Beginning Assets were $437,600, Beginning Liabilities were $262,560, Common Stock sold duringthe year totaled $45,000, Revenue for the year was $414,250, Expenses for the year were$280,000, Dividends declared was $22,700, and Ending Liabilities is $350,000. What was theBeginning Equity for the year?a. $700,160b. $787,600c. $187,600d. $612,560e. $175,040Elaine's original basis in the Hornbeam Partnership was $25,000. Her share of the taxable incomefrom the partnership since she purchased the interest has been $100,000, and Elaine has received$75,000 in cash distributions from the partnership. Elaine did not recognize any gains as a resultof the distributions.Calculate Elaine's current basis in her partnership interest.Panner, Inc., owns 30 percent of Watkins and applies the equity method. During the current year,Panner buys inventory costing $110,400 and then sells it to Watkins for $138,000. At the end ofthe year, Watkins still holds only $25,300 of merchandise.a) What amount of unrealized gross profit must Panner defer in reporting this investment usingthe equity method?1. $6,318.2. $11,118.3. $1,518.4. $8,418.b) Explain the result.

### Calculation of Beginning EquityTo calculate the Beginning Equity, we can use the basic…

Answered: Beginning Assets were $437,600,…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The balance sheet of Mi-T-M reports total assets of $400,000 and $450,000 at the beginning and end of the year, respectively. The return on assets for the year is 10%. What is Mi-T-M's net income for the year? A. $42,500 B. $85,000 C. $45,000 D. $4,250,000
During the year, ChemClean Corporation has $280,000 in revenues, $130,000 in expenses,and $10,000 in dividend declarations and payments. Net income for the year was:a. $140,000.b. $150,000.c. $160,000.d. $280,000
Lydex Company’s financial statements for the last two years are as follows: Lydex Company Comparative Balance Sheet This Year Last Year Assets Current assets: Cash $ 1,020,000 $ 1,260,000 Marketable securities 0 300,000 Accounts receivable, net 2,940,000 2,040,000 Inventory 3,660,000 2,100,000 Prepaid expenses 270,000 210,000 Total current assets 7,890,000 5,910,000 Plant and equipment, net 9,640,000 9,110,000 Total assets $ 17,530,000 $ 15,020,000 Liabilities and Stockholders' Equity Liabilities: Current liabilities $ 4,070,000 $ 3,100,000 Note payable, 10% 3,700,000 3,100,000 Total liabilities 7,770,000 6,200,000 Stockholders' equity: Common stock, $75 par value 7,500,000 7,500,000 Retained earnings 2,260,000 1,320,000 Total stockholders' equity 9,760,000 8,820,000 Total liabilities and stockholders' equity $ 17,530,000 $ 15,020,000 Lydex Company Comparative Income Statement and Reconciliation This…
Five Measures of Solvency or Profitability The balance sheet for Quigg Inc. at the end of the current fiscal year indicated the following: Bonds payable, 8% $1,600,000 Preferred $5 stock, $50 par 211,000 Common stock, $10 par 1,635,250 Income before income tax expense was $409,600,and income taxes were $61,450 for the current year. Cash dividends paid on common stock during the current year totaled $89,939. The common stock was selling for $22 per share at the end of the year. Determine each of the following. Round answers to one decimal place, except for dollar amounts which should be rounded to the nearest whole cent. Use the rounded answers for subsequent requirements, If required. a. Times interest earmed ratio times b. Earnings per share on common stock C. Priceeamings rabo d. Divioends per share of common stock e. Dividene yd
Given the following information, what is the ratio of liabilities to stockholders’ equity?
Five Measures of Solvency or Profitability The balance sheet for Garcon Inc. at the end of the current fiscal year indicated the following: Bonds payable, 6% $1,500,000 Preferred $10 stock, $100 par $88,000 Common stock, $14 par $954,800.00 Income before income tax was $171,000, and income taxes were $25,800 for the current year. Cash dividends paid on common stock during the current year totaled $16,368. The common stock was selling for $16 per share at the end of the year. Determine each of the following. Round answers to one decimal place, except for dollar amounts which should be rounded to the nearest whole cent. Use the rounded answers for subsequent requirements, if required. a. Times interest earned ratio times b. Earnings per share on common stock c. Price-earnings ratio d. Dividends per share of common stock 2$ е. Dividend yield %
The year-end financial statements of Greenway Company contained the following elements and corresponding amounts: Assets = $23,000; Liabilities = ?; Common Stock = $5,300; Revenue = $11,600; Dividends = $900; Beginning Retained Earnings = $3,900; Ending Retained Earnings = $7,300. The amount of liabilities reported on the end-of-period balance sheet was A. $11,200. B. $10,400. C. $13,800. D. $9,200.
At the beginning of the year, paid-in capital was $164 and retained earnings were $94. During the year, the shareholders invested $48 and dividends of $12 were declared and paid. Retained earnings at the end of the year were $104. Net income for the year was: A.$20 B. $22 C. $30 D. $40
Five Measures of Solvency or Profitability The balance sheet for Quigg Inc. at the end of the current fiscal year indicated the following: Bonds payable, 8% $1,700,000 Preferred $10 stock, $50 par 154,000 Common stock, $15 par 288,750 Income before income tax expense was $489,600,and income taxes were $73,800 for the current year. Cash dividends paid on common stock during the current year totaled $92,400. The common stock was selling for $240 per share at the end of the year. Determine each of the following. Round answers to one decimal place, except for dollar amounts which should be rounded to the nearest whole cent. Use the rounded answers for subsequent requirements, if required. a. Times interest earned ratio times b. Earnings per share on common stock c. Price-earnings ratio d. Dividends per share of common stock e. Dividend yield % %24 %24
Selected current year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31 of the prior year were inventory, $52,900; total assets, $229,400; common stock, $82,000; and retained earnings, $45,833.) Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit $ 22,000 9,000 33,600 38,150 3,100 149, 300 $255,150 Operating expenses Interest expense Income before taxes Income tax expense Net income $ 455,600 297,650 157,950 99, 200 4,800 53,950 21,733 $32,217 CABOT CORPORATION Balance Sheet December 31 of current year Liabilities and Equity Accounts payable Accrued wages payable Income taxes payable Long-term note payable, secured by mortgage on plant assets Common stock Retained earnings Total liabilities and equity $ 18,500 2,800 3,400…
Selected financial data for Wilmington Corporation is presented below. WILMINGTON CORPORATION Balance Sheet As of December 31 Year 7 Year 6 Current Assets Cash and cash equivalents $ 634,527 $ 335,597 Marketable securities 166,106 187,064 Accounts receivable (net) 284,226 318,010 Inventories 466,942 430,249 Prepaid expenses 60,906 28,060 Other current assets 83,053 85,029 Total Current Assets 1,695,760 1,384,009 Property, plant and equipment 1,384,217 625,421 Long-term investment 568,003 425,000 Total Assets $3,647,980 $2,434,430 Current Liabilities Short-term borrowings $ 306,376 $ 170,419 Current portion of long-term debt 155,000 168,000 Accounts payable 279,522 314,883 Accrued liabilities 301,024 183,681 Income taxes payable 107,509 196,802 Total Current Liabilities 1,149,431…

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