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 14.6E
Keener Incorporated had the following transactions occur involving current assets and current liabilities during Februar 2017.
| Feb. | 3 | |
| 7 | Equipment is purchased for $28,000 cash. | |
| 11 | Paid $3,000 for a 3-year insurance policy. | |
| 14 | Accounts payable of $12,000 are paid. | |
| 18 | Cash dividends of $5,000 are declared. |
Additional information:
1. As of February 1, 2017, current assets were $ 110,000. and current liabilities were $50,000.
2. As of February 1, 2017, current assets included $15,000 of inventory and $2,000 of prepaid expenses.
Instructions
(a) Compute the
(b) Compute the acid-test ratio as of the beginning of the month and after each transaction.
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Skysong, Inc. had the following transactions involving current assets and current liabilities during February 2019.
Feb. 3
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Collected accounts receivable of $18,900.
7
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Purchased equipment for $36,800Â cash.
11
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Paid $3,500Â for a 1-year insurance policy.
14
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Paid accounts payable of $12,400.
18
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Declared cash dividends, $8,500.
Additional information:As of February 1, 2019, current assets were $135,000 and current liabilities were $35,400.Compute the current ratio as of the beginning of the month and after each transaction. (Round all answers to 2 decimal places, e.g. 1.83 : 1.)
Current ratio as of February 1, 2019
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Feb. 3
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Feb. 7
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Feb. 11
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Feb. 14
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Feb. 18
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Windsor, Inc. had the following transactions involving current assets and current liabilities during February 2022.
Feb. 3
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Collected accounts receivable of $17,100.
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Purchased equipment for $36,200Â cash.
11
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Paid $5,500Â for a 1-year insurance policy.
14
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Paid accounts payable of $13,400.
18
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Declared cash dividends, $6,400.
Additional information:As of February 1, 2022, current assets were $133,940 and current liabilities were $36,200.Compute the current ratio as of the beginning of the month and after each transaction. (Round all answers to 2 decimal places, e.g. 1.83 : 1.)
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Adobe Incorporated reported the following accounts and amounts (in millions) in its financial statements for the year ended November
30, 2018.
Accounts Payable
Accounts Receivable
Accumulated Amortization
Accumulated Depreciation
$ 1,350
1,330
650
1,400
Allowance for Doubtful Accounts
15
Cash and Cash Equivalents
1,640
Common Stock
450
Deferred Revenue
2,915
Equipment
13,060
Income Taxes Payable
35
Notes Payable (long-term)
5,105
Notes Receivable (long-term)
185
Prepaid Rent
310
Retained Earnings
8,915
Service Revenue
485
Short-Term Investments
1,590
2,720
Software
Required:
Prepare a classified balance sheet. The Allowance for Doubtful Accounts relates entirely to Accounts Receivable. (One of the accounts
does not belong on the balance sheet.) (Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)
Answer is not complete.
ADOBE INCORPORATED
Balance Sheet
As of November 30, 2018
(in millions of dollars)
Assets
Current Assets
Cash and Cash Equivalents
Accounts…
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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