Cash Beginning inventory Common stock Retained earnings Wall S Shop $19,300 18, 245 (205 units @ $89) 14,800 22,745 The following five transactions occurred in Year 2: Tollowing 1. First purchase (cash) 125 units @ $91 2. Second purchase (cash) 195 units @ $99 3. Sales (all cash) 360 units @ $200 4. Paid $16,650 cash for salaries expense 5. Paid cash for income tax at the rate of 25 percent of income before taxes ds January 1, Required a. Compute the cost of goods sold and ending inventory, assuming (1) FIFO cost flow, (2) LIFO cost flow, and weighted-average cost flow. b. Use a vertical model to show the Year 2 income statement, balance sheet, and statement of cash flows under FIFO, LIFO, and weighted average (Hint: Record the events under an accounting equation before

Cash Beginning inventory Common stock Retained earnings Wall S Shop $19,300 18, 245 (205 units @ $89) 14,800 22,745 The following five transactions occurred in Year 2: Tollowing 1. First purchase (cash) 125 units @ $91 2. Second purchase (cash) 195 units @ $99 3. Sales (all cash) 360 units @ $200 4. Paid $16,650 cash for salaries expense 5. Paid cash for income tax at the rate of 25 percent of income before taxes ds January 1, Required a. Compute the cost of goods sold and ending inventory, assuming (1) FIFO cost flow, (2) LIFO cost flow, and weighted-average cost flow. b. Use a vertical model to show the Year 2 income statement, balance sheet, and statement of cash flows under FIFO, LIFO, and weighted average (Hint: Record the events under an accounting equation before

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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Subject: acounting
Current Position Analysis The following items are reported on a company's balance sheet: Cash $423,700 Marketable securities 331,000 Accounts receivable (net) 304,500 Inventory 264,800 Accounts payable 662,000 Determine (a) the current ratio and (b) the quick ratio. Round to one decimal place. a. Current ratio fill in the blank 1 b. Quick ratio fill in the blank 2
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Purchases $ 30,526 Selling expense $ 769 Inventory, September 1 5,755 Administrative expense 732 Inventory, September 30 10,605 Sales 56,096 Rent revenue 984 Interest expense 1,159 Gross profit??
Practice
Simon Company's year-end balance sheets follow, At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net $ 30,847 85,864 112,410 9,639 278,899 $4 36,772 $ 37,181 60,602 82,558 9,090 257, 236 49,574 52,807 4,131 224,507 Total assets $ 517,659 $ 446,258 S 368, 200 Liabilities and Equity Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings $ 131,475 73,909 $ 48,116 95,373 163, 500 127,311 83,813 163, 500 72,771 $ 446,258 $ 368,200 101,613 163, 500 107,236 Total liabilities and equity $ 517,659 1. Express the balance sheets in common-size percents. (Do not round intermediate calculations and answers to 1 decimal place.) 2. Assuming annual sales have not changed in the last three years, is the change in accounts receivab assets favorable or unfavorable?
Current Position Analysis The following items are reported on a company's balance sheet: Cash $519,900 Marketable securities 406,200 Accounts receivable (net) 360,200 Inventory 338,500 Accounts payable 677,000 Determine (a) the current ratio and (b) the quick ratio. Round to one decimal place. a. Current ratio fill in the blank b. Quick ratio fill in the blank
Calculating Cycles Consider the following financial statement information for the Hop Corporation: Item Beginning Ending Inventory $16,284 $19,108 Accounts receivable 11,219 13,973 Accounts payable 13,960 16,676 Net Sales $219,320 Cost of Goods sold 168,420 Calculate the operating and cash cycles. How can you interprete your answer?
Current Position Analysis The following items are reported on a company's balance sheet: Cash $570,800 Marketable securities 445,900 Accounts receivable (net) 448,400 Inventory 318,500 Accounts payable 637,000 Determine (a) the current ratio and (b) the quick ratio. Round to one decimal place. a. Current ratio b. Quick ratio