Bundle: Financial & Managerial Accounting, 13th + Working Papers, Volume 1, Chapters 1-15 For Warren/reeve/duchac’s Corporate Financial Accounting, ... 13th + Cengagenow™v2, 2 Terms Access Code
13th Edition
ISBN: 9781337062268
Author: Carl S. Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Chapter 1, Problem 1.2BPE
(a)
To determine
Accounting equation is an accounting tool expressed in the form of equation, by creating a relation between resources or assets of a company and claims of resources by creditors and owners. Accounting equation is expressed as shown below:
To solve: For
(b)
To determine
To solve: For stockholder’s equity as of December 31, 2016, using
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Prepare the required financial
statements for Metro Company
Assume you are an analyst evaluating Metro Company. The following data are available in your financial
analysis (unless otherwise indicated, all data are as of December 31, 2015): - 50 points
Retained earnings, 12/31/2014
Gross profit margin ratio
Day's sales in inventory
Acid-test ratio
Non current assets
Day's sales in receivables
Shareholder's equity to total debt
Sales (all on credit)
Common stock $15 par value; 10,000 shares issued and outstanding; issued at $21 per share.
$98,000
25%
45 days
2.5 times
$280,000
18 days
4 to 1
$920,000
Using these data, construct the December 31, 2015 balance sheet for your analysis. Operating expenses
(excluding taxes and cost of goods sold for 2015) are $180,000. The tax rate is 40%. Assume a 360-day
year in ratio computations. Current assets consist of cash, accounts receivable, and inventories.
Your answer
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41
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Honor Code | bart..
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Use the following selected financial information for Cascabel Corporation to answer
questions
Cascabel Corporation
Balance Sheet
December 31, 2015
Assets
Liabilities and stockholders' equity
Current assets
Current liabilities
Cash
Accounts payable
Accrued liabilities
2
36
Short-term investments
10
25
Accounts receivable
52
Total current liabilities
61
Inventory
57
Other current assets
Long-term debt
102
Total current assets
129
Total liabilities
163
Long-term assets
Stockholders' equity
Net Plant
195
Common stock
110
Retained earnings
Total stockholders' equity
Total liabilities and equity
51
161
324
Total assets
324
Cascabel Corporation
Income Statement
For the Year Ended December 31, 2015
Chapter 1 Solutions
Bundle: Financial & Managerial Accounting, 13th + Working Papers, Volume 1, Chapters 1-15 For Warren/reeve/duchac’s Corporate Financial Accounting, ... 13th + Cengagenow™v2, 2 Terms Access Code
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