FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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conduct horizontal and vertical analyses for the
- Use basic financial analysis to examine any horizontal changes in Starbucks’ accounts receivable balances over time.
- Use basic financial analysis to examine any vertical changes in Starbucks’ accounts receivable balances over time.
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- The accounting records and bank statement of Orison Supply Store provide the following information at the end of April. The closing 'Cash' account balance was $28,560, and the bank statement shows a closing balance of $32,000. On reviewing the bank statement it is found an account customer has deposited $2,000 into the bank account for a March sale and the monthly insurance premium of $4,500 was automatically charged to the account. Interest of $5,10 was paid by the bank and a bank fee of $50 was charged to the account. A payment of $1,500 to a supplier has been recorded twice in the accounts. After the ,calculation of the "ending reconciled cash balance", what is the balance of the 'cash' account?arrow_forwardSimplifying the ABC System: TDABC Golding Bank provided the following data about its resources and activities for its checking account process: Time per Unit Traditional Interest-Bearing Resources Activities Driver of Activity Account Account Supervision $70,000 Processing accounts No. of accounts 0.20 hr. 2,000 1,000 Phone and supplies 90,000 Issuing statements No. of statements 0.10 hr. 60,000 10,000 Salaries 275,000 Processing transactions No. of transactions 0.05 hr 160,000 120,000 Computer 25,000 Answering customer inquiries No. of inquiries 0.15 hr. 1,500 1,500 Total $460,000 At practical capacity, Golding uses 25,000 check processing hours. Required: 1. Calculate the capacity cost rate for the checking account process. Round your answers to the nearest cent. 18.4 V per hour Calculate the activity rates for the four activities. Round your answers to the nearest cent. Processing accounts 3.68 V per account Issuing statements 1.84 V per statement Processing transactions 0.92 V per…arrow_forwardA paragraph stating your evaluation of the company’s performance and financial status for the quarter ending March 30, 2022. In your evaluation, state whether: o the business is profitable?o it is able to pay its current obligations/liabilities?o its assets are financed more by debts or equity?o its retained earnings increased or decreased during the quarter and why? You may state any other insights you have on the company’s financial statements. Justify your evaluation and support your discussion with relevant calculations or ratios.arrow_forward
- Best Exports has noticed their current year net income is only $60,000. In order to get a loan from their bank to assist the business they will need to provide a statement of cash flows. In reviewing the statement of cash flows, you notice a large increase ($80,000) in accounts receivable due to two of your largest customers being behind in payments. Since the bank looks at the operating activities, this increase will create concern. You make a suggestion to reclassify the accounts receivables to long-term, thus removing them from current assets will increase the net cash from operations. Under what circumstances would this reclassification be considered ethical or unethical? Support your selection by finding an article which explains your choice.arrow_forwardBelow are several amounts reported at the end of the year. Currency located at the company Supplies Short-term investments that mature within three months Accounts receivable Balance in savings account Checks received from customers but not yet deposited Prepaid rent Coins located at the company Equipment Balance in checking account Required: Calculate the amount of cash to report in the balance sheet. $ 925 2,700 1,825 3,000 8,000 525 1,325 120 8,900 5,700arrow_forwardBelow is a scrambled list of accounts of Jubli Berhad, a technology company (in RM mil). Construct the firm's income statement and balance sheet for year ended 31st December 2022. RM (in mil) Accounts payable Accounts receivable Accumulated depreciation Cash Cost of goods sold Common stock Depreciation expense Gross fixed assets income taxes Interest expense Long-term debt Marketable securities Prepaid expenses inventories Retained earnings Sales Selling, marketing & administrative expenses Short-term notes 4,400 2,500 4,200 3,300 17,000 13,800 1,500 24,500 15 1,000 10,000 12,400 3,200 1,500 8,000 30,000 10,000 7,000arrow_forward
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