Survey Of Accounting
5th Edition
ISBN: 9781259631122
Author: Edmonds, Thomas P.
Publisher: Mcgraw-hill Education,
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Textbook Question
Chapter 9, Problem 15E
LO 13-2, 13-3, 13-4, 13-5 Exercise 13-15A Comprehensive analysis
Required
Indicate the effect of each of the following transactions on (1) the
- a. Collected account receivable.
- b. Wrote off account receivable.
- c. Converted a short-term note payable to a long-term note payable.
- d. Purchased inventory on account.
- e. Declared cash dividend.
- f. Sold merchandise on account at a profit.
- g. Issued stock dividend.
- h. Paid account payable.
- i. Sold building at a loss.
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Students have asked these similar questions
PE.17-03B Current Position Analysis
The following items are reported on a company's balance sheet:
Cash
Marketable securities
Accounts receivable (net)
Inventory
Accounts payable
Determine (a) the current ratio and (b) the quick ratio. Round your answers to one
decimal place.
a. Current ratio
$210,000
120,000
110,000
160,000
200,000
b. Quick ratio
Exercise 11-7 (Static) Effect of transactions on various financial ratios
Indicate the effect that each transaction/event listed here will have on the financial ratio listed opposite it. Use + for increase, –
for decrease, and (NE) for no effect. Assume that current assets exceed current liabilities in all cases, both before and after the
transaction/event.
Transaction/Event
Financial Ratio
Effect
a. Split the common stock 2 for 1.
b. Collected accounts receivable.
c. Issued common stock for cash.
d. Sold treasury stock.
e. Accrued interest on a note receivable.
f. Sold inventory on account.
g. Wrote off an uncollectible account.
h. Declared a cash dividend.
i. Incurred operating expenses.
j. Sold equipment at a loss.
Book value per share of common stock
Number of days' sales in accounts receivable
Total asset turnover
Return on equity
Current ratio
Acid-test ratio
Accounts receivable turnover
Dividend yield
Margin
NE
Earnings per share
Conduct a vertical analysis from the Balance Sheet below and select the INCORERECT observation
Balance Sheet
Particulars
1. Equity And Liabilities:
1. Shareholder's Funds
(a) Share Capital
(b) Reserve and Surplus
2. Non-Current Liabilities
3. Current Liabilities
II. Assets:
1. Non-Current Assets
2. Current Assets
Total
Note
No.
Amount
A Ltd.
8 Ltd.
4,00,000
5,40,000
2,00,000 2,60,000
3,00,000 2,50,000
1,00,000 1,50,000
10,00,000 12,00,000
4,00,000 7,00,000
6,00,000 5,00,000
www.Totalgoel 10,00,000 12,00,000
O a. In comparison to B. Ltd, A Ltd's existing liabilities are (10%) are in a stronger way (12.50%)
O b. In comparison to A Ltd, B Ltd has a higher share capital
O c. B Ltd's Non Current Assets are 18.33% higher than A Ltd
O d. In comparison to A Ltd, B Ltd has a stronger long term status
O e. B Ltd's Current Assets are 18.33% higher than A Ltd
Chapter 9 Solutions
Survey Of Accounting
Ch. 9 - 1. Why are ratios and trends used in financial...Ch. 9 - Prob. 2QCh. 9 - Prob. 3QCh. 9 - 4. What is the significance of inventory turnover,...Ch. 9 - 5. What is the difference between the current...Ch. 9 - Prob. 6QCh. 9 - Prob. 7QCh. 9 - Prob. 8QCh. 9 - 9. What are some limitations of the earnings per...Ch. 9 - Prob. 10Q
Ch. 9 - Prob. 11QCh. 9 - Prob. 12QCh. 9 - Prob. 13QCh. 9 - Prob. 14QCh. 9 - Exercise 9-1 Horizontal analysis Winthrop...Ch. 9 - Prob. 2ECh. 9 - Prob. 3ECh. 9 - Prob. 4ECh. 9 - Prob. 5ECh. 9 - Prob. 6ECh. 9 - Prob. 7ECh. 9 - Prob. 8ECh. 9 - Comprehensive analysis The December 31, 2019,...Ch. 9 - Prob. 10ECh. 9 - Prob. 11ECh. 9 - Prob. 12ECh. 9 - Ratio analysis Compute the specified ratios using...Ch. 9 - Prob. 14ECh. 9 - LO 13-2, 13-3, 13-4, 13-5 Exercise 13-15A...Ch. 9 - Prob. 16PCh. 9 - Prob. 17PCh. 9 - Prob. 18PCh. 9 - Prob. 19PCh. 9 - Prob. 20PCh. 9 - Problem 9-21 Ratio analysis Selected data for...Ch. 9 - Prob. 22PCh. 9 - Problem 9-23 Ratio analysis The following...Ch. 9 - Prob. 24PCh. 9 - Prob. 1ATCCh. 9 - Prob. 3ATCCh. 9 - ATC 9-5 Ethical Dilemma Making the ratios look...
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