Managerial Accounting: Tools for Business Decision Making
7th Edition
ISBN: 9781118334331
Author: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Publisher: WILEY
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Chapter 14, Problem 14.2AP
The comparative statements of Painter Tool Company are presented below and on page 643.
PAINTER TOOL COMPANY
Income Statement
For the Years Ended December 31
| 2017 | 2016 | |
| Net sales | $1,818,500 | $1,750,500 |
| Cost of goods sold | 1,011,500 | 996,000 |
| Gross profit | 807,000 | 754,500 |
| Selling and administrative expenses | 499,000 | 479,000 |
| Income from operations Other expenses and losses | 308,000 | 275,500 |
| Interest expense | 18,000 | 14,000 |
| Income before income taxes | 290,000 | 261,500 |
| Income tax expense | 87,000 | 77,000 |
| Net income | $ 203,000 | $ 184,500 |
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The comparative statements of Osborne Company are presented below:
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OSBORNE COMPANY
Income Statements
For the Years Ended December 31
2014 2013
Net sales $1,897,652 $1,757,612
Cost of goods sols 1,065,652 1,013,112
Gross profit 832,000 744,500
Selling and administrative expenses 507,112 486,112
Income from operations 324,888 258,388
Other expenses and losses Â
   Interest expense 23,327 21,327
Income before income taxes 301,561 237,061
Income tax expense 93,327 74,327
Net income $208,234 $162,734
OSBORNE COMPANY
Balance Sheets
December 31
2014 2013
Assets Â
Current Assets Â
   Cash $60,100 $64,200
   Debt investments (short-term) 74,000 50,000
   Accounts receivable 124,912 109,912
   Inventory 127,327 116,827
     Total current assets 386,339 340,939
Plant assets (net) 659,589 530,889
Total assets $1,045,928 $871,828
Liabilities and Stockholders' Equity Â
Current liabilities Â
   Accounts payable $167,112 $152,512
Income taxes payable 44,827 43,327
     Total…
Cullumber Appliances Corporation has reported its financial results for the year ended December 31, 2017.
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Cullumber Appliances Corporation
Income Statement for the Fiscal
Year Ended December 31, 2017
Net sales                           $ 5,899,512,000
Cost of goods sold                         3,224,958,940
Gross profit                     $ 2,674,553,060
Selling, general, and administrative expenses                   1,101,893,423
Depreciation                   334,776,116
Operating income                         $ 1,237,883,521
Interest expense                           32,014,500
EBTÂ Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â $ 1,205,869,021
Income taxes                  320,866,566
Net earnings                   $ 885,002,455
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Cullumber Appliances Corporation
Balance Sheet as of December 31, 2017
Assets: Â Â Â Â Â Â Â Â Â Â Â Â Â Â Liabilities Equity:
Cash and cash equivalents                        $ 642,840,000                  Short-term borrowings               $ 98,332,398…
Cullumber Appliances Corporation has reported its financial results for the year ended December 31, 2017.
Cullumber Appliances CorporationIncome Statement for the FiscalYear Ended December 31, 2017
Net sales
Â
$Â 5,899,512,000
Cost of goods sold
Â
3,224,958,940
Gross profit
Â
$Â 2,674,553,060
Selling, general, and administrative expenses
Â
1,101,893,423
Depreciation
Â
334,776,116
Operating income
Â
$Â 1,237,883,521
Interest expense
Â
32,014,500
EBT
Â
$Â 1,205,869,021
Income taxes
Â
320,866,566
Net earnings
Â
$Â 885,002,455
Cullumber Appliances CorporationBalance Sheet as of December 31, 2017
Assets:
Â
Liabilities Equity:
Cash and cash equivalents
Â
$Â 642,840,000
Â
Short-term borrowings
Â
$Â 98,332,398
Accounts receivable
Â
1,161,885,300
Â
Trade accounts payable
Â
421,708,488
Inventory
Â
1,178,570,300
Â
Other current liabilities
Â
814,072,037
Other current assets
Â
366,013,300
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Â
Â
Â
    Total current assets
Â
$Â 3,349,308,900
Â
    Total current…
Chapter 14 Solutions
Managerial Accounting: Tools for Business Decision Making
Ch. 14 - (a) Jose Ramirez believes that the analysis of...Ch. 14 - (a) Distinguish among the following bases of...Ch. 14 - Prob. 3QCh. 14 - Prob. 4QCh. 14 - Prob. 5QCh. 14 - Prob. 6QCh. 14 - Prob. 7QCh. 14 - What do the following classes of ratios measure?...Ch. 14 - What is the difference between the current ratio...Ch. 14 - Hizar Company, a retail store, has an accounts...
Ch. 14 - Which ratios should be used to help answer the...Ch. 14 - The price-earnings ratio of General Motors...Ch. 14 - What is the formula for computing the payout...Ch. 14 - Holding all other factors constant, indicate...Ch. 14 - Prob. 15QCh. 14 - Prob. 16QCh. 14 - Prob. 17QCh. 14 - Prob. 18QCh. 14 - Prob. 19QCh. 14 - Why is it important to report discontinued...Ch. 14 - You are considering investing in Wingert...Ch. 14 - Prob. 22QCh. 14 - Prob. 23QCh. 14 - You recently received a letter from your Uncle...Ch. 14 - Prob. 14.2BECh. 14 - Using the following data from the comparative...Ch. 14 - Using the same data presented above in BE14-3 for...Ch. 14 - Net income was 500,000 in 2016, 450,000 in 2017,...Ch. 14 - Prob. 14.6BECh. 14 - Prob. 14.7BECh. 14 - Prob. 14.8BECh. 14 - Prob. 14.9BECh. 14 - Prob. 14.10BECh. 14 - The following data are taken from the financial...Ch. 14 - Prob. 14.12BECh. 14 - Prob. 14.13BECh. 14 - Prob. 14.14BECh. 14 - On June 30. Holloway Corporation discontinued its...Ch. 14 - Prob. 14.1DICh. 14 - Prob. 14.2DICh. 14 - In its proposed 2017 income statement. Hrabik...Ch. 14 - Financial information for Kurzen Inc. is presented...Ch. 14 - Operating data for Navarro Corporation are...Ch. 14 - The comparative condensed balance sheets of Gurley...Ch. 14 - The comparative condensed income statements of...Ch. 14 - Suppose Nordstrom, Inc., which operates department...Ch. 14 - Keener Incorporated had the following transactions...Ch. 14 - Frizell Company has the following comparative...Ch. 14 - Prob. 14.8ECh. 14 - Prob. 14.9ECh. 14 - Prob. 14.10ECh. 14 - Wiemers Corporations comparative balance sheets...Ch. 14 - Prob. 14.12ECh. 14 - Prob. 14.13ECh. 14 - Comparative statement data for Farris Company and...Ch. 14 - The comparative statements of Painter Tool Company...Ch. 14 - Prob. 14.3APCh. 14 - Financial information for Messersmith Company is...Ch. 14 - Prob. 14.5APCh. 14 - Prob. 14.6APCh. 14 - Prob. 14.7APCh. 14 - Prob. 14.8APCh. 14 - Prob. 14.9APCh. 14 - Financial Reporting Problem: Apple Inc. Your...Ch. 14 - PepsiCos financial statements are presented at...Ch. 14 - Prob. 14.3BYPCh. 14 - As the CPA for Gandara Manufacturing Inc., you...Ch. 14 - The Management Discussion and Analysis section of...Ch. 14 - Prob. 14.6BYPCh. 14 - Dave Schonhardt, president of Schonhardt...
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