Prepare a well-written analysis of each financial statement using appropriate business/accounting vocabulary.
Q: Mason Ltd., a private corporation adhering to ASPE, enters into a non-cancellable lease agreement on…
A: An agreement of contract that is prepared to transfer the right to use the resources for a…
Q: Cintas Corporation designs, manufactures, and implements corporate identity uniform programs that it…
A: Current ratio is the ratio between current assets and current liabilities. It is calculated by…
Q: How much is the Ordinary Deduction? Mr. Pim Musay, Filipino and married died in 2021, leaving his…
A: It is a tax imposed on the transfer of the estate of a deceased person. It is a tax on the total…
Q: 1. Based on the information provided below, please calculate the total accrual needed at the end of…
A: The accrual is the method by which company records all the expenses which has been associated for…
Q: E17.12 (LO 2) AP The following information is provided for Jolly Ltd. JOLLY LTD. Balance Sheet…
A: The cash flow statement is prepared to record the cash flow from various activities during the…
Q: In Bell Group's consolidation worksheet, the opening balance of retained earnings under 'group'…
A: Consolidation is the process of joining together smaller businesses, assets, or operations to form a…
Q: GIVEN: • Taxpayer: Domestic corporation Tax period: 2021 Description Business gross income Business…
A: Regular taxable income is the income that is taxable as per the regular tax rate that is used to…
Q: Windsor Corp. is a manufacturer of specialty in-line skates. The operating results for 2022 are as…
A: Absorption costing is one of the useful costing system being used in business. Under this system,…
Q: During the current year, Sea Corp reported gross income from operations of $100,000 and operating…
A: To calculate Sea Corp's net operating loss (NOL), we need to determine its taxable income from…
Q: On January 1, 2023, a pet store buys a new dog and cat washing station costing $5,000 with a 7.3%…
A: Note payable is one of the liability being incurred in business. On this note payable, regular…
Q: Constanza, who is single, sells her current personal residence (adjusted basis of $222,000) for…
A: Realized Gain = (sale value - Selling expenses) - Adjusted BasisThe Realized gain comes when sales…
Q: Required: (a) Prepare the journal entries recorded by Ahmed for its investments in Gander during…
A: There are two methods, which are used by the company through which the company records the…
Q: Crosby Company owns a chain of hardware stores throughout the state. The company uses a periodic…
A: Cost of goods of sold in simple terms is the amount or price at which the seller sells the goods or…
Q: Which of the following approaches are a good performance measure for an investment center? Select…
A: An investment center is a specific unit or department within a company that has the authority to…
Q: P17.118 (LO 2, 3) AP The financial statements of Milk Rover Lad follow Assets Cash Accounts…
A: Cash flows statement is one of important financial statement being prepared in business. It shows…
Q: 1) Sustainable Supplies prepares the following aging of receivables analysis: Accounts receivable…
A: Lets understand the basics.Management prepare allowance for uncollectible accounts in order to…
Q: Clark Company, a U.S. corporation, sold inventory on December 1, 2022, with payment of 12,000…
A: Solution:Correct answer : (a) $1,740 gainTotal payment amount $ 12,000Payment must be received in…
Q: A firm's earnings per share increased from $10 to $12. The firm's dividends increased from $4.00 to…
A: Price to earnings ratio is the ratio between market price per share and earnings per share. It is…
Q: Exercise 6-4 Alternative cost flow assumptions-perpetual inventory system LO2 Sport Box sells a wide…
A: FIFO is an acronym for first-in, first-out which states that the inventory purchased first will be…
Q: In which situations would an employer issue an ROE with a "D" (Illness or Injury) code? Provide a…
A: An employer will issue an ROE (Record of Employment) with a "D" (Illness or Injury) code when an…
Q: The following salaried employees of Mountain Stone Brewery in Fort Collins, Colorado, are paid…
A: The percentage method has no wages or allowance limit, therefore firm's can use it. If the…
Q: 100) Santa Barbara Express has 4 sales employees, each of whom earns $5,000 per month and is paid on…
A: Answer:- Payroll taxes:- The tax that is deducted, assessed or imposed on the employer's paycheck is…
Q: Use the following selected data from Business Solutions's income statement for the three months…
A: RATIO ANALYSIS Investors, individuals, and strategists use ratios to examine company information in…
Q: Ocean Ltd recorded an accounting profit before tax of $50,000 for the year ended 30 June 2020.…
A: According to the question given, we need to compute the current tax expense.Current tax expense:The…
Q: 1. Determine the tax consequences of the above items 2. Show and submit all calculations 3. Record,…
A: Tax consequences are the financial effects of certain transactions and activities on the tax…
Q: Crritically identify the possible causes of the labour and material variances
A: Labor variances in a business refer to the differences between the expected or budgeted labor costs…
Q: R makes one product, which passes through a single process. Details of the process account for…
A: Cost of abnormal loss :- It is the cost of units lost due to unexpected or abnormal conditions. It…
Q: 1. 2. 3. 5. Present Value ? $36,289 15,884 46,651 15,376 -uture Value $ 40,000 65,000 40,000 100,000…
A: Time value of money :— According to this concept, value of money in present day is greater than the…
Q: The Ombudsman Foundation is a private not-for-profit organization providing training in dispute…
A: Not-for-profit organizations are established to serve a particular mission or purpose, such as…
Q: What would be the maximum amount Garr might have to contribute to the partnership to eliminate a…
A: In the case of liquidation of a parternership assets are distributed among the partners after paying…
Q: Lola owns a one-half interest in the Lenax LLC. Her basis in this ownership interest is $197,000 at…
A: The limited liability company (LLC) business form shields its owners from being held personally…
Q: Garcia Company issues 10%, 15-year bonds with a par value of $310,000 and semiannual interest…
A: Bond :— It is one of type of securities that pays fixed periodic interest and face value at the end…
Q: march eacg Letter to the correct number answer to the left:
A: Amount of money paid/received in excess of amount borrowed/lent is called interest 2. The claim to…
Q: 0) THE BURKEY'S PURCHASED A CAR. IF THE TOTAL COST INCLUDING A 5% SALES TAX WAS $12,836.25, FIND THE…
A: Let take Total cost = 100Gst = $100×5%= $5Thus total cost plus gst = $105
Q: Diaz Company owns a machine that cost $125,700 and has accumulated depreciation of $93,300. Prepare…
A: Asset disposal is basically an act of selling an asset (usually a long term asset) that has been…
Q: CakeCo, Incorporated has three operating departments. Information about these departments is listed…
A: Service department cost can be allocated to production department based on the activity driver.…
Q: Phoebe, who files single, holds several crypto wallets with large account balances. Her adjusted…
A: Cryptocurrencies can be treated as property, securities, or currencies for tax purposes depending on…
Q: Yellow Elm Education Technology currently has bonds outstanding with a total face value of $3.549…
A: 1) Present Value of Interest Tax Shields: The present value of interest tax shields can be…
Q: Crystal Charm Company makes handcrafted silver charms that attach to jewelry such as a necklace or…
A: For the purpose of determining the direct material variation the actual costs incurred are required…
Q: On 1 January 20X5 a company purchased some plant. The invoice showed $ Cost of plant 48,000…
A: Lets understand the basics.As per IAS 16 "Property plant and equipment", plant and machinery should…
Q: A partnership is considering possible liquidation because one of the partners (Bell) is personally…
A: According to the question given, we need to prepare the statement of liquidation.Partnership…
Q: 1(a). Prepare journal entries to record the issuance of Frenza bonds on January 1, Year 1. 1(b).…
A: The journal entry at the time of the issuance of bonds is made in the books of company on journal…
Q: Tambin Inc. produces a gasoline additive that, when added to the gas tank of the average automobile,…
A: When the production is carried out in multiple stages the costing is carried out using process…
Q: Manufacturing cost data for Blossom Company, which uses a job order cost system, are presented…
A: Total manufacturing cost is the sum of direct material, direct labor and manufacturing overhead…
Q: Question 1 • Rachael and Olivia are business partners in RO Dance Their partnership agreement states…
A: Partnership deed is a voluntary contract between two or more than two persons to place their…
Q: 11. Ratios-Balance Sheet data for the Athletic Locker is provided be Athletic Locker Balance Sheet…
A: According to the question given, we need to compute the financial ratio. Financial ratios:Financial…
Q: and I A company sells sets of kitchen knives. A Basic Set consists of 2 utility kn knife. A Regular…
A: This problem involves linear programming and can be solved using optimization techniques. We need to…
Q: Which of the following is NOT a type of ratio analysis used by managers to interpret the numbers in…
A: Ratio analysis is one of useful tool used in management accounting. Under this, different type of…
Q: Plug Corporation holds 80 percent of Socket Company's common stock. The following balance sheet data…
A: Basic earnings per share (EPS) is a financial term that calculates the amount of profit given to…
Q: On September 1, 2014, Bylin Company purchased merchandise from Himeji Company of Japan for…
A: Journal entry is the first stage of accounting process.Journal entry used to record business…
Prepare a well-written analysis of each financial statement using appropriate business/accounting vocabulary.
Step by step
Solved in 4 steps with 3 images
- Use the given statement of comprehensive income below in answering the question. DEF Company, Income Statement 2021 2020 Sales P10,200.00 P9,600.00 Cost of Goods Sold P3,000.00 P2,600.00 Gross Profit P7,200.00 P7,000.00 Operating Expenses P2,400.00 P2,200.00 Operating Profit P4,800.00 P4,800.00 Interest Expense P900.00 P800.00 Earnings before tax P3,900.00 P4,000.00 Income Tax P1,560.00 P1,600.00 Net Profit P2,340.00 P2,400.00 What is the percent change of net profit? А -3.5% В 12.5% C) -12.5% -2.5%B. Below is the Statement of Comprehensive Income of Q & A Trading Company: Percentage 2020 P1,939,500 900,000 1,039,500 445,500 37,575 P 556,425 2019 Percentage Revenue Cost of Goods Sold Gross Profit Selling and General Experses Other Experses Net Income P1,674,675 843,975 830,700 409,725 30,825 P 390,150 Requirements: Prepare a vertical aralysis for Q & A Trading Compary.Problem 1: Comparative income statements for 2020 and 2019 follow. Sales Cost of Sales Gross Profit Operating Expenses Operating Income Interest Expense Earnings Before Tax Income Taxes Net Income 2020 $9,434,000 7,075,400 $2,358,600 $2,201,360 1,367,690 1,365,060 $ 990,910 $836,300 157,500 126,000 $ 833,410 $ 710,300 400,000 317,200 $ 433,410 $ 393,100 2019 $7,862,000 5,660,640 Required: 4 a. Prepare a vertical common-size analysis of this statement for each year, using sales as the base. b. Comment briefly on the changes between the two years, based on the vertical common-size statement.
- HIC GROUP OF Companies COMPARATIVE INCOME STATEMENT For years ended 3rd December 2019 2020 Revenue and gains Sales revenue 495,500 496,738.75 Interest revenue 278,500 279,196.25 Investment Income 71,700 71,879.25 Other revenue 101,500 101,753.75 Total revenue and gains 947,200 949,968 Expenses and losses Cost of good sold 450,000 447,750 Selling&administrative 185,000 184,075 Computer (operating) 42,500 42,288…HIC GROUP OF Companies COMPARATIVE INCOME STATEMENT For years ended 3rd December 2019 2020 Revenue and gains Sales revenue 495,500 496,738.75 Interest revenue 278,500 279,196.25 Investment Income 71,700 71,879.25 Other revenue 101,500 101,753.75 Total revenue and gains 947,200 949,968 Expenses and losses Cost of good sold 450,000 447,750 Selling&administrative 185,000 184,075 Computer (operating) 42,500 42,288 Depreciation 50,000…Prepare the Pro-Forma Statement of Financial Position for the year ending 31 December 2023 INFORMATIONSibiya ProjectsStatement of Comprehensive Income for the year ended 31 December 2022 RSales 10 000 000Cost of sales (5 750 000)Gross profit 4 250 000Variable, selling and administrative costs (1 500 000)Fixed selling and administrative costs (500 000)Net profit 2 250 000 Statement of Financial Position for the year ended 31 December 2022ASSETS RNon-current assets 800 000Property, plant and equipment 800 000 Current assets 3 400 000Inventories 1 600 000Accounts receivable 600 000Cash 1 200 000TOTAL ASSETS 4 200 000 EQUITY AND LIABILITIESEquity 3 760 000 Current liabilities 440 000Accounts payable 440 000TOTAL ASSETS AND LIABILITIES 4 200 000 Additional informationA. The sales budget for 2023 is as follows:First Quarter Second Quarter Third Quarter Fourth QuarterR2 625 000 R2 750 000 R2 875 000 R2 750 000 B. 90% of sales is collected in the quarter of the sale and 10% in the quarter…
- [The following information applies to the questions displayed below.] 2021 2020 2019 Selected comparative financial statements of Korbin Company follow. KORBIN COMPANY Comparative Income Statements For Years Ended December 31 Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total expenses Income before taxes Income tax expense Net income Assets Current assets Long-term investments. Plant assets, net Total assets Numerator: 2021 2020 2019 $548,688 $ 420,340 $ 291,700 330,310 263,974 186,688 156,366 KORBIN COMPANY Comparative Balance Sheets Liabilities and Equity Current liabilities Common stock Other paid-in capital Retained earnings Total liabilities and equity 218,378 77,914 49,382 127,296 91,082 16,941 1 1 / 1 1 58,007 36,990 94,997 61,369 12,581 $ 74,141 $ 48,788 December 31 2021 $ 62,574 0 Current Ratio 114,438 $ 177,012 $ 25,844 65,000 8,125 78,043 Required: 1. Complete the below table to calculate each year's current ratio. Denominator: $ 41,881 $…Required information [The following information applies to the questions displayed below.] Selected comparative financial statements of Korbin Company follow. KORBIN COMPANY Comparative Income Statements For Years Ended December 31 2021 2020 $ $ 467,052 357,800 281,165 223,625 185,887 134, 175 66,321 49,376 42,035 31,486 108,356 80,862 77,531 53,313 14,421 10,929 $ $ 63,110 42,384 Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total expenses Income before taxes Income tax expense Net income KORBIN COMPANY Comparative Balance Sheets 2020 Assets Current assets Long-term investments Plant assets, net Total assets December 31 2021 Liabilities and Equity Current liabilities Common stock Other paid-in capital Retained earnings Total liabilities and equity Assets Current assets Long-term investments Plant assets, net Total assets Liabilities and Equity Current liabilities Common stock Other paid-in capital Retained earnings Total liabilities and equity 2019 $…Kate Company reported the following information for 2020: Sales Cost of goods sold Operating expenses Unrealized gain - FVOCI Cash dividends received on investment For 2020, Kate would report comprehensive income before tax of P1,170,000 O P200,000 P1,150,000 O P970,000 P5,000,000 3,500,000 550,000 200,000 20,000
- DIRECTION: Compute the following PROFITABILITY RATIOS Gross Margin= Gross Profit/Net Sales Net Profit Margin= Net Profit/ Net Sales Return on Equity= Profit/Shareholder's Equity Return on Asset= Profit/Total Asset TREND ANALYSIS Net Income Growth Rate Total Assets Growth Rate And also compute the percentage beside the columns December 31, December 31, PERCENTAGE 2021 2020 USD USD Assets Current assets Cash and cash equivalents 34,115,412 25,681,845 Short-term financial instruments 71,417,748 80,798,680 Short-term financial assets at amortized cost 2,944,705 2,409,853 Short-term financial assets at fair value through profit or loss 35,624 62,452 Trade receivables 35,585,565 27,065,012 Non-trade receivables 3,930,828 3,150,548 Prepaid expenses 2,042,001 1,980,685 Inventories 36,172,043 28,007,314 Other current assets 4,441,629 3,281,589 Assets held-for-sale - 812,370 Total Current Assets…Assignment COMPARATIVE STATEMENTS Sikat Manufacturing Corporation Income Statement For the year ended Dec. 31, 2020 and 202019 2020 2019 P 5,150,000 -150,000 5,000,000 3,200,000 1,800,000 Sales 4,250,000 na 250.000 4,000,000 2.600,000 1,400,000 Less: Sales Returns and Allowances Net Sales Less: Cost of Sales Gross Profit Less: Operating Expenses Selling Expenses General and Administrative Expenses Total Operating Expenses Operating Income Less: Interest expense Net Income before tax Less: Income tax.(32% ) Net Income 720,000 780,000 1,500,000 300,000 60,000 240,000 76,800 P 163.200 600,000 600,000 1,200,000 200,000 40,000 160,000 51,200 P 108,800 Sikat Manufacturing Corporation Balance Sheet Dec. 31, 2020 and 2019 2020 2019 ASSETS P 225,000 150,000 240,000 260,000 120,000 150,000 70,000 550,000 P1.765.000 P 1,520,000 Cash P140.000 125,000 180,000 160,000 145,000 170,000 80,000 520,000 Marketable Securities Accounts Receivable Inventories: Finished Goods Work-in-Process Raw Materials…The Gloria Corporation's comparative statements of comprehensive income lor de years 2021 and 2020 are presented below: 2020 720,000 450,000 270,000 30,000 300,000 190,000 110,000 20,000 90,000 2021 1,000,000 P 600,000 400,000 P 80,000 Sales Cost of Sales Gross Profit Other Operating Income Total Income P 480,000 280,000 200,000 P 80,000 120,000 P P P Less: Selling and Administrative Expenses Profit from Operations before Interest and Income Tax Interest Expense Profit The following errors were discovered : The following had been overlooked by the company at the end of 2021 and 2020: Unearned commission income Prepaid rent Accrued interest receivable Accrued wages expense 2021 6,400 21,000 12,000 22,000 2020 8,000 16,000 8,000 25,000 Advances of P90,000 received from customers in 2021 were credited to Sales, although deliveries were made only in 2022. Purchase of merchandise, P15,000, shipped FOB destination in December 2020 and received by the company in 2021 were recorded as…