FINANCIAL ACCOUNTING
6th Edition
ISBN: 9781618533111
Author: DYCKMAN
Publisher: Cambridge Business Publishers
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Chapter 2, Problem 17ME
To determine
Calculate the missing amounts for each of the separate cases.
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The following balance sheet and income statement data is available for Cold River Corporation:
Current assets: $205,000
Total assets: $520,000
Net income: $345,000
Current liabilities: $125,000
Total liabilities: $250,000
Stockholders' equity: $270,000
Average common shares outstanding: 10,000
What is Cold River's current ratio?
a) 2.06
b) 1.64
c) 1.56
d) 0.82
Phelps Corporation owns all of the common stock of Stern Company. Each company maintains its own accounting records and prepares separate financial statements. Balance sheets for each company as of December 31, 20Y8, are as follows:
Line Item Description
PhelpsCorporation
SternCompany
Assets
Cash
30,500
20,500
Accounts Receivable
29,100
20,000
Inventory
80,000
35,250
Investment in Stern Company
85,750
—
Other assets
300,000
40,000
Total assets
525,350
115,750
Liabilities and Stockholders’ Equity
Accounts Payable
80,000
30,000
Common Stock
300,000
50,000
Retained Earnings
145,350
35,750
Total liabilities and stockholders’ equity
525,350
115,750
Prepare a December 31, 20Y8, consolidated balance for Phelps Corporation and Subsidiary.
Some selected financial statement items belonging to Fanar Company are given in the table below. According
to this information, which of the following is the Current Ratio?
Inventory
13,500
Current Assets
63,000
Current Liabilities
36,000
Non-current Assets
85,000
Net Profit
14,000
Shareholders' Equity
68,000
Select one:
O a. 1.09
O b. 1.75
O c. 1.35
O d. 1.79
Chapter 2 Solutions
FINANCIAL ACCOUNTING
Ch. 2 - Prob. 1MCCh. 2 - Prob. 2MCCh. 2 - Prob. 3MCCh. 2 - Prob. 4MCCh. 2 - Prob. 5MCCh. 2 - Prob. 1QCh. 2 - Prob. 2QCh. 2 - Prob. 3QCh. 2 - Prob. 4QCh. 2 - Prob. 5Q
Ch. 2 - Prob. 6QCh. 2 - Prob. 7QCh. 2 - Prob. 8QCh. 2 - Prob. 9QCh. 2 - Prob. 10QCh. 2 - Prob. 11QCh. 2 - Prob. 12QCh. 2 - Prob. 13QCh. 2 - Prob. 14MECh. 2 - Prob. 15MECh. 2 - Prob. 16MECh. 2 - Prob. 17MECh. 2 - Prob. 18MECh. 2 - Prob. 19MECh. 2 - Prob. 20MECh. 2 - Prob. 21MECh. 2 - Prob. 22MECh. 2 - Prob. 23MECh. 2 - Prob. 24MECh. 2 - Prob. 25MECh. 2 - Prob. 26MECh. 2 - Prob. 27MECh. 2 - Prob. 28MECh. 2 - Prob. 29MECh. 2 - Prob. 30MECh. 2 - Prob. 31MECh. 2 - Prob. 32MECh. 2 - Prob. 33MECh. 2 - Prob. 34ECh. 2 - Prob. 35ECh. 2 - Prob. 36ECh. 2 - Prob. 37ECh. 2 - Prob. 38ECh. 2 - Prob. 39ECh. 2 - Prob. 40ECh. 2 - Prob. 41ECh. 2 - Prob. 42ECh. 2 - Prob. 43ECh. 2 - Prob. 44ECh. 2 - Prob. 45ECh. 2 - Prob. 46ECh. 2 - Prob. 47ECh. 2 - Prob. 48ECh. 2 - Prob. 49PCh. 2 - Prob. 50PCh. 2 - Prob. 51PCh. 2 - Prob. 52PCh. 2 - Prob. 53PCh. 2 - Prob. 54PCh. 2 - Prob. 55PCh. 2 - Prob. 56PCh. 2 - Prob. 57PCh. 2 - Prob. 58PCh. 2 - Prob. 59PCh. 2 - Prob. 60PCh. 2 - Prob. 61PCh. 2 - Prob. 62PCh. 2 - Prob. 63PCh. 2 - Prob. 64PCh. 2 - Prob. 65PCh. 2 - Prob. 66PCh. 2 - Prob. 67PCh. 2 - Prob. 68PCh. 2 - Prob. 69PCh. 2 - Prob. 70PCh. 2 - Prob. 71CPCh. 2 - Prob. 72CP
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