Potential stockholders and lenders are interested in a company's financial statements. Several financialstatement items appear below. Use this information to answer the questions that follow.Accounts receivableCurrent liabilitiesIncome taxesCashCommon stockRetained earningsOffice suppliesInventoryof the listed above, which four are current assets?Select one:O a. Accounts receivable, net income, inventory, and dividendsO b. Cash, accounts receivable, inventory, and office suppliesO c. Cash, accounts receivable, common stock, and salesO d. Net income, cash, office supplies, and inventoryBonds payableDividendsNet incomeSales

Introduction:- Assets are resources (property) presented in the balance sheet because for it an…

Answered: Potential stockholders and lenders are…

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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The comparative statements of financial position for Judy Inc. are presented below: JUDY INC. Comparative Statements of Financial Position Assets Cash. Accounts receivable. Inventory. Prepaid expenses. Investments.. Property, plant, and equipment.. Accumulated depreciation..... Total..... Accounts payable. Accrued expenses payable Bonds payable.. Common shares. Retained earnings. Total..... Sales Expenses Cost of goods sold. Operating expenses (excluding depreciation).. Depreciation expense Income tax expense. Net income..... Liabilities and Shareholders' Equity Interest expense Loss on sale of property, plant, and equipment.. Income before income tax.. 2022 $ 68,000 97,000 180,000 5,000 30,000 448,000 (100,000) $728.000 JUDY CORPORATION Statement of Income Year Ended December 31, 2022 $ 76,000 20,000 260,000 100,000 272,000 $728.000 5. Accrued expenses pertain to operating expenses. 6. The bonds were originally issued at face value. $580,000 180,000 30,000 18,000 8,000 2021 $ 36,000…
Which of the basic financial statements is best used to answer the question, "How profitable is the business?" a. Income statement O b. Statement of shareholder's equity O c. Accounts receivable aging schedule O d. Balance sheet
Identifying and Classifying Financial Statement Items For each of the following items, indicate whether they would be reported in the balance sheet (B) or income statement (1). (a) Machinery (b) Supplies expense (c) Inventories (d) Sales (e) Common stock (f) Factory buildings (g) Receivables (h) Taxes payable (i) Taxes expense (i) Cost of goods sold (k) Long-term debt (1) Treasury stock ◆ ◆ ◆ ♦ ♦ ◆ ◆ ♦ ♦
Indicate the effect of each of the following transactions on total assets, total liabilities, and total stockholders' equity. Select + for increase, for decrease, or No Effect. The first transaction is provided as an illustration. - a. Borrowed cash on a bank loan b. Paid an account payable c. Sold common stock d. Purchased merchandise inventory on account e. Declared and paid dividends f. Collected an account receivable g. Sold merchandise inventory on account at a profit h. Paid operating expenses in cash i. Repaid principal and interest on a bank loan Assets + Liabilities + Stockholders' Equity No Effect
For each ofthe following accounts, identify whether that item is an asset, liability, or equity account.a. Bonds payableb. Equipmentc. Accounts payabled. Salaries payablee. Common stockf. Retained earningsg. Cashh. Accounts receivablei. Sales revenuej. Inventory
Prepare a classied balanced sheet in good form 1. Common Stock 2. Discountedd on Bonds Payable 3. Treasury Stock (at cost) 4. Notes Payable (short-term) 5. Raw Materials 6. Prefered Stock Investments (long-term) 7. Unearned Rent Revenue 8. Work in Process. 9. Copyrights 10. Buildings 11. Notes Recievable (short-term). 12. Cash. 13. Salaries and Wages Payable. 14. Accummlated Depreciation--Buildings 15. Restricted Cash for Plant Expansion 16. Land Held for Future Plant Site 17. Allowance for Doubtful Accounts 18. Retained Earnings 19. Paid-in capitial in Excess of Par -Common Stock 20. Unearned Subscriptions Revenue 21. Receivables--Officers (due in one year) 22. Inventory (finished goods) 23. Accounts Receivable 24. Bonds Payable (due in 4 years) 25. Noncontrolling Interest
Stockholders' equity a.is shown on the income statement b.is usually equal to cash on hand c.includes paid-in capital and liabilities d.includes retained earnings and paid-in capital
What are the effects of the following types of transactions on the accounting equation? Also identify the financial statements that are affected. (Assume that the perpetual inventory system is used.) Acquisition of cash from the issue of common stock. Contribution of inventory by an owner of a company. Purchase of inventory with cash by a company. Sale of inventory for cash.
O Balance sheet In analyzing a company's financial statements, which financial statement would a potential investor primarily use to assess the company's liquidity and financial fiexibility? O Income statement O Staterment of retained earnings Statement of cash flows
Which of the following is the amount of revenue reported on the income statement of a retail company? Cash sales for the period and collections from customers. Both cash and credit sales for the period. Cash sales and stockholders' investments. The cash collected from customers during the current period.
Owner’s equity represents which of the following? a. the total of retained earnings plus paid-in capital b. the sum of the retained earnings and accounts receivable account balances c. the business owner’s/owners’ share of the company, also known as net worth or net assets d. the amount of funding the company has from issuing bonds
The statement of financial position of Trend, Inc. is presented below. These are the only accounts in Trend's statement of financial position. Amounts indicated by question mark (?) can be calculated from the additional information given Cash Accounts rereivahle(net) Inventory Property. Dant and equipment (net ota LIabilitieS and Stockholders Equity Accounts Davable trade Income taxes Davable (current) Long-term debt Common stock Retained earnings Total Additional Information Gurrent ratio (at vear end) Total liabilities divided by total stockholders' equity 25,000 294,000 432,000 25.000 300.000 slavento turnover based on sales and ending inventor Inventor turnover based on cost of goods sold and ending inventory Gross margin for the year 1,5 to 1 0.8 15 times 10.5 times P315,000 What was rend' balance in trade accounts payable at year-end? What was Trend's balance in retained earnings at year-end? Was rends Dalance in the inventory account at year-end? The balance of Accounts…

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