Financial Accounting Plus MyLab Accounting with Pearson eText -- Access Card Package (12th Edition)
12th Edition
ISBN: 9780134833132
Author: C. William Thomas, Wendy M. Tietz, Walter T. Harrison Jr.
Publisher: PEARSON
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Chapter 8, Problem 8.11AE
1.
To determine
To compute: The company’s accounts payable turnover ratio for 2017 and 2018.
To determine
To compute: The company’s days’ payable for 2017 and 2018.
2.
To determine
To identify: Whether the company’s liquidity position has improved or deteriorated during 2018.
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Direction: The following list of accounts for Pazado, Inc is available at the end of December 2020. Make a
summary of Income Statement from the given information below with the following required data.
1. Calculate the turnover/ROI
2. Calculate the consumption of goods for sale
3. Prepare the Income Statement of Pazado, Inc for year 2020.
Sales
Rent Expense
Depreciation Expense
Utilities Expense
Taxes and Licenses
Goods Available for Sale
Merchandise, Inventory, January 31
Salaries Expense
Freight, out
Uncollectible Accounts
Sales Discount
Sales Returns and Allowance
902,000
30,000
11,250
18,000
15,000
714,900
102,000
50,000
3.920
19,100
5,000
13,000
Test Company (S millions)
Income Statement
Revenues
Cost of Goods Sold
Operating Income
Interest Expenses
Net Income
2016
2017
2018
126,034
51,556
27,414
4,733
131,650
125,980
52,557
51,424
27,059
4,376
33,060
4,920
You will receive company financials in class for assignment. Analysis
17,879
13,127
30,101
the company's financial condition:
Balance Sheet
Current Assets
Cash & Cash Equivalents
Receivables
Inventory
1) liquidity
22,355
4,820
29,913
2,079
23,493
26,395
2,880
13,457
17,513
1,202
2) asset management
1,252
1,034
33,037
3) profitability
Current Liabilities
Payables
35,052
19,362
30,340
19,593
21,232
4) leverage
Long-term Debt
Shareolders Equity
Total Assets
103,240
17,842
105,433
113,642
24,032
44,687
244,175
244,180
257,143
5) overall financial condition a debt and equity investor
Other Data
44,368
17,830
EBITDA
42.987
Capital Expenditures
49,077
27,717
17,593
Company Stock Price
Beta
Dividend Payout Ratio
Estimated Long-term Growth
Common Shares Outstanding
10-year U.S.…
Portions of the financial statements for Peach Computer are provided below.
Net sales
Expenses:
PEACH COMPUTER
Income Statement
For the year ended December 31, 2024
Cost of goods sold
Operating expenses
Depreciation expense
Income tax expense
Total expenses
Net income
Cash
Accounts receivable
Inventory
Prepaid rent
Accounts payable
Income tax payable
PEACH COMPUTER
Selected Balance Sheet Data
December 31
2024
$106,000
45,400
79,000
3,400
$1,090,000
600,000
54,000
44,000
49,000
5,400
2023
$87,000
51,000
57,000
5,800
39,000
12,000
$1,900,000
1,788,000
$112,000
Increase (I) or
Decrease (D)
$19,000 (I)
5,600 (D)
22,000
(I)
2,400
(D)
10,000 (I)
6,600 (D)
Required:
Prepare the operating activities section of the statement of cash flows for Peach Computer using the direct method. (Amounts to be
deducted should be indicated with a minus sign.)
Chapter 8 Solutions
Financial Accounting Plus MyLab Accounting with Pearson eText -- Access Card Package (12th Edition)
Ch. 8 - All of the following are reported as current...Ch. 8 - Prob. 2QCCh. 8 - Prob. 3QCCh. 8 - What is accounts payable turnover? a.Purchases on...Ch. 8 - Prob. 5QCCh. 8 - Nicholas Corporation accrues the interest expense...Ch. 8 - Phoebe Corporation signed a six-month note payable...Ch. 8 - Prob. 8QCCh. 8 - Backpack Co. was organized to sell a single...Ch. 8 - Prob. 10QC
Ch. 8 - Potential liabilities that depend on future events...Ch. 8 - A contingent liability should be recorded in the...Ch. 8 - Prob. 8.1ECCh. 8 - Prob. 8.1SCh. 8 - Prob. 8.2SCh. 8 - Prob. 8.3SCh. 8 - Prob. 8.4SCh. 8 - (Learning Objective 3: Account for a short-term...Ch. 8 - Prob. 8.6SCh. 8 - (Learning Objective 4: Report warranties in the...Ch. 8 - (Learning Objective 4: Account for accrued...Ch. 8 - (Learning Objective 5: Interpret a companys...Ch. 8 - Prob. 8.10AECh. 8 - Prob. 8.11AECh. 8 - LO 3 (Learning Objective 3: Purchase inventory,...Ch. 8 - (Learning Objective 3: Record note payable...Ch. 8 - (Learning Objective 3: Account for a short-term...Ch. 8 - Prob. 8.15AECh. 8 - Prob. 8.16AECh. 8 - Prob. 8.17AECh. 8 - Prob. 8.18AECh. 8 - Prob. 8.19AECh. 8 - Prob. 8.20BECh. 8 - Prob. 8.21BECh. 8 - LO 3 (Learning Objective 3: Purchase inventory,...Ch. 8 - Prob. 8.23BECh. 8 - Prob. 8.24BECh. 8 - Prob. 8.25BECh. 8 - Prob. 8.26BECh. 8 - Prob. 8.27BECh. 8 - (Learning Objectives 1, 2, 3, 4: Report current...Ch. 8 - Prob. 8.29BECh. 8 - Prob. 8.30QCh. 8 - For the purpose of classifying liabilities as...Ch. 8 - Prob. 8.32QCh. 8 - Prob. 8.33QCh. 8 - Prob. 8.34QCh. 8 - Prob. 8.35QCh. 8 - Prob. 8.36QCh. 8 - Prob. 8.37QCh. 8 - Prob. 8.38QCh. 8 - Prob. 8.39QCh. 8 - Prob. 8.40QCh. 8 - Prob. 8.41QCh. 8 - Prob. 8.42QCh. 8 - Prob. 8.43QCh. 8 - Group A LO 1, 2, 3, 4 (Learning Objective 1, 2, 3,...Ch. 8 - Prob. 8.45APCh. 8 - LO 1, 2, 3, 4 (Learning Objectives 1, 2, 3, 4:...Ch. 8 - LO 4, 5 (Learning Objectives 4, 5: Account for...Ch. 8 - Group B LO 1, 2, 3, 4 (Learning Objectives 1, 2,...Ch. 8 - Prob. 8.49BPCh. 8 - Prob. 8.50BPCh. 8 - Prob. 8.51BPCh. 8 - Prob. 8.52CEPCh. 8 - Prob. 8.53SCCh. 8 - Prob. 8.54DCCh. 8 - Prob. 8.55DCCh. 8 - Prob. 8.56EICCh. 8 - Prob. 1FFCh. 8 - Prob. 1GP
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