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Financial Accounting (12th Edition) (What's New in Accounting)
- The AHAI Company's balance sheet of December 31, 2018 is given below: Accounts payable Notes payable Accrued wages and taxes Long-term debt Common equity Total liabilities & equity Cash Accounts receivable Inventory Net fixed assets Total assets O a. $6 O b. $7 O c. $8 O d. $40 O e. $5 $10 25 40 95 $170 $20 25 15 30 80 $170 Sales during the past year were $1,000, and they are expected to increase to $2,000 during 2019. AHAI's fixed assets were used to 60% of capacity during 2018, but its current assets were at their proper levels. All assets except fixed assets increase at the same rate as sales, and fixed assets would also increase at the same rate if the current excess capacity did not exist. Assume that AHAI's profit margin will remain constant at 4.25 percent and that the company will continue to pay out 40 percent of its earnings as dividends. What amount of additional funds (AFN) will be needed during the next year assuming the company would use up the excess capacity before…arrow_forward2. The following data refers to the 2022 year-end account balances for Mastermind. However, the Retained Earnings balance is as of 12/31/2021. The accounts are listed in alphabetical order. $ Accounts Payable 25,000 Accounts Receivable 8,500 Accumulated Depreciation 175,000 Cash 141,613 Common Stock 100,000 Fixed Assets (gross) 410,000 Inventory 135,000 Long Term Debt 111,000 Retained Earnings (2021) 51,992 Salary Payable 11,000 A. Prepare a classified Balance Sheet for Mastermind. B. Calculate Mastermind’s Net Working Capital.arrow_forwardnterpret the results of the debt to equity ratio and how the company has managed debt over the last two years. Balance Sheet 2018 2019 Cash $63,000 $201,000 Accounts Receivable 199,000 305,000 Marketable Securities 81,000 42,000 Inventories 441,000 455,000 Prepaids 5,000 9,000 Total Current Assets 789,000 1,012,000 Property, Plant, and Equipment, net 858,000 858,000 Total Assets $1,647,000 $1,870,000 Account Payable $150,000 $100,000 Accruals 101,000 95,000 Total Current Liabilities $251,000 $195,000 Bonds Payable 405,000 575,000 Total Liabilities 656,000 770,000 Common Stocks 700,000 700,000 Retained Earnings 291,000 400,000 Total Stockholders’ Equity 991,000 1,100,000 Total Liabilities & Equity $1,647,000 $1,870,000 Income Statement…arrow_forward
- Terrance Corporation ended its fiscal year on September 30, 2021, with cash of $76 milion, accounts receivable of $28 million, property and equipment of 529 milion, and other long-term assets of $16 million The company's labebes consist of accounts payatle of $35 mition and long-term notes payable of $10 milion Terrance Corporation has total stockholders equity of 596 millon, of this total, common stock is $34 mon Solve for the company's ending retained eamings and then prepare Terrance Corporation's balance sheet at September 30, 2021 Use a proper heading on the balance sheet (2 million Terrance Corporation's ending retained earnings balance is Now prepare Terrance Corporation's balance sheet at September 30, 2021 Use a proper heading on the balance sheet Start with the heading and then complete the assets section of the statement Finally, complete the abilities and stockholders equity section of the statement (Enter at amounts in milions Classify the balance sheet by selecting the…arrow_forwardThe following is the excerpt of financial information of Dreamies Corporation on December 31, 2022: Account Amount Gross profit P5,000,000.00 Operating Expense 120,000.00 Other expense 300,000.00 Income Tax expense 50,000.00 Current Assets 450,000.00 Non-current assets 7,000,000.00 Total Liabilities 750,000.00 What percent is Dreamies Corporation's return on equity on December 31, 2022? (A) cannot be determined B) 60.8% 64.71% D) 67.61%arrow_forwardThe Davidson Corporation's balance sheet and income statement are provided here. Davidson Corporation: Balance Sheet as of December 31, 2018 (Millions of Dollars) Assets Liabilities and Equity Cash and equivalents $ 15 Accounts payable $ 100 Accounts receivable 515 Accruals 220 Inventories 830 Notes payable 230 Total current assets $ 1,360 Total current liabilities $ 550 Net plant and equipment 2,550 Long-term bonds 1,500 Total liabilities $ 2,050 Common stock (100 million shares) 260 Retained earnings $ 1,600 Common equity $ 1,860 Total assets $ 3,910 Total liabilities and equity $ 3,910 Davidson Corporation: Income Statement for Year Ending December 31, 2018 (Millions of Dollars) Sales $ 6,000 Operating costs excluding depreciation and amortization 3,780 EBITDA $ 2,220 Depreciation and amortization 420 EBIT $ 1,800 Interest 164 EBT $ 1,636 Taxes…arrow_forward
- The 2024 balance sheet for Hallbrook Industries, Incorporated, is shown below. HALLBROOK INDUSTRIES, INCORPORATED Balance Sheet December 31, 2024 ($ in thousands) Assets Cash $ 330 Short-term investments 280 Accounts receivable 330 Inventory 360 Property, plant, and equipment (net) 2,300 Total assets $ 3,600 Liabilities and Shareholders’ Equity Current liabilities $ 530 Long-term liabilities 480 Paid-in capital 1,400 Retained earnings 1,190 Total liabilities and shareholders’ equity $ 3,600 The company’s 2024 income statement reported the following amounts ($ in thousands): Net sales $ 5,900 Interest expense 50 Income tax expense 120 Net income 290 Required: Calculate the current ratio. Note: Round your answer to 2 decimal places. Calculate the acid-test ratio. Note: Round your answer to 3 decimal places. Calculate the debt to equity ratio. Note: Round your answer to 2 decimal places. Calculate the times interest earned ratio.…arrow_forwardThe 2024 balance sheet for Hallbrook Industries, Incorporated, is shown below. HALLBROOK INDUSTRIES, INCORPORATED Balance Sheet December 31, 2024 ($ in thousands) Assets Cash $ 380 Short-term investments 330 Accounts receivable 380 Inventory 310 Property, plant, and equipment (net) 2,800 Total assets $ 4,200 Liabilities and Shareholders’ Equity Current liabilities $ 580 Long-term liabilities 530 Paid-in capital 1,650 Retained earnings 1,440 Total liabilities and shareholders’ equity $ 4,200 The company’s 2024 income statement reported the following amounts ($ in thousands) Net sales $ 6,400 Interest expense 60 Income tax expense 170 Net income 340 Calculate the current ratio. Note: Round your answer to 2 decimal places. Calculate the acid-test ratio. Note: Round your answer to 3 decimal places. Calculate the debt to equity ratio. Note: Round your answer to 2 decimal places. Calculate the times interest earned…arrow_forward7. The following are Gladstone Corporation's 2020 and 2021 balance sheets and income statements. 2020 144,000 228,000 288,000 420,000 1,080,000 Cash Accounts Receivable Inventory Buildings and Equipment Total Assets Accounts Payable Bonds Payable (Long-term) Common stock ($5 par value) Additional Paid-in-capital Retained earnings Total Liabilities and Shareholder's Equity Sales Cost of Goods Sold Gross Profit Advertising Expense Depreciation Expense Office Supplies Expense Interest Expense Provision for Income Taxes Net Income a) Calculate the Inventory Turnover for 2021. L b) Calculate the Accounts Receivable Turnover for 2021. c) Calculate the EPS for 2020 and 2021. da d) Calculate the Gross Profit Margin 2021. e) Calculate the current ratio for 2020 and 2021. S $ $ $ $ $ 480,000 240,000 36,000 210,000 114,000 1,080,000 1,200,000 (720,000) 480,000 (30,000) (48,000) (24,000) (48,000) (226,800) 103,200 $ $1,119,000 $ $ $ $ 2021 168,000 258,000 312,000 381,000 $ 504,000 150,000 36,000…arrow_forward
- Below is the financial information for AXZ Corporation for fiscal year-ending June 30, 2020. (Amounts in millions $s) Cash flows from operations $2,908.3 Total revenues 14,892.2 Shareholders’ equity 4,482.3 Cash flows from financing (110.0) Total liabilities 7,034.4 Cash, ending year 2,575.7 Expenses 14,883.4 Noncash assets 8,941.0 Cash flows from investing (1,411.2) Net earnings 8.8 Cash, beginning year 1,188.6 Required: Using the information above, prepare the company’s: Balance sheet as of June 30, 2020. Income Statement for the fiscal year ended June 30, 2020. Cash Flow Statement for the fiscal year ending June 30, 2020.arrow_forward1. Floyd Corporation was formed and began operations on January 1, 2020. The corpora- tion is located at 210 N. Main St., Pearisburg, VA 24134 and the EIN is 91-1111111. The corporation's income statement for the year and the balance sheet at year-end are presented below. The Floyd Corporation Income Statement for the Year Ended December 31, 2020 Gross income from operations Qualified dividends received from a 15 percent- owned domestic corporation Total gross income Cost of goods sold Total income $ 320,000 20,000 340,000 (70,000) 270,000 Other expenses: Compensation of officers Salaries and wages Bad debts (direct charge-offs) Repairs Depreciation for book (tax depreciation Advertising Payroll taxes Total other expenses Pretax book income Income tax expense Net income $80,000 20,000 9,000 3,000 10,000 3,000 15,000 $90,000) %3D (140,000) 130,000 25,200 $ 104,800arrow_forward29. Bramble Inc., had the following condensed balance sheet at the end of operations for 2019. BRAMBLE INC.BALANCE SHEETDECEMBER 31, 2019 Cash $8,500 Current liabilities $15,000 Current assets other than cash 29,100 Long-term notes payable 25,700 Equity invesments 19,900 Bonds payable 25,000 Plant assets (net) 66,800 Common stock 75,000 Land 39,700 Retained earnings 23,300 $164,000 $164,000 During 2020, the following occurred. 1. A tract of land was purchased for $9,100. 2. Bonds payable in the amount of $15,000 were redeemed at par. 3. An additional $9,900 in common stock was issued at par. 4. Dividends totaling $9,300 were paid to stockholders. 5. Net income was $30,500 after allowing depreciation of $13,700. 6. Land was purchased through the issuance of $22,400 in bonds. 7. Bramble Inc. sold part of its investment portfolio for $13,000. This transaction resulted in…arrow_forward
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