Henry Josstick has just started his first accountingcourse and has prepared the following balancesheet and income statement for OmegaCorporation. Unfortunately, although the data forthe individual items are correct, he is veryconfused as to whether an item should go in thebalance sheet or income statement and whether itis an asset or liability. BALANCE SHEET Payables $35 Inventories $ 50 Less accumulated depreciation120 Receivables 35 Total current assets Totalcurrent liabilities Long-term debt $ 350 Interestexpense $25 Property, plant, and equipment 520Total liabilities Net fixed assets Shareholders'equity $90 Total assets Total liabilities andshareholders' equity INCOME STATEMENT Netsales $700 Cost of goods sold 580 Selling, general,and administrative expenses 38 EBIT Debt due forrepayment $ 25 Cash 15 Taxable income Federalplus other taxes $ 15 Depreciation 12 Net incomePrepare the balance sheet and income statementby rearranging the above items. Note: Be sure tolist the assets and liabilities in order of theirliquidity. Enter all amounts as positive values.

Step 1: Preparation of Balance Sheet…

Answered: Henry Josstick has just started his…

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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The current year financial statements for two competitors are presented below. Please analyze their financials. Note: if a ratio cannot be solved given the data provided, please leave it blank. There are a few ratios that cannot be solved given the information provided. Balance sheet: Cash Accounts receivable (net) Inventory Property & equipment (net) Other assets Total assets Current liabilities Long-term debt (interest rate: 15 %) Capital stock ($10 par value) Additional paid-in capital Retained earnings Total liabilities and stockholders' equity Income statement: Sales revenue (1/2 on credit) Cost of goods sold Operating expenses Net income Other data: Per share stock price at end of current year Average income tax rate Dividends declared and paid in current year Profitability ratios: 1. 2. 3. 4. 5. 6. Ratio 7. 8. 9. 10. Return on equity Return on assets Gross profit percentage Net profit margin Earnings per share Quality of income Asset turnover ratios: Total asset turnover Fixed…
The Modesto Company is facing possible liquidation. Using the following information, prepare a statement of financial affairs in good form. Here's the company's most recent balance sheet Liabilities and equities Accounts payable Notes payable Assets Cash $12,000 $170,000 Accounts Receivable 60,000 120,000 90,000 Inventory Mortgage payable 80,000 Investments 45,000 Equipment 75,000 9,000 105,000 Common stock Land 82,000 Retained eamings Total assets $424,000 Total Liab. and Eq's $424,000 The mortgage payable is fully secured by the land. The land can be sold $104,000 immediately for The equipment partially secures the notes payable. The equipment is not in good shape and at auction will bring only $12,000 The market has declined so the investments have lost 40% of their value. It is estimated that 30% of the accounts receivable will have to be written off. The inventory is outdated and will bring only 50% of its book value at auction. Additional income taxes will be $15,000…
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You are evaluating the balance sheet for SophieLex’s Corporation. From the balance sheet you find the following balances: cash and marketable securities = $280,000; accounts receivable = $1,380,000; inventory = $2,280,000; accrued wages and taxes = $590,000; accounts payable = $890,000; and notes payable = $780,000. What is the quick ratio (round your answer to 2 decimal places
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The bookkeeper for Adams's Country Music Bar left this incomplete balance sheet. Adams's working capital is $108,000 and its debt- to-assets ratio is 40 percent. Required Complete the balance sheet by supplying the missing amounts. Assets Current assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Long-term assets Building Less: Accumulated depreciation Total long-term assets Total assets Liabilities and Stockholders' Equity Liabilities Current liabilities Accounts payable Notes payable Income tax payable Total current liabilities Long-term liabilities Mortgage payable Total liabilities Stockholders' equity Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 29,000 36,000 16,000 (40,000) 230,000 12,000 9,000 35,900 104,000
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Henry Josstick has just started his first accounting course and has prepared the following balance sheet and income statement for Omega Corp. Unfortunately, although the data for the individual items are correct, he is very confused as to whether an item should go in the balance sheet or income statement and whether it is an asset or liability. BALANCE SHEET Payables $ 39 Inventories $ 54 Less accumulated depreciation 124 Receivables 55 Total current assets Total current liabilities Long-term debt $ 370 Interest expense $ 29 Property, plant, and equipment 540 Total liabilities Net fixed assets Shareholders’ equity $ 106 Total assets Total liabilities and shareholders’ equity INCOME STATEMENT Net sales $ 740 Cost of goods sold 600 Selling, general, and administrative expenses 42 EBIT Debt due for repayment $ 29 Cash 19 Taxable income Taxes $ 19…

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