Survey of Accounting (Accounting I)
8th Edition
ISBN: 9781305961883
Author: Carl Warren
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 3, Problem 3.9.3MBA
To determine
Concept Introduction:
Acid test ratio or Quick Ratio:
Acid test ratio is also called Quick ratio. This ratio is calculated by dividing the quick assets (Cash, Cash equivalents, Short term investments and current receivables) by total current liabilities for the year. The formula for Acid test ratio is as follows:
To Explain:
The quick ratios for Wal-Mart and Alphabet Inc
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Retail companies with today’s online, as well as in-store sales have a lot of data to keep track of!
Keeping track of sales, costs, and profits daily is essential to making the most of a business. This exercise illustrates how to use the skills presented in this Module to generate the data needed daily by a retail company.
Create the following calculated columns.
a) In I4, and J4, use a VLOOKUP function that will look up the Product Price and Product
Cost based on the Product Sold column which lists an ID number. [Hint: The Product Table
sheet lists the Price and Cost] If any error messages appear, check the Range Lookup.
b) In K4, use a formula to calculate Profit. Hint: Profit =(Product Price-Product
Cost)*Units Sold
Format columns I, J, and K as currency with two decimal places.
Make a copy of the Sales sheet and rename it Online Sales by Date. Place this sheet to the right of the Sales sheet. Answer the following question by filtering the data accordingly.
a) What was the…
Can you help me with this question
Which of the following industries is most likely to use LIFO accounting? A. Grocery stores B.
Technology companies C. Jewelry retailers D. Antique dealers
Chapter 3 Solutions
Survey of Accounting (Accounting I)
Ch. 3 - Assume that a lawyer bills her clients $15000 on...Ch. 3 - On January 24, 20Y8, Niche Consulting collected...Ch. 3 - Prob. 3SEQCh. 3 - If the supplies account indicated a balance of...Ch. 3 - The balance in the unearned rent account for Jones...Ch. 3 - Would AT&T and Microsoft Use the cash basis or the...Ch. 3 - How are revenues and expenses reported on the...Ch. 3 - Fees for services provided are billed to a...Ch. 3 - Employees performed services in 20Y8, but the...Ch. 3 - Prob. 5CDQ
Ch. 3 - Is the Land balance before the accounts have been...Ch. 3 - Is the Supplies balance before the accounts have...Ch. 3 - Prob. 8CDQCh. 3 - Prob. 9CDQCh. 3 - Prob. 10CDQCh. 3 - If the effect of an adjustment is to increase the...Ch. 3 - Prob. 12CDQCh. 3 - (a) Explain the purpose of the accounts...Ch. 3 - Prob. 14CDQCh. 3 - Transactions using accrual accounting Terry Mason...Ch. 3 - Adjustment process Using the data from Exercise...Ch. 3 - Financial statements Using the data from Exercises...Ch. 3 - Prob. 3.4ECh. 3 - Accrual basis of accounting Margie Van Epps...Ch. 3 - Classify accruals and deferrals Classify the...Ch. 3 - Classify adjustments The following accounts were...Ch. 3 - Adjustment for supplies Answer each of the...Ch. 3 - Adjustment for prepaid insurance The prepaid...Ch. 3 - Adjustment for unearned fees The balance in the...Ch. 3 - Adjustment for unearned revenue For a recent year....Ch. 3 - Effect of omitting adjustment At the end of...Ch. 3 - Adjustment for accrued salaries Laguna Realty Co....Ch. 3 - Determine wages paid The balances of the two...Ch. 3 - Effect of omitting adjustment Accrued salaries of...Ch. 3 - Effect of omitting adjustment Assume that the...Ch. 3 - Effects of errors on financial statements For a...Ch. 3 - Effects of errors on financial statements The...Ch. 3 - Effects of errors on financial statements If the...Ch. 3 - Adjustment for accrued fees At the end of the...Ch. 3 - Adjustments for unearned and accrued fees The...Ch. 3 - Effect on financial statements of omitting...Ch. 3 - Adjustment for depreciation The estimated amount...Ch. 3 - Adjustments Clean Air Company is a consulting firm...Ch. 3 - Book value of fixed assets For a recent year....Ch. 3 - Classify assets Identify each of the following as...Ch. 3 - Balance sheet classification At the balance sheet...Ch. 3 - Classified balance sheet Pounds-Away Services Co....Ch. 3 - Prob. 3.29ECh. 3 - Balance sheet List any errors you can find in the...Ch. 3 - Accrual basis accounting San Mateo Health Care...Ch. 3 - Prob. 3.2PCh. 3 - Financial statements Data for San Mateo Health...Ch. 3 - Statement of cash flows Data for San Mateo Health...Ch. 3 - Statement of cash flows Data for San Mateo Health...Ch. 3 - Adjustments and errors At the end of May, the...Ch. 3 - Adjustment process and financial statements...Ch. 3 - Adjustment process and financial statements...Ch. 3 - Adjustment process and financial statements...Ch. 3 - Adjustment process and financial statements...Ch. 3 - Prob. 3.1MBACh. 3 - Prob. 3.2MBACh. 3 - Prob. 3.3MBACh. 3 - Prob. 3.4MBACh. 3 - Prob. 3.5.1MBACh. 3 - Prob. 3.5.2MBACh. 3 - Prob. 3.5.3MBACh. 3 - Prob. 3.5.4MBACh. 3 - Quick ratio The Gap Inc. (GPS)operates specialty...Ch. 3 - Prob. 3.6.2MBACh. 3 - Quick ratio The Gap Inc. (GPs)operates specialty...Ch. 3 - Quick ratio American Eagle Outfitters Inc. (AEO)...Ch. 3 - Quick ratio American Eagle Outfitters Inc. (AEO)...Ch. 3 - Prob. 3.7.3MBACh. 3 - Prob. 3.8MBACh. 3 - Prob. 3.9.1MBACh. 3 - Prob. 3.9.2MBACh. 3 - Prob. 3.9.3MBACh. 3 - Prob. 3.1CCh. 3 - Adjustments for financial statements Several years...Ch. 3 - Prob. 3.3.1CCh. 3 - Prob. 3.3.2CCh. 3 - Prob. 3.4.1CCh. 3 - Prob. 3.4.2CCh. 3 - Accrual versus cash net income. Cigna Corp. (CI)...Ch. 3 - Prob. 3.5.1CCh. 3 - Prob. 3.5.2C
Knowledge Booster
Similar questions
- For each of the following companies, determine what they primarily sell and whether their e-commerce strategy is primarily business-to-consumer (B2C), business-to-business (B2B), or both. Use the Internet to investigate each companys site in conducting your research. a. Amazon.com b. Dell Inc. c. DuPont d. Intuit Inc. e. L.L. Bean, Inc. f. W.W. Grainger, Inc.arrow_forwardAnalyze and compare Amazon.com and Wal-Mart Amazon.com, Inc. (AMZN) is one of the largest Internet retailers in the world. Wal-Mart Stores, Inc. (WMT) is the largest retailer in the United States. Amazon and Wal-Mart compete in similar markets; however, Wal-Mart sells through both traditional retail stores and the Internet, while Amazon sells only through the Internet. Interest expense and income before income tax expense from the financial statements of both companies for two recent years follow (in millions): a. Compute the times interest earned ratio for both companies for the two years. Round to one decimal place. b. Interpret Amazons interest coverage from Year 1 to Year 2. c. Does a times interest earned ratio less than 1.0 mean that creditors will not get paid interest? d. Interpret Wal-Marts interest coverage from Year 1 to Year 2. e. Which company appears to have the greater protection for creditors?arrow_forwardWhich of the following is a service business? a.Wal-Mart Stores, Inc. b.Facebook, Inc. c.Dell Inc. d.Microsoft Corporationarrow_forward
- Please Correct Answer And Do Not Give solution in images formatarrow_forwardPlease help me with this accounting question problem , image is clear pls download if no visiblearrow_forwardSuppose you want to compare Palfinger AG to another heavy equipment manufacture, Caterpillar, Inc. To compare the companies, complete the table below and calculate common-sized numbers. To common-size balance sheet numbers, divide by total assets abd to common-size income statement numbers, divide by net sales. Comment on the trends over time and levels across companies.arrow_forward
- Would someone please show me how to do the calculations for common-sized statements? please don't just give me answers, please show me how to calculate them myself. Thank you! IMPORTANT TO NOTE: There is a valuable xcel keyboard shortcut for completing Common Size Financial Statements. For the income Statement, in the cell immediately to the right of Net Sales, enter the formula Net Sales/Net Sales then press the F4 Key. The number 1 will appear. Then drag your curser down to the cell immediately to the right of Net Profit. The column will be populated by fractions. Highlight that Column and format the column to convert to Percentages displayed as a percent to one decimal point. Go to the Balance Sheet---Repeat the same process with Total Assets calculating the % of each entry on the left side of the Balance Sheet. Then do the same on the right side of the Balance sheet using Liabilities+ Equity as the denominator. Now you can compare the two retailers and draw conclusions…arrow_forwardYour Task… Using your assigned financial statements calculate the required ratios below Indicate if the change from year to year is favorable or unfavorable. All values should be accurate to at least two decimal places. The expectation is to submit a professional report free of grammar and spelling errors and easy to read. Think of this as a menu you would be handing to a customer. All calculations are to be represented. Analysis of Profitability Gross Profit Ratio Operating Profit Ratio Net Profit Ratio Sales to Total Assets Ratio Return on Total Assets Return on Equity Earnings Per Sharearrow_forwardIndicate whether the following statements are true or false. 1. A computerized accounting system must be customized to meet a company’s needs. select an option TrueFalse 2. Small companies generally use entry-level programs rather than ERP systems. select an option TrueFalse 3. A manual accounting system provides more timely financial information than a computerized system. select an option TrueFalsearrow_forward
- analyze a campany's liquidity and solvency by using simple financial ratios. here you will answer questions relayed to saturn sales comapny ltd. analyze the both financial statements and answer the following question.arrow_forwardQuestion 2 Please read the following scenario and answer the questions that follow: You are an analyst in the food and beverage industry. In this industry, there are various sizes of businesses - from small to significant global companies. In order to conduct an effective comparison of the different businesses, you have chosen to use a 'common size' analysis. Common size analysis converts all financial statement variables to percentages, thereby allowing the effectiveness and efficiency of the individual businesses to be compared. What follows is the Statement of Profit or Loss and Other Comprehensive Income of two of the businesses, Fruity Rush Limited and Sparkling Thirst (Pty) Limited, respectively. Statement of profit or loss and other comprehensive income for the period ending 30 June 2021 R'000 Fruity Rush Sparkling Thirst Sales 86,000 28,000 Cost of sales 40,000 14,000 Gross profit 46,000 14,000 Operating expenses 30,000 6,000 Selling expenses 4,000 3,000 Depreciation 7,000…arrow_forwardBoth Coles and Woolworths have retail outlets at both large shopping centres and small plazas. Their accounting information systems are able to track total revenues by store, by type of shopping centre, by size of store, by state and by region. Evaluate if such accounting information system meets the compatibility feature of an effective accounting information systems?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Principles of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax College
Financial AccountingAccountingISBN:9781337272124Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage Learning
Pkg Acc Infor Systems MS VISIO CDFinanceISBN:9781133935940Author:Ulric J. GelinasPublisher:CENGAGE L
Managerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College Pub
Financial And Managerial AccountingAccountingISBN:9781337902663Author:WARREN, Carl S.Publisher:Cengage Learning,
Principles of Accounting Volume 2
Accounting
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax College
Financial Accounting
Accounting
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Cengage Learning
Pkg Acc Infor Systems MS VISIO CD
Finance
ISBN:9781133935940
Author:Ulric J. Gelinas
Publisher:CENGAGE L
Managerial Accounting
Accounting
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:South-Western College Pub
Financial And Managerial Accounting
Accounting
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:Cengage Learning,