LONDON Company operates a medical clinic and keeps limited accounting records. Assets and liabilities at the beginning and end of the yearare as follows:Beginning of the yearEnd of the yearCash in bank12,000(P5,000)Accounts receivableMedical suppliesAccounts payableNotes payable- bankMedical equipmentAccrued expenses68,00070,0006,00015,00040,00020,00020,000150,0002,80025,000125,0004,100During the year, the owner withdrew cash of P12,000 for personal use and made additional investments of P40,000.How much is the profit/(loss) of LONDON Company for the year?(Note: If your answer is a profit, indicate a positive amount. If your answer is a loss, indicate a negative amount)

Beginning of the year End of the year Amounts in P Assets Cash in bank 12,000 5,000…

Answered: profit/(loss) of LONDON Company for the…

Business

Accounting

profit/(loss) of LONDON Company for the year

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: When calculating the after-tax weighted average cost of capital, which of the following has to be…

A: Weighted average cost of capital: It implies to a rate at which the average return is expected to be…

Q: 2. Complete the below table to calculate income statement data in common-size percents. (Round your…

A: Common size financial statement refers to an analysis statement of the record of a company in a…

Q: What does ROE depend on according to the DuPont raito? Profit Margin Asset Turnover…

A: The DuPont ratio is a financial analysis tool that breaks down the components of ROE to understand…

Q: 31.) What 32.) What 33.) What 34.) What 35.) What 36.) What is Sebring’s After-Tax Operating Income…

A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: Current assets: Cash and marketable securities Accounts receivable. Inventory Total Assets Fixed…

A: Cash flow statement is a statement that records the inflow or outflow of cash in the operations of…

Q: Calculate Earning Per Share You remember that the New York Bakery retired 224,812 shares in 2021.…

A: Return on stockholder's equity (ROE) is a financial measure that shows percentage of return owners…

Q: using the attached data please calculate the Weighted average cost of capital. Revenue Costs of…

A: The objective of the question is to calculate the Weighted Average Cost of Capital (WACC) using the…

Q: Below are financial ratios for XYZ Corporation and comparative ratios for XYZ Corporations industry.…

A: The company uses ratios to evaluate the performance of the entity. The different type of ratios…

Q: Compute Return on assets ratio if Net Income:2.026 ; Sales:17.193 ;Total Assets: 31.483 ; Total…

A: Return on Assets is the financial ratio that shows the profitability of the company with respect to…

Q: The process of communicating information that is relevant to investors, creditors, and others in…

A: 1) The Process of Communicating Information that is relevant to investors , creditors and other…

Q: Express the following comparative income statements in common-size percents. Using the common-size…

A: percentage calculation = particulars / sales * 100 for example sales percentage = ($725000 /…

Q: Efficiency Asset Turnover TTM 0.73 0.6 Inventory Turnover TTM 14.45 13.6 Revenue/Employee TTM 14.01M…

A: Asset management is a systematic process of acquiring, operating, maintaining and disposing assets…

Q: You are considering the purchase of a new machine for a project. Details of this potential purchase…

A: Cash flow statement considers only cash dealt items.

Q: Company X is competing with company Y. These are their ratios: x y Total Asset Trunover .462 .361…

A: Inventory turnover ratio shows the number of times the inventory is bought and sold during the…

Q: Sales Cost of goods sold Operating expenses Equity in earnings of Bellstar Net income Retained…

A: Let's break down the adjustments made in requirement (b) of the question:1. **Eliminate the…

Q: How do you calculate net sales? Also... Do you only look at current year data or do you factor…

A: Net Sales=Gross Sales-Returns-Allowances-Discounts where, Gross sales=the total unadjusted sales of…

Q: Assets Cash Accounts receivable Inventory Total current assets Equipment Accumulated…

A: The cash flow statement is prepared to record the cash flow from various activities during the…

Q: GIVE AN INTERPRETATION OF THESE RATIOS CONCLUSIVELY Acid test ratio = (total current asset –…

A: After calculating the required ratios it is very important to interpret the results of it.

Q: The required return on the debt e.The required return on the company (i.e., stock and debt…

A: 1) Computed in Step 3 in main section- Required return=10% 2) Computed in Step 4 in main section-…

Q: Which item of the income statement represents the taxable income of the firm? EBIT…

A: Taxable income is the income after deducting all the expenses in the business, before applying tax…

Q: Cash and short-term investments Accounts receivable (net) Inventory Property, plant, and equipment…

A: Return on Stockholders' Equity :— It is calculated by dividing net income by average total…

Q: Cost of goods sold: Investment income: Net sales: Operating expense: Interest expense: Dividends:…

A: The market value of a company's shares is compared to its book value—the sum of its assets less its…

Q: Wilmington Corporation's cash flow from operations to total debt ratio in Year 7?

A: A coverage ratio that can be used to determine the time taken by the entity in replaying its debt…

Q: Calculate the common-sized percentage 2023. for Gross Margin in

A: GROSS MARGIN Gross Margin is the Ratio between Gross Profit & Net Sales. Gross Margin is one of…

Q: Given the following information for the Vanderbilt Tire Company, find ROA (Return on Assets): Debt…

A: Return on Assets (ROA): ROA is a financial ratio that measures a company's profitability of its…

Q: How to calculate gross profit percentage will be mItaned

A: A fundamental financial indicator known as gross profit, also known as gross income or gross margin,…

Q: Common size Net sales Cost of sales Gross profit Selling, general and administrative expenses Other…

A: A Common-Size Income Statement is a financial statement that expresses each line item as a…

Q: If the gross profit of a business is lower than it was in the previous year, which one of the…

A: The profit a business makes after subtracting the expenses related to manufacturing, marketing, and…

Q: Compute common-size percents for the following comparative income statements (round percents to one…

A: Common Size Income Statement for current year Particulars Amount % Sales 740,000 100% Cost…

Q: Assets This year Last year Cash 1530 1050 Marketable securities Accounts receivable Inventories…

A: NOPAT = Net Operating Income x ( 1 - Tax Rate ) Operating Cash Flow = Net Income + Non Cash…

Q: Use the below information to answer the following question. Sales Cost of goods sold Depreciation…

A: Retention ratio-The percentage of a company's net income which is not paid out as dividend but…

Q: What company is better in short term investment?

A: Answer:- Investment meaning:- An asset or object purchased with the intention of generating income…

Q: Income tax expenses Net income Sales Cost of goods sold Gross profit Selling expenses a. Prepare a…

A: HORIZONTAL ANALYSIS Horizontal Analysis is one of the importance analysis techniques of Financial…

Q: Sales revenue Cost of goods sold Selling and administrative expenses Gain on sale of plant assets…

A: Income from operations means the amount of money earned by the entity from the daily business…

Q: Cost of Goods Sold (Purchases + Production cost is ) RM______________. The gross pofit is…

A: Hi student Since there are multiple subparts, we will answer only first three subparts. Cost of…

Q: Compute NET Profit margin ratio Income Statement (SM) Revenue Depreciation Other Operating Expense…

A: Formula: Net profit margin ratio = ( Net profit / Revenues ) x 100

Q: Problem 17-2A (Algo) Ratlos, common-size statements, and trend percents LO P1, P2, P3 [The following…

A: Current assets are assets in the form of cash or can be converted into cash within a year.Current…

Q: Assume a company provided the following information: Total asset turnover Sales Return on equity Net…

A: Ratio analysis s helps to analyze the financial statements of the company. The management can take…

Q: Sales Revenue Less: Cost of Goods Sold Gross Profits Less: Operating Expenses Operating Profits…

A: The receivable day’s ratio shows the information on how much time a company takes to collect cash…

Q: choose the right answer e debts which are to be repaid within a short period (a year or less) are…

A: Liabilities: Liabilities refers to the financial obligation of the business it does not include…

Q: interpret or compare its results from 2018 to 2019

Q: Sales.... Costs and expenses Cost of goods sold. Operating expenses. Interest expense.. Income…

A: The net profit is calculated as the net sales revenue less expenses. The profit margin is calculated…

Q: Which company stock is better to invest and why

A: Answer:- Stock meaning:- A stock is a broad term that generally refers to any company's ownership…

Q: evenue

A: Accounting ratios indicate the profitabliltiy , liquidity and solvency…

Q: Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total expenses Income…

A: Answer:- Balance sheet:- A balance sheet is an overview of an entity's financial standing. It shows…

Q: 10. Preparing a funds statement; cash flow from operations. You have the following information about…

A: 1. Statement of Changes in Financial PositionThe statement of changes in financial position (also…

Q: Net Income-preferred Dividends / Average Common Shareholders' Equity

A: As per Bartleby guidelines, in the case of the question with multiple subparts, only the first 3…

Q: You are given the following information for Smashville, Inc. Cost of goods sold: Investment income:…

A: Since you have posted a question with multiple sub parts, we will provide the solution only to the…

Question

LONDON Company operates a medical clinic and keeps limited accounting records. Assets and liabilities at the beginning and end of the year
are as follows:
Beginning of the year
End of the year
Cash in bank
12,000
(P
5,000)
Accounts receivable
Medical supplies
Accounts payable
Notes payable- bank
Medical equipment
Accrued expenses
68,000
70,000
6,000
15,000
40,000
20,000
20,000
150,000
2,800
25,000
125,000
4,100
During the year, the owner withdrew cash of P12,000 for personal use and made additional investments of P40,000.
How much is the profit/(loss) of LONDON Company for the year?
(Note: If your answer is a profit, indicate a positive amount. If your answer is a loss, indicate a negative amount)

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Calculation of beginning and closing equity

VIEW

Calculation of profit/(loss) for the year

VIEW

Answer

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

The ratio percentage of earnings retained is the same as that termed : A- dividend yield B- dividend payout C- this year's retained earning to net income D- return on common equity
2 Tiger Audio declared and paid a cash dividend of $7,925 in the current year. Its comparative financial statements, prepared at December 31, reported the following summarized information: Current Previous Income Statement $342,000 $281,000 175,650 166,350 63,600 6,400 96,350 28,905 Sales Revenue Cost of Goods Sold 159,000 122,000 52,930 5,670 63,400 19,020 Gross Profit Operating Expenses Interest Expense Income before Income Tax Expense Income Tax Expense (30%) Net Income $ 67,445 $ 44,380 Balance Sheet $ 72,520 32,900 49,000 151,000 $305,420 $ 45, 200 28,000 46,000 138, 200 Cash Accounts Receivable, Net Inventory Property and Equipment, Net Total Assets $257,400 $ 39,000 4,800 101,900 145,700 39,400 120,320 $ 37,000 4,000 116, 200 157, 200 39,400 60,800 Accounts Payable Income Tax Payable Note Payable (long-term) Total Liabilities Common Stock (par $1) Retained Earnings Total Liabilities and Stockholders' Equity $305,420 $257,400
Sh7
Times interest earned is a measure of the a. gross profit compared to annual interest payments b. operational earnings of the firm (EBIT) compared to annual interest payments c. net earnings after taxes compared annual interest payments d. net earnings before taxes compared to annual interest payments
Seven metrics The following data were taken from the financial statements of Woodwork Enterprises Inc. for the current fiscal year. Assuming that there are no intangible assets. Property, plant, and equipment (net) Liabilities: Current liabilities Mortgage note payable, 10%, ten-year note issued two years ago Total liabilities Stockholders' equity: Preferred $2 stock, $100 par (no change during year) Common stock, $10 par (no change during year) Retained earnings: Balance, beginning of year Net income Preferred dividends Common dividends Balance, end of year Total stockholders' equity Sales Check My Work $1,440,000 566,000 $27,000 179,000 $225,000 1,125,000 $2,006,000 206,000 $1,800,000 $1,350,000 $1,350,000 1,350,000 1,800,000 $4,500,000 $13,614,650 Previous
Operating profit 43-7 Sales revenue 910-4 Share capital and reserves 182-3 Long-term borrowing 77-9 Inventory 46-2 Receivables 97-8 Payables 51:3 Calculate the following: GReturn on Cepitatemployest (i Assetturnover (ii) Current ratio (iv) Acid test (quick) ratio
Required information [The following information applies to the questions displayed below.] Selected comparative financial statements of Korbin Company follow. KORBIN COMPANY Comparative Income Statements For Years Ended December 31 2021 2020 $ 431,313 $ 330,421 259,650 Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total expenses Income before taxes. Income tax expense Net income Assets Current assets Long-term investments Plant assets, net Total assets 171,663 61,246 38,818 100,064 Liabilities and Equity Current liabilities Common stock Other paid-in capital Retained earnings Total liabilities and equity December 31 209,156 121,265 KORBIN COMPANY Comparative Balance Sheets 71,599 13,317 $ 58,282 $ 37,039 2021 45,598 29,077 74,675 46,590 9,551 $ 54,729 0 103,218 $ 157,947 $ 2019 229,300 146,752 82,548 30,268 19,032 49,300 33,248 6,749 $ 26,499 $ 19,550 71,000 8,875 31,781 2019 2020 $36,630 $ 48,966 700 93,876 $131,206 $ 108,704 4,660 55,078 $ 19,023…
Assets Current assets: Cash and marketable securities Accounts receivable Inventory Total Fixed assets: Gross plant and equipment Less: Depreciation Net plant and equipment Other long-term assets Total Total assets Net sales (all credit) Less: Cost of goods sold Gross profits Less: Other operating expenses Earnings per share (EPS) Dividends per share (DPS) Book value per share (BVPS) Market value (price) per share (MVPS) 2821 $ 75 115 200 $390 ROA ROE $580 110 $470 50 $520 $910 Less: Depreciation Earnings before interest and taxes (EBIT) Less: Interest Earnings before taxes (EBT) Less: Taxes Net income Less: Preferred stock dividends Net income available to common stockholders Less: Common stock dividends Addition to retained earnings Per (common) share data: 96 96 Earnings before interest, taxes, depreciation, and amortization (EBITDA) 2020 $ 65 110 198 $365 DuPont Analysis times times $471 100 $371 LAK OF EGYPT MARINA, INC. Income Statement for Years Ending December 31, 2021 and 2020…
Recording of next year's sales as sales of the current year will Group of answer choices a.overstate net income of next year b.not affect retained earnings at the end of next year c.understate retained earnings at the end of the current year d.understate net income of the current year
Cost of goods sold: Investment income: Net sales: Operating expense: Interest expense: Dividends: Tax rate: Current liabilities: Cash: Long-term debt: Other assets: Fixed assets: Other liabilities: Investments: Operating assets: $ 169,000 $ 1,300 $ 282,000 $ 44,000 Book value per share Earnings per share Cash flow per share $ 7,400 $5,000 21% $ 22,000 $ 21,000 $ 92,000 $ 37,000 $ 120,000 $ 6,000 $ 33,000 $ 64,000 During the year, Smashville, Incorporated, had 20,000 shares of stock outstanding and depreciation expense of $15,000. Calculate the book value per share, earnings per share, and cash flow per share. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. $ 7.75
Explain which company has better performing