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
Related questions
Concept explainers
Financial Ratios
A Ratio refers to a figure calculated as a reference to the relationship of two or more numbers and can be expressed as a fraction, proportion, percentage, or the number of times. When the number is determined by taking two accounting numbers derived from the financial statements, it is termed as the accounting ratio.
Return on Equity
The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.
Topic Video
Question
4. Efficiency Ratios
a) Days Receivable
b) Inventory Turnover Ratio
c) Days Inventory
d) Accounts Payable Turnover Ratio
e) Days Payable
5. Compute also
a) Operating cycle
b) Cash cycle
![1
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9
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11
12
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19
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21
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23
24
25
26
27
28
29
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31
32
33
34
35
36
37
38
39
के मे दी है।
40
41
42
44
45
46
47
48
A
Gross Sales
Less:
Net Sales
Less:
Add:
Sales Returns & Allowances
Sales Discount
Cost of Goods Sold
Beginning Inventory - January 1
Purchases
Gross Profit
Less:
Add: Freight In
Total
Less: Purchase Return & Allowances
Purchase Discount
B
Net Purchases
Total Goods Available for Sale
Less: Ending Inventory
Cost of Goods Sold
Operating Expenses
Selling Expenses
Sales Salaries Expense
The Green Valley Merchandising
Income Statement
For the Year Ended December 31,
Uncollectible Accounts Expense
Advertising Expense
Depreciation Expense - Store Equipment
Store Supplies Expense
Miscellaneous Selling Expense
Total Selling Expenses
General & Administrative Expense
Office Salaries Expense
Rent Expense
Insurance Expense
Depreciation Expense - Office Equipment
Office Supplies Expense
Miscellaneous Administrative Expense
Total Administrative Expense
Total Expenses
Net Income from Operations
Other Income
Rental Income
Total Income
Less:
Other Expenses
Interest Expense
Net Income
C
5,050.00
2,450.00
D
270,000.00
3,100.00
273,100.00
7,500.00
37,625.00
5,625.00
12,500.00
3,750.00
1,475.00
800.00
22,575.00
13,000.00
2,700.00
1,900.00
675.00
825.00
E
5,950.00
3,550.00
90,000.00
265,600.00
355,600.00
98,000.00
61,775.00
41,675.00
F
457,500.00
9,500.00
448,000.00
257,600.00
190,400.00
103,450.00
86,950.00
10,400.00
97,350.00
5,800.00
91,550.00](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0ab5a315-ac91-4016-9f01-63eee514f78d%2Fe64511d3-c841-4fb9-a09e-b1534c21cf35%2F2w5200hi_processed.jpeg&w=3840&q=75)
Transcribed Image Text:1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
के मे दी है।
40
41
42
44
45
46
47
48
A
Gross Sales
Less:
Net Sales
Less:
Add:
Sales Returns & Allowances
Sales Discount
Cost of Goods Sold
Beginning Inventory - January 1
Purchases
Gross Profit
Less:
Add: Freight In
Total
Less: Purchase Return & Allowances
Purchase Discount
B
Net Purchases
Total Goods Available for Sale
Less: Ending Inventory
Cost of Goods Sold
Operating Expenses
Selling Expenses
Sales Salaries Expense
The Green Valley Merchandising
Income Statement
For the Year Ended December 31,
Uncollectible Accounts Expense
Advertising Expense
Depreciation Expense - Store Equipment
Store Supplies Expense
Miscellaneous Selling Expense
Total Selling Expenses
General & Administrative Expense
Office Salaries Expense
Rent Expense
Insurance Expense
Depreciation Expense - Office Equipment
Office Supplies Expense
Miscellaneous Administrative Expense
Total Administrative Expense
Total Expenses
Net Income from Operations
Other Income
Rental Income
Total Income
Less:
Other Expenses
Interest Expense
Net Income
C
5,050.00
2,450.00
D
270,000.00
3,100.00
273,100.00
7,500.00
37,625.00
5,625.00
12,500.00
3,750.00
1,475.00
800.00
22,575.00
13,000.00
2,700.00
1,900.00
675.00
825.00
E
5,950.00
3,550.00
90,000.00
265,600.00
355,600.00
98,000.00
61,775.00
41,675.00
F
457,500.00
9,500.00
448,000.00
257,600.00
190,400.00
103,450.00
86,950.00
10,400.00
97,350.00
5,800.00
91,550.00
![Current Assets
Cash
Accounts Receivable
Less
Total Current Assets
Merchandise Inventory
Prepaid Insurance
Store Supplies
Office Supplies
Fixed Assets
Store Equipment
Less
Office Equipment
Less
Total Fixed Assets
Current Liabilities
Long Term Liabilities
Allowance for Uncollectible Accounts
Accounts Payable
Salaries Payable
Unearned Rent
Total Current Liabilities
Total Liabilities
G. Ramos Capital
Less:
Accumulated Depreciation
Long Term Loan
The Green Valley Merchandising
Balance Sheet
As of December 31,
Accumulated Depreciation
G. Ramos Drawing
ASSETS
Add:
Net Income
G. Ramos, Ending Capital
Total Liabilities & Owner's Equity
LIABILITIES
OWNER'S EQUITY
56,250.00
5,625.00
33,350.00
2,500.00
10,200.00
46,050.00
66,000.00
23,900.00 42,100.00
25,000.00
10,500.00
52,500.00
77,300.00
20,000.00
39,000.00
57,300.00
91,550.00
50,625.00
98,000.00
2,150.00
650.00
375.00
190,800.00
14,500.00
247,400.00
98,550.00
148,850.00
247,400.00
247,400.00
(98,550,00)
148,850.00
91,550.00
57,300.00](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0ab5a315-ac91-4016-9f01-63eee514f78d%2Fe64511d3-c841-4fb9-a09e-b1534c21cf35%2Fxbqgrkh_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Current Assets
Cash
Accounts Receivable
Less
Total Current Assets
Merchandise Inventory
Prepaid Insurance
Store Supplies
Office Supplies
Fixed Assets
Store Equipment
Less
Office Equipment
Less
Total Fixed Assets
Current Liabilities
Long Term Liabilities
Allowance for Uncollectible Accounts
Accounts Payable
Salaries Payable
Unearned Rent
Total Current Liabilities
Total Liabilities
G. Ramos Capital
Less:
Accumulated Depreciation
Long Term Loan
The Green Valley Merchandising
Balance Sheet
As of December 31,
Accumulated Depreciation
G. Ramos Drawing
ASSETS
Add:
Net Income
G. Ramos, Ending Capital
Total Liabilities & Owner's Equity
LIABILITIES
OWNER'S EQUITY
56,250.00
5,625.00
33,350.00
2,500.00
10,200.00
46,050.00
66,000.00
23,900.00 42,100.00
25,000.00
10,500.00
52,500.00
77,300.00
20,000.00
39,000.00
57,300.00
91,550.00
50,625.00
98,000.00
2,150.00
650.00
375.00
190,800.00
14,500.00
247,400.00
98,550.00
148,850.00
247,400.00
247,400.00
(98,550,00)
148,850.00
91,550.00
57,300.00
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