DURING 2009 VALLEY SALES, INC., EARNED REVENUES OF $500,000 ONACCOUNT. VALLEY COLLECTED $510,000 FROM CUSTOMERS DURING THE YEAR.EXPENSES TOTALED $420,000, AND THE RELATED CASH PAYMENTS WERE$400,000. SHOW WHAT VALLEY WOULD REPORT ON ITS 2009 INCOME STATEMENTUNDER THE:A. CASH BASIS.B. ACCRUAL BASIS.COMPUTE NET INCOME UNDER BOTH BASES OF ACCOUNTING. WHICH BASISMEASURES NET INCOME BETTER?

Under the given scenario for Valley Sales, Inc. in 2009, we can analyze its income statement under…

Answered: DURING 2009 VALLEY SALES, INC., EARNED…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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(Analyzing the quality of firm earnings) Kabutell, Inc. had net income of $700,000, cash flow from financing activities of $60,000, depreciation expenses of $40,000, and cash flow from operating activities of $600,000. a. Calculate the quality of earnings ratio. What does this ratio tell you? b. Kabutell, Inc. reported the following in its annual reports for 2011-2013: ($ million) 2011 Cash Flow from Operations $477 Capital Expenditures (CAPEX) $461 (Click on the icon in order to copy its contents into a spreadsheet.) Calculate the average capital acquisitions ratio over the three-year period. How would you interpret these results? a. What is Kabutell's quality of earnings ratio? % (Round to one decimal place.) 2012 $403 $447 C 2013 $471 $455
The following items and amounts were taken from Blossom Company's 2017 income statement and balance sheet. Cash $ 88,000 Retained earnings Cost of goods sold 122,500 436,300 Salaries and wages expense 117,000 Prepaid insurance 8,100 Inventory 64,300 Accounts receivable Sales revenue 90,500 581,700 Notes payable Accounts payable 6,300 55,500 Service revenue 5,500 Interest expense 1,830
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Following are income statements for Hossa Corporation for 2017 and 2016. Percentage of sales amounts are also shown for each operating expense item. Hossa’s income tax rate was 38% in 2016 and 40% in 2017. How do you calculate the cause of change analysis past sales?
What is total net sales for this company? What is total gross profit for this company? What is total operating expenses for this company? What is net income for this company? What is the company's gross profit ratio, also called gross profit margin ratio? Just enter the digits without decimals or punctuation.
The following comparative information is available for Wildhorse Company for 2025. Sales revenue Cost of goods sold Operating expenses (including depreciation) Depreciation Cash paid for inventory purchases Your answer is partially correct. Net income $ eTextbook and Media * Your answer is incorrect. LIFO eTextbook and Media Net cash provided by operating activities * Your answer is incorrect. Determine net income under each approach. Assume a 30% tax rate. 18,200 Quality of earnings ratio Touthook and Media LIFO $92,000 35,000 26,000 LIFO 9,000 14,705 FIFO $92,000 Determine net cash provided by operating activities under each approach. Assume that all sales were on a cash basis and that income taxes and operating expenses, other than depreciation, were on a cash basis. 31,800 26,000 9,000 2.14 14,705 FIFO 23,940 LIFO Calculate the quality of earnings ratio under each approach. (Round answers to 2 decimal places, e.g. 5.15.) 39,005 FIFO FIFO 0.95 22,750
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Based on the following transactions, calculate the revenues and expenses that would be reported (a) on the cash basis and (b) on the accrual basis: a. Credit sales to customers totalled $52,350. b. Cash sales totalled $147,850. C. Cash collections on account from customers totalled $52,350. d. Cost of goods sold during the period was $25,950. Payments made to suppliers of inventory totalled $50,900. Wages of $31,800 were paid during the year. In addition, wages of $1,800 remained unpaid at year end; there were no wages unpaid at the beginning of the year. g. Halfway through the year, a one-year insurance policy was purchased at a cost of $2,370. h. At the end of the year the company paid $2,970 for the first 3 months' rent for the upcoming year. e. f. a. b. C. d. e. f. 5.0 h. (a) on the cash basis Revenues Expenses (b) on the accrual basis Revenues Expenses
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