Connect 1 Semester Access Card for Fundamentals of Financial Accounting
5th Edition
ISBN: 9781259128547
Author: Fred Phillips Associate Professor, Robert Libby, Patricia Libby
Publisher: McGraw-Hill Education
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Chapter 1, Problem 1.3PA
To determine
To Prepare: The four basic financial statements for OT Incorporation for the nine months ended September 30, 2013.
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Presented below are summary financial data from Pompeo's annual report:
Amounts in millions
Balance sheet
Cash and cash equivalents
$5,876
Marketable securities
58,776
Accounts receivable (net)
30,443
Total current assets
127,036
Total assets
|400,004
Current liabilities
113,172
Long-term debt
21,837
Shareholders' equity
204,834
Income Statement
Interest expense
1,167
Net income before taxes
42,021
Calculate the following ratios: (round to two decimal places)
a. Times-interest-earned ratio
b. Quick ratio
C. Current ratio
Consider the following financial data for Terry Enterprises:
Balance Sheet as of December 31, 2018
Cash
$
86,000
Accounts payable
$
15,500
Accts. receivable
91,500
Notes payable
93,500
Inventories
65,500
Accruals
19,500
Total current assets
$
243,000
Total current liabilities
$
128,500
Long-term debt
162,500
Net plant & equip.
419,500
Common equity
371,500
Total assets
$
662,500
Total liab. & equity
$
662,500
Statement of Earnings for 2018
Industry Average Ratios
Net sales
$
642,500
Current ratio
2.2×
Cost of goods sold
482,000
Quick ratio
1.7×
Gross profit
$
160,500
Days sales outstanding
44 days
Operating expenses
119,500
Inventory turnover
6.7×
EBIT
$
41,000
Total asset turnover
0.6×
Interest expense
14,500
Net profit margin
7.2%
Pre-tax earnings
$
26,500…
Consider the following financial data for Nguyen Industries:
Statement of Financial Position as of December 31, 2018
Cash
$
232,500
Accounts payable
$
86,500
Accts. receivable
357,500
Short-term bank note
254,000
Inventories
150,500
Accrued wages & taxes
80,000
Total current assets
$
740,500
Total current liabilities
$
420,500
Long-term debt
566,000
Net fixed assets
774,500
Common equity
528,500
Total assets
$
1,515,000
Total liab. & equity
$
1,515,000
Profit & Loss Statement for 2018
Industry Average Ratios
Net sales
$
1,894,000
Current ratio
1.4×
Cost of goods sold
1,382,500
Quick ratio
1.0×
Gross profit
$
511,500
Days sales outstanding
63 days
Operating expenses
373,000
Inventory turnover
9.5×
EBIT
$
138,500
Total asset turnover
1.5×
Interest expense
64,000
Net…
Chapter 1 Solutions
Connect 1 Semester Access Card for Fundamentals of Financial Accounting
Ch. 1 - Define accounting.Ch. 1 - Prob. 2QCh. 1 - Briefly distinguish financial accounting from...Ch. 1 - The accounting process generates financial reports...Ch. 1 - Explain what the separate entity assumption means...Ch. 1 - List the three main types of business activities...Ch. 1 - What information should be included in the heading...Ch. 1 - What are the purposes of (a) the balance sheet,...Ch. 1 - Prob. 9QCh. 1 - Briefly explain the difference between net income...
Ch. 1 - Describe the basic accounting equation that...Ch. 1 - Describe the equation that provides the structure...Ch. 1 - Describe the equation that provides the structure...Ch. 1 - Prob. 14QCh. 1 - Prob. 15QCh. 1 - Prob. 16QCh. 1 - Briefly define what an ethical dilemma is and...Ch. 1 - Prob. 18QCh. 1 - Prob. 1MCCh. 1 - Which of the following is true regarding the...Ch. 1 - Which of the following is false regarding the...Ch. 1 - Which of the following regarding retained earnings...Ch. 1 - Prob. 5MCCh. 1 - Which of the following statements regarding the...Ch. 1 - Prob. 7MCCh. 1 - Which of the following is true? a. FASB creates...Ch. 1 - Which of the following would not be a goal of...Ch. 1 - Prob. 10MCCh. 1 - Prob. 1.1MECh. 1 - Prob. 1.2MECh. 1 - Matching Definitions with Terms Match each...Ch. 1 - Matching Financial Statement Items to Balance...Ch. 1 - Matching Financial Statement Items to Balance...Ch. 1 - Matching Financial Statement Items to Balance...Ch. 1 - Matching Financial Statement Items to Balance...Ch. 1 - Matching Financial Statement Items to the Basic...Ch. 1 - Matching Financial Statement Items to the Four...Ch. 1 - Reporting Amounts on the Statement of Cash Flows...Ch. 1 - Prob. 1.11MECh. 1 - Prob. 1.12MECh. 1 - Prob. 1.13MECh. 1 - Prob. 1.14MECh. 1 - Relationships among Financial Statements Items...Ch. 1 - Prob. 1.16MECh. 1 - Reporting Amounts on the Four Basic Financial...Ch. 1 - Reporting Amounts on the Four Basic Financial...Ch. 1 - Preparing a Balance Sheet DSW, Inc. is a designer...Ch. 1 - Completing a Balance Sheet and Inferring Net...Ch. 1 - Prob. 1.5ECh. 1 - Prob. 1.6ECh. 1 - Preparing an Income Statement Home Realty,...Ch. 1 - Prob. 1.8ECh. 1 - Preparing an Income Statement and Balance Sheet...Ch. 1 - Analyzing and Interpreting an Income Statement...Ch. 1 - Prob. 1.11ECh. 1 - Matching Cash Flow Statement Items to Business...Ch. 1 - Preparing an Income Statement. Statement of...Ch. 1 - Prob. 1.2CPCh. 1 - Prob. 1.3CPCh. 1 - Prob. 1.4CPCh. 1 - Preparing an Income Statement, Statement of...Ch. 1 - Prob. 1.2PACh. 1 - Prob. 1.3PACh. 1 - Prob. 1.4PACh. 1 - Preparing an Income Statement and Balance Sheet...Ch. 1 - Preparing an Income Statement and Balance Sheet...Ch. 1 - Prob. 1.3PBCh. 1 - Prob. 1.4PBCh. 1 - Prob. 1.1SDCCh. 1 - Prob. 1.2SDCCh. 1 - Prob. 1.5SDCCh. 1 - Prob. 1.6SDCCh. 1 - Financial Statements for a Business Plan Nicole...
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- Ratio AnalysisPresented below are summary financial data from Pompeo’s annual report: Amounts in millions Balance Sheet Cash and Cash Equivalents $1,865 Marketable Securities 19,100 Accounts Receivable (net) 9,367 Total Current Assets 39,088 Total Assets 123,078 Current Liabilities 39,255 Long-Term Debt 7,279 Shareholders’ Equity 68,278 Income Statement Interest Expense 375 Net Income Before Taxes 14,007 Calculate the following ratios:(Round to 2 decimal points) a. Times-interest-earned ratio Answer b. Quick ratio Answer c. Current ratio Answer PreviousSave AnswersNextarrow_forwardccClassify each cash transaction between Operating (O), Investing (I), or Financing (F) activities using the following data: __Cash at the beginning of the year: $650,000 Cash Receipts from: __Bank (Interest on CD) $6,000 __Customers Sales $872,000 __Interest $33,000 __Dividends $3,600 Cash payments for: __Dividends $2,500 __Raw Materials $ 3,800 __Wages Expense $4,000 __Land $10,000 __Interest $4,000arrow_forwardRatio Analysis Presented below are summary financial data from Pompeo’s annual report: Amounts in millions Balance sheet Cash and cash equivalents $2,712 Marketable securities 27,128 Accounts receivable (net) 14,051 Total current assets 58,632 Total assets 184,617 Current liabilities 66,017 Long-term debt 12,738 Shareholders’ equity 119,487 Income Statement Interest expense 539 Net income before taxes 24,512 Calculate the following ratios: (round to two decimal places) a. Times-interest-earned ratio b. Quick ratio c. Current ratioarrow_forward
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