GẶP INC 1/30/99 GENERAL MOTORS (GM). 12/31/98 ($ in 000s) HOME DEPOT ORACLE 1/31/99 5/31/99 $1,871,824 $44,363,000 $4,933,000 $5,447,274 Current assets $1,553,103 $47,806,000 $2,857,000 $3,046,423 Current liabilities Source: Disclosure, Inc., Compact D/SEC, 2000. 1. _For each company listed above, compute the current ratio. Record your results below.. Current ratio: 1.21 2. The current ratios computed above åre primarily in the range (less than 1/1 through 3/3 through 5/ more than 5). 3. The company that has the strongest short-term liquidity as measured by the current ratio is (Gap Inc / GM/Home Depot / Oracle). 4. For the current ratio, a(n) (increasing/ decreasing) trend is generally considered favorable. 5. Current liabilities are usually paid off with current assets. The corporation not able to pay off all current liabilities at this time is (Gap Inc / GM/ Home Depot/ Oracle). Does this indicate the corporation is insolvent, or unable to pay its bills? (Yes / No) Explain. 6. A low current ratio generally indicates a lack of short-term liquidity. In general, such a firm will be required to pay (higher / lower) interest rates when borrowing money..

GẶP INC 1/30/99 GENERAL MOTORS (GM). 12/31/98 ($ in 000s) HOME DEPOT ORACLE 1/31/99 5/31/99 $1,871,824 $44,363,000 $4,933,000 $5,447,274 Current assets $1,553,103 $47,806,000 $2,857,000 $3,046,423 Current liabilities Source: Disclosure, Inc., Compact D/SEC, 2000. 1. _For each company listed above, compute the current ratio. Record your results below.. Current ratio: 1.21 2. The current ratios computed above åre primarily in the range (less than 1/1 through 3/3 through 5/ more than 5). 3. The company that has the strongest short-term liquidity as measured by the current ratio is (Gap Inc / GM/Home Depot / Oracle). 4. For the current ratio, a(n) (increasing/ decreasing) trend is generally considered favorable. 5. Current liabilities are usually paid off with current assets. The corporation not able to pay off all current liabilities at this time is (Gap Inc / GM/ Home Depot/ Oracle). Does this indicate the corporation is insolvent, or unable to pay its bills? (Yes / No) Explain. 6. A low current ratio generally indicates a lack of short-term liquidity. In general, such a firm will be required to pay (higher / lower) interest rates when borrowing money..

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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Lourse Hero FFacebook AlpQLSemRocZTySC1Qmxn3WNrCDDNEqZOcNLOvBFeteSg98lhAYbXw/formResponse The following income relates to a proprietorship registered as a BMBE: Gross income from sales P400,000 Dividend income – domestic corporation 9,000 Interest on bank deposits 6,800 Compute the total exclusion from gross income. O 415,800 O 400,000 O 15,800 O Zero
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Home office BranchSales P 365,000 P174,000Shipment to branch 90,000Purchases from outsiders 220,000 35,000Advertising expense 13,700 2,500Salaries and Commission 35,000 9,500Rent Expense 10,000 2,000Miscellaneous expense 3,300 500Shipment from home Office 112,500Inventories, January 1:Home Office 85,000Branch:From outsiders 9,500From home office at 2018 billed price30,000Inventories, December 31:Home Office 65,000BranchFrom outsider 6,500From Home office at 2018 billed price30,0001. The branch inventory at cost on December 31, 2021 is:a. P30,500 c. P70,000b. 31,500 d. 36,5002. The combined net income of the Home Office and the Branch on December 31, 2021 is:a. P111,000 c. P250,500b. 63,000 d. 174,000
00 Sarasota Industries has Cash of $220,000, Accounts receivable of $130,000, inventory of $180,000, equipment of $300,000 and accounts payable of $175,000. What is the company's: Working Capital Current ratio Quick ratio ו T רJ D Focus A.-ニーーL הד ד 000 UL U T e1 of 3 545 words 1:20 AM P ツ 10/28/2021 50°F P Type here to search M Get more done with the latest Intel Core processor
CARDO COMPANY Book Value Fair Value Book Value Fair Value Cash P500,000 P500,000 Accounts Payable P450,000 P440,000 Accounts Receivable 250,000 240,000 Mortgage Payable 200,000 220,000 Inventory 155,000 200,000 Ordinary Shares 595,000 - Fixed Assets (Net) 600,000 520,000 Retained Earnings 260,000 - SYANO COMPANY Book Value Fair Value Book Value Fair Value Cash P300,000 P300,000 Accounts Payable P350,000 P340,000 Accounts Receivable 150,000 160,000 Mortgage Payable 200,000 220,000 Inventory 125,000 100,000 Ordinary Shares 250,000 - Fixed Assets (Net) 400,000 420,000 Retained Earnings 175,000 - If CARDO Co purchases the net assets of SYANO Co by issuing 5,000 shares of their P20 par value shares with a fair value of P40 per share, incurs a mortgage loan for P90,000, pays P150,000 cash and paying direct,…
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Total 213 500 Monaro Motors Cash and credit sales in the General Ledger Capital contribution of $10 000 stock (agreed value) and $30 000 cash Purchased prem ises worth $150 000 paying a $10 000 cash deposit with the balance funded by a mortgage from QV Bank Cash sale of parts for $400 (cost price $200) Paid $2 500 cash to Wilson Fittings for shelv ing Purchased stock on credit from HolFord Parts for $2 600 Sold parts on credit to Lemon Rentals for $900 (cost price $450) 7. Aug. 1 Paid wages of apprentice $600 8. Kim Swood took home stock worth $1 500 6. Received $500 cash from Lemon Rentals Analysing Chart an A Date Accounts affected Classification Increase/ Debit Credit (A/L/Oe/R/E) Decrease Bank capital 24 2$ Aug 1. Asset awner'sequity Decreave Increase
Q14: The following are the Condensed statement of Financial Position of Company A and on december 31,2020. A В Current Assets. 2562500 7639375 Plant and Equipment 768500 22918125 Current liability 555000 300,000 long Term Debt. 2220000. 500,000 Share Premium 1250,000 100,000 Retained Earning. 1609000. 425000 Additional Paid-in 1516000. 437500 Сapital 79 Company C acquires the Net Asset of Both A and B. Paying Cash in Amount of 185000 and by issuing 198500 shares to A, Paying of 72000 and by issuing 54350 shares is 30 to B' Par cash in the amount by issuing 54350 Shares value of Share is 30 and market value on acquisition is 40. Requirments: a) Entry that made in the Book of A. b) Entry that made in the Book of B. c) Entry that made in the Book of C.
ok it nces Inventory Building Land Total FMV $ 28,000 210,000 322,000 $560,000 The corporation also assumed a mortgage of $100,000 attached to the building and land. The fair market valu corporation's stock received in the exchange was $460,000. The transaction met the requirements to be tax-c under $351. (Negative amount should be indicated by a minus sign. Leave no answer blank. Enter zero if op Adjusted basis Adjusted Basis $ 14,000 140,000 420,000 $574,000 Assume the corporation assumed a mortgage of $660,000 attached to the building and land. Assume the fair market building is now $350,000 and the fair market value of the land is $742,000. The fair market value of the stock remain g. What is the corporation's adjusted basis in each of the assets received in the exchange? (Do not round intermedial Inventory Building Land
40"l1贪A N 65% D 3:19 +968 9925 1453 8 minutes ago These are selected account balances on December 31, 2011. Land (location of the corporation's office building) $100,000; Land (held for future use) 150,000; Corporate Office Building 600,000; Inventory 200,000; Equipment 450,000; Office Furniture 100,000; Accumulated Depreciation 300,000. What is the total amount of non- current assets that will appear on the statement of financial position? Select one: a. $1,100,000 b. $1,300,000 C. $1,600,000 d. $950,000 口口