MMM Inc. has the following account balances at Dec. 31, 2020: Accounts Payable: $700,000 Cash: $1,450,000 Inventory: $1,850,000 Accounts Receivable (net): $750,000 Net Credit Sales: $25,750,000 PP&E (net): S8, 460,000 Bonds Payable due6/30/22: $5,000,000 Cost of Goods Sold: $13,150,000 Short Term Investments: $150,000 Wages Payable: $425,000 Income Taxes Payable: $100,000 Note Payable due 6/30/21: $2,000,000 Bad Debt Expense: $125,000 Common Stock: $50,000MMM Inc.'s Current Ratio is?

Detailed explanation:Formula : Current Ratio = current assets / current liabilitiesCurrent Ratio =…

Answered: MMM Inc. has the following account…

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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Cypress Oil Company's December 31, 2021, balance sheet listed $727,000 of notes receivable and $21,300 of interest receivable included in current assets. The following notes make up the notes receivable balance: Note 1 Dated 8/31/2021, principal of $390,000 and interest at 9% due on 2/28/2022. Note 2 Dated 6/30/2021, principal of $240,000 and interest due 3/31/2022. Note 3 $100,000 face value noninterest-bearing note dated 9/30/2021, due 3/31/2022. Note was issued in exchange for merchandise. The company records adjusting entries only at year-end. There were no other notes receivable outstanding during 2021. Required: 1. Determine the rate used to discount the noninterest-bearing note. 2. Determine the explicit interest rate on Note 2. (Round your intermediate calculations to the nearest whole dollar amount.) 3. What is the amount of interest revenue that appears in the company's 2021 income statement related to these notes? 1. 2. 3. Discount rate Interest rate Interest revenue Answer…
Required Information On January 1, 2024, the general ledger of TNT Fireworks includes the following account balances: Accounts Cash Accounts Receivable Debit Credit $ 58,800 25,200 Allowance for Uncollectible Accounts $ 2,300 Inventory 36,400 Notes Receivable (5%, due in 2 years) 13,200 156,000 Common Stock 14,900 221,800 51,488 Land Accounts Payable Retained Earnings Totals $ 289,600 $ 289,600 During January 2024, the following transactions occur: January 1 Purchase equipment for $19,600. The company estimates a residual value of $1,608 and a six-year service life. January 4 Pay cash on accounts payable, $9,600. January 8 Purchase additional inventory on account, $83,980. January 15 Receive cash on accounts receivable, $22,100. January 19 Pay cash for salaries, $29,900. January 28 Pay cash for January utilities, $16,500. January 30 Firework sales for January total $221,088. All of these sales are on account. The cost of the units sold is $115,500. Information for adjusting entries: a.…
Whispering Inc., a greeting card company, had the following statements prepared as of December 31, 2020. WHISPERING INC.COMPARATIVE BALANCE SHEETAS OF DECEMBER 31, 2020 AND 2019 12/31/20 12/31/19 Cash $6,100 $7,000 Accounts receivable 61,600 51,500 Short-term debt investments (available-for-sale) 34,900 18,100 Inventory 39,900 60,400 Prepaid rent 5,000 4,100 Equipment 154,100 130,300 Accumulated depreciation—equipment (35,000 ) (24,900 ) Copyrights 45,500 50,500 Total assets $312,100 $297,000 Accounts payable $45,800 $39,900 Income taxes payable 4,000 6,000 Salaries and wages payable 8,100 4,000 Short-term loans payable 7,900 10,000 Long-term loans payable 60,500 69,300 Common stock, $10 par 100,000 100,000…
What is the total current liabilities to be presented in the statement of financial position as of December 31, 2021?
Millennial Manufacturing has net credit sales for 2018 in the amount of $1,483,630, beginning accounts receivable balance of $588,900, and an ending accounts receivable balance of $626,450. A. Compute the accounts receivable turnover ratio and the number of days' sales in receivables ratio for 2018. Round answers to two decimal places. Accounts receivable turnover ratio fill in the blank 1 times Sales in receivables ratio fill in the blank 2 days B. What do the outcomes tell a potential investor about Millennial Manufacturing if industry average is 2.6 times and number of day’s sales ratio is 180 days? a. Millennial Manufacturing collects its accounts more quickly than its competitors. b. A lender may favour Millennial Manufacturing over its competitors because of its faster collection period. c. Without prior years’ data it is hard to tell if Millennial Manufacturing is really more efficient than its competitors. d. All of the above statements may be correct.
What is the net realizable value of the receivables at December 31, 2025? Cash (net) realizable value of receivables
Cypress Oil Company's December 31, 2021, balance sheet listed $735,000 of notes receivable and $21,600 of interest receivable included in current assets. The following notes make up the notes receivable balance: Note 1 Dated 8/31/2021, principal of $340,000 and interest at 12% due on 2/28/2022. Note 2 Dated 6/30/2021, principal of $200,000 and interest due 3/31/2022. Note 3 $200,000 face value noninterest-bearing note dated 9/30/2021, due 3/31/2022. Note was issued in exchange for merchandise. The company records adjusting entries only at year-end. There were no other notes receivable outstanding during 2021. Required: 1. Determine the rate used to discount the noninterest-bearing note. 2. Determine the explicit interest rate on Note 2. (Round your intermediate calculations to the nearest whole dollar amount.) 3. What is the amount of interest revenue that appears in the company's 2021 income statement related to these notes? Discount rate 1. 2. Interest rate 3. Interest revenue
Required Information On January 1, 2024, the general ledger of TNT Fireworks includes the following account balances: Accounts Cash Accounts Receivable Debit $ 58,800 25,200 Credit Allowance for Uncollectible Accounts $ 2,300 Inventory 36,400 Notes Receivable (5%, due in 2 years) 13,200 Land 156,000 Accounts Payable Common Stock 14,900 221,000 51,400 $ 289,600 $ 289,608 Retained Earnings Totals During January 2024, the following transactions occur. January 1 Purchase equipment for $19,680. The company estimates a residual value of $1,600 and a six-year service life. January 4 Pay cash on accounts payable, $9,600. January 8 Purchase additional inventory on account, $83,980. January 15 Receive cash on accounts receivable, $22,100. January 19 Pay cash for salaries, $29,980. January 28 Pay cash for January utilities, $16,500. January 38 Firework sales for January total $221,008. All of these sales are on account. The cost of the units sold is $115,580. Information for adjusting entries: a.…
Millennial Manufacturing has net credit sales for 2018 in the amount of $1,463,630, beginning accounts receivable balance of $588,900, and an ending accounts receivable balance of $626,450. A. Compute the accounts receivable turnover ratio and the number of days' sales in receivables ratio for 2018. Round answers to two decimal places. Accounts receivable turnover ratio fill in the blank 1 times Sales in receivables ratio fill in the blank 2 days B. What do the outcomes tell a potential investor about Millennial Manufacturing if industry average is 2.6 times and number of day’s sales ratio is 180 days? a. Millennial Manufacturing collects its accounts more quickly than its competitors. b. A lender may favour Millennial Manufacturing over its competitors because of its faster collection period. c. Without prior years’ data it is hard to tell if Millennial Manufacturing is really more efficient than its competitors. d. All of the above statements may be correct.
Brecker Inc., a greeting card company, had the following statements prepared as of December 31, 2020. BRECKER INC.COMPARATIVE BALANCE SHEETAS OF DECEMBER 31, 2020 AND 2019 12/31/20 12/31/19 Cash $6,000 $7,000 Accounts receivable 62,000 51,000 Short-term debt investments (available-for-sale) 35,000 18,000 Inventory 40,000 60,000 Prepaid rent 5,000 4,000 Equipment 154,000 130,000 Accumulated depreciation—equipment (35,000 ) (25,000 ) Copyrights 46,000 50,000 Total assets $313,000 $295,000 Accounts payable $46,000 $40,000 Income taxes payable 4,000 6,000 Salaries and wages payable 8,000 4,000 Short-term loans payable 8,000 10,000 Long-term loans payable 60,000 69,000 Common stock, $10 par 100,000 100,000 Contributed…
On January 1, 2021, the general ledger of Big Blast Fireworks Includes the following account balances: Accounts Debit Credit Cash $ 23, 300 Accounts Receivable Allowance for Uncollectible Accounts 40, 000 $ 4,500 Inventory 37, 000 72,108 Land Accounts Payable Notes Payable (6%, due in 3 years) 28,900 37,e00 Common Stock 63,000 Retained Earnings 39,e00 Totals $172,480 $172,400 The $37,000 beginning balance of Inventory consists of 370 units, each costing $100. During January 2021. Big Blast Fireworks had the following Inventory transactions: January 3 Purchase 1,680 units for $168,8ee on account ($185 each). January 8 Purchase 1,700 units for $187,0ee on account ($11e each). January 12 Purchase 1,800 units for $207,0ee on account ($115 each). January 15 Return 135 of the units purchased on January 12 because of defects. January 19 Sell 5,200 units on account for $788,00e. The cost of the units sold is deternined using a FIF0 perpetual inventory system. January 22 Receive $753,80e from…
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