Questions 1-45 are based on the following information for Tournesol Inc. (Cash flow statement and Financial Statement Analysis questions) The income statement for the year ended December 15, 2018, for Tournesol Inc. contains the following information: Tournesol Inc. Income Statement Year Ended December 15, 2018 Sale Cost of goods sold Rent Expense Wages and Salaries Expense Amortization Expense Results of Sale of equipment Interest Expense Income Tax Expense Profit Cash Accounts Receivable Inventory Prepaid Expenses Tournesol Inc. comparative balance sheet at December 15, 2018 Equipment Accumulated Depreciation - equipment Total Assets Account Payable Wages and Salaries Payable Income taxes payable Dividends Payable Long-term Notes Payable Common shares Retained Earnings Total Liabilities & Shareholders' Equity $ $ $ $ 7,000 5,000 10,000 2,400 $ 34,000 $ (12,000) $ 46,400 $ 3,500 $ 6,800 $ 1,200 1,000 $ 7,000 $ 9,000 $ 17,900 46,400 ՄԴ Դ 2018 $ $ $ 100,000 $ (52,000) $ (6,000) $ (15,000) $ (4,000) $ 1,000 $ (1,600) $ (2,000) $ 20,400 2017 $ 1,000 $ 9,000 $ 13,000 $ 5,000 $ 40,000 $ (18,000) $ 50,000 $ 5,000 $ 5,500 $ 3,000 $ 2,500 $ 22,000 $ 10,000 $ 2,000 $ 50,000

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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Questions 1-45 are based on the following information for Tournesol Inc. (Cash flow
statement and Financial Statement Analysis questions)
The income statement for the year ended December 15, 2018, for Tournesol Inc.
contains the following information:
Tournesol Inc.
Income Statement
Year Ended December 15, 2018
Sale
Cost of goods sold
Rent Expense
Wages and Salaries Expense
Amortization Expense
Results of Sale of equipment
Interest Expense
Income Tax Expense
Profit
Cash
Accounts Receivable
Inventory
Prepaid Expenses
Tournesol Inc. comparative balance sheet at December 15, 2018
Equipment
Accumulated Depreciation - equipment
Total Assets
Account Payable
Wages and Salaries Payable
Income taxes payable
Dividends Payable
Long-term Notes Payable
Common shares
Retained Earnings
Total Liabilities & Shareholders' Equity
$
7,000
$ 5,000
$
$
10,000
2,400
34,000
$
$ (12,000)
$ 46,400
$
$
$
2018
$
$
$
$
$
3,500
6,800
1,200
1,000
$ 100,000
$ (52,000)
$ (6,000)
$ (15,000)
$ (4,000)
1,000
(1,600)
(2,000)
20,400
7,000
9,000
17,900
46,400
$
$
$
$
$
$
2017
1,000
9,000
$ 13,000
$ 5,000
$ 40,000
$ (18,000)
$ 50,000
$ 5,000
$
5,500
$
3,000
$
2,500
$
$
$
$
22,000
10,000
2,000
50,000
Transcribed Image Text:Questions 1-45 are based on the following information for Tournesol Inc. (Cash flow statement and Financial Statement Analysis questions) The income statement for the year ended December 15, 2018, for Tournesol Inc. contains the following information: Tournesol Inc. Income Statement Year Ended December 15, 2018 Sale Cost of goods sold Rent Expense Wages and Salaries Expense Amortization Expense Results of Sale of equipment Interest Expense Income Tax Expense Profit Cash Accounts Receivable Inventory Prepaid Expenses Tournesol Inc. comparative balance sheet at December 15, 2018 Equipment Accumulated Depreciation - equipment Total Assets Account Payable Wages and Salaries Payable Income taxes payable Dividends Payable Long-term Notes Payable Common shares Retained Earnings Total Liabilities & Shareholders' Equity $ 7,000 $ 5,000 $ $ 10,000 2,400 34,000 $ $ (12,000) $ 46,400 $ $ $ 2018 $ $ $ $ $ 3,500 6,800 1,200 1,000 $ 100,000 $ (52,000) $ (6,000) $ (15,000) $ (4,000) 1,000 (1,600) (2,000) 20,400 7,000 9,000 17,900 46,400 $ $ $ $ $ $ 2017 1,000 9,000 $ 13,000 $ 5,000 $ 40,000 $ (18,000) $ 50,000 $ 5,000 $ 5,500 $ 3,000 $ 2,500 $ $ $ $ 22,000 10,000 2,000 50,000
Calculation of ratios for 2018 and 2017
Q27 The operating Income at December 2018 was:
A). Equal or below
$
B). Between
$
C). Between
$
D). Equal or above
E). Not enough data provided to calculate it
9,000
9,000
18,001
23,000
Q28 Return on Common Equity at December 2018 was:
A). Equal or below
32%
B). Between
33%
C). Between
67%
D). Equal or above
116%
E). Not enough data provided to calculate it
Q29 The current ratio at December 2018 was:
A). Equal or below
B). Between
1.45
1.46
2.93
5.87
and
and
C). Between
D). Equal or above
E). Not enough data provided to calculate it
and
and
and
and
18,000
$ 23,000
66%
115%
2.92
5.86
Transcribed Image Text:Calculation of ratios for 2018 and 2017 Q27 The operating Income at December 2018 was: A). Equal or below $ B). Between $ C). Between $ D). Equal or above E). Not enough data provided to calculate it 9,000 9,000 18,001 23,000 Q28 Return on Common Equity at December 2018 was: A). Equal or below 32% B). Between 33% C). Between 67% D). Equal or above 116% E). Not enough data provided to calculate it Q29 The current ratio at December 2018 was: A). Equal or below B). Between 1.45 1.46 2.93 5.87 and and C). Between D). Equal or above E). Not enough data provided to calculate it and and and and 18,000 $ 23,000 66% 115% 2.92 5.86
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