L The Comparative balance sheet of James Inc. for December 31 2010 and 2011 is as follows: 2011 2010 Cash PB5,100 PM2,500 Accounts Receivable, trade 91,350 61,150 Inventory 104,500 100,500 Prepaid expenses 3,000 2,700 Land 30,000 50,000 Buildings 345,000 245,000 Accumulated depreciation-buildings (120,000) (110,400) Machinery and equipment 255,000 255,000 equipment (92,000) (65,000) Patents 25.000 40.000 Total Asses E210.950.030.450 LIABILITIES AND SHAREHOLDER'S EQUITY Accounts payable-trade P61,150 P75,000 Dividend payable 15,000 10.000 Salaries payable 6.650 7.550 Mortgage note payable, due 2015 60,000 0 Bonds Payable 0 75.000 Ordinary shares, P20 par 300.000 250.000 Share premium 100.000 75.000 Accumulated profits 174.150.137.900 27.16.950 P630.450 Additional information: a Net income, P90.250 b. Depreciation expense reported on the net income statement buildings, P10,200 machinery and equipment P27.000 Land costing 20.000 was sold for P20,000. d. Patent amortization reported on income statement P5,000 A mortgage note was issued for P60.000 A building costing P100,000 was constructed 2.500 ordinary shares were issued at P30 in exchange for the bonds payable h Cash dividends declared P60.000 Accumulated depreciation-

L The Comparative balance sheet of James Inc. for December 31 2010 and 2011 is as follows: 2011 2010 Cash PB5,100 PM2,500 Accounts Receivable, trade 91,350 61,150 Inventory 104,500 100,500 Prepaid expenses 3,000 2,700 Land 30,000 50,000 Buildings 345,000 245,000 Accumulated depreciation-buildings (120,000) (110,400) Machinery and equipment 255,000 255,000 equipment (92,000) (65,000) Patents 25.000 40.000 Total Asses E210.950.030.450 LIABILITIES AND SHAREHOLDER'S EQUITY Accounts payable-trade P61,150 P75,000 Dividend payable 15,000 10.000 Salaries payable 6.650 7.550 Mortgage note payable, due 2015 60,000 0 Bonds Payable 0 75.000 Ordinary shares, P20 par 300.000 250.000 Share premium 100.000 75.000 Accumulated profits 174.150.137.900 27.16.950 P630.450 Additional information: a Net income, P90.250 b. Depreciation expense reported on the net income statement buildings, P10,200 machinery and equipment P27.000 Land costing 20.000 was sold for P20,000. d. Patent amortization reported on income statement P5,000 A mortgage note was issued for P60.000 A building costing P100,000 was constructed 2.500 ordinary shares were issued at P30 in exchange for the bonds payable h Cash dividends declared P60.000 Accumulated depreciation-

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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Q. No. 1. From the following information of Albert Company as on 31t December 2018: Noncurrent asset $25,00,000 Working capital Current ratio Non-current assets tumover ratio Gross profit Trade receivable turnover ratio Loss on sale of plant assets Trade payable turnover ratio Interest expenses Income tax Inventory turnover ratio 10,00,000 2:1 8 times 20% on sales 10 times $10,000 15 times S50,000 20% 10 times 10% of turn over 15% of the net income 1:1 S10,000 Net income General Reserve Capital gearing ratio Depreciation expenses Amortization on patent Doubtful expenses Derecognizing expenses $8,000 $5,000 $15,000 Required: A. Prepare a statement of Financial Performance for the year ended 31t December 2018 B. Prepare a Statement of Financial Position as of 31* December 2018.
The 2016 financial statements for Leggett & Platt, Inc., report the following information: Year ended December 31, 2016 2015 (In millions) Depreciation expense $ 86.8 $ 83.5 Property and equipment, net 565.5 540.8 Land 37.7 40.0 Accumulated depreciation 1,165.4 1,146.5 Which of the following estimates the property and equipment's percent-used-up at December 31, 2016? A. 68.8% B. 45.4% C. 16.9% D. 42.3% E. None of the above
15. The Lucio Corporation presented the following balances from the historical peso income statement for the year ended December 31, 2018: Sales P350,000 Cost of goods sold Depreciation - building Depreciation - equipment All other expenses Other information include: 218,000 34,000 23,000 48,000 • Merchandise available for sale came from 2017 inventory of P28,750 and 2018 purchases of P220,000. Building costing P850,000 was acquired at the end of 2015. Equipment totalled P115,000, of which P85,000 was bought at the end of 2015 and P30,000 was bought at the end of 2017. • The company uses the FIFO method of inventory valuation; average indexes for the year are used in restating inventories. General price indexes at year end are as follows: 2015 - 100 2017 - 106 2016 - 102 2018 - 112 (assume that all changes in the general price level index tool place more or less evenly during the year.) What should Lucio Corporation report as net income for the year ended December 31, 2018 restated for…
Return on Total Asset (before tax) of MRF in 2016 is A. 12.19% B. 9.86% C. 7.81% D. 15.22%
Use the following selected 2016 balance sheet and income statement information for Home Garden Supply Co. (in millions) to compute asset turnover (AT) to the nearest hundredth of a percent. Net income Gross profit on sales Average total assets Sales Tax rate on operating profit $69,960 $700,400 $360,600 $1,356,504 35% Question 24 options: A) 3.76 B) 5.17 C) 0.27 D) 17.30
Presented below are a number of balance sheet items for Culver, Inc. for the current year, 2017. Goodwill $ 211,800 Accumulated depreciation-equipment $ 467,100 Payroll taxes payable 67,100 Inventory 400,400 Bonds payable 501,800 Rent payable (short-term) 41,800 Discount on bonds payable 35,100 Income tax payable 112,600 Cash 62,800 Rent payable (long-term) 81,800 Land 352,800 Common stock, $1 par value 251,800 Notes receivable 162,300 Preferred stock, $25 par value 1,251,800 Notes payable (to banks) 266,700 Prepaid expenses 70,560 Accounts payable 348,800 Equipment 1,387,800 Retained earnings ? Equity investments (trading) 376,800 Income taxes receivable 47,400 Accumulated depreciation-buildings 361,300 Unsecured notes payable (long-term) 1,301,800 Buildings 2,801,800 Prepare a classified balance sheet in good form. Common stock…
The following information is from Lacy's Inc. $ millions Prior Fiscal Year Current Fiscal Year Net Year-End Assets Revenue Income $21,330 14,403 $18,955 $1,070 a. Compute the asset turnover ratio for the current fiscal year. b. Compute the return on assets ratio for the current fiscal year. Numerator a. Asset Turnover Ratio $ Check b. Return on Assets Ratio $ Numerator Denominator / $ Denominator / $ || Result Result
2011 During 2011, its first yearof operations, Eli-Wallace Distributors reported pretax accounting income of $200 million which included thefollowing amounts: 1. Income (net) from installment sales of warehouses ni 2011 of$9 milion to be reported for tax purposes ni 2012 ($5 million) and 2013 ($4 milion). .2 Depreciation si reported by the straight-line method on na asset with afour-year useful life. On the tax return, deductions for depreciation will be more than straightline depreciation the first two years but less than straight-line depreciation the next two years (S in millions): 2011 2012 2013 2014 Income Statement $ 50 50 50 50 $ 2 0 0 T a x R e t u r n •66 88 30 16 $200 Difference $(16) (38) 20 34 0 3. Estimated warranty expense that wil be deductible on the taxreturn when actually paid during the next two years. Estimated deductionsare as follows $( ni millions): 2011 2012 2013 57 : $4 (4) (3) $0 income Statement Tax Return Difference 2012 During 2012, pretax accounting income…
The income statement disclosed the following items for the year: Line Item Description Amount Depreciation expense $43,900 Gain on disposal of equipment 25,610 Net income 292,200 The changes in the current asset and liability accounts for the year are as follows: Line Item Description Increase (Decrease) Accounts receivable $6,840 Inventory (3,890) Prepaid insurance (1,460) Accounts payable (4,640) Income taxes payable 1,460 Dividends payable 1,020 Question Content Area a. Prepare the "Cash flows from (used for) operating activities" section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments. blankStatement of Cash Flows (partial) Line Item Description Amount Amount Cash flows from (used for) operatingactivities: $Net income Adjustments to reconcile net incometo net cash flows from (used for) operating…
22. Vijay Paints Ltd. made a profit of 5,00,000 after considering the following items: I. Preliminary Expenses written off II. Depreciation on fixed assets III. Loss on sale of Machinery 5,000 50,000 20,000 IV Provision for Doubtful Debts 10,000 V. Gain on sale of land 7,500 The following is the position of current assets and current liabilities : Bo mtil 31.03.2017 31.03.2018 52,000 15,000 2,000 Debtors 78,000 Bills Receivable 12,000 Prepaid Expenses 3,000 Creditors 40,000 51,000 Bills Payable 19,000 12,000 Outstanding Expenses 34,000 20,000 Compute Cash from Operating Activities
Compute for the ratio that measures Nezuko Inc.'s ability to meet interest payment.
The following are financial data taken from the annual report of Foundotos Company: Year 2 $134,448 51,981 37,154 57,504 Net sales Gross property, plant and equipment Accumulated depreciation Intangible assets (net) A. Calculate the following ratios for Year 1 and Year 2: 1. Fixed asset turnover 2. Accumulated depreciation divided-by-gross fixed assets B. What do the trends in these ratios reveal about Foundotos? Year 1 $130,060 47,744 34,180 36,276