Question 21 Summarized operations for Larkspur, Inc. for the month of July are as follows. Revenues recognized: for cash $30,000; on account $72,640. Expenses incurred: for cash $26,940; on account $38,600. Indicate for Larkspur, Inc. (a) the total revenues, (b) the total expenses, and (c) net income for the month of July. (a) Total revenues $ (b) Total expenses %24 (c) Net income 24

Selected income statement and balance sheet data from Merck & Co. for Year 9 are reproduced below: MERCK & COMPANY, INC. Year 9 Selected Financial Data ($ millions) Merck & Co. Income Statement Data Sales revenue... Depreciation...... Interest expense. $7,120 230 10 Pretax income... 2,550 Income taxes.. 900 Net income. 1,650 Balance Sheet Data Current assets... $4,850 Fixed assets, net... 2,400 Total assets.. 7,250 Current liabilities... 3,290 Long-term debt... 100 Shareholders' equity... 3,860 Total liabilities & shareholders' equity.. Required: a. Calculate return on common equity for Year 9 using year-end amounts and assuming no preferred dividends. b. Disaggregate Merck's ROCE. Comment on Merck's use of leverage. (Assume all assets and current liabilities are operating and a 35% tax rate.). c. Disaggregate ROA and comment on that.

Cost of Goods Sold, Profit margin, and Net Income for a Manufacturing Company The following information is available for Bandera Manufacturing Company for the month ending January 31: Cost of goods manufactured Selling expenses Administrative expenses Sales Finished goods inventory, January 1 Finished goods Inventory, January 31 a. For the month ended January 31, determine Bandera Manufacturing's cost of goods sold. Bandera Manufacturing Company Cost of Goods Sold January 31 $ $272,880 91,150 48,190 580,590 65,610 59,800 b. For the month ended January 31, determine Bandera Manufacturing's gross profit. Bandera Manufacturing Company Gross Profit January 31

A company reports the following amounts at the end of the year. Total sales revenue = $410,000; cash = $38,000; sales discounts=$15,000; accounts receivable = $20,000; sales returns = $25,000; operating expenses = $72,000; sales allowances = $25,000. Compute net revenues. net revenue=.

A company reports the following income statement and balance sheet information for the current year: Net income $180,000 Interest expense 20,000 Average total assets 2,000,000   Determine the return on total assets.fill in the blank 1 %

Times interest earned A company reports the following: Income before income tax expense $1,271,600 Interest expense                                          187,000 Determine the times interest earned ratio. If required, round the answer to one decimal place.

PAGE 11 ACCOUNTING FOUATION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY Widmer Company had gross wages of $200,000 during the week ended June 17. The amount of wages subject to social security tax was $200,000, while the amount of wages subject to federal and state unemployment taxes was $30,000. Tax rates are as follows: General Journal a. Journalize the entry to record the payroll for the week of June 17. b. Journalize the entry to record the payroll tax expense incurred for the week of June 17. Social security 6.0% Medicare 1.5% State unemployment 5.4% Federal unemployment 0.8% The total amount withheld from employee wages for federal taxes was $40,500. General Journal Instructions Required: a. Journalize the entry to record the payroll for the week of June 17. b. Journalize the entry to record the payroll tax expense incurred for the week of June 17 1 2 4 DATE DESCRIPTION 5 9 7 B 9 10 JOURNAL

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Selected account balances from the adjusted trial balance for Olinda Corporation as of its calendar year-end December 31 follow. Assume that the company’s income tax rate is 40% for all items.      Debit Credit a. Interest revenue   $ 14,400 b. Depreciation expense—Equipment $ 34,400   c. Loss on sale of equipment 26,250   d. Accounts payable   44,400 e. Other operating expenses 106,800   f. Accumulated depreciation—Equipment   72,000 g. Gain from settlement of lawsuit   44,400 h. Accumulated depreciation—Buildings   175,300 i. Loss from operating a discontinued segment (pretax) 18,650   j. Gain on insurance recovery of tornado damage   29,520 k. Net sales   1,002,500 l. Depreciation expense—Buildings 52,400   m. Correction of overstatement of prior year’s sales (pretax) 16,400   n. Gain on sale of discontinued segment’s assets (pretax)   36,000 o. Loss from settlement of lawsuit 24,150   p. Income tax expense ?   q. Cost of goods sold 486,500…

Selected current year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31 of the prior year were inventory, $52,900; total assets, $229,400; common stock, $82,000; and retained earnings, $45,833.) Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit $ 22,000 9,000 33,600 38,150 3,100 149, 300 $255,150 Operating expenses Interest expense Income before taxes Income tax expense Net income $ 455,600 297,650 157,950 99, 200 4,800 53,950 21,733 $32,217 CABOT CORPORATION Balance Sheet December 31 of current year Liabilities and Equity Accounts payable Accrued wages payable Income taxes payable Long-term note payable, secured by mortgage on plant assets Common stock Retained earnings Total liabilities and equity $ 18,500 2,800 3,400…