Accounting: What the Numbers Mean
11th Edition
ISBN: 9781259535314
Author: David Marshall, Wayne William McManus, Daniel Viele
Publisher: McGraw-Hill Education
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Textbook Question
Chapter 2, Problem 2.17P
Problem 2.17
LO 2, 3, 4
Understanding and analyzing financial statement relationships-sales/service organization Pope’s Garage had the following accounts and amounts in its financial statements on December 31, 2016. Assume that all balance sheet items reflect account balances at December 31, 2016, and that all income statement items reflect activities that occurred during the year then ended.
| Accounts receivable | $ 99,000 |
| Depreciation expense | 36,000 |
| Land | 81.000 |
| Cost of goods sold | 270.000 |
| 177,000 | |
| Cash | 27,000 |
| Equipment | 213,000 |
| Supplies | 18,000 |
| Accounts payable | 69,000 |
| Service revenue | 60,000 |
| Interest expense | 12,000 |
| Common stock | 30,000 |
| Income tax expense | 36,000 |
| Accumulated depreciation | 135,000 |
| Long-term debt | 120,000 |
| Supplies expense | 42,000 |
| Merchandise inventory | 93,000 |
| Sales revenue | 420,000 |
Required:
- Calculate the total current assets at December 31, 2016.
- Calculate the total liabilities and
stockholders’ equity at December 31, 2016. - Calculate the earnings from operations (operating income) for the year ended December 31, 2016.
- Calculate the net income (or loss) for the year ended December 31, 2016.
- 'What was the average income tax rate for Pope’s Garage for 2016?
- If $48,000 of dividends had been declared and paid during the year, what was the January 1, 2016, balance of retained earnings?
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Task 2
Using the following information taken from the 2018
balance sheet & income statement for Urban
Outfitters
Net sales
$2473.8
Cost of Goods Sold
$1316.2
Operating Expenses
$575.8
• Inventory
$250.1
Accounts Receivable
$36.7
• Other Current Assets
$68.9
Fixed Assets
$690.0
>Calculate:
1.
Asset Turnover
2.
Net Profit Margin
3.
Return on Assets
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Business
AccountingQ&A LibraryShown below are selected financial data for Company a and Company B at the end of the current Company A Net credit sales 675,000 Cost of goods sold 504,000 Cash 53,000 Accounts receivable 75,000
Shown below are selected financial data for Company a and Company B at the end of the current Company A Net credit sales 675,000 Cost of goods sold 504,000 Cash 53,000 Accounts receivable 75,000
Question
Shown below are selected financial data for Company a and Company B at the end of the current
Company A
Net credit sales 675,000
Cost of goods sold 504,000
Cash 53,000
Accounts receivable 75,000
Inventory 84,000
Current liabilities 105,000
Company B
Net credit sales 560,000
Cost of goods sold 480,000
Cash 22,000
Accounts receivable 70,000
Inventory 160,000
Current liabilities 100,000
A) calculate inventory turnover rate for company A and B
QUESTION 7
Relevant account balances for Martinez Corporation are:
12/31/17
1/01/17
Accounts receivable
$18,000
$14,000
Inventory
24,000
26,000
Prepaid insurance
1,500
2,100
Accounts payable
25,000
26,000
Income information for 2017_______
_________
_________
Revenue
$120,000
Cost of goods sold
$60,000
Insurance expense
6,000
Operating expenses
18,000
Depreciation
10,000
94,000
Net income
$ 26,000
How much cash was paid to suppliers for inventory during 2017?
$2,000
$59,000
$63,000
$61,000
None of these choices is correct.
Chapter 2 Solutions
Accounting: What the Numbers Mean
Ch. 2 - Prob. 2.1MECh. 2 - Prob. 2.2MECh. 2 - Prob. 2.3MECh. 2 - Prob. 2.4MECh. 2 - Mini-Exercise 2.5 LO 2. 4 Identify accounts by...Ch. 2 - Mini-Exercise 2.6 LO 2. 4 Identify accounts by...Ch. 2 - Prob. 2.7ECh. 2 - Exercise 2.8 LO 2. 4 Identify accounts by category...Ch. 2 - Exercise 2.9 LQ 2 , 3 Understanding financial...Ch. 2 - Exercise 2.10 LO 2 , 3 Understanding financial...
Ch. 2 - Prob. 2.11ECh. 2 - Exercise 2.12 LQ 2. 3 Calculate retained earnings...Ch. 2 - Prob. 2.13ECh. 2 - Prob. 2.14ECh. 2 - Prob. 2.15PCh. 2 - Prob. 2.16PCh. 2 - Problem 2.17 LO 2, 3, 4 Understanding and...Ch. 2 - Problem 2.18 LO 2. 3, 4 Understanding and...Ch. 2 - Problem 2.19 LO 2, 3, 4 Prepare an income...Ch. 2 - Prob. 2.20PCh. 2 - Problem 2.21
LO 2, 3
Transaction...Ch. 2 - Prob. 2.22PCh. 2 - Problem 2.23 LO 2, 3, 5 Complete the balance sheet...Ch. 2 - Prob. 2.24PCh. 2 - Prob. 2.25PCh. 2 - Prob. 2.26PCh. 2 - Case 2.27 LO 2, 4, 6, 7 Prepare a personal balance...
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