Financial Accounting
3rd Edition
ISBN: 9780133791129
Author: Jane L. Reimers
Publisher: Pearson Higher Ed
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Chapter 2, Problem 26EA
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In its December 31, 2017, balance sheet Oakley Corporationreported as an asset, “Net notes and accounts receivable,$7,100,000.” What other disclosures are necessary?
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Luther Corporation
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December 31, 2019 and 2018 (in $ millions)
Assets
2019
2018
Liabilities and Stockholders' Equity
2019
2018
Current Assets
Current Liabilities
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Other current assets
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3.0
Other current liabilities
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12.0
Total current assets
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144.0
Total current liabilities
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132.0
Long−Term
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Use the following selected financial information for Cascabel Corporation to answer
questions
Cascabel Corporation
Balance Sheet
December 31, 2015
Assets
Liabilities and stockholders' equity
Current assets
Current liabilities
Cash
Accounts payable
Accrued liabilities
2
36
Short-term investments
10
25
Accounts receivable
52
Total current liabilities
61
Inventory
57
Other current assets
Long-term debt
102
Total current assets
129
Total liabilities
163
Long-term assets
Stockholders' equity
Net Plant
195
Common stock
110
Retained earnings
Total stockholders' equity
Total liabilities and equity
51
161
324
Total assets
324
Cascabel Corporation
Income Statement
For the Year Ended December 31, 2015
Chapter 2 Solutions
Financial Accounting
Ch. 2 - Prob. 1YTCh. 2 - Prob. 2YTCh. 2 - Is prepaid insurance an expense or an asset?...Ch. 2 - Prob. 4YTCh. 2 - Give an example of the matching principle from the...Ch. 2 - What is the difference between cash basis and...Ch. 2 - Prob. 7YTCh. 2 - What is GAAP? What is IFRS?Ch. 2 - Prob. 2QCh. 2 - Prob. 3Q
Ch. 2 - Prob. 4QCh. 2 - Prob. 5QCh. 2 - What are the four basic financial statements?Ch. 2 - Which financial statement pertains to a single...Ch. 2 - Prob. 8QCh. 2 - Prob. 9QCh. 2 - Prob. 10QCh. 2 - Prob. 11QCh. 2 - Prob. 12QCh. 2 - What does recognize revenue mean in accounting?Ch. 2 - Prob. 14QCh. 2 - What is an accrual? What is a deferral?Ch. 2 - Must a company collect the money from a sale...Ch. 2 - What is the cost of goods sold?Ch. 2 - Explain the difference between cash basis...Ch. 2 - Prob. 19QCh. 2 - Prob. 20QCh. 2 - Prob. 21QCh. 2 - Prob. 1MCQCh. 2 - Prob. 2MCQCh. 2 - Prob. 3MCQCh. 2 - Prob. 4MCQCh. 2 - Prob. 5MCQCh. 2 - Prob. 6MCQCh. 2 - Prob. 7MCQCh. 2 - Prob. 8MCQCh. 2 - Prob. 9MCQCh. 2 - Prob. 10MCQCh. 2 - Elements of the financial statements. (LO 3). For...Ch. 2 - Prob. 2SEACh. 2 - Prob. 3SEACh. 2 - Prob. 4SEACh. 2 - Prob. 5SEACh. 2 - Prob. 6SEACh. 2 - Cash versus credit sales. (LO 3, 4). Company A had...Ch. 2 - Prob. 8SEACh. 2 - Prob. 9SEACh. 2 - Prob. 10SEACh. 2 - Prob. 11SEBCh. 2 - Prob. 12SEBCh. 2 - Prob. 13SEBCh. 2 - Prob. 14SEBCh. 2 - Prob. 15SEBCh. 2 - Prob. 16SEBCh. 2 - Prob. 17SEBCh. 2 - Prob. 18SEBCh. 2 - Prob. 19SEBCh. 2 - Prob. 20SEBCh. 2 - Prob. 21EACh. 2 - Prob. 22EACh. 2 - Prob. 23EACh. 2 - Balance sheet and income statement transactions....Ch. 2 - Prob. 25EACh. 2 - Prob. 26EACh. 2 - Prob. 27EACh. 2 - Prob. 28EACh. 2 - Elements of the financial statements. (LO 3). The...Ch. 2 - Prob. 30EBCh. 2 - Elements of the financial statements. (LO 3)....Ch. 2 - Prob. 32EBCh. 2 - Prob. 33EBCh. 2 - Prob. 34EBCh. 2 - Prob. 35EBCh. 2 - Current ratio. (LO 5). The following data was...Ch. 2 - Prob. 37PACh. 2 - Prob. 38PACh. 2 - Prob. 39PACh. 2 - Prob. 40PACh. 2 - Prob. 41PACh. 2 - Prob. 42PBCh. 2 - Prob. 43PBCh. 2 - Prob. 44PBCh. 2 - Prob. 45PBCh. 2 - Prob. 46PBCh. 2 - Prob. 1FSACh. 2 - Prob. 2FSACh. 2 - Prob. 3FSA
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- Use the following selected financial information for Cascabel Corporation to answer questions Cascabel Corporation Balance Sheet December 31, 2015 Assets Liabilities and stockholders' equity Current assets Current liabilities Cash 2 Accounts payable 36 Short-term investments 10 Accrued liabilities 25 Accounts receivable 52 Total current liabilities 61 Inventory 57 Other current assets 8 Long-term debt 102 Total current assets 129 Total liabilities 163 Long-term assets Stockholders' equity Net Plant 195 Common stock (10) 110 Retained earnings 51 Total stockholders'…arrow_forwardBE11-5 Yahoo! Inc.'s recent financial statements contain the following selected data (in Arulye liquidity. thousands). (LO 2) Current assets $ 4,594,772 Total assets Current liabilities $1,717,728 Total liabilities 14,936,030 2,417,394 Compute (a) working capital and (b) current ratio.arrow_forward(Balance Sheet Adjustment and Preparation) Presented below is the balance sheet of Sargent Corporation for the current year, 2017. Check the following image for balance sheet The following information is presented.1. The current assets section includes cash $150,000, accounts receivable $170,000 less $10,000 for allowance for doubtful accounts, inventories $180,000, and unearned rent revenue $5,000. Inventory is stated on the lower-of-FIFO-cost-or-net realizable value.2. The investments section includes the cash surrender value of a life insurance contract $40,000; investments in common stock, short-term $80,000 and long-term $270,000; and bond sinking fund $250,000. The cost and fair value of investments in common stock are the same.3. Property, plant, and equipment includes buildings $1,040,000 less accumulated depreciation $360,000, equipment $450,000 less accumulated depreciation $180,000, land $500,000, and land held for future use $270,000.4. Intangible assets include a franchise…arrow_forward
- Problem 8-9A (Algo) Calculate and analyze ratios (LO8-6) Selected financial data regarding current assets and current liabilities for ACME Corporation and Wayne Enterprises, are as follows: ACME Corporation Wayne Enterprises ($ in millions) Current assets: Cash and cash equivalents Current investments Net receivables Inventory Other current assets Total current assets Current liabilities: Current debt Accounts payable Other current liabilities Total current liabilities Req 1A Req 1B $549 6 738 10,681 1,207 $13,181 Required: 1-a. Calculate the current ratio for ACME Corporation and Wayne Enterprises. 1-b. Which company has the more favorable ratio? 2-a. Calculate the acid-test (quick) ratio for ACME Corporation and Wayne Enterprises. 2-b. Which company has the more favorable ratio? Req 2A Current Ratio $9,121 1,857 1,165 $12,143 Complete this question by entering your answers in the tabs below. Req 2B $335 411 256 9,109 305 $10,416 $4,463 1,111 2,523 $8,097 Calculate the current ratio…arrow_forwardPresented below are selected data from the balance sheet of Julian Company for 2024. The figures are expressed in millions. Total Current assets Property, plant, and equipment Other assets Total Current liabilities Total Long-term debt Total Stockholders' equity a. Determine the amount of total current assets for Julian's 2024 balance sheet. b. How much of Julian Company is financed by creditors? Also provide the percentage financed by creditors. c. How much of Julian Company is financed by stockholders? Also provide the percentage financed by stockholders. $? $12,325 $3,121 $1,278 $3,646 $11,677 Question 20 Lulu Enterprises began the year with total liabilities of $188,000 and total stockholders equity of $330,000. Using this information, answer each of the following independent questions. a) If Lulu's total assets increased by $50,000 and its total liabilities increased by $20,000 during the year, what was the amount of Lulu's stockholders' equity at the end of the year? b) If Lulu's…arrow_forwardUse the information below for Harding Company to answer the question that follow. Harding Company Accounts payable $32,441 Accounts receivable 62,838 Accrued liabilities 6,445 Cash 23,006 Intangible assets 41,037 Inventory 84,374 Long-term investments 95,861 Long-term liabilities 72,719 Marketable securities 34,097 Notes payable (short-term) 29,992 Property, plant, and equipment 694,005 Prepaid expenses 1,051 Based on the data for Harding Company, what is the amount of quick assets?arrow_forward
- Use the information below for Harding Company to answer the question that follow. Harding Company Accounts payable $38,359 Accounts receivable 64,021 Accrued liabilities 6,278 Cash 16,357 Intangible assets 39,145 Inventory 71,744 Long-term investments 114,022 Long-term liabilities 78,081 Marketable securities 37,693 Notes payable (short-term) 26,031 Property, plant, and equipment 652,011 Prepaid expenses 2,879 Based on the data for Harding Company, what is the amount of working capital?arrow_forwardBelow are the Statement of Financial Position and Statenment of Result of Operation of JFC for the Years 2012 to 2014. Perforin a Horizontal and Vertical analyses on both statements. 2014 2013 2012 ASSETS Current Assets Cash 7,618.0 9,903.0 8,848.0 Receivables 7,479.0 3,128.0 2,715.0 Capite 5,972.0 3,560.0 2,630.0 Inventories Other current assets 2,952.0 1,793.0 1,430.0 24,012.0 18,384.0 15,623.0 Non-current Assets Property, plant, and equipment 13,363.0 11,772.0 11,059.0 Finarıcial Investments 3,410.0 3,353.0 3,139.0 Other non-current assets 13,324.0 12,517.0 11,947.0 30,097.0 27,642.0 26,145.0 54,118.0 46,026.0 TOTAL. ASSETS 41,768.0arrow_forwardA Corporation had the following data concerning selected financial data taken from the records listed below.For the year ended December 312021 2020Cash 80,000 640,000Note and account receivable 400,000 1,200,000Merchandise Inventory 720,000 1,200,000Marketable Securities 240,000 80,000Land and Building (net) 2,720,000 2,880,000Bond Payable 2,160,000 2,240,000Account Payable 560,000 880,000Note Payable Short Term 160,000 320,000Sales (20% cash, 80% credit) 18,400,000 19,200,000Cost of Good Sold 8,000,000 11,200,000Required : Compute the following ratios1. current ratio as of December 31,20212. Quick ratio as of December 31, 20213. Account Receivable Turnover ratio for 20214. Merchandise inventory turn over for 20215. The Gross margin for 20206. the average age of account Receivable for 2021( use 360 daysarrow_forward
- The following data were taken from the balance sheet accounts of Wildhorse Corporation on December 31, 2024. Current assets Debt investments (trading) Common stock (par value $10) Paid-in capital in excess of par Retained earnings a. b. C. $513,000 605,000 Prepare the required journal entries for the following unrelated items. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record entries in the order displayed in the problem statement.) 501,000 Date 144,000 910,000 A 6% stock dividend is (1) declared and (2) distributed at a time when the market price per share is $40. The par value of the common stock is reduced to $2 with a 5-for-1 stock split. A dividend is declared January 5, 2025, and paid January 25, 2025, in bonds held as an investment. The bonds have a book value of $104,000 and a fair…arrow_forwardE9-6 Current Position Analysis Obj. 3 .................. The following data were taken from the comparative balance sheet of Icon Living, Inc., for the years ended December 31, 20Y9 and December 31, 20Y8: Cash Temporary investments Accounts and notes receivable (net) Inventories Prepaid expenses Total current assets Accounts payable Accrued liabilities Total current liabilities ▸ Details Dec. 31, 20Y9 $ 75,000 125,000 250,000 425,000 25,000 $ 900,000 $ 350,000 25,000 $ 375,000 Dec. 31, 2018 $ 50,000 75,000 200,000 305,000 20,000 $ 650,000 $ 230,000 20,000 $ 250,000 a. Determine for each year (1) the working capital, (2) the current ratio, and (3) the quick ratio. b. What conclusions can be drawn from these data?arrow_forwardDescribe” the Ch9 - return on assets ratio. Explain the factors used in the formula, how the ratio assists the investor in evaluating a company’s performance, and whether it assesses liquidity, solvency, or profitability. Using the numbers in the recent Balance Sheet (Statements of Financial Position) and Income Statement (Statement of Operations) of a U.S. public corporation (state page numbers from the Form 10-K Annual Report), show your calculation and “analyze” the return on assets ratio for a public corporation and its competitor. Describe if the company is doing well in comparison to its competitor’s ratio results.arrow_forward
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The KEY to Understanding Financial Statements; Author: Accounting Stuff;https://www.youtube.com/watch?v=_F6a0ddbjtI;License: Standard Youtube License