On June 1, 2025, Oriole Service Co. was started with an initial investment in the company of $31,500 cash. Here are the assets, liabilities, and common stock of the company at June 30, 2025, and the revenues and expenses for the month of June, its first month of operations: Cash Accounts receivable Service revenue Supplies Advertising expense Equipment Common stock $5,470 4,280 8,400 2,398 400 37,400 31,500 Notes payable Accounts payable Supplies expense Maintenance and repairs expense Utilities expense Salaries and wages expense $13,740 780 860 670 230 1,200

On June 1, 2025, Oriole Service Co. was started with an initial investment in the company of $31,500 cash. Here are the assets, liabilities, and common stock of the company at June 30, 2025, and the revenues and expenses for the month of June, its first month of operations: Cash Accounts receivable Service revenue Supplies Advertising expense Equipment Common stock $5,470 4,280 8,400 2,398 400 37,400 31,500 Notes payable Accounts payable Supplies expense Maintenance and repairs expense Utilities expense Salaries and wages expense $13,740 780 860 670 230 1,200

Name: On June 1, 2025, Oriole Service Co. was started with an initial inves
Uploaded: 2024-03-05T11:47:04.000Z
Channel: Bartleby
Description: On June 1, 2025, Oriole Service Co. was started with an initial investment in the company of $31,500 cash. Here are the assets,liabilities, and common stock of the company at June 30, 2025, and the revenues and expenses for the month of June, its fi

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

What is the D/E Ratio=Total Debt/Total Equity? Equity Ratio=Total Shareholders equity/Total assets? Debt Ratio = Total Debt / Total assets Lola's Company Balance Sheet December 31st, 2020 Assets Cash and Cash Equivalents $100,000 Accounts Receivable $150,000 Inventory $200,000 Prepaid Expenses $50,000 Property, Plant and Equipment $500,000 Total Assets $1,000,000 Liabilities Accounts Payable $100,000 Notes Payable $200,000 Accrued Expenses $50,000 Total Liabilities $350,000 Owner's Equity Common Stock $250,000 Retained Earnings $400,000 Total Owner's Equity $650,000 Total Liabilities and Owner's Equity $1,000,000 Statement of Owner's Equity December 31st, 2020 Owner's Equity at Beginning of Year $400,000 Net Income for the Year $130,000 Issuance of Common Stock $50,000 Dividends Paid ($30,000) Owner's Equity at End of Year $550,000 Lola's Company Statement of Cash Flow December 31st, 2020 Cash Flows from Operating Activities Net Income Depreciation Expense $100,000 $50,000 Increase in…
Lozano Chip Company: Balance Sheet as of December 31, 2019(Thousands of Dollars) Cash $ 225,000 Accounts payable $ 600,000 Receivables 1,575,000 Notes payable 100,000 Inventories 1,160,000 Other current liabilities 550,000 Total current assets $2,960,000 Total current liabilities $1,250,000 Net fixed assets 1,355,000 Long-term debt 400,000 Common equity 2,665,000 Total assets $4,315,000 Total liabilities and equity $4,315,000 Lozano Chip Company: Income Statement for Year Ended December 31, 2019(Thousands of Dollars) Sales $7,500,000 Cost of goods sold 6,375,000 Selling, general, and administrative expenses 921,000 Earnings before interest and taxes (EBIT) $ 204,000 Interest expense 40,000 Earnings before taxes (EBT) $ 164,000 Federal and state income taxes (25%) 41,000 Net income $ 123,000 Calculate the indicated ratios for Lozano. Do not round intermediate calculations. Round your answers to two…
BBP, Inc., with sales of $600,000, has the following balance sheet: BBP, Incorporated Balance Sheet as of 12/31/X0 Assets Liabilities and Equity Cash $ 30,000 Accounts payable $ 18,000 Accounts receivable 90,000 Accruals 36,000 Inventory 108,000 Notes payable 70,000 Current assets 228,000 Current liabilities 124,000 Fixed assets 180,000 Common stock 120,000 Retained earnings 164,000 Total assets $ 408,000 Total liabilities and equity $ 408,000 The firm earns 15 percent on sales and distributes 25 percent of its earnings. Using the percent of sales, determine whether the firm will need external funds and forecast the new balance sheet for sales of $780,000 assuming that cash changes with sales and that the firm is not operating at capacity. Use newly issued short-term debt to cover any needs for additional finance. If the firm has excess funds, add them to cash. Round your answers to the nearest dollar. Enter your…
The following financial information is for Cullumber Company. CULLUMBER COMPANYBalance SheetsDecember 31 Assets 2022 2021 Cash $ 69,000 $ 69,000 Debt investments (short-term) 53,000 41,000 Accounts receivable (net) 103,000 92,000 Inventory 239,000 164,000 Prepaid expenses 25,000 29,000 Land 132,000 132,000 Building and equipment (net) 263,000 188,000 Total assets $884,000 $715,000 Liabilities and Stockholders’ Equity Notes payable (current) $170,000 $101,000 Accounts payable 66,000 54,000 Accrued liabilities 42,000 42,000 Bonds payable, due 2025 251,000 170,000 Common stock, $10 par 205,000 205,000 Retained earnings 150,000 143,000 Total liabilities and stockholders’ equity $884,000 $715,000 CULLUMBER COMPANYIncome StatementsFor the Years Ended December 31 2022…
Mayfield Corporation has provided the following financial data: Balance Sheet Assets Current assets: Cash $ 228,000 Accounts receivable, net 241,000 Inventory 204,000 Prepaid expenses 11,000 Total current assets 684,000 Plant and equipment, net 670,000 Total assets $ 1,354,000 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 162,000 Accrued liabilities 53,000 Notes payable, short term 46,000 Total current liabilities 261,000 Bonds payable 102,000 Total liabilities 363,000 Stockholders' equity: Common stock, $4 par value 362,000 Additional paid-in capital 81,000 Retained earnings 548,000 Total stockholders' equity 991,000 Total liabilities & stockholders' equity $ 1,354,000 The company’s acid-test (quick) ratio is closest to:
The following is a summary of information presented on the financial statements of a company on 31 December 2020. Account 2020 2019 Current assets $68,000 $52,000 Accounts receivable 84,000 80,000 Inventory 52,000 41,000 Current liabilities 76,000 49,000 Non-current liabilities 32,000 55,000 Share capital 51,000 42,000 Retained earnings 45,000 27,000 Sales revenue $526,000$501,000 Cost of sales 402,000 400,000 Gross profit $124,000$101,000 Selling expenses 47,000 51,000 Profit before income tax $77,000 $50,000 Income tax expense 24,000 $16,900 Profit $53,000 $33,100 What would a horizontal analysis report show with respect to Current liabilities? Select one: a. a 35.53% increase in Current Liabilities O b. Current Liabilities are 37.25% of total capital. O c. a 55.1% increase in Current Liabilities O d. a current ratio of 0.89
The financial statements for Castile Products, Incorporated, are given below: Castile Products, Incorporated Balance Sheet December 31 Assets Current assets: Cash $ 23,000 Accounts receivable, net 200,000 Merchandise inventory 340,000 Prepaid expenses 8,000 Total current assets 571,000 Property and equipment, net 910,000 Total assets $ 1,481,000 Liabilities and Stockholders' Equity Liabilities: Current liabilities $240,000 Bonds payable, 8% 310,000 Total liabilities 550,000 Stockholders' equity: Common stock, $10 par value $ 160,000 Retained earnings 771,000 Total stockholders' equity 931,000 Total liabilities and stockholders' equity $ 1,481,000 Castile Products, Incorporated Income Statement For the Year Ended December 31 Sales $ 3,325,000 Cost of goods sold 1,067,500 Gross margin 2,257,500 Selling and administrative expenses 610,000 Net operating income 1,647,500 Interest expense 24,800 Net income before taxes 1,622,700 Income taxes (30%) 486,810 Net income $ 1,135,890 Account…
The financial statements for Castile Products, Inc., are given below: Castile Products, Inc. Balance Sheet December 31 Assets Current assets: Cash Accounts receivable, net Merchandise inventory Prepaid expenses $ 6,500 35,000 70,000 3,500 115,000 185,000 Total current assets Property and equipment, net Total assets $300,000 Liabilities and Stockholders' Equity Liabilities: Current liabilities $ 50,000 Bonds payable, 10% Total liabilities 80,000 130,000 Stockholders' equity: Common stock, $5 par value Retained earnings Total stockholders' equity 30,000 140,000 170,000 Total liabilities and stockholders' equity $300,000 Castile Products, Inc. Income Statement For the Year Ended December 31 Sales $420,000 Cost of goods sold Gross margin Selling and administrative expenses 292,500 127,500 89,500 Net operating income Interest expense Net income before taxes 38.000 8,000 30,000 Income taxes (30%) 9,000 Net income $ 21,000 Account balances at the beginning of the year were: accounts…
The following financial information is for Cullumber Company. CULLUMBER COMPANYBalance SheetsDecember 31 Assets 2022 2021 Cash $ 69,000 $ 69,000 Debt investments (short-term) 53,000 41,000 Accounts receivable (net) 103,000 92,000 Inventory 239,000 164,000 Prepaid expenses 25,000 29,000 Land 132,000 132,000 Building and equipment (net) 263,000 188,000 Total assets $884,000 $715,000 Liabilities and Stockholders’ Equity Notes payable (current) $170,000 $101,000 Accounts payable 66,000 54,000 Accrued liabilities 42,000 42,000 Bonds payable, due 2025 251,000 170,000 Common stock, $10 par 205,000 205,000 Retained earnings 150,000 143,000 Total liabilities and stockholders’ equity $884,000 $715,000 CULLUMBER COMPANYIncome StatementsFor the Years Ended December 31 2022…
The following selected information is taken from the financial statements of Arnn Company for its most recent year of operations: Beginning balances: Inventory $200,000 Accounts receivable 300,000 Ending balances: Inventory 250,000 Accounts receivable 400,000 Cash 100,000 Marketable securities (short-term) 200,000 Prepaid expenses 50,000 Accounts payable 175,000 Taxes payable 85,000 Wages payable 90,000 Short-term loans payable 50,000 During the year, Arnn had net sales of $2.45 million. The cost of goods sold was $1.3 million. Required: When required, round your answers to two decimal places. Assume 365 days per year. 1. Compute the current ratio. 2. Compute the quick or acid-test ratio. 3. Compute the accounts receivable turnover ratio. times 4. Compute the accounts receivable turnover in days. days 5. Compute the inventory turnover ratio. times 6. Compute the inventory turnover in days. days