Concept explainers
a.
To prepare: The statement of
Financial Statements: A part of annual report that is attributed to the financials of the company for an accounting period is called financial statements. These include income statement, statement of
Statement of Stockholders’ Equity: Statement of stockholders’ equity reports the opening and closing balance of stockholder’s equity with the changes incurred during the accounting period.
b.
To identify: The amount reinvested in the firm over the years.
Retained Earnings: The companies retain some portion of their net income to support the business operations, expansion plans and other long term assets. That remaining portion of a company’s net incomes is called retained earnings.
c.
To identify: The maximum amount of check that could be written and cleared.
d.
To determine: The amount needs to be paid to creditors within the next year.
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Chapter 3 Solutions
Fundamentals Of Financial Management, Concise Edition (mindtap Course List)
- Balance Sheet Baggett Companys balance sheet accounts and amounts as of December 31, 2019, are shown in random order as follows: Required: 1. Prepare a December 31, 2019, balance sheet for Baggett. 2. Compute the debt to-assets ratio.arrow_forwardAnalyzing Accounts Receivable Upham Companys June 30, 2019, balance sheet included the following information: Required: 1. Prepare the journal entries necessary for Upham to record the preceding transactions. 2. Prepare an analysis and schedule that shows the amounts of the accounts receivable, allowance for doubtful accounts, notes receivable, and notes receivable dishonored accounts that will be disclosed on Uphams June 30, 2020, balance sheet.arrow_forwardCurrent Assets Listed here are certain accounts of Jenkins Company at the end of 2019; Debit (Credit) $12,000 1,530 1,200 4,300 5,400 (1,100) 3,380 (8,700) 15,500 970 27,200 19,000 Account Land Prepaid Insurance Cash on Hand Notes Receivable (due 2021) Cash in Bank Allowance for Doubtful Accounts Marketable Securities (Short-Term) Accumulated Depreciation Accounts Receivable Office Supplies Buildings Inventoryarrow_forward
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- Analyze your company’s liability section of the comparative balance sheets. Has the composition of current and long-term liabilities changed significantly over the period? Explain? Liabilities and Equity sections of Walmart's Balance Sheet As of January 31, (Amounts in millions) 2019 2018 LIABILITIES AND EQUITY Current liabilities: Short-term borrowings $ 5,225 $ 5,257 Accounts payable 47,060 46,092 Accrued liabilities 22,159 22,122 Accrued income taxes 428 645 Long-term debt due within one year 1,876 3,738 Capital lease and financing obligations due within one year 729 667 Total current liabilities 77,477 78,521 Long-term debt 43,520 30,045 Long-term capital lease and financing obligations 6,683 6,780 Deferred income taxes and other 11,981 8,354 Total liabilities 139,661 123,700arrow_forwardThe following information pertains to Luna Company as at September 30, 2020:a. Notes payable – bank, P35,000b. Accounts payable arising from purchase of goods, P1,125,000c. Dividends in arrears on preference shares, not yet declared, P250,000d. Income tax payable, P134,000e. Accrued liabilities, P42,000f. Mortgage payable, P2,250,000g. Customers’ deposits, P89,000h. Reserve for contingencies, P250,000What is the total amount of liabilities that should be reported on Luna's statement of financial position as at September 30, 2020?arrow_forwardThe following data were taken from the balance sheet accounts of Pronghorn Corporation on December 31, 2019. Current assets $ 554,000 Debt investments (trading) 596,000 Common stock (par value $ 10) 455,000 Paid-in capital in excess of par 148,000 Retained earnings 800,000 Prepare the required journal entries for the following unrelated items. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) (a) A 4% stock dividend is (1) declared and (2) distributed at a time when the market price per share is $ 37. (b) The par value of the common stock is reduced to $ 2 with a 5-for-1 stock split. (c) A dividend is declared January 5, 2020, and paid January 25, 2020, in bonds held as an investment. The bonds have a book value of $ 105,000 and a fair value of $ 133,000. No. Date Account Titles and…arrow_forward
- UTT Co. shows the following information on its 2019 financial statement: interest expense $7,950. In addition, you're told that the firm issued $4,100 in new equity during 2019 and redeemed $6,900 in outstanding long-term debt. $6,900; dividends What is the 2019 cash flow to creditors? = =arrow_forwardWildhorse Inc., had the following condensed balance sheet at the end of operations for 2019. Cash Current assets other than cash Equity invesments Plant assets (net) Land 1. During 2020, the following occurred. 2. 3. 4. 5. 6. 7. WILDHORSE INC. BALANCE SHEET DECEMBER 31, 2019 $8,400 28,800 8. 20,000 67,100 40,300 $164,600 Current liabilities Long-term notes payable Bonds payable Common stock Retained earnings A tract of land was purchased for $8,900. Bonds payable in the amount of $15,000 were redeemed at par. An additional $9,900 in common stock was issued at par. Dividends totaling $9,400 were paid to stockholders. Net income was $30,600 after allowing depreciation of $13,300. Land was purchased through the issuance of $22,800 in bonds. $15,200 25,500 25,000 75,000 23,900 $164,600 Wildhorse Inc. sold part of its investment portfolio for $12,900. This transaction resulted in a gain of $1,900 for the company. No unrealized gains or losses were recorded on these investments in 2020. Both…arrow_forwardBelow are the accounts of Jayden Services for the year ended December 31, 2019. Accounts Payable Accounts Receivable Capital Cash Inventories 100,000 Long-term Debt Notes Payable Notes Receivable Property and Equipment Supplics and other payments 140,000 1,840,000 1,000,000 450,000 300,000 100,000 100,000 550,000 100,000 Compute and answer the following questions. 1. How much is the total current asset of the entity? 2. How much is the total non-current assets of the entity? 3. How much is the total current liability of the entity? 4. How much is the total non-current liability of the entity? 5. How much is the total assets of the entity? 2.arrow_forward
- Intermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning