Homework Answers
1. The Statement is false. Accounts receivable turnover helps in evaluating the company;s ability to issue to its's customers and collecting funds from them in a timely manner.
2. The statement is True. The statement of cash flows explains how changes in the balance sheet and income statement affect the cash and cash equivalents and this analysis is done under three heads- operating, investing and financing.
3.The statement is false. The loss on disposal of a significant component of a business is disclosed in the statement of income under separate head after income from continuing operations.
4. The statement is false. Improper recognition of income such as cut off timings are used by many management to manage their earning.It affects the quality of earning.
5. Adding gains and deducting losses is not an adjustment to convert to net income to net cash provided by operating activities. The adjustment is deducting gains and adding back losses.
6. 7.4 times. The inventory turnover = Cost of goods sold/Average inventory
7.The statement is false. The increase in accounts payable is added to net income while calculating cash provided by operations under indirect method.
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MULTIPLE CHOICE QUESTIONS: Choose either A, B, C, D 1. Accounts receivable turnover is useful in...
Return on assets equals: Profit margin × Inventory turnover. B) Gross profit ratio × Asset turnover. C) Gross profit ratio × Inventory turnover. D) Profit margin...
Return on assets equals: Profit margin × Inventory turnover. B) Gross profit ratio × Asset turnover. C) Gross profit ratio × Inventory turnover. D) Profit margin × Asset turnover. 33.If your employer declares bankruptcy, this can have a major effect on your pension if you are in a Either plan B) Defined Benefit Plan C) Neither Plan D) Defined Contribution Plan 37If you put $200 into a savings account that pays annual compound interest of 8% per year and then...
Required Compute the accounts receivable turnover for 2018. Compute the inventory turnover for 2018. Compute the...
Required
Compute the accounts receivable turnover for 2018.
Compute the inventory turnover for 2018.
Compute the net margin for 2017.
Selected data from Rooney Company follow: Balance Sheets As of December 31 Accounts receivable Allowance for doubtful accounts Net accounts receivable Inventories, lower of cost or market 2018 $407,000 (20,350) $386,650 $478,000 2017 $375,000 (15,000) $360,000 $445,000 Income Statement For the Years Ended December 31 2018 Net credit sales $2,018,000 Net cash sales 410,000 Net sales 2,428,000 Cost of goods...
Assets Cash Accounts receivable Inventory Land Equipment Accumulated Depreciation-Equipment Total Liabilities and Stockholders' Equity Accounts payable...
Assets Cash Accounts receivable Inventory Land Equipment Accumulated Depreciation-Equipment Total Liabilities and Stockholders' Equity Accounts payable Bonds payable Common stock ($1 par) Retained earnings Total December 31 2020 2019 $ 72,730 $ 22,000 84,480 68,750 182,480 191,750 73,480 112,750 262,480 202,750 (71,480) (44,750) $604,170 $553,250 $36,480 150,000 214,000 203,690 $604,170 $ 49,750 200,000 164,000 139,500 $553,250 Additional information: 1. Net income for 2020 was $129,960. No gains or losses were recorded in 2020. Cash dividends of $65,770 were declared and...
needing help wit these -r any multiple choice questions, choose the one alternative that best completes...
needing help wit these
-r any multiple choice questions, choose the one alternative that best completes the statement or answe e question. 1) Which financial statement reports the amounts of cash that the firm generated and distributed during a particular time period? A) income statement B) statement of cash flows C) statement of retained earnings D) balance sheet 2) Which financial statement reconciles net income earned during a given period and any cash dividends paid within that period using the...
Return on assets equals: Profit margin × Inventory turnover. B) Gross profit ratio × Asset turnover....
Return on assets equals: Profit margin × Inventory turnover. B) Gross profit ratio × Asset turnover. C) Gross profit ratio × Inventory turnover. D) Profit margin × Asset turnover. 33.If your employer declares bankruptcy, this can have a major effect on your pension if you are in a Either plan B) Defined Benefit Plan C) Neither Plan D) Defined Contribution Plan 37If you put $200 into a savings account that pays annual compound interest of 8% per year and then...
Multiple Choice: A) $47,500 B) $24,500 C) $81,700 D) $53,600 Norbury Corporation's net income last year...
Multiple
Choice:
A) $47,500
B) $24,500
C) $81,700
D) $53,600
Norbury Corporation's net income last year was $36,000. The company did not sell or retire any property, plant, and equipment last year. Changes in selected balance sheet accounts for the year appear below: Increases (Decreases) Asset and Contra-Asset Accounts: Accounts receivable Inventory Prepaid expenses Accumulated depreciation Liability Accounts: Accounts payable Accrued liabilities Income taxes payable $12,500 $ (3,400) $ 8,000 $22,000 $12,000 $(7,900) $ 2,500 Based solely on this information,...
Cash 155-15 Chapter 14 Quiz Version B 2018 2017 30 - 5 Accounts Receivable, Net 60...
Cash 155-15 Chapter 14 Quiz Version B 2018 2017 30 - 5 Accounts Receivable, Net 60 -5 Inventory 40 2.0 Property, plant and Equipment, net 140 Total Assets 290 285 Accounts Payable 50 60 -10 Mortgage Payable 100 110-10 Common Stock, par $10 90 900 Retained Earnings 40 25 15 Total Liabilities and Owners' Equity 280 285 Sales for the year $150 Cost of Goods Sold Net Income for the year Using the information above, answer the following questions. 1....
Multiple Choice: A) $79 B) $65 C) ($13) D) $43 Alcoser Corporation's most recent balance sheet...
Multiple Choice:
A) $79
B) $65
C) ($13)
D) $43
Alcoser Corporation's most recent balance sheet appears below. Comparative Balance Sheet Ending Beginning Balance Balance $ 45 58 574 218 $497 $ 26 41 75 501 211 $432 Assets: Cash and cash equivalents Accounts receivable Inventory Property, plant, and equipment Less accumulated depreciation Total assets Liabilities and stockholders' equity: Accounts payable Accrued liabilities Income taxes payable Bonds payable Common stock Retained earnings Total liabilities and equity $ 55 234 205...
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question 1)...
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question 1) Which of the following statements is TRUE for a proprietorship? 1)_ A) The business records include the proprietor's personal finances. B) For accounting purposes, a proprietorship is separate from the proprietor C) Legally, a proprietorship is separate from the proprietor. D) All statements are correct. 2) Revenues are: A) increases in retained earnings resulting from delivering goods or services to customers B) decreases in...
5. Calculate the current ratio for 2018. Show work. A. 2.50 B. 2.80 C. 2.41 D....
5. Calculate the current ratio for 2018. Show work. A. 2.50 B. 2.80 C. 2.41 D. 2.25 6. In horizontal analysis, the current year is the base year. A. True B. False 7. On a common-sized income statement all items are stated as a percent of total assets or equities at year-end. A. True B. False 8. The relationship of each asset item as a percent of total assets is an example of vertical analysis. A. True B. False 9....
Required
Compute the accounts receivable turnover for 2018.
Compute the inventory turnover for 2018.
Compute the net margin for 2017.
Selected data from Rooney Company follow: Balance Sheets As of December 31 Accounts receivable Allowance for doubtful accounts Net accounts receivable Inventories, lower of cost or market 2018 $407,000 (20,350) $386,650 $478,000 2017 $375,000 (15,000) $360,000 $445,000 Income Statement For the Years Ended December 31 2018 Net credit sales $2,018,000 Net cash sales 410,000 Net sales 2,428,000 Cost of goods...
Assets Cash Accounts receivable Inventory Land Equipment Accumulated Depreciation-Equipment Total Liabilities and Stockholders' Equity Accounts payable Bonds payable Common stock ($1 par) Retained earnings Total December 31 2020 2019 $ 72,730 $ 22,000 84,480 68,750 182,480 191,750 73,480 112,750 262,480 202,750 (71,480) (44,750) $604,170 $553,250 $36,480 150,000 214,000 203,690 $604,170 $ 49,750 200,000 164,000 139,500 $553,250 Additional information: 1. Net income for 2020 was $129,960. No gains or losses were recorded in 2020. Cash dividends of $65,770 were declared and...
needing help wit these
-r any multiple choice questions, choose the one alternative that best completes the statement or answe e question. 1) Which financial statement reports the amounts of cash that the firm generated and distributed during a particular time period? A) income statement B) statement of cash flows C) statement of retained earnings D) balance sheet 2) Which financial statement reconciles net income earned during a given period and any cash dividends paid within that period using the...
Multiple
Choice:
A) $47,500
B) $24,500
C) $81,700
D) $53,600
Norbury Corporation's net income last year was $36,000. The company did not sell or retire any property, plant, and equipment last year. Changes in selected balance sheet accounts for the year appear below: Increases (Decreases) Asset and Contra-Asset Accounts: Accounts receivable Inventory Prepaid expenses Accumulated depreciation Liability Accounts: Accounts payable Accrued liabilities Income taxes payable $12,500 $ (3,400) $ 8,000 $22,000 $12,000 $(7,900) $ 2,500 Based solely on this information,...
Cash 155-15 Chapter 14 Quiz Version B 2018 2017 30 - 5 Accounts Receivable, Net 60 -5 Inventory 40 2.0 Property, plant and Equipment, net 140 Total Assets 290 285 Accounts Payable 50 60 -10 Mortgage Payable 100 110-10 Common Stock, par $10 90 900 Retained Earnings 40 25 15 Total Liabilities and Owners' Equity 280 285 Sales for the year $150 Cost of Goods Sold Net Income for the year Using the information above, answer the following questions. 1....
Multiple Choice:
A) $79
B) $65
C) ($13)
D) $43
Alcoser Corporation's most recent balance sheet appears below. Comparative Balance Sheet Ending Beginning Balance Balance $ 45 58 574 218 $497 $ 26 41 75 501 211 $432 Assets: Cash and cash equivalents Accounts receivable Inventory Property, plant, and equipment Less accumulated depreciation Total assets Liabilities and stockholders' equity: Accounts payable Accrued liabilities Income taxes payable Bonds payable Common stock Retained earnings Total liabilities and equity $ 55 234 205...
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question 1) Which of the following statements is TRUE for a proprietorship? 1)_ A) The business records include the proprietor's personal finances. B) For accounting purposes, a proprietorship is separate from the proprietor C) Legally, a proprietorship is separate from the proprietor. D) All statements are correct. 2) Revenues are: A) increases in retained earnings resulting from delivering goods or services to customers B) decreases in...
5. Calculate the current ratio for 2018. Show work. A. 2.50 B. 2.80 C. 2.41 D. 2.25 6. In horizontal analysis, the current year is the base year. A. True B. False 7. On a common-sized income statement all items are stated as a percent of total assets or equities at year-end. A. True B. False 8. The relationship of each asset item as a percent of total assets is an example of vertical analysis. A. True B. False 9....
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