Financial Accounting (12th Edition) (What's New in Accounting)
12th Edition
ISBN: 9780134725987
Author: C. William Thomas, Wendy M. Tietz, Walter T. Harrison Jr.
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 12, Problem 12.3S
To determine
To Prepare: A vertical analysis of the company’s assets at the end of years 2018, 2017, and 2016.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Vison software reported the following amounts on its balance sheets at December 31, 2020, 2019, and 2018
*Data table provided*
Sales and profits are high. Nevertheless, Vision is experiencing a cash shortage. Perform a vertical analysis of Vision Software's assets at the end of years 2020, 2019, and 2018.
Use the analysis to explain the reason for the cash shortage.
Consider the following data for this company (image)
True or False and why: This company raised cash in 2020 by increasing borrowing from suppliers.
True or False and why: Despite having lower operating cash flow in 2020, this company managed to maintain its investments in the business during 2020 by reducing cash holdings
True or False and why: This company raised cash from investors to manage the crisis in 2020 and suspended any payments to investors during 2020
Prepare the operuting activites section of the business's statement of cash fows for the year ended June 30, 2016, using the direct method. (Use a minus sign or
parenthoses to show net cash used for operating activites. Ifa box is not used in the statement, leave the box empty, do not select a label or enter aere)
Stella's Learning Center
Data Table
Statement of Cash Flows (Partial)
Year Ended June 30, 2016
Cash Flows from Operating Activities
Payments to suppliers
$ 119,000
Receipts
Cash payment for purchase of equipment
30,000
Payments to employees
66.000
Payment of notes payable
33,000
Total Cash Receipts
Payment of dividends
4,500
Payments
Cash receipt from isuance of stoc
20,000
Collections from customers
187,000
Cash receipt from sale of land
50,000
Cash balance, June 30, 2015
32,000
Choose from any list or enter any number in the input fields and then click Check Answer
Print
Done
Chapter 12 Solutions
Financial Accounting (12th Edition) (What's New in Accounting)
Ch. 12 - Prob. 1QCCh. 12 - Prob. 2QCCh. 12 - Prob. 3QCCh. 12 - Prob. 4QCCh. 12 - Expressing accounts receivable as a percentage of...Ch. 12 - Kincaid Company reported the following data (in...Ch. 12 - Prob. 7QCCh. 12 - Ratios that measure liquidity include all of the...Ch. 12 - Verba Corporation has an inventory turnover of 15...Ch. 12 - The measure of a companys ability to collect cash...
Ch. 12 - A ratio that measures a companys profitability is...Ch. 12 - Prob. 12QCCh. 12 - Prob. 13QCCh. 12 - Prob. 14QCCh. 12 - Prob. 12.1ECCh. 12 - Prob. 12.1SCh. 12 - Prob. 12.2SCh. 12 - Prob. 12.3SCh. 12 - Prob. 12.4SCh. 12 - Prob. 12.5SCh. 12 - (Learning Objective 4: Evaluate a companys quick...Ch. 12 - Prob. 12.7SCh. 12 - (Learning Objective 4: Measure ability to pay...Ch. 12 - (Learning Objective 4: Measure profitability using...Ch. 12 - Prob. 12.10SCh. 12 - (Learning Objective 4: Use ratio data to...Ch. 12 - Prob. 12.12SCh. 12 - (Learning Objective 4: Analyze a company based on...Ch. 12 - Prob. 12.14SCh. 12 - Prob. 12.15SCh. 12 - Prob. 12.16AECh. 12 - Prob. 12.17AECh. 12 - Prob. 12.18AECh. 12 - Prob. 12.19AECh. 12 - Prob. 12.20AECh. 12 - Prob. 12.21AECh. 12 - Prob. 12.22AECh. 12 - Prob. 12.23AECh. 12 - Prob. 12.24AECh. 12 - Prob. 12.25AECh. 12 - Prob. 12.26AECh. 12 - Prob. 12.27BECh. 12 - Prob. 12.28BECh. 12 - Prob. 12.29BECh. 12 - Prob. 12.30BECh. 12 - Prob. 12.31BECh. 12 - LO 4 (Learning Objective 4: Calculate ratios;...Ch. 12 - Prob. 12.33BECh. 12 - Prob. 12.34BECh. 12 - Prob. 12.35BECh. 12 - Prob. 12.36BECh. 12 - Prob. 12.37BECh. 12 - Prob. 12.38QCh. 12 - Prob. 12.39QCh. 12 - Prob. 12.40QCh. 12 - Prob. 12.41QCh. 12 - Prob. 12.42QCh. 12 - Prob. 12.43QCh. 12 - Prob. 12.44QCh. 12 - Use the Orlando Medical Corporation financial...Ch. 12 - Prob. 12.46QCh. 12 - Use the Orlando Medical Corporation financial...Ch. 12 - Prob. 12.48QCh. 12 - Prob. 12.49QCh. 12 - Prob. 12.50QCh. 12 - Prob. 12.51QCh. 12 - Prob. 12.52QCh. 12 - Prob. 12.53QCh. 12 - Prob. 12.54QCh. 12 - Prob. 12.55QCh. 12 - LO 1, 2, 4 (Learning Objectives 1, 2, 4: Calculate...Ch. 12 - Prob. 12.57APCh. 12 - Prob. 12.58APCh. 12 - LO 4 (Learning Objective 4: Use ratios to evaluate...Ch. 12 - Prob. 12.60APCh. 12 - LO 2, 4, 5 (Learning Objectives 2, 4, 5: Analyze...Ch. 12 - Group B LO 1, 2, 4 (Learning Objectives 1, 2, 4:...Ch. 12 - Prob. 12.63BPCh. 12 - Prob. 12.64BPCh. 12 - LO 4 (Learning Objective 4: Use ratios to evaluate...Ch. 12 - Prob. 12.66BPCh. 12 - LO 2, 4, 5 (Learning Objectives 2, 4, 5: Analyze...Ch. 12 - Prob. 12.68CEPCh. 12 - Prob. 12.69CEPCh. 12 - (Learning Objectives 2, 3.4: Use trend...Ch. 12 - (Learning Objectives 4, 5: Calculate and analyze...Ch. 12 - Prob. 12.72DCCh. 12 - Prob. 12.73DCCh. 12 - Prob. 12.74EICCh. 12 - Focus on Financials Apple Inc. LO 1, 2, 3, 4, 5...Ch. 12 - Comprehensive Financial Statement Analysis Project...
Knowledge Booster
Similar questions
- Dolente Ltd is a small company which designs, manufactures and sells innovative electronic instruments. The directors of the company have discussed the financial statements prepared for the year ended 31st March 2020 and have made the following remarks.“We are surprised to see that we have a loss for the year as our bank balance seems to be healthy and has increased from the 2019 figure”. task: Using the information provided by the cash flow statement, comment on the remarks of the directors on the results for the yeararrow_forwardPlease give a detailed analysis of the financial statements given below for Joshua & White Technologies. Your analysis should include answers to the questions as follows (not limited to these questions): Has the company’s liquidity position improved or worsened? Has the company’s ability to manage its assets improved or worsened? How has the company’s profitability changed during the last year? Joshua & White Technologies: December 31 Balance Sheets (Thousands of Dollars) Assets 2019 2018 Cash and cash equivalents $21,000 $20,000 Short-term investments 3,759 3,240 Accounts Receivable 52,500 48,000 Inventories 84,000 56,000 Total current assets $161,259 $127,240 Net fixed assets 223,097 200,000 Total assets $384,356 $327,240 Liabilities and equity Accounts payable $33,600 $32,000 Accruals 12,600 12,000…arrow_forwardUse the Income Statement and Selected Balance Sheet info below to complete Accounting Detective's statement of cash flow. There were no NON CASH investing or financing activities, and you do not need the detail of those activities to complete this problem. This will be required to be written out on your PDF upload in the proper format. You may use the worksheet I provided. Accounting Detectives Income Statement For the year ending December 31, 2021 Net Sales 200,000 Cost of Goods Sold 125,000 Gross Profit 75,000 Operating Expenses General & Admin expenses 40,000 Selling & Marketing expenses 20,000 Amortization expense 3,000 Partial comparative balance sheet with select information needed: Depreciation expense 15,000 Total Operating Expenses 78,000 12/31/21 12/31/20 Loss from Operations (3,000) Cash 10,000 25,000 Other expenses Accounts Receivable, Net 45,000 10,000 Loss on sale of equipment 2,000 Inventory 8,000 6,000 Total other expenses 2,000 Property, Plant & Equipment 48,000 18,000…arrow_forward
- Cash flow identity. Use the data from the following financial statements in the popup window, . The company paid interest expense of $17,100 for 2017 and had an overall tax rate of 40% for 2017. Verify the cash flow identity: cash flow from assets = cash flow to creditors + cash flow to owners The cash flow from assets is $ 24,380. (Round to the nearest dollar.) The cash flow to creditors is $ 45000. (Round to the nearest dollar.) The cash flow to owners is $ (Round to the nearest dollar.)arrow_forwardCash flow identity. Use the data from the following financial statements in the popup window, . The company paid interest expense of $17,100 for 2017 and had an overall tax rate of 40% for 2017. Verify the cash flow identity: cash flow from assets = cash flow to creditors + cash flow to owners The cash flow from assets is $ 24,380. (Round to the nearest dollar.) The cash flow to creditors is $ (Round to the nearest dollar.)arrow_forwardHere is the complete worksheet I am working on for my homework. The blank spots I had to fill in are: Income statement: sales and costs of goods sold for 2018 Balance sheet was cash and net fixed assets for 2018 Cash flow statements were: depreciation, accounts receivable and accts payable Can you let me know if the information I have provided looks correct? I just want to make sure I am on the right track. Thank you! Income Statement For the year: 2016 2017 2018 Sales $ 120,000 $ 150,000 $ 180,000 Cost of Goods Sold $ 100,000 $ 120,000 Gross Profit $ 60,000 General, Selling, & Administrative Expense $ 50,000 Depreciation $ 8,500 Net Income $ 1,500 Balance Sheet For the year ending: 2017 2018 Assets Cash $…arrow_forward
- Cash flow identity. Use the data from the following financial statements in the popup window,. The company paid interest expense of $17,100 for 2017 and had an overall tax rate of 40% for 2017. Verify the cash flow identity: cash flow from assets = cash flow to creditors + cash flow to owners The cash flow from assets is $ (Round to the nearest dollar.)arrow_forwardAnalyse and comment on the impact of the following events on a companies balance sheet, income statement and cash flow statement. E. g. Company purchases Machinery for $100,000 in cash. Effect. Obvious impact Fixed Asset increased, Balance sheet affected. Company will start recording depreciation expense in Income Statement Cash Outfi ow will reduce balance of cash on balance sheet. Current Ratio likely affected adversely and Working Capital. Analysis. Company may experience increase in Accounts Payable because of such a substantial cash outflow. This will affect Current Liabilities. Or. Company may have to seek short term loan from the bank as a back up in case there is any disturbance in receivables in the future. To counter this substantial cash outflow. Company should have negotiated with a bank a low interest loan to purchase machine over time in instalments. 1)A Manufacturing company ABC: relies on several suppliers for raw materials, often these materials are purchased on 90…arrow_forwardThe 2018 income statement and the 2018 comparative balance sheet of GhentRiver Camp, Inc., have just been distributed at a meeting of the camp’s board of directors.The directors raise a fundamental question: Why is the cash balance so low? This question isespecially troublesome since 2018 showed record profits. As the controller of the company, youmust answer the question. Requirements1. Prepare a statement of cash flows for 2018 in the format that best shows the relationshipbetween net income and operating cash flow. The company sold no plant assets or longterm investments and issued no notes payable during 2018. There were no noncash investing and financing transactions during the year. Show all amounts in thousands.2. Answer the board members’ question: Why is the cash balance so low? Point out the twolargest cash payments during 2018. (Challenge)3. Considering net income and the company’s cash flows during 2018, was it a good year or abad year? Give your reasons.arrow_forward
- Please answer the following questions: Cash Flow to Creditors and Stockholders As part of your analysis, you are required to investigate Carrium Insights Inc. cash flows and compute selected financial ratios using the financial statements provided Required: (a) Calculate the following for 2020: Operating Cash Flow - DO NOT ANSWER Net Capital Spending - DO NOT ANSWER Change in Net Working Capital - DO NOT ANSWER Cash Flow from Assets - DO NOT ANSWER Cash Flow to Creditors Cash Flow to Stockholdersarrow_forwardRequired: (a) Prepare a cash flow statement for Chamber Corp for the year ended 31 December 2021. (b) Reply to the following questions put to you by one of the directors of the company: 'Can you please explain to me how we have a healthy profit yet our bank overdraft has reached a record level? Surely there must be something wrong with the profit calculations.'arrow_forward(Learning Objectives 1, 7: Show how to speed up cash flow from receivables;evaluate liquidity using ratios) The comparative financial statements of Diamond Pools, Inc.,for 2020, 2019, and 2018 included the following select data:Balance sheetCurrent assets:Cash...............................................Investment in trading securities......Receivables, net of allowancefor uncollectible accounts of $7,$6, and $4, respectivelyInventories .....................................Prepaid expenses............................Total current assets........................Total current liabilities.......................Income statementNet sales (all on account)...................(In millions)2020$ 9015027034050$ 900$ 550$7,7002019$ 9518028035540$ 950$ 640$5,3552018$ 6011523032535$ 765$ 650$4,745Requirements1. Compute the following ratios for 2020 and 2019:a. Current ratiob. Quick (acid-test) ratioc. Days’ sales outstanding2. Which ratios improved from 2019 to 2020 and which ratios deteriorated?…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Auditing: A Risk Based-Approach (MindTap Course L...AccountingISBN:9781337619455Author:Karla M Johnstone, Audrey A. Gramling, Larry E. RittenbergPublisher:Cengage Learning
Auditing: A Risk Based-Approach (MindTap Course L...
Accounting
ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Cengage Learning