se the following to answer the four questions below:Presented below is X Corporation's selected data for 2020:Retained Eamings, January 1, 2020$900,000Net Income88,200Stock dividends declared14,280During the year, the company changed its inventory methodfrom FIFO to LIFO whidecrease in inconehad resulted in a net of tax11,000Cash dividends declared21,000During 2020, the company discovered that the 2019depreciation expense were overstated by a pretax amount of10,000Таx rate30% 10,000depreciation expense were overstated by a pretax amount ofTax rate30%Based on the data above, the changes in the accounting principles (from FIFO toLIFO) hadDecreased retained earnings by S7,700Decreased retained earnings by $3,300Decreased retained earnings by $11,000None of the aboveBased on the data above, the prior period adjustment (related to the 2019depreciation expense) had -Increased retained earnings by $7.000

Solution: based on above data, the changes in accounting principles, (FIFO to LIFO) had "Decreased…

Net Income 88,200 Stock dividends declared 14,280 During the year, the company changed its inventory method from FIFO to LIFO which had resulted in a net of tax decrease in inconhe Cash dividends declared 11,000 21,000

Net Income 88,200 Stock dividends declared 14,280 During the year, the company changed its inventory method from FIFO to LIFO which had resulted in a net of tax decrease in inconhe Cash dividends declared 11,000 21,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Lydex Company Comparative Balance Sheet This Year Last Year Assets Current assets: Cash Marketable securities Accounts receivable, net Inventory Prepaid expenses Total current assets Plant and equipment, net Total assets Liabilities and Stockholders' Equity Liabilities: Current liabilities Note payable, 10% Total liabilities Stockholders' equity: Common stock, $ 78 par value Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 960,000 0 2,700,000 3,900,000 240,000 7,800,000 9,300,000 $ 17,100,000 $ 3,900,000 3,600,000 7,500,000 7,800,000 1,800,000 9,600,000 $ 17,100,000 $ 1,260,000 300,000 1,800,000 2,400,000 180,000 5,940,000 8,940,000 $ 14,880,000 $ 2,760,000 3,000,000 5,760,000 7,800,000 1,320,000 9,120,000 $ 14,880,000 Sales (all on account) Lydex Company Comparative Income Statement and Reconciliation This Year $ 15,750,000 12,600,000 3,150,000 1,590,000 Last Year $ 12,480,000 9,900,000 2,580,000 Cost of goods sold Gross margin Selling and…
Rakesh
Five Measures of Solvency or Profitability The balance sheet for Garcon Inc. at the end of the current fiscal year indicated the following: Bonds payable, 8% $900,000 Preferred $5 stock, $100 par $228,000 Common stock, $8 par $319,200.00 Income before income tax was $201,600, and income taxes were $30,600 for the current year. Cash dividends paid on common stock during the current year totaled $33,516. The common stock was selling for $28 per share at the end of the year. Determine each of the following. Round answers to one decimal place, except for dollar amounts which should be rounded to the nearest whole cent. Use the rounded answers for subsequent requirements, if required. a. Times interest earned ratio times b. Earnings per share on common stock $ c. Price-earnings ratio d. Dividends per share of common stock $ e. Dividend yield
Please answer all questions with explanations thx
earnings. Cash Accounts Receivable (net) Inventory Investments Net income Increase (Decrease) $69,570 53,800 $ 130,500 (47,390) Accounts Payable Bonds Payable Common Stock Paid-In Capital in Excess of Par-Common Stock Compute the net income for the current year, assuming that there were no entries in the Retained Earnings account except for net income and a dividend declaration of $26,900 which was paid in the current year. Increase (Decrease) $(51,240) 83,080 131,900 15,920
please answer part d,e
Current Position Analysis The following data were taken from the balance sheet of Albertini Company at the end of two recent fiscal years: Current Year Previous Year Current assets: Cash $486,400 $392,000 Marketable securities 563,200 441,000 Accounts and notes receivable (net) 230,400 147,000 Inventories 792,000 469,700 Prepaid expenses 408,000 300,300 Total current assets $2,480,000 $1,750,000 Current liabilities: Accounts and notes payable (short-term) $464,000 $490,000 Accrued liabilities 336,000 210,000 Total current liabilities $800,000 $700,000 a. Determine for each year (1) the working capital, (2) the current ratio, and (3) the quick ratio. Round ratios to one decimal place. Current Year Previous Year 1. Working capital $fill in the blank 1 $fill in the blank 2 2. Current ratio fill in the blank 3 fill in the blank 4…
Multiple-step income statement for Miner Company. Cash dividends declared on common stock $ 250,000 Cost of goods sold 16,000,000 Gain on discontinued operations (pre-tax) 390,000 Other revenue 70,000 Other expenses 90,000 Retained earnings, December 31, 20XSX 980,000 Sales revenue 25,000,000 Selling and administrative expenses 4,700,000 Understatement of sales on account from 20XX (pre-tax) 420,000 Instructions - Prepare a multiple-step income statement for the year 2018 on scrap paper. Assume a 40% tax rate and that 600,000 shares of common stock were outstanding during the year. Not all items are relevant. Enter your amounts for the following items. (a) The amount reported as gross profit is (a)____________ (b) The amount reported as income from operations is (b)____________ (c) The amount reported as income…
Five Measures of Solvency or Profitability The balance sheet for Bearing Industries Inc. at the end of the current fiscal year indicated the following: Bonds payable, 9% $1,600,000 Preferred $5 stock, $100 par 340,000 Common stock, $8 par 115,600 Income before income tax was $360,000, and income taxes were $54,000, for the current year. Cash dividends paid on common stock during the current year totaled $104,040. The common stock was selling for s240 per share at the end of the year. Determine each of the following. Round answers to one decimal place, except for dollar amounts which should be rounded to the nearest whole cent. Use the rounded answers for subsequent requirements, if required. a. Times interest earned ratio times b. Earnings per share on common stock c. Price-earnings ratio d. Dividends per share of common stock e. Dividend yield
. Five Measures of Solvency or Profitability The balance sheet for Quigg Inc. at the end of the current fiscal year indicated the following: Bonds payable, 7% $1,300,000 Preferred $10 stock, $50 par 88,000 Common stock, $10 par 598,400 Income before income tax expense was $373,100, and income taxes were $56,300 for the current year. Cash dividends paid on common stock during the current year totaled $31,715. The common stock was selling for $35 per share at the end of the year. Determine each of the following. Round answers to one decimal place, except for dollar amounts which should be rounded to the nearest whole cent. Use the rounded answers for subsequent requirements, if required. a. Times interest earned ratio times b. Earnings per share on common stock c. Price-earnings ratio d. Dividends per share of common stock e. Dividend yield %
Consolidated Statements of Earnings For the Years Ended December 31, (in thousands of dollars) Year 8 Sales $64,000 Cost of sales. 50,000 Gross profit 14,000 Operating expenses before interest and income taxes 8,000 Interest expense 1,780 Earnings before income taxes 4,220 Income tax expense 1,900 Net earnings $ 2,320 MORKSEN CORP. Consolidated Statements of Financial Position At December 31, (in thousands of dollars) Year 8 Year 7 Assets Current assets Cash $ 480 $ 380 740 10,880 Short-term investments Accounts receivable 740 8,400 Merchandise inventory 16,660 10,060 Total current assets 28,660 19,680 Property, plant, and equipment Land 4,000 4,000 Buildings and equipment 26,000 26,000 30,000 30,000 8,940 7,440 Less: Accumulated depreciation. Net property, plant, and equipment 21,060 22,560 Total assets $49,720 $42, 240 Liabilities and Shareholders' Equity Current Liabilities Bank loan $16,500 $11,400 Accounts payable 6,000 4,300 Other liabilities 1,640 1,600 Income tax payable 960…
Five Measures of Solvency or Profitability The balance sheet for Garcon Inc. at the end of the current fiscal year indicated the following: Bonds payable, 6% $1,500,000 Preferred $10 stock, $100 par $88,000 Common stock, $14 par $954,800.00 Income before income tax was $171,000, and income taxes were $25,800 for the current year. Cash dividends paid on common stock during the current year totaled $16,368. The common stock was selling for $16 per share at the end of the year. Determine each of the following. Round answers to one decimal place, except for dollar amounts which should be rounded to the nearest whole cent. Use the rounded answers for subsequent requirements, if required. a. Times interest earned ratio times b. Earnings per share on common stock c. Price-earnings ratio d. Dividends per share of common stock 2$ е. Dividend yield %