Bundle: Financial & Managerial Accounting, 14th + Working Papers for Warren/Reeve/Duchac's Corporate Financial Accounting, 14th + Working Papers, ... & Managerial Accounting, 14th + CengageNOWv2,
14th Edition
ISBN: 9781337804011
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Question
Chapter 1, Problem 1.18EX
a)
To determine
To prepare: Statement of retained earnings of Company HP for the month ended November 30, 2018.
b)
To determine
To explain: the reason for preparing the statement of retained earnings before preparing the
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Return on Total Assets
A company reports the following income statement and balance.
sheet information for the current year:
Net income
Interest expense
Average total assets
$471,500
83,200
6,450,000
Determine the return on total assets. If required, round the answer
to one decimal place.
%
Two income statements for Hemlock Company follow:
Hemlock Company
Income Statements
For Years Ended December 31
2018
2019
Fees earned ......
$725,000
$615,000
Operating expenses..
356,700
435,000
$258,300
Operating income...
$290,000
a. Prepare a vertical analysis of Hemlock Company's income statements.
b.
Does the vertical analysis indicate a favorable or an unfavorable trend?
Ch: Analyzing Financial Statements
The current year financial statement for sand and Juffair companies are presented below.
Balance sheet at 31 Dec 2019
Item
Cash
Account receivable (net)
Inventory
Property & equipment (net)
Other assets
Total assets
Current liabilities
Long-term debt (interest rate: 10%)
Capital stock ($10 par value)
Additional paid-in capital
Retained earnings
Total liabilities and stockholders' equity
Income statement at 31 Dec 2019
item
Sales revenue (1/3 on credit)
(-) Cost of goods sold
(-) Operating expenses
Net income
Other data
item
Per share stock price at end of current year
Average income tax rate
Dividends declared and paid in current year
Sand
45000
45000
95000
160000
90000
435000
95000
75000
155000
40000
70000
435000
Sand
440000
230000
159000
51000
Sand
23
30%
34000
Juffair
22000
35000
45000
415000
320000
837000
65000
65000
522000
110000
75000
837000
Juffair
800000
399000
315000
86000
Juffair
25
30%
153000
Both companies are in the fish catching and…
Chapter 1 Solutions
Bundle: Financial & Managerial Accounting, 14th + Working Papers for Warren/Reeve/Duchac's Corporate Financial Accounting, 14th + Working Papers, ... & Managerial Accounting, 14th + CengageNOWv2,
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