aUW Möbius - Unit 6, Lesson 1_ Legal Risk Management
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E Chapter 5 Homework
Question 6 of 6
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Current Attempt in Progress
The comparative balance sheets of Constantine Cavamanlis Inc. at the beginning and the end of the year 2020 are as follows.
CONSTANTINE CAVAMANLIS INC.
BALANCE SHEETS
Dec. 31, 2020
Jan. 1, 2020
Inc./Dec.
Assets
Cash
$ 45,000
$ 13,000
$32,000
Inc.
Accounts receivable
91,000
88,000
3,000
Inc.
Equipment
39,000
22,000
17,000
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Less: Accumulated Depreciation-Equipment
17,000
11,000
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Total
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$112,000
Liabilities and Stockholders' Equity,
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КОСН СORPORATION
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common shares
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Changes in Current Operating Assets and Liabilities-Indirect Method
Covington Corporation's comparative balance sheet for current assets and liabilities was as follows:
Dec. 31, 20Y2
Dec. 31, 20Y1
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66,500
67,200
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0098
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Quick ratio
Adieu Company reported the following current assets and current liabilities for two recent years:
Dec. 31, 20Y4 Dec. 31, 20Y3
Cash
$830
$1,090
Temporary investments
1,200
1,500
Accounts receivable
820
910
Inventory
2,100
2,500
Accounts payable
1,900
2,500
a. Compute the quick ratio on December 31 for each year. Round to one decimal place.
20Υ4
20Υ3
Quick Ratio
b. Is the quick ratio improving or declining?
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Part 9:
The following is a comprehensive problem which encompasses all of the elements learned in previous chapters. You can refer to the objectives for each chapter covered as a review of the
concepts.
Note: You must complete parts 1, 2, 3, 4, 6, 7 and 8 before completing part 9. Part 5 is optional.
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Date
Account Name
Post. Ref.
Debit
Credit
20Y8 Closing Entries
May 31 Fees Earned
40,000 ✓
0
✓
1,705 ✓
0✔
0✓
1,600 ✔
0 ✓
1,370 ✔
0✓
330
0✔
275
✓
1,295 ✔
33,425 ✔
0
10,500
<
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Pears
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Chapter: Recording Business TraNSACTIONS
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P-F:2-30A. Journalizing transactions, posting journal entries to T-
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15
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Ann Simpson started her practice as a design consultant on September 1,
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3. Prepare the trial balance of Vince York, M.D., as of July 31, 2024.
30
Received $48,000 cash and issued common stock to Simpson.
Purchased office supplies, $1,200, and furniture, $1,300, on account.
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X
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Patterson Brothers recently reported an EBITDA of $12.5 million and net income of $2.4 million. It had $2.0 million of interest expense, and its corporate tax rate was 40%. What was its charge
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for depreciation and amortization? Write out your answer completely. For example, 25 million should be entered as 25,000,000. Do not round intermediate calculations. Round your answer to the
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EBITDA
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Table of Contents > Week 9: Operational and legal Considerations > Lecture Notes > 09 Operational and Legal Considerations
09 Operational and Legal Considerations -
>
Calculating Capacity
• How many machines do you need?
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3,000,000 granola bars (20g each)
• How large is your plant?
per month
• How many workers do you need?
The machine:
• How much is the investment?
Capacity: 100 kgs per hour
• What are the operating costs?
Requires 2 people to operate it
Takes 8 ft x 40 ft space
• Cost per machine $15,000
Energy and maintenance: $5 per hour
• Cost of material and packaging:
$0.12 per bar
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During the current year, Sokowski Manufacturing earned income of $332,760 from total sales of $5,640,000 and average capital assets of $12,000,000.
A. Based on this information, calculate asset turnover. If required, round your answer to two decimal places.
times
B. Assume sales margin is 5.9%, what is the total ROI for the company during the current year?. If required, round your answer to one decimal place.
%
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Over the years, Masterson Corporation's stockholders have provided $35,000,000 of capital when they purchased new issues of stock and allowed management to retain some of the firm's
earnings. The firm now has 2,100,000 shares of common stock outstanding, and the shares sell at a price of $30 per share. How much value has Masterson's management added to stockholder
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wealth over the years, that is, what is Masterson's MVA? Round your answer to the nearest dollar, if necessary.
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What is forecasting risk and how can it affect decision making?
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Project L costs $65,000, its expected cash inflows are $8,000 per year for 9 years, and its WACC is 9%. What is the project's payback? Round your answer to two decimal places.
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Current Position Analysis
The following items are reported on a company's balance sheet:
$365,600
Marketable securities
285,700
Accounts receivable (net)
254,900
Inventory
236,400
Accounts payable
394,000
Determine (a) the current ratio and (b) the quick ratio. Round to one declmal place.
a. Current ratio
b. Quick ratio
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a. Divide current assets by current liabilities.
b. Divide quick assets by current liabilities. Quick assets are cash, temporary investments, and receivables.
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APPLICATION 5 - Internal Controls for Fraud Prevention (Webinar)
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Entries for notes payable
Bennett Enterprises issues a $660,000, 45-day, 9%, note to Spectrum Industries for merchandise inventory.
Assume a 360-day year. If required, round your answers to the nearest dollar.If an amount box does not require an entry, leave it blank.
a. Journalize Bennett Enterprises' entries to record:
1. the issuance of the note.
2. the payment of the note at maturity.
2
b. Journalize Spectrum Industries' entries to record:
1. the receipt of the note.
2. the receipt of the payment of the note at maturity.
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3 Project i
es
For each of the following separate situations, determine how much revenue is recognized in December (using accrual basis
accounting).
a. On December 7, Oklahoma City Thunder sold a $124 ticket to a basketball game to be played in March.
b. Tesla sold and delivered a $92,000 car on December 25. The customer will not pay until February.
c. Deloitte signs a contract on December 1 to provide 40 days of advisory services with receipt of $44,000 due at the end of the
contract. On December 31, 75% of the services have been completed.
Situations
Revenue recognized
a. Sale of a ticket to a basketball game
b. Sale of a car on credit
c. Contract to provide advisory services
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- E Chapter 5 Homework - FINANCIA X O NWP Assessment Player UI Appli X b Answered: The accountant of Lati x M Inbox - dhyani11141999@gmail. X b My Questions | bartleby + i assessment.education.wiley.com/was/ui/v2/assessment-player/index.html?launchld=1d52287e-dfd8-4d2a-80c9-4cbf51a01297#/question/5 E Chapter 5 Homework Question 6 of 6 > -/ 1 View Policies Current Attempt in Progress The comparative balance sheets of Constantine Cavamanlis Inc. at the beginning and the end of the year 2020 are as follows. CONSTANTINE CAVAMANLIS INC. BALANCE SHEETS Dec. 31, 2020 Jan. 1, 2020 Inc./Dec. Assets Cash $ 45,000 $ 13,000 $32,000 Inc. Accounts receivable 91,000 88,000 3,000 Inc. Equipment 39,000 22,000 17,000 Inc. Less: Accumulated Depreciation-Equipment 17,000 11,000 6,000 Inc. Total $158,000 $112,000 Liabilities and Stockholders' Equity, Accounts payable $ 20,000 $ 15,000 5,000 Inc. Common stock 100,000 80,000 20,000 Inc. Retained earnings 38,000 17,000 21,000 Inc. Total $158,000 $112,000 Net…arrow_forwardE Chapter 5 Homework - FINANCIA X O NWP Assessment Player UI Appli X b Answered: The accountant of Lati x M Inbox - dhyani11141999@gmail. X b My Questions | bartleby + i assessment.education.wiley.com/was/ui/v2/assessment-player/index.html?launchld3D1d52287e-dfd8-4d2a-80c9-4cbf51a01297#/question/0 E Chapter 5 Homework Question 1 of 6 > -/ 1 View Policies Current Attempt in Progress Koch Corporation's adjusted trial balance contained the following asset accounts at December 31, 2020: Cash $7,000, Land $40,000, Patents $12,500, Accounts Receivable $90,000, Prepaid Insurance $5,200, Inventory $30,000, Allowance for Doubtful Accounts $4,000, and Equity Investments (to be sold in the next quarter) $11,000. Prepare the current assets section of the balance sheet. (List Current Assets in order of liquidity.) КОСН СORPORATION Balance Sheet (Partial) 2$ 2$ 1:37 PM O Type here to search 9/24/2020 2 ..arrow_forwardP MindTap HW 1 - Spring 2021 - Fi X * MindTap - Cengage Learning b Details | bartleby ô https://ng.cengage.com/static/nb/ui/evo/index.html?deploymentld=590512258542108435051542&elSBN=9780357114582&id=1062944983... Chelsea v CENGAGE MINDTAP Q Search this course A My Home HW 1 Courses Back to Assignment O Catalog and Study Tools Attempts: Average: / 1 A-Z Partner Offers 7. Problem 3.05 (MVA) EE Rental Options dOffice eBook College Success Tips Harper Industries has $400 million of common equity on its balance sheet; its stock price is $70 per share; and its market value added (MVA) is $90 million. How many common shares are currently outstanding? Write out your answer completely. For example, 5 million shares should be entered as 5,000,000. Round your answer to the nearest whole number, if necessary. Career Success Tips common shares You are eligible for a FREE 7- day trial of Cengage Unlimited or Cengage Unlimited eTextbooks Grade it Now Save & Continue Try for Free Continue without…arrow_forward
- P MindTap HW 1 - Spring 2021 - Fi X * MindTap - Cengage Learning b Details | bartleby ô https://ng.cengage.com/static/nb/ui/evo/index.html?deploymentld=590512258542108435051542&elSBN=9780357114582&id=1062944983... Chelsea v CENGAGE MINDTAP Q Search this course A My Home HW 1 Courses Back to Assignment O Catalog and Study Tools Attempts: Average: / 1 A-Z Partner Offers 6. Problem 3.04 (Statement of Stockholders Equity) EE Rental Options dOffice eBook College Success Tips In its most recent financial statements, Nessler Inc. reported $35 million of net income and $420 million of retained earnings. The previous retained earnings were $391 million. How much in Career Success Tips dividends were paid to shareho during the year? Assume dividends declared were actually paid. Write out your answer completely. For example, 25 mill be entered as 25,000,000. Round your answer to the nearest dollar, if necessary. $ You are eligible for a FREE 7- day trial of Cengage Unlimited or Cengage Unlimited…arrow_forwardP MindTap HW 1 - Spring 2021 - Fi X * MindTap - Cengage Learning b Details | bartleby ô https://ng.cengage.com/static/nb/ui/evo/index.html?deploymentld=590512258542108435051542&elSBN=9780357114582&id=1062944983... Chelsea v CENGAGE MINDTAP Q Search this course A My Home HW 1 Courses Back to Assignment O Catalog and Study Tools Attempts: Average: / 1 A-Z Partner Offers 10. Problem 3.07 (EVA) EE Rental Options dOffice eBook College Success Tips Barton Industries has operating income for the year of $3,500,000 and a 37% tax rate. Its total invested capital is $20,000,000 and its after-tax percentage cost of capital is 8%. What is the firm's EVA? Round your answer to the nearest dollar, if necessary. Career Success Tips $ You are eligible for a FREE 7- day trial of Cengage Unlimited or Cengage Unlimited eTextbooks Grade it Now Save & Continue Try for Free Continue without saving Learn more ? Help O Give Feedback 8:17 PM O Type here to search 日 w 1/24/2021arrow_forwardin CengageNOWv2| Online teachi x Cengage Learning 8-1 Problem Set: Module Eight X how.comn/akeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=D&inprogress3false eBook Show Me How Changes in Current Operating Assets and Liabilities-Indirect Method Covington Corporation's comparative balance sheet for current assets and liabilities was as follows: Dec. 31, 20Y2 Dec. 31, 20Y1 Accounts receivable $15,300 Inventory 66,500 67,200 Accounts payable 20,100 0098 Dividends payable 000' Adjust net income of $84,200 for changes in operating assets and liabilities to arrive at net cash flow from operating activities. ( Previou: Check My Work レ AD 12arrow_forward
- lem Set: Modx * CengageNOWv2 | Onl X * Cengage Learning B Milestone Two Guideli x G module ow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=.. eBook Show Me How Quick ratio Adieu Company reported the following current assets and current liabilities for two recent years: Dec. 31, 20Y4 Dec. 31, 20Y3 Cash $830 $1,090 Temporary investments 1,200 1,500 Accounts receivable 820 910 Inventory 2,100 2,500 Accounts payable 1,900 2,500 a. Compute the quick ratio on December 31 for each year. Round to one decimal place. 20Υ4 20Υ3 Quick Ratio b. Is the quick ratio improving or declining? Check My Work 56°F Mostly 39arrow_forwardngageNOWv2 | Online teachin x Chapter 4 Corporate Financial Ac x + /ilm/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSession Locator=&inprogress=false ☆ E 1 Welcome - Login.gov Sign in to your acco... Control Center Part 9: The following is a comprehensive problem which encompasses all of the elements learned in previous chapters. You can refer to the objectives for each chapter covered as a review of the concepts. Note: You must complete parts 1, 2, 3, 4, 6, 7 and 8 before completing part 9. Part 5 is optional. Part 9: Prepare the closing entries below. Then, using the attached spreadsheet from part 2, post the entries to your general ledger. If an amount box does not require an entry, leave it blank. Date Account Name Post. Ref. Debit Credit 20Y8 Closing Entries May 31 Fees Earned 40,000 ✓ 0 ✓ 1,705 ✓ 0✔ 0✓ 1,600 ✔ 0 ✓ 1,370 ✔ 0✓ 330 0✔ 275 ✓ 1,295 ✔ 33,425 ✔ 0 10,500 < Previous Next Email Instructor Save and Exit Submit Assignment for Gradin 10:53 PE -- 6/13/202 WIS V…arrow_forwardSheffield Corp. uses the percentage-of-receivables basis to record bad debt expense and concludes that 3% of accounts receivable will become uncollectible. Accounts receivable are $430,800 at the end of the year, and the allowance for doubtful accounts has a credit balance of $2,864. (a) Prepare the adjusting journal entry to record bad debt expense for the year. (b) If the allowance for doubtful accounts had a debit balance of $887 instead of a credit balance of $2,864, prepare the adjusting journal entry for bad debt expense.arrow_forward
- Pears X P W Chapter: Recording Business TraNSACTIONS Sep. 1 hed:course:7710589/products/79c3fa4c-a84f-42ba-b87a-e36a400bca00/pages/urn:pe 6 7 Proble X P-F:2-30A. Journalizing transactions, posting journal entries to T- accounts, and preparing a trial balance (Learning Objectives 3, 4) 15 G New Ann Simpson started her practice as a design consultant on September 1, 2024. During the first month of operations, the business completed the following transactions: 3. Prepare the trial balance of Vince York, M.D., as of July 31, 2024. 30 Received $48,000 cash and issued common stock to Simpson. Purchased office supplies, $1,200, and furniture, $1,300, on account. Performed services for a law firm and received $1,900 cash. X Paid $18,000 cash to acquire land to be used in operations. Performed services for a hotel and received its promise to pay the $1,200 within one week. Paid for the furniture purchased on September 4 on account. Paid assistant's semimonthly salary, $1,500. Received cash on…arrow_forwardP MindTap HW 1 - Spring 2021 - Fi X * MindTap - Cengage Learning b I tried to do the question myself, X 8 https://ng.cengage.com/static/nb/ui/evo/index.html?deploymentld=590512258542108435051542&elSBN=9780357114582&snapshotld=22.. Chelsea v CENGAGE MINDTAP Q Search this course A My Home HW 1 Courses eBook eBook Patterson Brothers recently reported an EBITDA of $12.5 million and net income of $2.4 million. It had $2.0 million of interest expense, and its corporate tax rate was 40%. What was its charge O Catalog and Study Tools for depreciation and amortization? Write out your answer completely. For example, 25 million should be entered as 25,000,000. Do not round intermediate calculations. Round your answer to the nearest dollar, if necessary. A-Z Partner Offers $ 3900000 x EE Rental Options dOffice Hide Feedback College Success Tips Incorrect Career Success Tips Post Submission Feedback Solution EBITDA $12,500,000 (Given) You are eligible for a FREE 7- day trial of Cengage Unlimited or…arrow_forwardF myCampus Portal Login - for Stu X B 09 Operational and Legal Consid x E (24,513 unread) - sharmarohit81 b My Questions | bartleby A fleming.desire2learn.com/d21/le/content/130754/viewContent/1518900/View?ou=130754 Table of Contents > Week 9: Operational and legal Considerations > Lecture Notes > 09 Operational and Legal Considerations 09 Operational and Legal Considerations - > Calculating Capacity • How many machines do you need? • You expect your sales to be 3,000,000 granola bars (20g each) • How large is your plant? per month • How many workers do you need? The machine: • How much is the investment? Capacity: 100 kgs per hour • What are the operating costs? Requires 2 people to operate it Takes 8 ft x 40 ft space • Cost per machine $15,000 Energy and maintenance: $5 per hour • Cost of material and packaging: $0.12 per bar I Group Project.xlsx Show all 12:35 AM O Type here to search A O 4) ENG 2020-12-09arrow_forward
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