Intermediate Accounting
9th Edition
ISBN: 9781259722660
Author: J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher: McGraw-Hill Education
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Textbook Question
Chapter 3, Problem 3.18E
Calculating ratios; solve for unknowns
• LO3–8
The current asset section of the Excalibur Tire Company’s
| Inventories | $ 840,000 |
| Total assets | $2,800,000 |
| 2.25 | |
| Acid-test ratio | 1.2 |
| Debt to equity ratio | 1.8 |
Required:
Determine the following 2018 balance sheet items:
1. Current assets
2. Shareholders’ equity
3. Long-term assets
4. Long-term liabilities
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24
range the following items in proper balance sheet presentation: (Be sure to list the assets in order of their liquidity. Input all
swers as positive values.)
Accumulated amortization
Retained earnings
Cash
Bonds payable
Accounts receivable
Plant and equipment-original cost
Accounts payable
Allowance for bad debts
Common stock, 100,000 shares outstanding
Inventory
Preferred stock, 1,000 shares outstanding
Marketable securities
Investments
Notes payable
$230,000
195,300
12,000
136,000
51,500
700,000
42,000
5,200
172,000
73,000
60,000
20,000
22,000
38,000
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PROBLEM 8:Tomas Co. has the following balance sheet as of December 31, 2021.Current assets 180,000.00Fixed assets 120,000.00Total assets 300,000.00Accounts payable 40,000.00Accrued liabilities 20,000.00Notes payable 50,000.00Other Long-term debt 75,000.00Total Equity 115,000.00Total liabilities and equity 300,000.00 In 2021, Tomas Co. reported sales of P1,500,0000, net income of P30,000, and dividends of P18,000. The company expected its sales to increase by 20% by next year and its retention ratio will remain at 40%. Assume that Tomas Co. is operating at full capacity and it uses the AFN approach in determining the amount of external financing needed.How much is the sales for 2022?
Using Problem 8, how much is the increase in retained earnings for the purpose of computing the AFN?
Using Problem 8, how much external funds needed for the year 2022?
Balance Sheet for Bearcat Hathaway, 2022
2021
2022
Cash
Accounts
Receivable
Inventory
Current Assets
Accum.Depreciation
Net Fixed Assets
Gross Fixed Assets $16,251,665 $20,567,330
Less
$7,460,897 $10,117,819
Total Assets
O 11.58%
O 44.90%
O 8.37%
$5,268,485 $10,268,485
O 4.35%
$2,574,230 $2,314,672
O 6.02%
$529,062 $696,685
$8,371,777 $13,279,842
Total Liabilities
and Equity
What is the common size value for 2022 Notes Payable?
$8,790,768 $10,449,511
$17,162,545 $23,729,353
Current
Liabilities
2021
Accounts
Payable
Notes Payable $1,033,110 $1,987,233
2022
$1,673,992 $2,438,271
$2,707,102 $4,425,504
Long Term Debt $9,242,830 $11,468,302
Total Liabilities $11,949,932 $15,893,806
Common Stock
($0.50 par)
$1,300,000 $1,600,000
Capital Surplus $1,148,120 $1,800,969
Retained
$2,764,493 $4,434,578
Earnings
$17,162,545 $23,729,353
Chapter 3 Solutions
Intermediate Accounting
Ch. 3 - Prob. 3.1QCh. 3 - Prob. 3.2QCh. 3 - Define current assets and list the typical asset...Ch. 3 - Prob. 3.4QCh. 3 - Prob. 3.5QCh. 3 - Prob. 3.6QCh. 3 - Describe the common characteristics of assets...Ch. 3 - Prob. 3.8QCh. 3 - Prob. 3.9QCh. 3 - Define the terms paid-in-capital and retained...
Ch. 3 - Disclosure notes are an integral part of the...Ch. 3 - A summary of the companys significant accounting...Ch. 3 - Define a subsequent event.Ch. 3 - Prob. 3.14QCh. 3 - Prob. 3.15QCh. 3 - Prob. 3.16QCh. 3 - Prob. 3.17QCh. 3 - Show the calculation of the following solvency...Ch. 3 - Prob. 3.19QCh. 3 - Prob. 3.20QCh. 3 - (Based on Appendix 3) Segment reporting...Ch. 3 - Prob. 3.22QCh. 3 - Prob. 3.23QCh. 3 - Current versus long-term classification LO32,...Ch. 3 - Balance sheet classification LO32, LO33 The trial...Ch. 3 - Prob. 3.3BECh. 3 - Balance sheet classification LO32, LO33 Refer to...Ch. 3 - Balance sheet classification LO32, LO33 The...Ch. 3 - Balance sheet classification LO32, LO33 You have...Ch. 3 - Balance sheet preparation; missing elements LO32,...Ch. 3 - Financial statement disclosures LO34 For each of...Ch. 3 - Calculating ratios LO38 Refer to the trial...Ch. 3 - Prob. 3.10BECh. 3 - Calculating ratios; solving for unknowns LO38 The...Ch. 3 - Balance sheet; missing elements LO32, LO33, LO38...Ch. 3 - Balance sheet classification LO32, LO33 The...Ch. 3 - Balance sheet classification LO32, LO33 The...Ch. 3 - Balance sheet preparation LO32, LO33 The...Ch. 3 - Balance sheet preparation LO32, LO33 The...Ch. 3 - Balance sheet; Current versus long-term...Ch. 3 - Prob. 3.7ECh. 3 - Prob. 3.8ECh. 3 - Balance sheet preparation LO32, LO33 The...Ch. 3 - Financial statement disclosures LO34 The...Ch. 3 - Prob. 3.11ECh. 3 - Prob. 3.12ECh. 3 - Prob. 3.13ECh. 3 - FASB codification research LO32, LO34 Access the...Ch. 3 - Prob. 3.15ECh. 3 - Prob. 3.16ECh. 3 - Prob. 3.17ECh. 3 - Calculating ratios; solve for unknowns LO38 The...Ch. 3 - Prob. 3.19ECh. 3 - Effect of management decisions on ratios LO38...Ch. 3 - Prob. 3.21ECh. 3 - Prob. 3.22ECh. 3 - Balance sheet preparation LO32, LO33 Presented...Ch. 3 - Balance sheet preparation; missing elements LO32,...Ch. 3 - Balance sheet preparation LO32, LO33 The...Ch. 3 - Balance sheet preparation LO32, LO33 The...Ch. 3 - Balance sheet preparation LO32, LO33 The...Ch. 3 - Prob. 3.6PCh. 3 - Balance sheet preparation; errors LO32, LO33 The...Ch. 3 - Balance sheet; errors; missing amounts LO32, LO33...Ch. 3 - Balance sheet preparation LO32 , LO33 Presented...Ch. 3 - Prob. 3.10PCh. 3 - Communication Case 31 Current versus long-term...Ch. 3 - Analysis Case 32 Current versus long- term...Ch. 3 - Prob. 3.4BYPCh. 3 - Judgment Case 35 Balance sheet; errors LO32...Ch. 3 - Prob. 3.6BYPCh. 3 - Real World Case 37 Balance sheet and significant...Ch. 3 - Judgment Case 38 Post fiscal year-end e vents ...Ch. 3 - Prob. 3.9BYPCh. 3 - Prob. 3.10BYPCh. 3 - Prob. 3.11BYPCh. 3 - Analysis Case 314 Balance sheet information LO32...Ch. 3 - Prob. 3.15BYPCh. 3 - Ethics Case 316 Segment reporting Appendix 3 You...Ch. 3 - Prob. 1CCTC
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