1.
Concept Introduction:Balance sheet is the statement which makes a record of all assets and liabilities on a particular date. Balance sheet shows value of assets and liabilities on closing date of year.
To Prepare: Classified balance sheet.
2.
Concept Introduction:Balance sheet is the statement which makes a record of all assets and liabilities on a particular date. Balance sheet shows value of assets and liabilities on closing date of year.
To Calculate: Current Ratio.
3.
Concept Introduction:Balance sheet is the statement which makes a record of all assets and liabilities on a particular date. Balance sheet shows value of assets and liabilities on closing date of year. Current ratio is calculated by dividing the current assets by the current liabilities. It is Helps Company to measure the liquidity.
To State: Whether company is liquid or not and other information to decide liquidity.
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Financial Accounting: The Impact on Decision Makers
- DIRECTIONS: Using these data from Rollaird Company's comparative balance sheets, perform a horizontal analysis. Use Ch. 13, "Financial Analysis: The Big Picture," as guidance. Accounts Receivable Inventory Total Assets Dec. 31, 2022 Dec. 31, 2021 460,000 780,000 3,164,000 Example: NOTE: When entering your numbers, use whole numbers in the equation, and 1 decimal point for the answer, as seen in the example below. The text box will highlight red if incorrect after clicking the Submit button (bottom right corner). 400,000 650,000 2,800,000 Accounts Receivable 30000 ÷ 500000 = ·I. = 6.0 % %arrow_forwardDIRECTIONS: Using these data from Rollaird Company's comparative balance sheets, perform a vertical analysis. Use Ch. 13, "Financial Analysis: The Big Picture," as guidance. Accounts Receivable Inventory Total Assets Dec. 31, 2022 460,000 780,000 3,164,000 Example: Dec. 31, 2021 NOTE: When entering your numbers, use whole numbers in the equation, and 1 decimal point for the answer, as seen in the example below. The text box will highlight red if incorrect after clicking the Submit button (bottom right corner). Accounts Receivable 2022 400,000 650,000 2,800,000 30000 ÷ 500000 = 6.0 % %arrow_forwardA Preparation of Ratios Refer to the financial statements for Burch Industries in Problem 12-89A and the following data. Required: 1. Prepare all the financial ratios for Burch for 2019 and 2018 (using percentage terms where appropriate and rounding all answers to two decimal places). 2. CONCEPTUAL CONNECTION Explain whether Burchs short-term liquidity is adequate. 3. CONCEPTUAL CONNECTION Discuss whether Burch uses its assets efficiently. 4. CONCEPTUAL CONNECTION Determine whether Burch is profitable. 5. CONCEPTUAL CONNECTION Discuss whether long-term creditors should regard Burch as a high-risk or a low-risk firm. 6. Perform a Dupont analysis (rounding to two decimal places) for 2018 and 2019.arrow_forward
- Financial Statements Analysis and Interpretations Instructions: 1. Using the provided data below, prepare a Statement of Financial Position - Vertical Analysis. 2. Compute for the following financial ratios and provide interpretation for each item. a. Current Ratio b. Working Capital c. Debt-to-Equity Ratio d. Debt Ratio e. Asset Turnover Ratio 3. You may use any desired business name. 4. Use the space provided for your answer. Given: 2017 2016 P 358,950.00 P 184,560.00 P 365,450.00 P 450,355.00 P 252,260.00 P 653,550.00 P 300,000.00 P 600,000.00 P 943,105.00 P 65,000.00 P 277,145.00 P 68,505.00 P 285,000.00 P 235,000.00 P 345,650.00 P 745,000.00 P 150,000.00 P 700,000.00 P 800,000.00 Accounts Payable Accrued Expenses Accounts Receivable Cash Inventory Fixed Assets Marketable Securities Mortgage Payable Owner's Capital Prepaid Insurance 85,000.00arrow_forwardO DIRECTIONS: Using these data from Rollaird Company's comparative balance sheets, perform a horizontal analysis. Use Ch. 13, "Financial Analysis: The Big Picture," as guidance. Accounts Receivable Inventory Total Assets Dec. 31, 2022 Dec. 31, 2021 460,000 780,000 3,164,000 Example: NOTE: When entering your numbers, use whole numbers in the equation, and 1 decimal point for the answer, as seen in the example below. The text box will highlight red if incorrect after clicking the Submit button (bottom right corner). 400,000 650,000 2,800,000 Accounts Receivable 30000 ÷ •1• 500000 6.0 % olo % 010arrow_forwardAccounting Research Problem Refer to the annual report of General Mills, Inc. for the year ending May 28, 2017 (fiscal year 2017), available on this book’s Website. Review the consolidated balance sheets.a. Identify two assets listed in the consolidated balance sheets that indicate that General Mills uses the accrual basis of accounting. Which income statement accounts of General Mills are affected by adjustments to these assets accounts?b. Identify two liabilities listed in the consolidated balance sheets that indicate that General Mills uses the accrual basis of accounting. Which income statement accounts of General Mills are affected by these adjustments?arrow_forward
- Following is a list of balance sheet accounts for Branman Co. as of December 31, 2018. Solve, a. Classify each of the following accounts as an asset, liability, or net worth. b. What is the balance in the Retained Earnings account if the data forms a valid balance sheet?arrow_forwardO DIRECTIONS: Using these data from Rollaird Company's comparative balance sheets, perform a horizontal analysis. Use Ch. 13, "Financial Analysis: The Big Picture," as guidance. Accounts Receivable Inventory Total Assets Dec. 31, 2022 Dec. 31, 2021 460,000 780,000 3,164,000 Example: NOTE: When entering your numbers, use whole numbers in the equation, and 1 decimal point for the answer, as seen in the example below. The text box will highlight red if incorrect after clicking the Submit button (bottom right corner). 400,000 650,000 2,800,000 Accounts Receivable 30000 ÷ 500000 400000 || || 6.0 I % % Kay Partners and Your Business Model oloarrow_forwardBalance Sheet Baggett Companys balance sheet accounts and amounts as of December 31, 2019, are shown in random order as follows: Required: 1. Prepare a December 31, 2019, balance sheet for Baggett. 2. Compute the debt to-assets ratio.arrow_forward
- Evaluation: Financial Statements Analysis and Interpretations Instructions: 1. Using the provided data below, prepare a Statement of Financial Position - Vertical Analysis. 2. Compute for the following financial ratios and provide interpretation for each item. a. Current Ratio b. Working Capital c. Debt-to-Equity Ratio d. Debt Ratio e. Asset Turnover Ratio 3. You may use any desired business name. 4. Use the space provided for your answer. Given: 2017 2016 P 358,950.00 P 184,560.00 P 365,450.00 P 450,355.00 P 252,260.00 P 653,550.00 P 300,000.00 P 800,000.00 P 943,105.00 P 65,000.00 P 277,145.00 P 68,505.00 P 285,000.00 P 235,000.00 P 345,650.00 P 745,000.00 P 150,000.00 P 700,000.00 P 800,000.00 85,000.00 Accounts Payable Accrued Expenses Accounts Receivable Cash Inventory Fixed Assets Marketable Securities Mortgage Payable Owner's Capital Prepaid Insurancearrow_forwardPlease Complete the Following: 1. Complete a vertical and horizontal analysis on the tabs labeled "Balance Sheet" and "Income Statement", use total assets on the balance sheet and net sales on the income statement for your vertical analysis. 2. Using the balance sheet and income statement, complete the ratios on the tab labeled "Ratios" 3. Answer the final OBSERVATION QUESTION (listed under Ratios calculations) Consolidated Balance Sheets (USD $) 12/31/2020 Vertical Analysis 12/31/2019 Vertical Analysis Horizontal Analysis In Millions, unless otherwise specified Current Assets: Cash and Cash Equivalents $1,723 $1,929 Receivables, net 1,484 1,398 Merchandise Inventories 11,079 11,057 Other Current Assets 1,016 895 Total Current Assets 15,302 15,279 Property and Equipment, at…arrow_forwardPerform the Reperformance or Recalculation procedures to check the mathematical accuracy ofthe Income Statement. What issue did you find? What is the next step? Create a Correctedversion of the Income Statement. Income Statement For the Year Ended For the Year Ended Revenue 3/31/2021 3/31/2022 Sales Revenue: Corporate Accounts $ 353,739.57 $ 343,050.56 Sales Revenues: Storefront $ 80,649.00 $ 91,411.50 Total Sales Revenue $ 434,388.57 $ 434,462.06 Cost of Goods Sold: Ingredients $ 69,736.39 $ 64,645.64 Cost of Goods Sold: Boxes and Cupcake Cups $ 3,875.55 $ 3,755.55 Cost of Goods Sold: Beverages $ 5,466.50 $ 5,681.50 Total COGS $ 76,078.44 $ 74,082.69 Gross Profit $ 358,310.13 $ 360,379.37 Interest Revenue $…arrow_forward
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