Intermediate Accounting
9th Edition
ISBN: 9781259722660
Author: J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher: McGraw-Hill Education
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Textbook Question
Chapter 3, Problem 3.7BE
• LO3–2, LO3–3
The following information is taken from the balance sheet of Raineer Plumbing: cash and cash equivalents, $40,000; accounts receivable, $120,000; inventories, ?; total current assets, $235,000; property, plant, and equipment (net), ?; total assets, $400,000; accounts payable, $32,000; note payable (due in two years), $50,000; common stock; $100,000; and retained earnings, ?. Determine the missing amounts.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Required information
Use the following information for the Quick Studies below. (Algo)
[The following information applies to the questions displayed below.]
Cash
Accounts receivable
Equipment, net
Land
Total assets
QS 17-6 (Algo) Vertical analysis LO P2
Current Year
$ 12,700
64,000
64,000
100,500
$ 241,200
Cash
Accounts receivable
Equipment, net
Express the items in common-size percents. (Round your percentage answers to one decimal place.)
Land
Total assets
Current Year
Prior Year
$ 16, 200
29,900
56,000
76,000
$ 178,100
%
%
%
%
0.0 %
Prior Year
%
%
%
%
0.0 %
OUR COMPANY
Statement of Financial Position
As of December 31
2ΟΥ2
20Υ1
Cash and Cash Equivalents
P 470,310
P 519,860
Accounts Receivable, net
660,110
565,170
Inventory
653,060
555,480
228,810
Prepaid Expenses
173,740
Total Current Assets
1,957,220
1,869,320
Property, Plant and Equipment, net
Intangible Assets
5,910,530
745,200
5,501,660
721,910
Total Assets
P8,612,950 P8,092,890
Current Liabilities
P1,273,050 P1,123,700
Long-Term Liabilities
577,580
541,540
Total Liabilities
1,850,630
1,665,240
OUR, Capital
6,762,320
6,427,650
Total Liabilities and Owner's Equity P8,612,950 P8,092,890
OUR COMPANY
Statement of Comprehensive Income
For the Year Ended
20Υ2
20Υ1
Sales Revenue
P5,385,860 P4,921,850
1,374,790
Cost of Goods Sold
1,254,860
Gross Profit
4,011,070
3,666,990
3,127,150
3,406,460
604,610
Selling and Administrative Expenses
Operating Income
Interest Expense
539,840
23,040
11,820
Net Income
P 592,790
P 516,800
Required:
1. Compute for the 20Y2 profitability ratios.
2. Compute for…
Problem #1
The following balance sheet and income statement data is given:
31-Dec
Yr 2021
Yr 2020
Cash
$4,300
$3,700
Accounts receivable (net)
22,000
23,400
Inventories
10,000
7,000
Plant assets (net)
75,000
86,000
Total assets
111,300
120,100
Accounts payable
12,370
11,100
Bonds payable
70,000
70,000
Total liabilities
82,370
81,100
Common stock, $10 par
65,000
59,000
Paid-in capital
10,000
10,000
Retained earnings
24,300
20,600
Total stockholders’ equity
99,300
89,600
Net credit sales
100,000
Cost of goods sold
60,350
Gross profit
39,650
Net income
14,000
REQUIRED:
Compute the following ratios for 2021.
NOTE: Copy and paste the information below into the answer box first and then show your calculation steps for this problem to receive credits.
(1) Accounts receivable turnover=____________________
(2) Inventory turnover=__________________
(3) Accounts payable…
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
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Required information [The following information applies to the questions displayed below.] Current Year ed Cash $ 11,500 Prior Year $ 14,200 Accounts receivable 61,500 27,000 Equipment, net Land Total assets 59,000 99,000 52,000 73,500 $ 231,000 $ 166,700 Express the items in common-size percents. Note: Round your percentage answers to one decimal place. Current Year Prior Year Cash % % ces Accounts receivable % % Equipment, net % % Land Total assets % % 0.0 % 0.0 %arrow_forwardD Question 6 An entity reported the following data on December 31,2019: Cash in bank, net of bank overdraft of 100,000 1200,000 PCF, including unreplenished expenses of 10,000 50,000 Notes receivables 750,000 A/R net customers account with credit balances of 200K 2,000,000 Inventory, excluding unrecorded purchase of 300,000 on account in transit shipped FOB SP on 12/31/19 2500,000arrow_forwardPrivett Company Accounts payable Accounts receivable Accrued liabilities Cash $36,632 72,986 6,134 15,305 38,400 71,968 119,728 79,667 31,336 20,560 662,428 2,681 Based on the data for Privett Company, what is the amount of quick assets? Oa. $119,627 Ob. $781,037 Oc. $46,641 Od. $1,601,593 Intangible assets Inventory Long-term investments Long-term liabilities Marketable securities Notes payable (short-term) Property, plant, and equipment Prepaid expensesarrow_forward
- Question 13 Using the following balance sheet items and amounts, calculate the total liquid assets. • Money market account $4056 • Retirement account $17200 • Medical bills $120 • Checking account $8308 • Credit card balance $670 Your Answer: Answerarrow_forward1. Compute the current assets.Cash Php 25,867.00Barney’s drawing 50,485.00Accounts Payable 78,584.00Notes Receivable 45,051.00Building 1,500,125.00Inventory 33,669.002. Compute the Net Income.Service Income Php 356,867.00Prepaid Rent 16,800.00Interest Expense 1,523.00Barney’s drawing 21,786.00Taxes 4,544.00Utilities Expense 3,651.003. The liabilities of Bb Barn are equal to 1/3 of thetotal assets. The owner's equity is P 6,300,500. Whatis the amount of the liabilities?4. Prepare journal entries to the following transactionsfor the year 2020.Sept. 1 V Barney invested Php 150,000 in Barney repair ShopSept 3 Purchased equipment worth Php 80,000 on account.Sept. 12 Paid Php 25, 000 for the equipmentpurchased dated Sept. 3, 2020.Sept. 15 Rendered service amounting toPhp 45,000.Sept. 17 Paid salaries to employees, Php16,000arrow_forwardRequlred Informatlon RivMera Townshlp reported the following data for Its governmental activitles for the year ended June 30, 20X9: 2 of 3 Item Amount Cash and cash equivalents $1,000,000 300,000 8,500,000 1,200,000 400,000 4,800,000 Receivables Capital assets Accumulated depreciation Accounts payable 01:56:09 Long-term liabilities Additlonal Information avalable is as follows: All of the long-term debt was used to acquire capital assets. Cash of $475,000 Is restricted for debt service. Based on the preceding Informatlon, on the statement of net assets prepared at June 30, 20X9, what amount should be reported for net assets Invested In capital assets, net of related debt? Multiple Cholce $3.300,000 $2.900,000 $2,825,000 $4.200,000arrow_forward
- 40 Assets Cash P Laus 22,354.00 567,890.00 Accounts Receivable-net Inventories 260,102.00 Land Building 428,267.00 Furniture & Fixtures 34,789.00 Other Assets 3,600.00 1,317,002.00 Equities 243,650.00 178,940.00 P 200,000.00 345,000.00 Accounts Payable Notes Payable Borromeo, Capital Laus, Capital 641,976.00 728,352.00 1,020,916.00 1,317.002.00 On May 1, 2022, the business accounts of Borromeo and Laus appear below. a. b. Accounts receivable of P20,000 in Borromeo's books andP35,000 in Laus' books are uncollectible. Inventories of P5,500 and P6,700 are worthless in Borromeo's and Laus' respective books. Other assets of P2,000 and P3,600 in Borromeo's and Laus' respective books are to be written off C. Using the information given, and assuming Kim offered to join for a 20% interest in the new BLK Partnership, how much cash should he contribute? Borromeo 11,000.00 P 234,536.00 120,035.00 603,000.00 50,345.00 2,000.00 P 1,020,916.00 Parrow_forwardProvide the quick ratio. Given: Current Assets Cash in bank P282,506 Due from related parties - current portion 1,325,607,906 Current Liabilities 1,925,822,542arrow_forwardQuestion 3 of 4 > -/2 View Policies Current Attempt in Progress Ouellette Ltée reports the following items: cash in bank $17,500; payroll bank account $6,000; cash register floats $500; and trading investments consisting of term deposits with maturity dates of less than 90 days $5,000. Determine which items described above would be considered cash, cash equivalents, or other items to be reported on the statement of financial position. Cash in bank Payroll bank account Cash register floats Trading investments eTextbook and Media Save for Later Attempts: 0 of 3 used Submit Answerarrow_forward
- What is the amount of cash to reconcile using the direct method on the Statement of Cash Flows? 20XX 20YY Change Cash 600,000 2,000 598,000arrow_forward19:49 Exercise: The balance sheet of the company "MHS" at the beginning of the financial year N presents the following items: Elements Technical installations Transportation equipment office mat Goods Clients Bank Box TOTAL Amounts Elements 225,000 95,000 45,000 38,900 12,100 22,000 3,500 441,500 Capital Fixed Asset Suppliers Suppliers TOTAL . 03/01, Withdrawal from the bank to fund the cash register: 2,000 DH 05/01, Purchase on credit of goods: 2,500DH 08/01, Acquisition of a typewriter paid by check: 2,500 DH . . 01/12, Bank debit advice, bank charges and services: 250 DH • 13/01, Payment of the chartered accountant's fees: 1,000 DH by bank transfer. The operations carried out by the company during the first month of the year can be summarized as follows: • 16/01, Sales of goods: against cash: 17,500 DH: against check: 22,000DH on credit: 8,000 DH. • 17/01, Payment of the costs of the staff employed: 8,500 DH by bank check. • 18/01, Regulation of operating property suppliers: 12,500…arrow_forwardView Policies Current Attempt in Progress Sheridan Inc. owns these assets at the statement of financial position date: Cash in bank (savings account) $20,240 Cash on hand 1,540 Prepaid insurance 1.840 Cash in bank (chequing account) 12,880 Postdated cheques received from customers 920 (a) What amount should be reported as cash and cash equivalents in the statement of financial position? Cash $ eTextbook and Media Save for Later Attempts: 0 of 3 used Submit Answerarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,
Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSON
Intermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill Education
Financial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education
The KEY to Understanding Financial Statements; Author: Accounting Stuff;https://www.youtube.com/watch?v=_F6a0ddbjtI;License: Standard Youtube License