a.
Concept introduction:
The accounting equation represents the mathematical relationship between assets, liabilities and equity. According to this equation, assets are equal to the sum of liabilities and equity. The formal for basic accounting equation is as follows:
To identify: The amount of assets, liabilities, and equity of the company.
b.
Concept introduction:
Accounting equation represents the mathematical relationship between assets, liabilities and equity. According to this equation, assets are equal to the sum of liabilities and equity. The formal for basic accounting equation is as follows:
To indicate: the accounting equation proof.
Want to see the full answer?
Check out a sample textbook solutionChapter 1 Solutions
FINANCIAL ACCT-CONNECT
- engageNOWv2 | Online teachin X * CengageNOWv2 | Online teachin x+ com/ilm/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogre.. * eBook Show Me How Return on Total Assets A company reports the following income statement and balance sheet information for the current year: Net income $382,880 Interest expense 67,570 Average total assets 5,850,000 Determine the return on total assets. If required, round the answer to one decimal place. % Check My Work 67°F Sarrow_forwardQuestion 2 The following are financial statements of AR Sdn Bhd. AR Sdn Bhd Income Statement for the year ended 31/12/2015 RM RM RM Sales 18600 R/Inward (440) Net Sales 18160 COGS Opening stock Purchase 3776 11556 -R/Owards (355) 11201 +carriage inwards 234 11435 15211 -Closing stock COGS (4998) (10213) GROSS PROFIT 7947 Other income Interest Received 862 8809 (-) Expenses Carriage O/ward Motor expenses 326 664 Discount allowed 526 Rent 576 Sundry expenses Salaries & wages 1208 2447 (5747) 3062 Net Profit □ ㅇ |l>arrow_forwardThe net realizable value of the company’s accounts receivable on December 31, 2016, should be A. P1,518,887 C. P1,528,150 B. P1,612,650 D. P1,603,358arrow_forward
- Question 1The following information was extracted from the financial statement of Barryfor the year ended 31 December 2020. RMSales 437,500Opening inventories 17,500Closing inventories 26,250Cost of sales 262,500Other income 3,750Expenses 61,250Current liabilities 47,250Trade receivables 39,375Bank 8,750Cash 31,500Required:(a) Show the formulae and compute the value of the following for Barry:(i) Purchases(ii) Gross profit(iii)Net Profitarrow_forwardRequirement 1. For 2017 and 2018, compute the five ration that measure how a business is investing its money and whether it is using its assets officiently Round sach sabio to ho decimal places Assume all sales are on credt.arrow_forward* CengageNOWv2 | Online teachin X * CengageNOWv2 | Online teachin X now.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogre... еBook Show Me How Changes in Current Operating Assets and Liabilities-Indirect Method Victor Corporation's comparative balance sheet for current assets and liabilities was as follows: Dec. 31, 20Y2 Dec. 31, 20Y1 Accounts receivable $23,400 $22,600 Inventory 78,800 79,500 Accounts payable 20,700 20,400 Dividends payable 18,000 17,000 Adjust net income of $77,900 for changes in operating assets and liabilities to arrive at net cash flow from operating activities. Check My Work 70°F Sunnyarrow_forward
- Required information [The following information applies to the questions displayed below.] The balance sheets for Federer Sports Apparel for 2025 and 2024 are presented below. Required: 1. Prepare a vertical analysis of the balance sheet data for 2025 and 2024. Express each amount as a percentage of total assets. (Amounts to be deducted should be indicated by a minus sign. Round your answers to 1 decimal place.) Assets Cash Accounts receivable Inventory Buildings Less: Accumulated depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Contingent liability Common stock Retained earnings Total liabilities and stockholders' equity FEDERER SPORTS APPAREL Balance Sheet December 31 Amount 2025 $ 2,431,000 1,581,000 3,128,000 11,832,000 (1,972,000) $ 17,000,000 $ 1,496,000 1,360,000 7,888,000 6,256,000 $ 17,000,000 $ Amount 2024 754,000 1,305,000 1,595,000 11,832,000 (986,000) $ 14,500,000 $ 1,856,000 1,100,000 7,888,000 3,656,000 $ 14,500,000 %arrow_forwardQuestion 1The following information was extracted from the financial statement of Barryfor the year ended 31 December 2020. RMSales 437,500Opening inventories 17,500Closing inventories 26,250Cost of sales 262,500Other income 3,750Expenses 61,250Current liabilities 47,250Trade receivables 39,375Bank 8,750Cash 31,500 (b) Calculate the following ratios of Barry Sdn Bhd for the year ended 31December 2020. (iv) Inventories turnover days(v) Trade receivables turnover daysarrow_forwardQuestion 1The following information was extracted from the financial statement of Barryfor the year ended 31 December 2020. RMSales 437,500Opening inventories 17,500Closing inventories 26,250Cost of sales 262,500Other income 3,750Expenses 61,250Current liabilities 47,250Trade receivables 39,375Bank 8,750Cash 31,500 (b) Calculate the following ratios of Barry Sdn Bhd for the year ended 31December 2020.(i) Gross profit margin(ii) Net profit margin(iii) Current ratioarrow_forward
- Required information [The following information applies to the questions displayed below.] The balance sheets for Sports Unlimited for 2024 and 2023 are provided below. Required: 1. Prepare a vertical analysis of Sports Unlimited's 2024 and 2023 balance sheets. Express each amount as a percentage of total assets for that year. (Amounts to be deducted should be indicated by a minus sign. Round your percentage answers to 1 decimal place.) Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investment in bonds Land Equipment Less: Accumulated depreciation Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained earnings Total liabilities and stockholders' equity SPORTS UNLIMITED Balance Sheets For the Years Ended December 31 2024 $ $ $ $ Amount 211,500 99,900 82,800 28,800 108,900 238,500 206,100 (76,500)…arrow_forward5. Compute the following financial ratios for 2015 and 2016 and interpreting the results in the image attached: (1 decimal place) d. age of receivables e. inventory turnover f. age of inventory g. asset turnover h. fixed asset turnover i. times interest earned j. debt ratio k. equity ratio l. debt to equity ratio m. gross profit margin n. return on equity o. return on assetsarrow_forwarduploaded pictures for problem 17-4B. I am trying to figure out the 7. Number of days' sales in inventory 8. Ratio of Fixed Assets to long-term Liabilities 9. Ratio of Liabilities to Stockholders Equityarrow_forward
- Financial Accounting: The Impact on Decision Make...AccountingISBN:9781305654174Author:Gary A. Porter, Curtis L. NortonPublisher:Cengage LearningCornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage LearningIntermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning