[The following information applies to the questions displayed below.] Lansing Company's current-year income statement and selected balance sheet data at December 31 of the current and prior years follow. LANSING COMPANY Income Statement For Current Year Ended December 31 Sales revenue Expenses Cost of goods sold Depreciation expense Salaries expense Rent expense Insurance expense Interest expense Utilities expense Net income $ 97,200 At December 31 Accounts receivable Inventory Accounts payable Salaries payable Utilities payable Prepaid insurance Prepaid rent 42,000 12,000 18,000 9,000 3,800 3,600 2,800 $ 6,000 LANSING COMPANY Selected Balance Sheet Accounts Current Year $ 5,600 1,980 4,400 880 220 260 220 Prior Year $ 5,800 1,540 4,600 700 160 280 180

[The following information applies to the questions displayed below.] Lansing Company's current-year income statement and selected balance sheet data at December 31 of the current and prior years follow. LANSING COMPANY Income Statement For Current Year Ended December 31 Sales revenue Expenses Cost of goods sold Depreciation expense Salaries expense Rent expense Insurance expense Interest expense Utilities expense Net income $ 97,200 At December 31 Accounts receivable Inventory Accounts payable Salaries payable Utilities payable Prepaid insurance Prepaid rent 42,000 12,000 18,000 9,000 3,800 3,600 2,800 $ 6,000 LANSING COMPANY Selected Balance Sheet Accounts Current Year $ 5,600 1,980 4,400 880 220 260 220 Prior Year $ 5,800 1,540 4,600 700 160 280 180

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 following information applies to the questions displayed below.]Lansing Company’s current-year income statement and selected balance sheet data at December 31 of the current and prior years follow. LANSING COMPANY Income Statement For Current Year Ended December 31 Sales revenue $ 133,200 Expenses Cost of goods sold 54,000 Depreciation expense 18,000 Salaries expense 30,000 Rent expense 10,200 Insurance expense 5,000 Interest expense 4,800 Utilities expense 4,000 Net income $ 7,200 LANSING COMPANY Selected Balance Sheet Accounts At December 31 Current Year Prior Year Accounts receivable $ 6,800 $ 8,200 Inventory 3,180 2,140 Accounts payable 5,600 7,000 Salaries payable 1,120 820 Utilities payable 460 280 Prepaid insurance 380 520 Prepaid rent 460 300 Required:Prepare the operating activities section of the statement of cash flows using the indirect method for the current year. (Amounts to be deducted should be indicated…
The income statements for Urban Outfits, Inc. are presented below. Urban Outfits, Inc. Income Statements Year Ended December 31 Sales revenue Cost of goods sold Gross profit Operating and other expenses Interest expense Income tax expense Net income Sales Revenue Cost of Goods Sold Gross Profit Current Year Prior Year $800,059 398,202 401,857 Operating and Other Expenses Interest Expense Income Tax Expense Net Income 138,791 7,650 47,000 $208,416 Prepare a horizontal analysis of the income statement above. (Enter your answers to the nearest whole percent (i.e., enter 0.12 as 12.)) URBAN OUTFITS, INC Income Statements Year Ended December 31 Current Year Prior Year $800,059 $741,413 398,202 368,210 401,857 373,203 138,791 127,624 7,650 16,900 $741,413 368,210 47,000 45,500 208,416 183,179 373,283 127,624 16,900 45,500 $183,179 Increase (Decrease) Amount Percent (%)
Required information Use the following information for the Problems below. (Algo) [The following information applies to the questions displayed below.] Lansing Company's current-year income statement and selected balance sheet data at December 31 of the current and prior years follow. LANSING COMPANY Income Statement For Current Year Ended December 31 Sales revenue Expenses Cost of goods sold Depreciation expense Salaries expense Rent expense Insurance expense Interest expense Utilities expense Net income $ 124,200 At December 31 Accounts receivable Inventory Accounts payable Salaries payable Utilities payable Prepaid insurance Prepaid rent 51,000 16,500 27,000 9,900 4,700 4,500 3,700 $ 6,900 LANSING COMPANY Selected Balance Sheet Accounts Current Year $ 6,500 2,880 5,300 1,060 400 350 400 Prior Year $ 7,600 1,990 6,400 790 250 460 270
Presented below are selected balance sheet information and the income statement for Burch Company. Selected Balance Sheet Information Jan. 1 Dec. 31 Cash $11,400 $17,500 Accounts receivable 8,000 10,500 Inventory 23,500 21,000 Accounts payable 10,000 14,200 Income taxes payable 2,500 1,300 Burch Company Income Statement For the year ended December 31 Sales $250,000 Cost of goods sold (160,000) Depreciation expense (22,900) Other expenses (35,000) Income tax expense (12,000) Net income $20,100 Required: Compute the net cash flows from operating activities using the indirect method.
Simon Company's year-end balance sheets follow. At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Current Year 1 Year Ago $ 40,719 $ 35,180 99,964 128, 199 11,440 309,799 69,142 92,298 10,477 291,314 $ 584,582 $ 503,950 2 Years Ago $ 41,576 55,434 61,441 4,806 260,943 $ 424,200 Liabilities and Equity Accounts payable Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity For both the current year and one year ago, compute the following ratios: $ 85,168 115,909 $ 148,472 111,000 163,500 161,610 163,500 139,373 $ 584,582 $ 503,950 $ 54,875 95,623 163,500 110,202 $ 424,200 1. Express the balance sheets in common-size percents. 2. Assuming annual sales have not changed in the last three years, is the change in accounts receivable as a percentage of total assets favorable or unfavorable? 3. Assuming annual sales have not changed in the last three years, is the change in…
Sellall Department Stores reported the following amounts as of its December 31 year-end: Administrative Expenses, $2,400; Cost of Goods Sold, $22,728; Income Tax Expense, $3,000; Interest Expense, $1,600; Interest Revenue, $200; General Expenses, $2,600; Net Sales, $37,880; and Delivery (freight-out) Expense, $300. Required: 1. Calculate the gross profit percentage. 2. How has Sellall performed, relative to the 24.5 percent gross profit percentage reported for Walmart in 2019? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer.)check all that apply Sellall Department Stores earned a higher gross profit percentage than Walmart. Walmart earned a higher gross profit percentage than Sellall Department Stores. Sellall includes more mark-up in the prices it charges customers than Walmart. Walmart includes more mark-up in prices it…
Calculate the accounts receivable period, accounts payable period, inventory period, and cash conversion cycle for the following firm: Income statement data: Sales 5,000 Cost of goods sold 4,200 Balance Sheet Data: Beginning of Year End of Year Inventory 500 600 Accounts Receivable 100 120 Accounts Payable 250 290
Lansing Company's current-year income statement and selected balance sheet data at December 31 of the current and prior years follow. LANSING COMPANY Income Statement For Current Year Ended December 31 Sales revenue $ 130,200 Expenses Cost of goods sold Depreciation expense Salaries expense Rent expense Insurance expense Interest expense Utilities expense 53,000 17,500 29,000 10,100 4,900 4,700 3,900 Net income $ 7,100 LANSING COMPANY Selected Balance Sheet Accounts At December 31 Current Year Prior Year Accounts receivable $ 6,700 $ 8,000 Inventory Accounts payable Salaries payable Utilities payable Prepaid insurance Prepaid rent 3,080 5,500 2,090 6,800 1,100 810 440 270 370 500 440 290 Required: Prepare the operating activities section of the statement of cash flows using the indirect method for the current year. (Amounts to be deducted should be indicated with a minus sign.)
Portions of the financial statements for Peach Computer are provided below. PEACH COMPUTER Income Statement For the year ended December 31, 2024 Net sales Expenses: Cost of goods sold Operating expenses Depreciation expense Income tax expense Total expenses Net income Cash Accounts receivable Inventory Prepaid rent Accounts payable Income tax payable $1,100,000 610,000 55,000 45,000 PEACH COMPUTER Selected Balance Sheet Data December 31 2024 $107,000 45,500 80,000 3,500 50,000 5,500 2023 $87,500 51,500 57,500 6,000 39,500 12,500 $1,925,000 1,810,000 $115,000 Increase (I) or Decrease (D) $19,500 (I) (D) 6,000 22,500 (I 2,500 (D) 10,500 (I) 7,000 (D)
Required information [The following information applies to the questions displayed below.) Income statements for the current year and one year ago, follow. Assume that all sales are on credit. For Year Ended December 31 Sales Cost of goods sold. Other operating expenses Interest expense Income tax expense Total costs and expenses Net income Earnings per share. Year-end balance sheets follow. At December 31 Assets Cash Accounts receivable, net Inventory Prepaid rent Machinery, net Total assets Liabilities and Equity Accounts payable Long-term notes payable Common stock Retained earnings Total liabilities and equity Current Year $ 121,756 92,867 162,500 121,838 $ 498,961 $ 395,676 201,081 11,027 8,432 $ 648,649 Current Year 1 Year Ago 2 Years Ago $ 33,723 35, 135 $ 28,850 87,882 107,277 59,015 46,378 80,371 49,388 9,214 9,196 265,756 3,943 220,056 247,816 $ 498,961 $430,139 $ 354,900 $ 74,147 101,900 162,500 91,592 $430,139 616,216 $ 32,433 $ 2.00 $ 45,910 76,080 162,500 70,410 $ 354,900…
Use the following information for the Exercises below. (Algo) [The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity For Year Ended December 31 Sales Cost of goods sold Other operating expenses Exercise 13-11 (Algo) Analyzing profitability LO P3 Interest expense Income tax expense Total costs and expenses Net income Earnings per share For both the current year and one year ago, compute the following ratios: Current Year The company's income statements for the Current Year and 1 Year Ago, follow. $ 460,312 233,929 12,828 9,810 $ 34,590 97,275 124,801 11,139 312,664 $ 580,469 $ 143,091 106,946 162,500 167,932 $ 580,469 Compute the price-earnings ratio for each year.…
Following is an incomplete current-year income statement. Determine Net Sales, Cost of goods sold and Net Income. Additional information follows: Return on total assets is 16% (average total assets is $62,500). Inventory turnover is 5 (average inventory is $7,800). Accounts receivable turnover is 8 (average accounts receivable is $7,700). Income Statement Net Sales Cost of goods sold Selling, general, and administrative expenses 8800 Income tax expenses 3800 Net Income