E12-7 Analyzing the Impact of Selected Transactions on the Current Ratio LO12-8 Current assets for JC Inc. totalled $58,300, and the current ratio was 2.12. Assume that the following transactions were completed: (1) Purchased merchandise for $6,300 on short-term credit. (2) Purchased a delivery truck for $25,000-paid $8,450 cash and signed a two-year interest-bearing note for the balance. Required: 1. Determine without computations if the current ratio will increase, decrease, or remain unchanged after each transaction. Transaction (1) Transaction (2) Answer is complete and correct. Impact on Current Ratio Decrease Decrease 2. Compute the current ratio after each transaction. (Round the final answers to 2 decimal places.) Answer is complete but not entirely correct. Current Ratio 1.91 2.03 Transaction (1) Transaction (2)

E12-7 Analyzing the Impact of Selected Transactions on the Current Ratio LO12-8 Current assets for JC Inc. totalled $58,300, and the current ratio was 2.12. Assume that the following transactions were completed: (1) Purchased merchandise for $6,300 on short-term credit. (2) Purchased a delivery truck for $25,000-paid $8,450 cash and signed a two-year interest-bearing note for the balance. Required: 1. Determine without computations if the current ratio will increase, decrease, or remain unchanged after each transaction. Transaction (1) Transaction (2) Answer is complete and correct. Impact on Current Ratio Decrease Decrease 2. Compute the current ratio after each transaction. (Round the final answers to 2 decimal places.) Answer is complete but not entirely correct. Current Ratio 1.91 2.03 Transaction (1) Transaction (2)

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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b. In 20X2, sales increased to $5,890,000 and the assets for that year were as follows: $ 138,000 926,000 991,000 533,000 $ 2,588,000 Cash Accounts receivable Inventory Net plant and equipment Total assets Compute the following: Note: Round your answers to 2 decimal places. 1. Accounts receivable turnover 2. Inventory turnover 3. Fixed asset turnover 4. Total asset turnover Turnover Ratios times times times times
Total assets turnover: 1.1x Days sales outstanding: 36.5 daysa Inventory turnover ratio: 3.75x Fixed assets turnover: 2.5x Current ratio: 2.0x Gross profit margin on sales: (Sales - Cost of goods sold)/Sales = 15% aCalculation is based on a 365-day year. 1 Do not round intermediate calculations. Round your answers to the nearest dollar. Balance Sheet Cash Accounts receivable Inventories Fixed assets Total assets Sales $ $ $330,000 Current liabilities Long-term debt Common stock Retained earnings Total liabilities and equity Cost of goods sold $ $ $ 49,500 115,500 Check My Work (2 remaini
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Given the following items , compute the required ones. REQUIRED COST OF SALES GIVEN Asset Turnover : Gross Margin: 1,2 0,3 NET SALES TOTAL SALES CURRENT ASSETS Fin.Goods InventoryTurnover Av. Finished Goods Inventory 120.000 Working.Capital Cycle Trade Receivables Turnover CURRENT RATIO 200 days 4 AV.TRADE RECEIVABLES TOTAL DEBT Long Term Debt Total Debt / Equity 250.000 TOT.DEBT/ TOTAL SOURCES
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6. 131 3) Northern Industries accepted a credit card sale for $14,000. The credit card company charges 2%. a. What is the entry for this transaction on the horizontal equation? b. What is the impact of collecting the payment from the credit card company? (Show the individual accounts impacted in the asset section) Assets Liabilities Stockholders' Equity Revenues Expenses Net Income Cash %3D Flow a. b. 4) Here are the inventory purchases and sales for Fraser Company: Inventory Layers Available for Sale: October 1 Beginning Inventory 14 @ $16 $224 9. Study guide - Chapter 5 (with solutions).docx 19 f12 Oly prt sc 114
The following are financial data taken from the annual report of Foundotos Company: Year 2 $134,448 51,981 37,154 57,504 Net sales Gross property, plant and equipment Accumulated depreciation Intangible assets (net) A. Calculate the following ratios for Year 1 and Year 2: 1. Fixed asset turnover 2. Accumulated depreciation divided-by-gross fixed assets B. What do the trends in these ratios reveal about Foundotos? Year 1 $130,060 47,744 34,180 36,276
18. The following information pertains to Q Company:Trade accounts receivable, net of P10,000 credit balance in customers’ accounts, P350,000Notes receivable, P30,000 due in 12 months, P210,000Advances to officers, due in 2 years, P20,000Advances to suppliers, P10,000Sale price of unsold goods sent on consignment to Entity F (120% of cost), P24,000Security deposit paid on a one-year lease contract, P6,000Dividends receivable, P30,000Determine the total current receivables.
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Where would you find the financial statements for Costco? https://motley.com https://wallstreet.com https://investor.costco.com https://sec.gov Endotherm Company produced revenue of $120,000. Beginning Assets for the period were $200,000 and Ending Assets were $250,000. What is the Total Asset Turnover Ratio for this period? .53 1.87 .48 .26 What is the Total Asset Turnover Ratio for a company with $120,000 in annual sales, beginning Assets of $250,000 and ending Assets of $200,000? .48 1.34 .26 .53 The efficiency ratio that shows how efficiently a company uses its cash to generate revenue is: Accounts Receivable Turnover Ratio. Total Asset Receivable Turnover Ratio. Cash Turnover Ratio. Inventory Turnover Ratio. please answer all questions. explainte answwer provide me with correct option
L. The Comparative balance sheet of James Inc. for December 31 2010 and 2011 is as follows: 2011 2010 Cash P85,100 P42,500 Accounts Receivable, trade 91,350 61,150 Inventory 104,500 100,500 Prepaid expenses 3,000 2,700 Land 30,000 50,000 Buildings 345,000 245,000 Accumulated depreciation-buildings (120,600) (110,400) Machinery and equipment 255,000 255,000 equipment (92,000) (85,000) Patents 35,000 40,000 Total Asses P710.950 P030.450 LIABILITIES AND SHAREHOLDER'S EQUITY Accounts payable-trade P61,150 P75,000 Dividend payable 15,000 10,000 Salaries payable 6,650 7.550 Mortgage note payable, due 2015 60,000 0 Bonds Payable 0 75.000 Ordinary shares, P20 par 300,000 250,000 Share premium 100.000 75.000 Accumulated profits 174.150.137.900 27.10.950 P830.450 Additional information: a. Net income, P90.250 b. Depreciation expense reported on the net income statement buildings, P10,200, machinery and equipment P27,000. Land costing 20.000 was sold for P20,000. d. Patent amortization reported…
Current Ratio Data: Year 2018: 787.25% Year 2019: 951.50% Year 2020: 1105.00% Year 2021:1553.51% Year 2022:1540.03% Question: which of the following transactions and events would result in an improvement in Current Ratio in year 2020? receiving cash for unearned sales revenue a cash receipt from a customer for amounts owing on goods previously sold on credit acquiring cash proceeds from a 5-year interest-only bank loan A and B only A and C only B and C only All of the above None of the above