600,000Total assets 10,550,000Average inventory 2,875,000Average receivables 3,445,000a. Compute the receivable turnover ratio.b. Compute the inventory turnover ratio.c. Compute the asset turnover ratio.Selected comparative statement data for Oriole Company are presented below. All balance sheet data are as of December 31. 20222021Net sales$1,165,000 $1,125,000Cost of goods sold705,000 645,000Interest expense20,000 15,000Net income154,945 145,000Accounts receivable145,000 125,000Inventory105,000 100,000Total assets785,000 700,000Preferred stock (6%)205,000 200,000Total stockholders’ equity635,000 525,000 Compute the following ratios for 2022. (Round answers to 1 decimal place, e.g. 1.8 or 2.5%) (a)Profit marginenter the profit margin in percentages %(b)Asset turnoverenter the asset turnover in times times(c)Return on assetsenter the return on assets in percentages %(d)Return on common stockholders’ equityenter the return on common stockholders' equity in percentages %Ecru Company has identified five industry segments: plastics, metals, lumber, paper, and finance. It appropriately consolidated each of these segments in producing its annual financial statements. Information describing each segment (in thousands) follows: Sales to outside parties Intersegment transfers Interest income from outside parties Interest income from intersegment loans Operating expenses Interest expense Tangible assets Intangible assets Intersegment loans (debt) Plastics $6,855 163 a. Revenue test: b. Profit or loss test: c. Asset test: 0 0 4,334 82 1,577 93 0 Metals $2,414 185 40 0 1,822 37 3,256 415 0 Lumber $ 741 150 27 0 1, 126 72 584 0 0 Ecru does not allocate its $1,400,000 in common expenses to the various segments. Perform testing procedures to determine Ecru's reportable operating segments. Paper Finance $ 452 162 0 0 684 22 831 69 0 0 48 213 37 108 209 0 718
- Selected balance sheet information and the income statement for Pioneer Industries for the current year are presented below. Selected Balance Sheet Accounts Accounts Receivable Prior Year Current Year $ 24,000 $ 16,000 Inventory 32,000 35,200 Prepaid Rent 1,600 0 Accounts Payable 17,600 22,400 Salaries and Wages 3,200 4,800 Payable 04:23 Depreciation Expense Salaries Expense Income Statement Sales Revenue $ 480,000 Expenses: Cost of Goods Sold 288,000 32,000 48,000 19,200 19,200 17,600 16,000 $ 40,000 Rent Expense Insurance Expense Interest Expense Utilities Expense Net Income Required: Prepare the cash flows from operating activities section of the statement of cash flows using the indirect method. (Enter any deductions and cash outflows as a negative value.) Pioneer Industries Cash Flows from Operating Activities Adjustments to reconcile net income to net cash provided by operating activities: Changes in current assets and current liabilities: $ 0The accounting records of Uniontown Industries, Inc., provided the data below for the year endedDecember 31, 2020:Sales $1,000,000Cost of goods sold 500,000Depreciation expense 15,000Insurance expense 6,000Selling, general and administrative expenses 140,000Interest expense 20,000Income tax expense 125,000Net income 194,000Decrease in inventory 2,000Increase in accounts receivable 1,400Amortization of bond discount 5,000Decrease in prepaid insurance 300Cash dividends paid 20,000Required: In good form, prepare the operating activities section of the statement of cash flows for 2020using the direct method. Show all work for partial credit.The following income statement appears in the financial report of MERCADO Company for the year ending December 31, 2020: MERCADO Company Income Statement For the year ending December 31. 2020 Sales 72,485,000.00 Cost of goods sold Gross profit 39.866,750.00 32.618.250.00 Less: Operating expenses: Variable selling expenses: Salesmen's commissions 3,624,250.00 Communication expenses 1,812.125.00 Advertising and promotion 635.350.00 Representation expenses 215.385.00 Gas and oil - salesmen 1,285.000.00 Repairs and maintenance 1,150.000.00 3.722.110.00 Fixed selling expenses Salaries and wages 4,225,000.00 Franchises and royalties 524,150.00 Office supplies and materials 555.000.00 Depreciation 963 300.00 6.267,450.00 14.989,560.00 Fixed administrative expenses Salaries and wages 6.324,650.00 Employee benefits 316,490.00 Communications expenses 335,125.00 Office supplies and materials 275,150.00 Depreciation 325,500.00 104 250.00 7.681,165.00 9.947.525.00 Miscellaneous expenses Operating…
- Selected balance sheet information and the income statement for Pioneer Industries for the current year are presented below. Selected Balance Sheet Accounts Prior Year $ 22,700 31,000 2,100 17,600 4,200 Accounts Receivable Inventory Prepaid Rent Accounts Payable Salaries and Wages Payable Sales Revenue Expenses: Income Statement Cost of Goods Sold Depreciation Expense Salaries Expense Rent Expense Insurance Expense Interest Expense Utilities Expense Net Income Current Year $ 15,500 34,100 0 22,800 6,300 $ 465,000 268,000 31,000 46,500 18,600 18,600 17,050 15,500 $ 49,750 Required: Prepare the cash flows from operating activities section of the statement of cash flows using the indirect method. (Enter any deductions and cash outflows as a negative value.) Pioneer Industries Cash Flows from Operating Activities Adjustments to reconcile net income to net cash provided by operating activities: Changes in current assets and current liabilities:The comparative statements of Waterway Company are presented here. Waterway CompanyIncome StatementsFor the Years Ended December 3120222021Net sales$1,813,300 $1,753,100 Cost of goods sold1,008,900 983,000 Gross profit804,400 770,100 Selling and administrative expenses516,800 477,800 Income from operations287,600 292,300 Other expenses and losses Interest expense18,900 14,800 Income before income taxes268,700 277,500 Income tax expense78,224 77,700 Net income$ 190,476 $ 199,800 Waterway CompanyBalance SheetsDecember 31Assets20222021Current assets Cash$60,200 $64,500 Debt investments (short-term)70,600 49,200 Accounts receivable (net)117,800 102,700 Inventory123,600 114,700 Total current assets372,200 331,100 Plant assets (net)602,200 517,900 Total…The comparative statements of Waterway Company are presented here. Waterway CompanyIncome StatementsFor the Years Ended December 3120222021Net sales$1,813,300 $1,753,100 Cost of goods sold1,008,900 983,000 Gross profit804,400 770,100 Selling and administrative expenses516,800 477,800 Income from operations287,600 292,300 Other expenses and losses Interest expense18,900 14,800 Income before income taxes268,700 277,500 Income tax expense78,224 77,700 Net income$ 190,476 $ 199,800 Waterway CompanyBalance SheetsDecember 31Assets20222021Current assets Cash$60,200 $64,500 Debt investments (short-term)70,600 49,200 Accounts receivable (net)117,800 102,700 Inventory123,600 114,700 Total current assets372,200 331,100 Plant assets (net)602,200 517,900 Total…
- The data shown below were obtained from the financial records of the BST Corporation for the year ended December 31, 2020. Sound Break CorporationIncome and Retained Earnings StatementFor the year Ended December 31, 2020Net Sales P1,000,000Cost of Goods Sold:Inventory, Dec. 31, 2019 P250,000Purchases 720,000Total Goods Available P970,000Inventory 220,000 750,000Gross Margin on Sales P 250,000Selling and Administrative (including Depreciation of P20,000) 125,000Net Income before Tax P 125,000Provision for Income Tax 35,000Net Income for the Year P 90,000Retained Earnings, beginning 130,000Total P 220,000Dividends Paid 30,000Retained Earnings, December 31, 2020 P 190,000 Sound Break CorporationBALANCE SHEETDecember 31, 2019 and 2020 ASSETS 2019 2020Current Assets:Cash P 75,000 P 85,000Marketable Securities 25,000 25,000Trade Receivables, net 185,000 245,000Inventory, at cost 250,000 220,000Prepaid Expenses 15,000 10,000Total Current Assets P550,000 P585,000Property and Other…The data shown below were obtained from the financial records of the BST Corporation for the year ended December 31, 2020. Sound Break CorporationIncome and Retained Earnings StatementFor the year Ended December 31, 2020Net Sales P1,000,000Cost of Goods Sold:Inventory, Dec. 31, 2019 P250,000Purchases 720,000Total Goods Available P970,000Inventory 220,000 750,000Gross Margin on Sales P 250,000Selling and Administrative (including Depreciation of P20,000) 125,000Net Income before Tax P 125,000Provision for Income Tax 35,000Net Income for the Year P 90,000Retained Earnings, beginning 130,000Total P 220,000Dividends Paid 30,000Retained Earnings, December 31, 2020 P 190,000 Sound Break CorporationBALANCE SHEETDecember 31, 2019 and 2020 ASSETS 2019 2020Current Assets:Cash P 75,000 P 85,000Marketable Securities 25,000 25,000Trade Receivables, net 185,000 245,000Inventory, at cost 250,000 220,000Prepaid Expenses 15,000 10,000Total Current Assets P550,000 P585,000Property and Other…The data shown below were obtained from the financial records of the BST Corporation for the year ended December 31, 2020. Sound Break CorporationIncome and Retained Earnings StatementFor the year Ended December 31, 2020Net Sales P1,000,000Cost of Goods Sold:Inventory, Dec. 31, 2019 P250,000Purchases 720,000Total Goods Available P970,000Inventory 220,000 750,000Gross Margin on Sales P 250,000Selling and Administrative (including Depreciation of P20,000) 125,000Net Income before Tax P 125,000Provision for Income Tax 35,000Net Income for the Year P 90,000Retained Earnings, beginning 130,000Total P 220,000Dividends Paid 30,000Retained Earnings, December 31, 2020 P 190,000 Sound Break CorporationBALANCE SHEETDecember 31, 2019 and 2020 ASSETS 2019 2020Current Assets:Cash P 75,000 P 85,000Marketable Securities 25,000 25,000Trade Receivables, net 185,000 245,000Inventory, at cost 250,000 220,000Prepaid Expenses 15,000 10,000Total Current Assets P550,000 P585,000Property and Other…