Principles of Financial Accounting.
24th Edition
ISBN: 9781260158601
Author: Wild
Publisher: MCG
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Chapter 5, Problem 14E
To determine
Compute
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1. Multiple-step and single step income statement. Holler, Inc. has the following data for the year ended December 31, 2021:
Discontinued operations loss ......................................... $20,000 Sales discounts…………………………………………………………..5,000 Cost of goods sold ......................................................... 145,000 Rent revenue……………………………………………………………12,000 Interest expense ............................................................ 2,000 Selling expenses ........................................................... 15,000 Administrative expenses ................................................ 33,000 Sales ............................................................................. 300,000 Retained Earnings, 1/1/20 ............................................. 280,000 Dividends declared ........................................................ 50,000 Tax rate of 22% on all items Shares of common stock outstanding, 10,000
Instructions a. Prepare a multiple-step income…
V. Direction: Solve the following problems using financial ratios. Write the answer on the blank.
1. Current assets is P20,000, current liabilities is P30,000. What is the current ratio?
2. Inventory is P15,000; Accounts Payable is P45,000. Cash and accounts receivable total P8,000.
What is the current ratio?
What is the quick ratio?
3. If current ratio is 1.5, what is the total accounts receivable if cash is P220,000, inventory is P75,000,
and accounts payable is P330,000?
4. Cash is 30% of total current assets. If current ratio is 2.5, what is the new current ratio if total non-
cash current assets grow by 50%?
5. The total asset is P1,500,000. Sales is P4,500,000. What is the asset turnover?
6. Accounts receivable turnover is 8. What is the average collection period assuming annual data
What is the average collection period if quarterly data are used?
are used?
7. Sales for the year amount to P3,000,000, Accounts receivable is P360,000. What is the average
collection period assuming…
PLEASE, PERFORM THE EXERCISE IN EXCEL AND SHOW THE FORMULAS
PLEASE, PERFORM THE EXERCISE IN EXCEL AND SHOW THE FORMULAS
10.-
The company El Invierno, S.A., presents the following information for you to calculate its accounting and cash profit:
Total Sales................................. $ 1'345,670.20
Cost of Sales.............................. $ 702,875.95
Operating Expenses:
Wages and salaries.......... $149,516.40
Rent................................. 69,250.50
Commissions.................... 320,000.00
Depreciation.............. 114,129.32 $ 652,896.22
Sales, purchases and expenses were made in cash.
Note:In the image, this is the original exercise, it is in Spanish, but it is easy to understand.
Very important Note:It is necessary that you make a solution approach and then the result. Above all, to check the procedure and/or the formulas used, especially when you use excel.
Chapter 5 Solutions
Principles of Financial Accounting.
Ch. 5 - Prob. 1MCQCh. 5 - Prob. 2MCQCh. 5 - Prob. 3MCQCh. 5 - Prob. 4MCQCh. 5 - A companys net sales are 675,000, its cost of...Ch. 5 - Prob. 1DQCh. 5 - In comparing the accounts of a merchandising...Ch. 5 - Prob. 3DQCh. 5 - Prob. 4DQCh. 5 - How does a company that uses a perpetual inventory...
Ch. 5 - Distinguish between cash discounts and trade...Ch. 5 - Prob. 7DQCh. 5 - Prob. 8DQCh. 5 - Prob. 9DQCh. 5 - What is the difference between the single-step and...Ch. 5 - APPLE Refer to the balance sheet and income...Ch. 5 - Prob. 12DQCh. 5 - Prob. 13DQCh. 5 - Prob. 14DQCh. 5 - Prob. 15DQCh. 5 - QUICK STUDY Applying merchandising terms C1 P1...Ch. 5 - Identifying inventory costs Costs of 5,000 were...Ch. 5 - Prob. 3QSCh. 5 - Question: Compute the amount to be paid for each...Ch. 5 - Recording purchases, returns, and discounts taken...Ch. 5 - Prob. 6QSCh. 5 - Prob. 7QSCh. 5 - Prob. 8QSCh. 5 - Accounting for shrinkageperpetual system P3 Nix'It...Ch. 5 - Closing entries P3 Refer to QS 4-9 and prepare...Ch. 5 - Prob. 11QSCh. 5 - Prob. 12QSCh. 5 - Prob. 13QSCh. 5 - Computing and interpreting acid-test ratio Use the...Ch. 5 - Prob. 15QSCh. 5 - Contrasting periodic and perpetual systems...Ch. 5 - Prob. 17QSCh. 5 - Prob. 18QSCh. 5 - Prob. 19QSCh. 5 - Prob. 20QSCh. 5 - Prob. 21QSCh. 5 - Prob. 22QSCh. 5 - Prob. 23QSCh. 5 - Prob. 1ECh. 5 - Prob. 2ECh. 5 - Prob. 3ECh. 5 - Prob. 4ECh. 5 - Recording purchases, purchases returns, and...Ch. 5 - Recording sales, purchases. and cash...Ch. 5 - Prob. 7ECh. 5 - Inventory and cost of sales transactions in...Ch. 5 - Prob. 9ECh. 5 - Prob. 10ECh. 5 - Prob. 11ECh. 5 - Impacts of inventory error on key accounts P3 A...Ch. 5 - Impacts of inventory error on key accounts P3 A...Ch. 5 - Prob. 14ECh. 5 - Prob. 15ECh. 5 - Prob. 16ECh. 5 - Recording purchases, returns, and allowances...Ch. 5 - Recording sales, purchases, and cash...Ch. 5 - Prob. 19ECh. 5 - Prob. 20ECh. 5 - Recording estimates of future returns P6 Chico...Ch. 5 - Prob. 22ECh. 5 - Recording sates, purchases. shipping. and...Ch. 5 - Recording purchases, sales, returns, and...Ch. 5 - Prob. 25ECh. 5 - Preparing journal entries for merchandising...Ch. 5 - Prob. 2APCh. 5 - Prob. 3APCh. 5 - Prob. 4APCh. 5 - Prob. 5APCh. 5 - Preparing journal entries for merchandising...Ch. 5 - Prob. 2BPCh. 5 - Prob. 3BPCh. 5 - Prob. 4BPCh. 5 - The following unadjusted trial balance is prepared...Ch. 5 - This serial problem began in Chapter 1 and...Ch. 5 - Prob. 1AACh. 5 - Prob. 2AACh. 5 - Prob. 3AACh. 5 - Prob. 1BTNCh. 5 - You are the financial officer for Music Plus, a...Ch. 5 - Prob. 3BTNCh. 5 - Prob. 5BTN
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