Indicate the effects of the transactions listed, on current assets, current ratios and net income. Use (increase) to indicate an increase, (decrease) to indicate a decrease and (no effect) to indicate no effect or an indeterminate effect. A fixed asset is sold for more than book value. Net income will ______ Answer 1 A fully depreciated asset is retired. Net income will experience ______ An increase in inventory turnover ratio signifies _____________________ in a firm's efficiency. Merchandise is sold for cash. Total current assets will ________

Indicate the effects of the transactions listed, on current assets, current ratios and net income. Use (increase) to indicate an increase, (decrease) to indicate a decrease and (no effect) to indicate no effect or an indeterminate effect. A fixed asset is sold for more than book value. Net income will Answer 1 A fully depreciated asset is retired. Net income will experience An increase in inventory turnover ratio signifies _________ in a firm's efficiency. Merchandise is sold for cash. Total current assets will

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter5: Accounting For Retail Businesses

Section: Chapter Questions

Problem 40E: Identify items missing in determining cost of goods sold For (a) through (e), identify the items...

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Discuss how, in choosing the accounting methods below, the following ratios can be affected – rate of return on assets, quick ratio, profit margin, asset turnover: (a) a change in accounting method for depreciation from straight line to reducing balance. (b)revaluation of a non-current asset upwards at the beginning of the current year. (c) providing for an expected loss through obsolescence of certain items of merchandise inventory.
Inventory information for Part 311 of Blossom Corp. discloses the following information for the month of June. 302 units@$ 17 June 10 Sold 200 units @$ 40 June 1 Balance 795 units@$ 20 Sold 496 units@$42 11 Purchased 15 498 units@$ 22 Sold 299 units@$ 45 20 Purchased 27 (a) Your Answer Correct Answer Your answer is correct. Assuming that the periodic inventory method is used, compute the cost of goods sold and ending inventory under (1) LIFO and FIFO. (1) (2) LIFO FIFO Cost of Goods Sold %24 20896 %24 18994 Ending Inventory %24 11094 %24 12996 eTextbook and Media
What is merchandise on hand (not sold) at the end of an accounting period? It is a/an _____________. Group of answer choices current asset expense long-term asset cost of merchandise sold
4. The purchase of inventory items on account using the perpetual inventory method a. Has no effect on the current ratio but decreases working capital. b. Has no effect on working capital but decreases the current ratio. c. Decreases working capital and the current ratio. d. Has no effect on working capital nor the current ratio. 5. The cost of inventories shall be measured using a. Either FIFO, average method or LIFO b. Average method c. Either FIFO or average method d. FIFO
Which of the following requires an adjustment to the opening balance of retained earnings in the earliest period of the comparative financial statements presented? A change in the estimated useful life of machinery. A change in the expected residual value of a property. A change from straight line to declining balance depreciation. A change from first-in, first out (FIFO) to weighted average inventory cost flow assumption
What is the term used for the profit on a sale before any operating expenses have been deducted? a. Net Income b. Net Profit c. Gross Profit d. Gain on Sale e. All of the above
Which of the following items would we report in the income statement just before net income? a. Losses due to the write-down of inventory.b. Gain on the sale of long-term assets.c. Discontinued operations.d. Losses due to restructuring.
First solve your NI = Sales - COGS - Operating expenses - depreciation- interest- taxes Then subtract current year - prior year for AR, inventory, AP and accruals At last- NI + current year depreciation - changes in AR - changes in inventory + changes in AP + Changes in Accruals Don't do the subtraction for depreciation, you're using the current year for that one
answer number 6 and number 7
1. In the statement of financial statement restated to current cost, what amount should be reported as inventory on December 31? a. 1080000 b. 2880000 c.975000 d. 870000 2. What amount should be reported as unrealized holding gain on inventory for the current year? a. 210000 b. 135000 c. 560000 d. 0 3. In the income statement restated to current cost, what amount should be reported as cost of goods sold for the current year? a. 2320000 b. 2880000 c. 2600000 d. 2375000 4. In the income statement restated to current cost, what amount should be reported as realized holding gain from the inventory sold for the current year? a. 225000 b. 135000 c. 350000 d. 505000
Inventory information for Part 311 of Waterway Corp. discloses the following information for the month of June. June 1 11 20 Balance Purchased Purchased 301 units @ $16 797 units @ $19 503 units @ $20 June 10 15 27 Sold Sold Sold 197 units @ $37 498 units @ $39 297 units @ $42
Estimating Useful Life and Percent Used Up The property and equipment section of the lululemon athletica 2018 balance sheet follows. Property and Equipment (in thousands) Feb. 3, 2019 Jan. 28, 2018 Land $78,636 $83,048 Buildings 38,030 39,278 Leasehold improvements 362,571 301,449 Furniture and fixtures 103,733 91,778 69,542 61,734 230,689 173,997 15,009 14,806 74,271 51,260 972,481 817,350 (405,244) $567,237 Computer hardware Computer software Equipment and vehicles Work in progress Property and equipment, gross Accumulated depreciation Property and equipment, net (343,708) $473,642 Depreciation expenses related to property and equipment was $122.4 million and $108.00 million, for the years ended February 3, 2019, and January 28, 2018, respectively.

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A fixed asset is sold for more than book value. Net income will ______	Answer 1
A fully depreciated asset is retired. Net income will experience ______
An increase in inventory turnover ratio signifies _____________________ in a firm's efficiency.
Merchandise is sold for cash. Total current assets will ________