Income Before Income Tax 2.00% Tax Expense (50%) 1.00% 1.00% Net Income Additional Information for the Year 2021: Poco Lo, Co. is a merchandiser of single-priced, wooden cabinets and no other products. Based on the horizontal and trend analysis made for accounts balances as of December 31, 2020, and 2021, the following overall changes were observed: Account Name Changes Increased by 12.5% Increased to 125% Cash Marketable Securities Accounts Receivable Decreased by 10% Decreased by 6.25% Decreased by 12.5% Increased to 120% Inventories Land Equipment Accumulated Depreciation - Equipment Building Accumulated Depreciation - Building Accounts Payable Wages Payable Taxes Payable Bonds Payable Retained Earnings Increased by 1/6 No Change Increased by 1/6 Increased to 110% Increased by 5% Decreased by 2/3 No Change Decreased by 19.25% Upon inspection of the company's records, 250 common stocks were issued for cash for the year and the company did not repurchaseany of its common stock within the year. The company did not issue any new bonds nor retired any of the existing bonds during the year. Aside from the land sold, no other noncurrent assets were disposedof within the year. Pieces of equipment were purchased within the year and no other acquisition was made. Cash Dividends were declared and paid within the year. Gross Profit for the period is equal to $30,625. Based on the foregoing facts, answer the following questions: a. Quick Ratio for the Year 2021 (Round to the nearest 3 decimalplaces) b. Cash Flow Provided By (Used In) Operating Activities (Round to thenearest centavos) c. Issuance Price per Share for the Common Stock Issued for the Year(Round to the nearest centavos)
Income Before Income Tax 2.00% Tax Expense (50%) 1.00% 1.00% Net Income Additional Information for the Year 2021: Poco Lo, Co. is a merchandiser of single-priced, wooden cabinets and no other products. Based on the horizontal and trend analysis made for accounts balances as of December 31, 2020, and 2021, the following overall changes were observed: Account Name Changes Increased by 12.5% Increased to 125% Cash Marketable Securities Accounts Receivable Decreased by 10% Decreased by 6.25% Decreased by 12.5% Increased to 120% Inventories Land Equipment Accumulated Depreciation - Equipment Building Accumulated Depreciation - Building Accounts Payable Wages Payable Taxes Payable Bonds Payable Retained Earnings Increased by 1/6 No Change Increased by 1/6 Increased to 110% Increased by 5% Decreased by 2/3 No Change Decreased by 19.25% Upon inspection of the company's records, 250 common stocks were issued for cash for the year and the company did not repurchaseany of its common stock within the year. The company did not issue any new bonds nor retired any of the existing bonds during the year. Aside from the land sold, no other noncurrent assets were disposedof within the year. Pieces of equipment were purchased within the year and no other acquisition was made. Cash Dividends were declared and paid within the year. Gross Profit for the period is equal to $30,625. Based on the foregoing facts, answer the following questions: a. Quick Ratio for the Year 2021 (Round to the nearest 3 decimalplaces) b. Cash Flow Provided By (Used In) Operating Activities (Round to thenearest centavos) c. Issuance Price per Share for the Common Stock Issued for the Year(Round to the nearest centavos)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
What is the amount of Dividends Declared and Paid in 2021 (Round to the nearest 2 decimal places)
Transcribed Image Text:Income Before Income Tax
2.00%
Tax Expense (50%)
Net Income
1.00%
1.00%
Additional Information for the Year 2021:
Poco Lo, Co. is a merchandiser of single-priced, wooden cabinets and no other products.
Based on the horizontal and trend analysis made for accounts balances as of December
31, 2020, and 2021, the following overall changes were observed:
Account Name
Changes
Increased by 12.5%
Increased to 125%
Cash
Marketable Securities
Decreased by 10%
Decreased by 6.25%
Decreased by 12.5%
Increased to 120%
Accounts Receivable
Inventories
Land
Equipment
Accumulated Depreciation – Equipment
Building
Accumulated Depreciation – Building
Accounts Payable
Wages Payable
Taxes Payable
Bonds Payable
Retained Earnings
Increased by 1/6
No Change
Increased by 1/6
Increased to 110%
Increased by 5%
Decreased by 2/3
No Change
Decreased by 19.25%
Upon inspection of the company's records, 250 common stocks were issued for cash for
the year and the company did not repurchaseany of its common stock within the year.
The company did not issue any new bonds nor retired any of the existing bonds during the
year.
Aside from the land sold, no other noncurrent assets were disposedof within the year.
Pieces of equipment were purchased within the year and no other acquisition was made.
Cash Dividends were declared and paid within the year.
Gross Profit for the period is equal to $30,625.
Based on the foregoing facts, answer the following questions:
a. Quick Ratio for the Year 2021 (Round to the nearest 3 decimalplaces)
b. Cash Flow Provided By (Used In) Operating Activities (Round to thenearest centavos)
c. Issuance Price per Share for the Common Stock Issued for the Year(Round to the
nearest centavos)
Transcribed Image Text:Comprehensive Problem
Poco Lo, Co.'s 2020 balance sheet and 2021 common-size income statement follow:
Poco Lo, Co.
Balance Sheet
December 31, 2020
ASSETS
Cash
2$
4,000
2,000
7,200
8.000
21,200
12,000
20,000
3,000
70,500
12,000
87,500
$ 108,700
Marketable Securities
Accounts Receivable
Inventories
Total Current Assets
Land
Equipment
Accumulated Depreciation -
Building
Accumulated Depreciation –
Equipment
Building
Total Noncurrent Assets
Total Assets
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts Payable
Wages Payable
Taxes Payable
2$
7,000
1,000
1,500
9,500
30,000
39,500
Total Current Liabilities
Bonds Payable
Total Liabilities
Common Stock, $10 par
Additional Paid-In Capital
Retained Earnings
30,000
19,200
20,000
69.200
$ 108,700
Total Stockholders' Equity
Total Liabilities and Stockholders' Equity
Poco Lo, Co.
Common-Size Income Statement
For the Year Ended December 31, 2021
Sales (400 Units)
100.00%
Cost of Goods Sold
(28% Fixed)
56.25%
Gross Profit
Operating Expenses
Operating Income
43.75%
43.35%
0.40%
(40% Variable)
Gain on Sale of Land
1.60%
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