week 1 in class exercises solutions

Operating data for Joshua Corporation are presented below. 2020 2019 Sales revenue $745,000 $595,000 Cost of goods sold 459,665 384,965 Selling expenses 114,730 67,235 Administrative expenses 55,130 48,790

3) Mahogany Company provided the following financial statement for the month of July, 2020. The store was opened July 1, 2020 and he wanted you to help him in preparing Cash Flow Statement for the first month of operation. A Statement of Financial Position, Income Statement and Cash Ledger have shown the information below. Mahogany Company Statement of Financial Position As of December 31, 2020 ASSETS LIABILITIES AND OWNER'S EQUITY Current Assets: Current Liabilities: Cash P44,535 Accounts Payable P8,110 Accounts Receivable 575 Salaries Payable 1,000 Inventories 15,345 Utilities Payable 4,000 Prepaid rent 5,000 P65,455 Unearned Income 1,395 P14,505 Non-current Assets: Non-current liabilities Property, Plant & Equipment Accumulated depreciation 30,000 Long-term Note payable 23,000 500 29,500 Total Liabilities 37,505 Owner's Equity Mahogany, Capital 57,450 Total Assets P94,955 Total liabilities & equity P94,955

Using the information provided below:Rubialac PaintsSelected Income Statement Items, 2020Cash Sales $2,500,000Credit Sales $9,500,000Total Sales $12,000,000COGS 7,000,000 Rubialac PaintsSelected Balance Sheet Accounts12/31/2020 12/31/19 ChangeAccounts Receivable $550,000 $400,000 $150,000Inventory $275,000 $250,000 $25,000Accounts Payable $150,000 $110,000 $40,000 What is the inventory turnover for Rubialac Paints? What is the average production cycle for the firm? What is the average collection cycle? What could Eagle Paints do to reduce the average collection cycle?

THE ATHLETIC ATTICIncome StatementFor the Year Ended December 31, 2024Net sales         $8,900,000Cost of goods sold         5,450,000Gross profit         3,450,000Expenses:          Operating expenses    $1,600,000     Depreciation expense    210,000     Interest expense    50,000     Income tax expense    360,000     Total expenses         2,220,000Net income         $1,230,000 THE ATHLETIC ATTICBalance SheetsDecember 31     2024    2023Assets          Current assets:          Cash    $164,000    Accounts receivable    790,000    Inventory    1,405,000    Supplies    110,000Long-term assets:          Equipment    1,150,000    Less: Accumulated depreciation    (420,000)    Total assets    $3,199,000    Liabilities and Stockholders' Equity          Current liabilities:          Accounts payable    $115,000    Interest payable    0    Income tax payable    40,000    Long-term liabilities:          Notes payable    600,000    Stockholders' equity:          Common stock    700,000…

Income Statement For the year Ended December 31, 2020 Sales Cost of Goods Sold $ 390,000 235,000 Gross Profit S 155,000 Wages Expenses Depreciation Expense Other Operating Expenses Income Tax Expense S61000 14,000 26,000 17,000 120,000 Net Income $35000 Terry Company Balance Sheets Dec. 31, 2020 Dec. 1L Assets 2019 $ 30,000 35,000 84,000 8,000 130,000 (62.000) Cash Accounts Receivable (net) Inventory Prepaid Expense Plant Assets Accumulated Depreciation S16.000 28,000 110,000 12,000 178,000 (76,000) Total Assets $ 268,000 $ 225,000 I Liabilities and Stockholders' Equity Accounts Payable Wages Payable Income Tax Payable Common Stock Retained Earnings $ 27.000 6,000 3,000 135,000 97,000 S 14,000 2,500 4,500 125,000 79,000 Total Liabilities and S 268,000 $ 225,000 Stockholders' Equity Cash dividends of $17,000 were declared and paid during 2020 Plant assets of $48,000 were purchased for cash, and later in the year, an additional $10,000 common stock was issued for cash REQUIRED Prepare…

SUNLAND COMPANYIncome StatementsFor the Years Ended December 31     2022   2021 Net sales   $2,178,400   $2,030,000 Cost of goods sold   1,207,000   1,187,080 Gross profit   971,400   842,920 Selling and administrative expenses   590,000   565,220 Income from operations   381,400   277,700 Other expenses and losses            Interest expense   25,960   23,600 Income before income taxes   355,440   254,100 Income tax expense   106,632   76,230 Net income   $ 248,808   $ 177,870 SUNLAND COMPANYBalance SheetsDecember 31 Assets   2022   2021 Current assets            Cash   $ 70,918   $ 75,756    Debt investments (short-term)   87,320   59,000    Accounts receivable   139,004   121,304    Inventory   148,680   136,290      Total current assets   445,922   392,350 Plant assets (net)   765,820   613,954 Total assets   $1,211,742…

Excerpts from the annual report of XYZ Corporation follow: 2019 $675,138 $241,154 $64,150 $93,650 $25,100 2020 Cost of goods sold Inventory Net income $754,661 $219,686 $31,185 $68,685 $26,900 Retained earnings LIFO reserve Tax rate 20% 20% If XYZ used FIFO, its net income for fiscal 2020 would be O a. $34,165 O b. $30,375 O c. $32,625 d. $36,545

Blossom Manufacturing Ltd.'s sales for the year ended December 31, 2022 are $1.00 million. The expenses for 2022 are as follows: Cost of goods sold Selling expenses Administrative expenses Variable $320,000 56,000 27,920 Fixed $180,000 26,400 36,000 Prepare a detailed CVP income statement for the year ended December 31, 2022. Blossom Manufacturing Ltd. CVP Income Statement $ $

The following condensed information is reported by Beany Baby Collectibles.    2024 2023 Income Statement Information     Sales revenue $13,020,000 $9,000,000 Cost of goods sold 8,436,960 6,500,000 Net income 394,320 308,000 Balance Sheet Information     Current assets $1,660,000 $1,560,000 Long-term assets 2,260,000 1,960,000 Total assets $3,920,000 $3,520,000 Current liabilities $1,260,000 $960,000 Long-term liabilities 1,440,000 1,440,000 Common stock 860,000 860,000 Retained earnings 360,000 260,000 Total liabilities and stockholders' equity $3,920,000 $3,520,000

2022 Income Statement: Sales revenue Cost of goods sold Fixed Costs 600,000 240,000 50,000 Selling, General, and Admin Expenses 30,000 Depreciation 50,000 2021 Balance Sheet: Assets Cash Accounts Receivable Inventories Fixed Assets Accumulated Depreciation Intangible Assets 2022 Balance Sheet: Assets Cash Accounts Receivable Inventories Fixed Assets Accumulated Depreciation, Intangible Assets 60,000 40,000 20,000 300,000 100,000 50,000 80,000 50,000 40,000 400,000 150,000 80,000 Liabilities Notes Payable Accounts Payable Long-Term Debt Owner's Equity Retained Earnings Common Stock Liabilities Notes Payable Accounts Payable Long-Term Debt Owner's Equity Retained Earnings Common Stock 30,000 40,000 150,000 60,000 120,000 50,000 40,000 180,000 ????? 150,000 What is net income for 2022? Total interest paid in 2022 is $70,000 and the tax rate is 25%.

Income statement and balance sheet data for The Athletic Attic are provided below.  THE ATHLETIC ATTIC   Income Statements   For the years ended December 31       2022     2021   Net sales $ 12,920,000   $ 11,500,000   Cost of goods sold   8,420,000     7,200,000   Gross profit   4,500,000     4,300,000   Expenses:             Operating expenses   1,780,000     1,730,000   Depreciation expense   200,000     200,000   Interest expense   58,000     58,000   Income tax expense   616,000     530,000   Total expenses   2,654,000     2,518,000   Net income $ 1,846,000   $ 1,782,000       THE ATHLETIC ATTIC     Balance Sheets     December 31         2022       2021       2020     Assets                         Current assets:                         Cash $ 243,000     $ 173,000     $ 240,000     Accounts receivable   1,008,000       758,000       778,000     Inventory   1,743,000       1,373,000       1,043,000     Supplies   148,000…

Crane Manufacturing Ltd's sales for the year ended December 31, 2022 are $1.24 million. The expenses for 2022 are as follows: Cost of goods sold Selling expenses Variable Fixed $416,000 $234.000 34,320 46,800 72,800 Administrative expenses 36,320 Prepare a detailed CVP income statement for the year ended December 31, 2022. Crane Manufacturing Ltd. CVP Income Statement

Income statement and balance sheet data for The Athletic Attic are provided below.  THE ATHLETIC ATTIC Income Statements For the Years Ended December 31   2025 2024 Net sales $ 10,680,000 $ 9,100,000 Cost of goods sold 6,980,000 5,600,000 Gross profit 3,700,000 3,500,000 Expenses:     Operating expenses 1,620,000 1,570,000 Depreciation expense 200,000 200,000 Interest expense 42,000 42,000 Income tax expense 424,000 370,000 Total expenses 2,286,000 2,182,000 Net income $ 1,414,000 $ 1,318,000   THE ATHLETIC ATTIC Balance Sheets December 31   2025 2024 2023 Assets       Current assets:       Cash $ 227,000 $ 156,000 $ 208,000 Accounts receivable 992,000 742,000 762,000 Inventory 1,727,000 1,357,000 1,027,000 Supplies 132,000 102,000 77,000 Long-term assets:       Equipment 1,180,000 1,180,000 1,180,000 Less: Accumulated depreciation (620,000) (420,000) (220,000) Total assets $ 3,638,000 $ 3,117,000 $ 3,034,000 Liabilities…

Income statement and balance sheet data for The Athletic Attic are provided below.  THE ATHLETIC ATTIC Income Statements For the Years Ended December 31   2025 2024 Net sales $ 10,680,000 $ 9,100,000 Cost of goods sold 6,980,000 5,600,000 Gross profit 3,700,000 3,500,000 Expenses:     Operating expenses 1,620,000 1,570,000 Depreciation expense 200,000 200,000 Interest expense 42,000 42,000 Income tax expense 424,000 370,000 Total expenses 2,286,000 2,182,000 Net income $ 1,414,000 $ 1,318,000   THE ATHLETIC ATTIC Balance Sheets December 31   2025 2024 2023 Assets       Current assets:       Cash $ 227,000 $ 156,000 $ 208,000 Accounts receivable 992,000 742,000 762,000 Inventory 1,727,000 1,357,000 1,027,000 Supplies 132,000 102,000 77,000 Long-term assets:       Equipment 1,180,000 1,180,000 1,180,000 Less: Accumulated depreciation (620,000) (420,000) (220,000) Total assets $ 3,638,000 $ 3,117,000 $ 3,034,000 Liabilities…

The income statement of Sunland Company is shown below. SUNLAND COMPANYINCOME STATEMENTFOR THE YEAR ENDED DECEMBER 31, 2020 Sales revenue       $6,630,000 Cost of goods sold            Beginning inventory   $1,840,000        Purchases   4,520,000        Goods available for sale   6,360,000        Ending inventory   1,530,000        Cost of goods sold       4,830,000 Gross profit       1,800,000 Operating expenses            Selling expenses   450,000        Administrative expenses   660,000   1,110,000 Net income       $690,000 Additional information: 1.   Accounts receivable decreased $290,000 during the year. 2.   Prepaid expenses increased $180,000 during the year. 3.   Accounts payable to suppliers of merchandise decreased $260,000 during the year. 4.   Accrued expenses payable decreased $120,000 during the year. 5.   Administrative expenses include depreciation expense of $60,000.…

The income statement of Sunland Company is shown below. SUNLAND COMPANYINCOME STATEMENTFOR THE YEAR ENDED DECEMBER 31, 2020 Sales revenue       $6,980,000 Cost of goods sold            Beginning inventory   $1,850,000        Purchases   4,580,000        Goods available for sale   6,430,000        Ending inventory   1,570,000        Cost of goods sold       4,860,000 Gross profit       2,120,000 Operating expenses            Selling expenses   410,000        Administrative expenses   760,000   1,170,000 Net income       $950,000 Additional information: 1.   Accounts receivable decreased $300,000 during the year. 2.   Prepaid expenses increased $170,000 during the year. 3.   Accounts payable to suppliers of merchandise decreased $260,000 during the year. 4.   Accrued expenses payable decreased $120,000 during the year. 5.   Administrative expenses include depreciation expense of $70,000.…

Selected financial statement data from Western Colorado Stores is shown below 2020. $795,000 640, 000 91,000 89, 000 2021 Net sales Cost of goods sold Operating expenses Inventory $775, 000 620, 000 111, 000 111, 000 Required Compule the gross profit ratio for 2021. (Round your "Percentage" answer to two decimal places (1.e.. 0.1234 shoutd be entered as 12.34) 2. Compute the inventory turnover ratio for 2021 (Rpund your answer to two decimal places.) Gross profit ratie 2 oventory turmover ratio

InThe income statement of Pina Company is shown below. PINA COMPANYINCOME STATEMENTFOR THE YEAR ENDED DECEMBER 31, 2020 Sales revenue       $6,610,000 Cost of goods sold            Beginning inventory   $1,910,000        Purchases   4,530,000        Goods available for sale   6,440,000        Ending inventory   1,630,000        Cost of goods sold       4,810,000 Gross profit       1,800,000 Operating expenses            Selling expenses   450,000        Administrative expenses   680,000   1,130,000 Net income       $670,000 Additional information: 1.   Accounts receivable decreased $300,000 during the year. 2.   Prepaid expenses increased $180,000 during the year. 3.   Accounts payable to suppliers of merchandise decreased $280,000 during the year. 4.   Accrued expenses payable decreased $110,000 during the year. 5.   Administrative expenses include depreciation expense of $70,000. Prepare…

Atlantic Corporation reported the following financial statements: E (Click the icon to view the financial statements.) The company has 2,200 shares of common stock outstanding. What is Atlantic's earnings per share? (Round the earnings per share to two decimal places, X.XX. O A. $1.90 Financial Statements O B. $3.58 OC. $2.49 O D. 3.19 times Atlantic Corporation Comparative Balance Sheet December 31, 2019 and 2018 2019 2018 Assets Current Assets: Cash and Cash Equivalents 2,052 $ 1,655 Accounts Receivable 1,951 1,731 Merchandise Inventory 1,342 1,094 1,615 1,817 Prepaid Expenses Total Current Assets 6,960 6,297 18,240 16,174 Other Assets 2$ 25,200 $ 22,471 Total Assets Liabilities Current Liabilities 24 7.087 $ 8,158 4,698 3,844 Long-term Liabilities Total Liabilities 11,785 12,002 Stockholders' Equity Common Stock, no par 7,015 4,169 6,400 6,300 Retained Earnings Click to select your an Total Stockholders' Equity 13,415 10,469 24 25,200 $ 22,471 Clear Al All parts showing Total…

​National, Inc. provides the following​ data:     2025 2024 Cash $43,000 ​$25,000 Accounts​ Receivable, Net 98,000 ​62,000 Merchandise Inventory 70,000 ​50,000 ​Property, Plant, and​ Equipment, Net 200,000 ​120,000 Total Assets $411,000 ​$257,000   For the year ending December​ 31, 2025: Net Credit Sales $260,000 Cost of Goods Sold ​(150,000​) Gross Profit $110,000   Calculate the accounts receivable turnover ratio for 2025.​ (Round your answer to two decimal​ places.)

The 2024 income statement of Adrian Express reports sales of $17,595,000, cost of goods sold of $10,887,500, and net income of $1,650,000. Balance sheet information is provided in the following table.  ADRIAN EXPRESS Balance Sheets December 31, 2024 and 2023   2024 2023 Assets     Current assets:     Cash $650,000 $810,000 Accounts receivable 1,500,000 1,050,000 Inventory 1,900,000 1,450,000 Long-term assets 4,850,000 4,290,000 Total assets $8,900,000 $7,600,000 Liabilities and Stockholders' Equity     Current liabilities $1,970,000 $1,710,000 Long-term liabilities 2,350,000 2,450,000 Common stock 1,950,000 1,950,000 Retained earnings 2,630,000 1,490,000 Total liabilities and stockholders' equity $8,900,000 $7,600,000 Industry averages for the following four risk ratios are as follows:  Average collection period 25 days Average days in inventory 60 days Current ratio 2 to 1 Debt to equity ratio 50% Required:1. Calculate the four risk…

Sales MOSS COMPANY Income Statement For Year Ended December 31, 2021 Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Income before taxes Income taxes expense Net income $ 549,000 357,600 191,400 128,500 49,000 13,900 8,100 $ 5,800 MOSS COMPANY Selected Balance Sheet Information At December 31 2021 2020 Current assets Cash $ 91,150 $ 33,300 Accounts receivable 31,500 45,000 66,500 55,400 Current liabilities 43,400 32,200 2,700 3,500 Inventory Accounts payable Income taxes payable Use the information above to calculate cash flows from operating activities using the indirect method. Note: Amounts to be deducted should be indicated by a minus sign. Cash flows from operating activities: Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Changes in current operating assets and liabilities $ 49,000 49,000 $ 49,000

COMPREHENSIVE INCOME STATEMENT

MOSS COMPANY Selected Balance Sheet Information December 31, 2019 and 2018 2019 2018 Current assets $84,650 25,000 60, 000 $26,800 32,000 54,100 Cash Accounts receivable ed Inventory Current liabilities Accounts payable Income taxes payable 25,700 2,200 30,400 2,e5e MOSS COMPANY Income Statement For Year Ended December 31, 2019 ces Sales $ 515,000 331,6ее 183,400 Cost of goods sold Gross profit Operating expenses Depreciation expense Other expenses Income before taxes $ 36,000 121,500 157, 500 25,900 7,700 $ 18,200 Income taxes expense Net income *........... ....... l

2020    Revenue   $432,000    Returns, allowances, discounts   ($21,600)    Cost of goods sold   ($280,800)    Operating expenses   ($45,000) Net Income   $84,600 Use the above information to calculated the gross margin/profit  ratio.

The income statement of Cheyenne Company is shown below. CHEYENNE COMPANYINCOME STATEMENTFOR THE YEAR ENDED DECEMBER 31, 2020 Sales revenue       $6,890,000 Cost of goods sold            Beginning inventory   $1,910,000        Purchases   4,410,000        Goods available for sale   6,320,000        Ending inventory   1,620,000        Cost of goods sold       4,700,000 Gross profit       2,190,000 Operating expenses            Selling expenses   460,000        Administrative expenses   700,000   1,160,000 Net income       $1,030,000 Additional information: 1.   Accounts receivable decreased $350,000 during the year. 2.   Prepaid expenses increased $160,000 during the year. 3.   Accounts payable to suppliers of merchandise decreased $300,000 during the year. 4.   Accrued expenses payable decreased $90,000 during the year. 5.   Administrative expenses include depreciation expense of $50,000.…

16. The income statement of Bonita Company is shown below. BONITA COMPANYINCOME STATEMENTFOR THE YEAR ENDED DECEMBER 31, 2020 Sales revenue       $6,470,000 Cost of goods sold            Beginning inventory   $2,050,000        Purchases   4,300,000        Goods available for sale   6,350,000        Ending inventory   1,650,000        Cost of goods sold       4,700,000 Gross profit       1,770,000 Operating expenses            Selling expenses   430,000        Administrative expenses   700,000   1,130,000 Net income       $640,000 Additional information: 1.   Accounts receivable decreased $290,000 during the year. 2.   Prepaid expenses increased $170,000 during the year. 3.   Accounts payable to suppliers of merchandise decreased $280,000 during the year. 4.   Accrued expenses payable decreased $130,000 during the year. 5.   Administrative expenses include depreciation expense of $70,000.…

Income Statement for December 31, 2019 Sales $4,000,000 Operating costs 3,200,000  EBIT $  800,000 Interest 120,000  Pre-tax earnings $  680,000 Taxes (25%) 170,000 Net income 510,000 Dividends $  190,000 Balance Sheet as of December 31, 2019 Cash $   160,000   Accounts payable $   360,000 Receivables 360,000   Line of credit 0 Inventories 720,000   Accruals 200,000  Total CA $1,240,000    Total CL $   560,000 Fixed assets 4,000,000   Long-term bonds 1,000,000  Total Assets $5,240,000   Common stock 1,100,000       RE 2,580,000        Total L&E $5,240,000 Suppose that in 2020 sales increase to $4.4 million and that 2020 dividends will increase to $218,000. Forecast the financial statements using the forecasted financial statement method. Assume the firm operated at full capacity in 2019. The long-term bonds have an interest rate of 11%. New financing will be with a line of credit. Assume it will be added at the end of the year. Cash does not…

Draper Consulting Inc. Income Statement Year Ended December 31, 2019 Sales Revenue   925,000 Less:  Cost of Goods Sold   490,000 Gross Profit   435,000 Expenses:          Wages Expense 207,000        Depreciation Expense 62,000        Insurance Expense 17,000        Interest Expense 12,000        Income Tax Expense 57,000             Total Expense   355,000 Other Income and (Expenses):          Gain on Sale of Equipment   16,000 Net Income   96,000   Draper Consulting Inc. Balance Sheet December 31, 2019 and 2018   2019 2018 Assets: Current Assets:          Cash 25,000 33,000      Accounts Receivable 68,000 51,000      Inventory 177,000 126,000      Prepaid Insurance 8,000 11,000           Total Current Assets 278,000 221,000 Plant Assets:          Equipment 887,000 763,000…

Draper Consulting Inc. Income Statement Year Ended December 31, 2019 Sales Revenue   925,000 Less:  Cost of Goods Sold   490,000 Gross Profit   435,000 Expenses:          Wages Expense 207,000        Depreciation Expense 62,000        Insurance Expense 17,000        Interest Expense 12,000        Income Tax Expense 57,000             Total Expense   355,000 Other Income and (Expenses):          Gain on Sale of Equipment   16,000 Net Income   96,000   Draper Consulting Inc. Balance Sheet December 31, 2019 and 2018   2019 2018 Assets: Current Assets:          Cash 25,000 33,000      Accounts Receivable 68,000 51,000      Inventory 177,000 126,000      Prepaid Insurance 8,000 11,000           Total Current Assets 278,000 221,000 Plant Assets:          Equipment 887,000 763,000…

Income statement and balance sheet data for The Athletic Attic are provided below.  THE ATHLETIC ATTIC Income Statements For the Years Ended December 31   2025 2024 Net sales $ 13,200,000 $ 11,800,000 Cost of goods sold 8,600,000 7,400,000 Gross profit 4,600,000 4,400,000 Expenses:     Operating expenses 1,800,000 1,750,000 Depreciation expense 200,000 200,000 Interest expense 60,000 60,000 Income tax expense 640,000 550,000 Total expenses 2,700,000 2,560,000 Net income $ 1,900,000 $ 1,840,000   THE ATHLETIC ATTIC Balance Sheets December 31   2025 2024 2023 Assets       Current assets:       Cash $ 245,000 $ 175,000 $ 244,000 Accounts receivable 1,010,000 760,000 780,000 Inventory 1,745,000 1,375,000 1,045,000 Supplies 150,000 120,000 95,000 Long-term assets:       Equipment 1,900,000 1,900,000 1,900,000 Less: Accumulated depreciation (800,000) (600,000) (400,000) Total assets $ 4,250,000 $ 3,730,000 $ 3,664,000 Liabilities…

Income statement and balance sheet data for The Athletic Attic are provided below.  THE ATHLETIC ATTIC Income Statements For the Years Ended December 31   2025 2024 Net sales $ 13,200,000 $ 11,800,000 Cost of goods sold 8,600,000 7,400,000 Gross profit 4,600,000 4,400,000 Expenses:     Operating expenses 1,800,000 1,750,000 Depreciation expense 200,000 200,000 Interest expense 60,000 60,000 Income tax expense 640,000 550,000 Total expenses 2,700,000 2,560,000 Net income $ 1,900,000 $ 1,840,000   THE ATHLETIC ATTIC Balance Sheets December 31   2025 2024 2023 Assets       Current assets:       Cash $ 245,000 $ 175,000 $ 244,000 Accounts receivable 1,010,000 760,000 780,000 Inventory 1,745,000 1,375,000 1,045,000 Supplies 150,000 120,000 95,000 Long-term assets:       Equipment 1,900,000 1,900,000 1,900,000 Less: Accumulated depreciation (800,000) (600,000) (400,000) Total assets $ 4,250,000 $ 3,730,000 $ 3,664,000 Liabilities…