1.
To Identify: Whether there is as an increase or decrease in the accounts payable of Incorporation A and also to calculate the accounts payable turnover for 2016 and to identify the average accounts payable by Incorporation A and the length of the periods in days taken to pay the accounts payable.
2.
To Identify: The income tax provision of Incorporation A during 2016 and also explain whether income tax provision is likely to be equal to the amount Incorporation paid for its taxes in 2016 and also to identify the company’s effective tax rate in 2016.
3.
To Describe: Some of the Incorporation A’s commitments and
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- MODUFAM A v2.cengagenow.com nical College B Learning Module 8 - ACCT1105: Financial Accounting II (.. ECengageNOWv2| Online teaching еBook Show Me How Changes in Current Operating Assets and Liabilities Jasneet Corporation's comparative balance sheet for current assets and liabilities was as follows: Dec. 31, Year 2 Dec. 31, Year 1 Accounts receivable $20,200 $22,900 Inventory 13,000 10,700 Accounts payable 10,900 9,400 Dividends payable 25,100 30,700 Adjust net income of $185,000 for changes in operating assets and liabilities to arrive at net cash flows from operating activities. Feedback Check My Work Once you have calculated the changes in the current operating assets and liabilities determine what impact those changes would For example if accounts receivable has increased from last year to this year does that mean the company has collected more cas If accounts payable has decreased does that mean the company has more cash or less cash? Check My Work Previous Save and Exit Submit…arrow_forwardA Financial Analysis Statement Calculate the 2021 (year ended 12/31/21) current ratio for Twitter. Calculate the 2021 (year ended 12/31/2021) current ratio for Meta. Which company has a better current ratio and why? Explain in a short paragraph. Calculate the 2021 accounts receivable turnover ratio for Twitter. Calculate the 2021 accounts receivable turnover ratio for Meta. Calculate the average collection period for each company. Show answer as number of days plus 2 decimals. Which company has a better receivable turnover ratio and why? Explain in a short paragraph. Calculate the 2021 return on assets for Twitter. Calculate the 2021 return on assets for Meta. Which company has a better return on assets and why? Explain in a short paragraph. Calculate the 2021 debt-to-equity ratio for Twitter. Calculate the 2021 debt-to-equity ratio for Facebook. Describe in a short paragraph what the debt-to-equity ratio measures and why this would be important to a potential creditor.…arrow_forward(Learning Objective 5: Evaluate collectibility using the allowance for uncollectibleaccounts) At the end of the current year (before adjusting entries), Autumn Corporation hada balance of $76,000 in Accounts Receivable and a credit balance of $11,000 in Allowance forUncollectible Accounts. Service revenue (all on credit) for the year totaled $490,000.RequirementsConsider each of the following two independent situations.1. Using the percent-of-sales method, calculate the amount of Uncollectible-Account Expenseif Autumn Corporation estimates its uncollectible-account expense using a rate of 2% ofcredit sales. What is the ending balance of the Allowance for Uncollectible-Accounts underthis scenario?2. Now assume that Autumn Corporation uses the aging-of-receivables method. AutumnCorporation estimates that its Allowance for Uncollectible Accounts should have a creditbalance of $21,000. Calculate the amount of its Uncollectible-Account Expense. What isthe ending balance of the Allowance for…arrow_forward
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- OBJECTIVE: To enable learners to utilize financial ratios as a mechanism to evaluate the firm's financial performance and identify areas for making decisions for improvement REQUIREMENT: Financial Statement Analysis Question Refer to the following financial statements of Delima Corporation for 2019 and 2020: Delima Corporation Income Statements For the year ended 31 December (in millions) 2020 $13,198 7,750 2019 $12,397 7,108 Net sales Cost of goods sold Gross profit Selling and administrative expenses Income from operations 5,448 5,289 3,472 3,299 1,976 1,990 Interest expense 233 248 Other (income) expense, net 11 1,732 503 1,229 Income before income taxes 1,742 Income tax expense 502 Net income 1,240 Delima Corporation Balance Sheets 31 December (in millions) 2020 2019 Assets Current assets Cash $460 $444 Accounts receivables (net) 1,188 1,132 1,190 1,056 225 2,915 3,128 Inventories Other current assets 247 Total current assets 3,027 3,281 Property (net) 5,593 $11,901 Other assets…arrow_forwardEA9. LO 3.4 Indicate what impact the following transactions would have on the accounting equation, Assets = Liabilities + Equity. Impact 1 Impact 2 Paid monthly note payment to bank Sold inventory on account Bought supplies, to be paid for next month Received cash from sales this month Paid for inventory purchased on account last month Table 3.5arrow_forwardŠales journal 78 102 Open with Google Docs Purchases journal 50 652 Sales returns journal 8 640 Purchases returns journal 4 356 Cash receipts journal : Debtors control column 85 680 Settlement discount granted column 15 120 Sales column 149 778 Cash payments journal: Purchases column 88 506 Debtors control column 10 638 Creditors control column 81 720 Settlement discount received column 11 934 General Journal: (Sundry entries) Debtors control: Debits: Sale of Vehicle 12 186 Credits: Credit losses 1 860 Creditors control: Debits: NIL Credits: Purchased Equipment 9 594 General Ledger: Balances at 1 January 2021 – Debtors control account: debit balance 121 140 : credit balance Creditors control account: credit balance (only) 2 736 82 116 Page 29 45 Iliarrow_forward
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