Question

e1-39

-k?bookid3113333&platform=10308&scenario=1&invoketype%3et1&pagenumber=1&bookserver 43 Paid cash expenses: employees' salaries, $1,300; office rent, $1,600; utilities, $450. 17 23 Paid cash dividends of $500. 26 Earned service revenue for the month, $8,500, receiving cash. Prepare the statement of cash flows of Morning Bean Food Equipment Company for the month ended January 31, 2018. E1-39 Calculating Return on Assets Alice Appliance Service had net income for the year of $58,500. In addition, the balance sheet reports the following balances: Jan 1, 2018 Dec 31, 2018 Notes Payable $ 32,000 $ 58,000 Cash 34,000 134,200 Office Furniture 23,000 44,000 Building 160,000 160,000 Accounts Payable 11,500 11,000 Total Stockholders' Equity 204,500 333,000 Accounts Receivable 2,200 19,800 Equipment 24,000 42,000 Office Supplies 4,800 2,000 Calculate the return on assets for Alice Appliance Service for the year ending December 31, 2018. > Problems Group A P1-40A Using the accounting equation for transaction analysis Meg McKinney opened a public relations firm called Solid Gold on August 1, 2018. The following amounts summarize her business on August 31, 2018: Learn Cash $ ASSETS LIABILITIES+ EQUITY Contributed Capital Retained Ea - Dividends + Service Cash + Acounts + Office + Land Accounts + Common

Answer 1

working notes:

Retwen On Assets : Net Income Formula X 100 Average Total Assets Return on assets of Alice Appliance Seavice the year ending Dee 31 2014 for $ 58, 500 X 100 $ 325, 600 I8 %

Note: Caleulation of To tal Assets Jon1, 2018 Dee 31 2018 Cash $ 34.000 $134,200 office Furniture Build ing Accounts RecoEvable Equipment office Supplies 23.000 44 000 160,000 160, 000 2,200 19 800 24.000 4500 $248,000 $402, 000 42,000 2000 Total Assets

(Total assets + Total assets on Jan 1 2018 total assets Averoge on Dee 31 2018 2. $248 000 + $ 402,000 $ 325, C00
Note: Average total assets are used in calculating Return on Assets because a company's asset total can vary over time due to the purchase or sale of office furniture, building or equipment, inventory changes, or seasonal sales fluctuations. As a result, calculating the average total assets for the period in question is more accurate than the total assets for one period