Homework Answers
1. Accounts receivable turnover = Net credit sales / Average net receivables = $2,500,000 / [($475,000 + $450,000) / 2] = 5.41 times
2. Inventory turnover = Cost of goods sold / Average inventories = $2,000,000 / [($600,000 + $550,000) / 2] = 3.48 times
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Selected data of Islander Company follow: Balance Sheet Data Accounts receivable Allowance for doubtful accounts Net...
Selected data from Emporia Company follow Balance Sheets As of December 31 2017 2018 $600,000 (40,000)...
Selected data from Emporia Company follow Balance Sheets As of December 31 2017 2018 $600,000 (40,000) $480,000 Accounts receivable Allowance for doubtful accounts (20,000) $460,000 Net accounts receivable $560,000 Inventories, lower of cost or market $500,000 $400,000 Income Statement For the Years Ended December 31 2018 2017 Net credit sales Net cash sales $2,400,000 600,e00 $1,950,000 450,000 Net sales 3,000,000 2,400,000 Cost of goods sold Selling, general, and administrative expenses Other expenses 1,800,000 300,000 80,000 1,520,e00 240,000 se,000 Total operating...
The accounts receivable balance on the balance sheet should be ‘net of allowance for doubtful accounts’....
The accounts receivable balance on the balance sheet should be
‘net of allowance for doubtful accounts’. Resulting in a net
balance of $100,000. Total assists and total liabilities plus
equity balances should equal $810,000.
Problem 1 (Textbook Reference: Pl-4A)-Financial Accounting Review Problem The Homer Company uses the perpetual inventory procedure. The 2013 balance sheet of the Homer Company is as follows Homer Company Balance Sheet December 31, 2013 Assets Current Assets: Cash Accounts receivable, net Inventory Prepaid Expenses S 60,000...
Selected data from Franklin Company follow: Balance Sheets As of December 31 2018 2017 Accounts receivable...
Selected data from Franklin Company follow: Balance Sheets As of December 31 2018 2017 Accounts receivable Allowance for doubtful accounts Net accounts receivable Inventories, lower of cost or market $404,000 $379,000 (20,200)(15,160) $383,800 $363,840 $476,000 $435,000 Income Statement For the Years Ended December 31 2018 2017 Net credit sales Net cash sales Net sales $2,007,000 $1,752,000 415,000 309,00 Cost of goods sold Selling, general, and administrative expenses Other expenses 2,422,000 1,606,000 2,061,000 1,432,000 214,600 239,900 40,80022,500 Total operating expenses $1,886,700...
Cash Accounts receivable (net) Inventory Accounts payable Notes payable Common stock, $100 par Retained earnings December...
Cash Accounts receivable (net) Inventory Accounts payable Notes payable Common stock, $100 par Retained earnings December 31, 2017 $ 34,000 77,000 210,000 54,000 29,000 417,000 106,000 December 31, 2016 $ 16,500 122,500 183,000 92,500 65,000 417,000 102,500 Additional information: 1. The inventory turnover is 2.2 times. 2. The return on common stockholders' equity is 25%. The company had no additional paid-in capital. 3. The accounts receivable turnover is 8.1 times. 4. The return on assets is 12.5%. 5. Total assets...
Exercise 14-7 Frizell Company has the following comparative balance sheet data. FRIZELL COMPANY Balance Sheets December...
Exercise 14-7 Frizell Company has the following comparative balance sheet data. FRIZELL COMPANY Balance Sheets December 31 2017 2016 Cash $15,100 29,700 Accounts receivable (net) 70,300 59,000 Inventory 60,900 49,300 Plant assets (net) 195,000 178,500 $341,300 $316,500 Accounts payable $50,600 $60,900 Mortgage payable (6%) Common stock, $10 par 101,500 101,500 144,000 118,500 Retained earnings 45,200 35,600 $341,300 $316,500 Additional information for 2017 Net income was $25,800. 1 Sales on account were $407,000. Sales returns and allowances were $20,700. 2. Cost...
Simon Company’s year-end balance sheets follow. At December 31 2017 2016 2015 Assets Cash $ 27,904 $ 32...
Simon Company’s year-end balance sheets follow.
At December 31
2017
2016
2015
Assets
Cash
$
27,904
$
32,617
$
34,676
Accounts receivable, net
89,700
62,600
59,700
Merchandise inventory
113,000
83,000
54,000
Prepaid expenses
8,986
8,562
3,853
Plant assets, net
247,981
233,541
208,871
Total assets
$
487,571
$
420,320
$
361,100
Liabilities and Equity
Accounts payable
$
117,763
$
68,903
$
46,235
Long-term notes payable secured by
mortgages on plant assets
88,913
93,773
77,409
Common stock, $10 par value
162,500
162,500...
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...
*Exercise 18-7 Frizell Company has the following comparative balance sheet data. FRIZELL COMPANY Balance Sheets December...
*Exercise 18-7 Frizell Company has the following comparative balance sheet data. FRIZELL COMPANY Balance Sheets December 31 2017 2016 Cash Accounts receivable (net) Inventory Plant assets (net) $ 15,800 $30,300 70,600 59,400 61,000 50,300 201,500 180,500 $348,900 $320,500 $50,300 $59,900 107,000 107,000 138,000 124,500 53,600 29,100 $348,900 $320,500 Accounts payable Mortgage payable (6%) Common stock, $10 par Retained earnings Additional information for 2017: 1. Net income was $24,500 Sales on account were $410.500. Sales returns and allowances were $19,200. 3....
Simon Compeny's year-end balance sheets follow Accounts receivable, net Merchandise inventory Prepeid expenses Plant assets, net...
Simon Compeny's year-end balance sheets follow Accounts receivable, net Merchandise inventory Prepeid expenses Plant assets, net $ 32,544 $ 38,041 $ 4e,e38 89,200 62,800 3,588 113,000 85,8 59,800 ,480 9,96 4,448 317.629 290,191 255,622 $562,853 5485,218 5412,600 Liabilities and tquity Accounts payable Long-tern notes payable secured by $137,347 8,362 53,374 sortgages on plant assets Common stock, $18 par value Retained earnings Totel liabilities and equity 159-386132,88187,365 $562,853 $485,218 $412,688 The company's income statements for the years ended December 31, 2017...
CULLUMBER COMPANY Balance Sheets December 31 Assets Cash Debt investments (short-term) Accounts receivable Inventory Prepaid expenses Land Building and equipment (net) Total assets Liabilities...
CULLUMBER COMPANY Balance Sheets December 31 Assets Cash Debt investments (short-term) Accounts receivable Inventory Prepaid expenses Land Building and equipment (net) Total assets Liabilities and Stockholders' Equity Notes payable Accounts payable Accrued liabilities Bonds payable, due 2017 Common stock, $10 par Retained earnings 2017 2016 69,000 69,000 41,000 103,000 92,000 239,000 164,000 25,000 29,000 132,000 132,000 263,000 188,000 $884,000 $715,000 53,000 $170,000 $101,000 66,000 54,000 42,000 251,000 170,000 205,000 205,000 150,000 143,000 Total liabilities and stockholders' equity $884,000 $715,000 42,000...
Selected data from Emporia Company follow Balance Sheets As of December 31 2017 2018 $600,000 (40,000) $480,000 Accounts receivable Allowance for doubtful accounts (20,000) $460,000 Net accounts receivable $560,000 Inventories, lower of cost or market $500,000 $400,000 Income Statement For the Years Ended December 31 2018 2017 Net credit sales Net cash sales $2,400,000 600,e00 $1,950,000 450,000 Net sales 3,000,000 2,400,000 Cost of goods sold Selling, general, and administrative expenses Other expenses 1,800,000 300,000 80,000 1,520,e00 240,000 se,000 Total operating...
The accounts receivable balance on the balance sheet should be
‘net of allowance for doubtful accounts’. Resulting in a net
balance of $100,000. Total assists and total liabilities plus
equity balances should equal $810,000.
Problem 1 (Textbook Reference: Pl-4A)-Financial Accounting Review Problem The Homer Company uses the perpetual inventory procedure. The 2013 balance sheet of the Homer Company is as follows Homer Company Balance Sheet December 31, 2013 Assets Current Assets: Cash Accounts receivable, net Inventory Prepaid Expenses S 60,000...
Selected data from Franklin Company follow: Balance Sheets As of December 31 2018 2017 Accounts receivable Allowance for doubtful accounts Net accounts receivable Inventories, lower of cost or market $404,000 $379,000 (20,200)(15,160) $383,800 $363,840 $476,000 $435,000 Income Statement For the Years Ended December 31 2018 2017 Net credit sales Net cash sales Net sales $2,007,000 $1,752,000 415,000 309,00 Cost of goods sold Selling, general, and administrative expenses Other expenses 2,422,000 1,606,000 2,061,000 1,432,000 214,600 239,900 40,80022,500 Total operating expenses $1,886,700...
Cash Accounts receivable (net) Inventory Accounts payable Notes payable Common stock, $100 par Retained earnings December 31, 2017 $ 34,000 77,000 210,000 54,000 29,000 417,000 106,000 December 31, 2016 $ 16,500 122,500 183,000 92,500 65,000 417,000 102,500 Additional information: 1. The inventory turnover is 2.2 times. 2. The return on common stockholders' equity is 25%. The company had no additional paid-in capital. 3. The accounts receivable turnover is 8.1 times. 4. The return on assets is 12.5%. 5. Total assets...
Exercise 14-7 Frizell Company has the following comparative balance sheet data. FRIZELL COMPANY Balance Sheets December 31 2017 2016 Cash $15,100 29,700 Accounts receivable (net) 70,300 59,000 Inventory 60,900 49,300 Plant assets (net) 195,000 178,500 $341,300 $316,500 Accounts payable $50,600 $60,900 Mortgage payable (6%) Common stock, $10 par 101,500 101,500 144,000 118,500 Retained earnings 45,200 35,600 $341,300 $316,500 Additional information for 2017 Net income was $25,800. 1 Sales on account were $407,000. Sales returns and allowances were $20,700. 2. Cost...
Simon Company’s year-end balance sheets follow.
At December 31
2017
2016
2015
Assets
Cash
$
27,904
$
32,617
$
34,676
Accounts receivable, net
89,700
62,600
59,700
Merchandise inventory
113,000
83,000
54,000
Prepaid expenses
8,986
8,562
3,853
Plant assets, net
247,981
233,541
208,871
Total assets
$
487,571
$
420,320
$
361,100
Liabilities and Equity
Accounts payable
$
117,763
$
68,903
$
46,235
Long-term notes payable secured by
mortgages on plant assets
88,913
93,773
77,409
Common stock, $10 par value
162,500
162,500...
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...
*Exercise 18-7 Frizell Company has the following comparative balance sheet data. FRIZELL COMPANY Balance Sheets December 31 2017 2016 Cash Accounts receivable (net) Inventory Plant assets (net) $ 15,800 $30,300 70,600 59,400 61,000 50,300 201,500 180,500 $348,900 $320,500 $50,300 $59,900 107,000 107,000 138,000 124,500 53,600 29,100 $348,900 $320,500 Accounts payable Mortgage payable (6%) Common stock, $10 par Retained earnings Additional information for 2017: 1. Net income was $24,500 Sales on account were $410.500. Sales returns and allowances were $19,200. 3....
Simon Compeny's year-end balance sheets follow Accounts receivable, net Merchandise inventory Prepeid expenses Plant assets, net $ 32,544 $ 38,041 $ 4e,e38 89,200 62,800 3,588 113,000 85,8 59,800 ,480 9,96 4,448 317.629 290,191 255,622 $562,853 5485,218 5412,600 Liabilities and tquity Accounts payable Long-tern notes payable secured by $137,347 8,362 53,374 sortgages on plant assets Common stock, $18 par value Retained earnings Totel liabilities and equity 159-386132,88187,365 $562,853 $485,218 $412,688 The company's income statements for the years ended December 31, 2017...
CULLUMBER COMPANY Balance Sheets December 31 Assets Cash Debt investments (short-term) Accounts receivable Inventory Prepaid expenses Land Building and equipment (net) Total assets Liabilities and Stockholders' Equity Notes payable Accounts payable Accrued liabilities Bonds payable, due 2017 Common stock, $10 par Retained earnings 2017 2016 69,000 69,000 41,000 103,000 92,000 239,000 164,000 25,000 29,000 132,000 132,000 263,000 188,000 $884,000 $715,000 53,000 $170,000 $101,000 66,000 54,000 42,000 251,000 170,000 205,000 205,000 150,000 143,000 Total liabilities and stockholders' equity $884,000 $715,000 42,000...
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