Horngren's Financial & Managerial Accounting, The Managerial Chapters (6th Edition)
6th Edition
ISBN: 9780134486857
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter D, Problem 6SE
1.
To determine
Compute A’s
2.
To determine
Comment on progress of the current ratio.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Win's Companies, a home improvement store chain, reported the following summanzed figures
E (Click the icon to view the income statement.)
E (Click the icon to view the balance sheets.)
Win's has 20,000 common shares outstanding during 2018.
Read the requirements
Requirement 1. Compute Win's Companies' current ratio at May 31, 2018 and 2017
Begin by selecting the formula to calculate Win's Companies' current ratio. Then enter the amounts and calcu ale the current ratio for 2018 and then 2017. (Round your answers to two decimal places, X.XX.)
Current ratio
(i Balance Sheets
Income Statement
Win's Companies
Win's Companies
Balance Sheet
Income Statement
May 31, 2018 and 2017
Years Ended May 31, 2018 and 2017
Assets
Liabilities
2018
2017
2018
2017
2018
2017
Net Sales Revenue
24
57 200 $
39,800
Cash
$.
2.300 $
1300 Total Current Liabilities
22,000 $
12,900
Cost of Goods Sold
22.500
25,500
12,200
11,300
Short-term Invesiments
29 000
13.000 Long-term Liabilities
Interest Expense
500
320…
Use the following information for Short Exercises S15-6 through S15-10.
Accel’s Companies, a home improvement store chain, reported the following summarized figures:
Accel’s has 10,000 common shares outstanding during 2018.
Evaluating current ratio
Requirements
Compute Accel’s Companies’ current ratio at May 31, 2018 and 2017.
Did Accel’s Companies’ current ratio improve, deteriorate, or hold steady during 2018?
Excel's Companies, a home improvement store chain, reported the following summarized figures:
E (Click the icon to view the income statement.)
Excel's has 100,000 common shares outstanding during 2018.
E (Click the icon to view the balance sheets.)
Read the requrements
Requirement 1. Compute the inventory turnover, days' sales in inventory, and gross profit percentage for Excel's Companies for 2018.
Compute the inventory turnover. (Round your answer to two decimal places, X.XX.)
The inventory tumover
times.
i Income Statement
i Balance Sheets
Excel's Companies
Excel's Companies
Balance Sheet
Income Statement
May 31, 2018 and 2017
Years Ended May 31, 2018 and 2017
2018
2017
Assets
Liabilities
2018
2017
2018
2017
Net Sales Revenue
51.200 S
39, B00
Cost of Goods Sold
22,500
23 700
Cash
2,000 $
1 800 Total Current Liabilities
25,000 $
13,300
14,100
10,200
500
280
Short-tem Investments
26,000
10,000 Long-tem Liabilities
Interest Expense
6,200
7,100
Accounts Receivable
7,300
5,500 Total…
Chapter D Solutions
Horngren's Financial & Managerial Accounting, The Managerial Chapters (6th Edition)
Ch. D - Prob. 1TICh. D - Prob. 2TICh. D - Prob. 3TICh. D - Prob. 4TICh. D - Prob. 5TICh. D - Prob. 6TICh. D - Prob. 7TICh. D - Prob. 8TICh. D - Prob. 9TICh. D - Prob. 10TI
Ch. D - Prob. 1QCCh. D - Prob. 2QCCh. D - Vertical analysis of Libertys balance sheet for...Ch. D - Prob. 4QCCh. D - Libertys inventory turnover during 2019 was...Ch. D - Prob. 6QCCh. D - Prob. 7QCCh. D - Prob. 8QCCh. D - Prob. 9QCCh. D - Prob. 10QCCh. D - Prob. 1RQCh. D - Prob. 2RQCh. D - Prob. 3RQCh. D - Prob. 4RQCh. D - Prob. 5RQCh. D - Prob. 6RQCh. D - Prob. 7RQCh. D - Prob. 8RQCh. D - Prob. 9RQCh. D - Prob. 10RQCh. D - Prob. 11RQCh. D - Prob. 12RQCh. D - Prob. 13RQCh. D - Prob. 1SECh. D - Verifine Corp. reported the following on its...Ch. D - Prob. 3SECh. D - Prob. 4SECh. D - Prob. 5SECh. D - Prob. 6SECh. D - Prob. 7SECh. D - Accels Companies, a home improvement store chain,...Ch. D - Prob. 9SECh. D - Prob. 10SECh. D - Prob. 11SECh. D - Prob. 12SECh. D - Prob. 13ECh. D - Prob. 14ECh. D - Prob. 15ECh. D - Refer to the data presented for Mulberry Designs,...Ch. D - Prob. 17ECh. D - Prob. 18ECh. D - Prob. 19ECh. D - Micatin, Inc.s comparative income statement...Ch. D - Prob. 21ECh. D - Prob. 22ECh. D - Prob. 23APCh. D - Prob. 24APCh. D - Prob. 25APCh. D - Prob. 26APCh. D - Comparative financial statement data of Sanfield,...Ch. D - Prob. 28APCh. D - Prob. 29APCh. D - Prob. 30BPCh. D - Prob. 31BPCh. D - Prob. 32BPCh. D - Prob. 33BPCh. D - Prob. 34BPCh. D - Prob. 35BPCh. D - In its annual report, XYZ Athletic Supply, Inc....Ch. D - Prob. 38PCh. D - Lance Berkman is the controller of Saturn, a dance...Ch. D - Prob. 1EICh. D - Prob. 1FSC
Knowledge Booster
Similar questions
- Triumph's has 40,000 common shares outstanding during 2018. Requirement 1. Compute earnings per share (EPS) for 2018 for Triumph's. Round to the nearest cent. Requirement 2. Compute Triumph's Companies' price/earnings ratio for 2018. The market price per share of Triumph's stock is $15.00. Triumph's Companies Income Statement Years Ended May 31, 2018 and 2017 2018 2017 Net Sales Revenue $42,400 $41,100 Cost of Goods Sold 22,500 29,300 Interest Expense 400 320 All Other Expenses 6,700 7,800 Net Income $12,800 $3,680 Triumph's Companies Balance Sheet May 31, 2018 and 2017 Assets Liabilities 2018 2017 2018…arrow_forwardThe comparative statements of Dubai Company are presented below. All sales were on account. The allowance for doubtful accounts was $3,200 on December 31, 2017, and $3,000 on December 31, 2020. Required: 1- Compute the following ratios for 2021. (Weighted average common shares in 2021 were 62,500.) Earnings per share. Return on common stockholders’ equity. Return on assets. Current. Acid-test. Accounts receivable turnover. Inventory turnover. Times interest earned. Asset turnover. Debt to assets. 2. Based on the ratios calculated, discuss briefly the improvement or lack thereof in financial position and operating results from 2020 to 2021 of Dubai Company.arrow_forwardThe comparative statements of Dubai Company are presented below. All sales were on account. The allowance for doubtful accounts was $3,200 on December 31, 2017, and $3,000 on December 31, 2020. Required: Compute the following ratios for 2021. (Weighted average common shares in 2021 were 62,500.) Earnings per share. Return on common stockholders’ equity. Return on assets.arrow_forward
- The stockholders’ equity of Kowalski Company at the beginning and end of 2018totaled $122,000 and $140,000, respectively. Assets at the beginning of 2018 were $149,000. Ifthe liabilities of Kowalski Company increased by $69,000 in 2018, how much were total assetsat the end of 2018? Use the accounting equation.a. $218,000b. $62,000c. $236,000d. $220,000arrow_forwardFor fiscal year 2018, Walmart Inc. (WMT) had total revenues of $500.34 billion, net income of $9.86 billion, total assets of $204.52 billion, and total shareholders' equity of $77.87 billion. a. Calculate Walmart's ROE directly, and using the DuPont Identity. b. Comparing with the data for Costco, use the DuPont Identity to understand the difference between the two firms' ROES. Data table For fiscal year 2018, Costco Wholesale Corporation (COST) had a net profit margin of 2.08%, asset turnover of 3.55, and a book equity multiplier of 3.37. Costco's ROE (DuPont) is 24.88%.arrow_forwardYou are given the financial statements of a company for over the 6-year periods (2016 –2021). Considering 2016 as the base year, compute the trend index for the following items:a. Revenue, cost of goods sold, total expenses and net earnings. Comment on the trends of each of the items.b. Total assets, total liabilities and shareholders’ equity. Comment on the trends of each of the items.c. Cash flow from operation, cash flow from investing, cash flow from financing and closing cash balances. Comment on the trends of each of the items.arrow_forward
- Use the following information for Short Exercises S15-6 through S15-10. Accel’s Companies, a home improvement store chain, reported the following summarized figures: Accel’s has 10,000 common shares outstanding during 2018. Computing EPS and P/E ratio Requirements Compute earnings per share (EPS) for 2018 for Accel’s. Round to the nearest cent. Compute Accel’s Companies’ price/earnings ratio for 2018. The market price Per share of Accel’s stock is $12.50. What do these results mean when evaluating Accel’s Companies’ profitability?arrow_forwardThe following information was available for the year ended December 31, 2016: Sales $ 460,000 Net income 66,140 Average total assets 760,000 Average total stockholders' equity 365,000 Dividends per share 1.33 Earnings per share 3.00 Market price per share at year-end 27.60 a. Calculate margin, turnover, and ROI for the year ended December 31, 2016. (Round your intermediate calculations and final answers to 2 decimal places.) b. Calculate ROE for the year ended December 31, 2016. (Round your answer to 2 decimal places.) c. Calculate the price/earnings ratio for 2016. (Round your answer to 2 decimal places.) d. Calculate the dividend payout ratio for 2016. (Round your answer to 2 decimal places.) e. Calculate the dividend yield for 2016. (Round your answer to 2 decimal places.)arrow_forwardThe condensed financial statements of John Cully Company, for the years ended June 30, 2017 and 2016, are presented below. Compute the following ratios for 2017 and 2016. Current ratio Inventory turnover. (Inventory on 6/30/15 was $599.0.) Profit margin. Return on assets. (Assets on 6/30/15 were $3,349.9.) Return on common stockholders’ equity. (Stockholders’ equity on 6/30/15 was $1,795.9.) Debt to assets ratio. Times interest earned.arrow_forward
- The following data were taken from the records of Browntree Corporation at the end of the fiscal year ending December 31, 2020: Sales revenue $97,700 Cost of goods sold Gross profit S36,160 Wages expense $11,600 Selling and administrative expenses Income before income tax $13,500 Income tax rate 30% Number of common shares outstanding 5,000 Prepare a multi-step statement of income for the company and calculate the earnings per share. (Hint: You will need to calculate the missing amounts to complete the statement of income.) (Round earnings per share to 2 decimal places, e.g. 52.75,.) BROWNTREE CORPORATION Statement of Income Eamings per sharearrow_forwardHigh's Companies Balance Sheet May 31, 2018 and 2017 Assets Liabilities 2018 2017 2018 2017 Cash 24 2,000 S 1,600 Total Current Liabilities 23.000 S 13,600 13,000 Short-term Investments 24,000 14,000 Long-term Liabilities 12,400 Accounts Receivable 7.200 5.600 Total Liabilities 36,600 25.400 Merchandise nventory 7.100 7 200 Stockholders' Equity Other Current Assets 11,000 2400 Common Stock 9,000 9.000 Total Current Assets 51,300 36 700 19,400 30,800 Retained Eanings 23000 All Other Assets 31,000 45,700 Total Equity 53,800 28,400 Total Assets 82,300 $ Total Liabilities and Equity 82,300 $ 53,800arrow_forwardIn 2018, Jake's Jamming Music, Inc. announced an ROA of 8.46 percent, ROE of 13.50 percent, and profit margin of 8.5 percent. The firm had total assets of $8.5 million at year-end 2018. Calculate the 2018 value of net income available to common stockholders for Jake’s Jamming Music, Inc. (Enter your answer in dollars. Round your answer to the nearest whole dollar.) Calculate the 2018 value of common stockholders’ equity for Jake’s Jamming Music, Inc. (Enter your answer in dollars not in millions and round to the nearest whole dollar.)arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Financial AccountingAccountingISBN:9781305088436Author:Carl Warren, Jim Reeve, Jonathan DuchacPublisher:Cengage Learning
Financial Accounting
Accounting
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Cengage Learning