Intermediate Accounting, 10 Ed
10th Edition
ISBN: 9781260310177
Author: Mark W. Nelson, Wayne B. Thomas J. David Spiceland
Publisher: McGraw-Hill Education
expand_more
expand_more
format_list_bulleted
Videos
Textbook Question
Chapter 1, Problem 1.1BE
Accrual accounting
• LO1–2
Cash collected from customers, $340,000; Cash paid for rent, $40,000; Cash paid to employees for services rendered during the year, $120,000; Cash paid for utilities, $50,000.
In addition, you determine that customers owed the company $60,000 at the end of the year and no
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Problem 1
East Company reported the following current assets at year end:
Cash
3,200,000.00
Acccounts Receivable
2,000,000.00
Inventory
2,800,000.00
Deferred Charges
200,000.00
8,200,000.00
The accounts receivable consisted of the following items:
Customers' accounts
1,420,000.00
Employees' accounts
240,000.00
Advances to subsidiary
260,000.00
Allowance for uncollectible accounts
(120,000.00)
Claim against shipper for goods lost in transit
200,000.00
2,000,000.00
Compute the amount to be reported as total current assets.
m IV - Chapters 10 & 11 i
The balance sheets of Xenon Company reports total assets of $891,000 and $958,000 at the beginning and end of the year,
respectively. Sales revenues are $1.7 million, net income is $182,000, and net cash flows from operating activities are $153,000.
Cash return on assets
Cash flow to sales
Asset turnover
Required:
Calculate the cash return on assets, cash flow to sales, and asset turnover. (Do not round intermediate calculations. Round your final
answers to 1 decimal place.)
%
Saved
%
times
Prev
Help
#
28
Chapter 1 Solutions
Intermediate Accounting, 10 Ed
Ch. 1 - Prob. 1.1QCh. 1 - What is meant by the phrase efficient allocation...Ch. 1 - Identify two important variables to be considered...Ch. 1 - What must a company do in the long run to be able...Ch. 1 - Prob. 1.5QCh. 1 - Prob. 1.6QCh. 1 - Prob. 1.7QCh. 1 - Prob. 1.8QCh. 1 - Prob. 1.9QCh. 1 - Prob. 1.10Q
Ch. 1 - Prob. 1.11QCh. 1 - Prob. 1.12QCh. 1 - Prob. 1.13QCh. 1 - Prob. 1.14QCh. 1 - Prob. 1.15QCh. 1 - Explain what is meant by: The benefits of...Ch. 1 - Prob. 1.17QCh. 1 - Briefly define the financial accounting elements:...Ch. 1 - Prob. 1.19QCh. 1 - What is the going concern assumption?Ch. 1 - Prob. 1.21QCh. 1 - Prob. 1.22QCh. 1 - What are two advantages to basing the valuation of...Ch. 1 - Describe how revenue recognition relates to...Ch. 1 - What are the four different approaches to...Ch. 1 - In addition to the financial statement elements...Ch. 1 - Briefly describe the inputs that companies should...Ch. 1 - Prob. 1.28QCh. 1 - Prob. 1.29QCh. 1 - Prob. 1.30QCh. 1 - Prob. 1.31QCh. 1 - Prob. 1.32QCh. 1 - Accrual accounting LO12 Cash flows during the...Ch. 1 - Financial statement elements LO17 For each of the...Ch. 1 - Prob. 1.3BECh. 1 - Basic assumptions and principles LO17 through...Ch. 1 - Prob. 1.5BECh. 1 - Prob. 1.6BECh. 1 - Accrual accounting LO12 Listed below are several...Ch. 1 - Accrual accounting LO12 Listed below are several...Ch. 1 - Prob. 1.3ECh. 1 - Prob. 1.4ECh. 1 - Prob. 1.5ECh. 1 - Financial statement elements LO17 For each of the...Ch. 1 - Concepts; terminology; conceptual framework LO17...Ch. 1 - Prob. 1.8ECh. 1 - Prob. 1.9ECh. 1 - Prob. 1.10ECh. 1 - Basic assumptions and principles LO18, LO19...Ch. 1 - Prob. 1.12ECh. 1 - Prob. 1.13ECh. 1 - Prob. 1.14ECh. 1 - Prob. 1.15ECh. 1 - Prob. 1.1DMPCh. 1 - Research Case 12 Accessing SEC information through...Ch. 1 - Prob. 1.7DMPCh. 1 - Prob. 1.8DMPCh. 1 - Prob. 1.9DMPCh. 1 - Prob. 1.10DMPCh. 1 - Real World Case 115 Elements; disclosures; The...Ch. 1 - Prob. 1.12DMPCh. 1 - Target Case LO19 Target Corporation prepares its...
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
- question 35Gamma Company and Delta Company have compiled the following data as of the end of the current fiscal year: Depreciation (one of the operating expenses) for Gamma was $35,000, and for Delta was $65,000.1. Calculate days' cash on hand for Gamma Company and for Delta Company. Round your answer to one decimal place.2. Which company has the better liquidity position based on your calculation?arrow_forwardProvide this question solution general accountingarrow_forwardQuestion 14 of 40 In one month, a company receives $250,000 in payments toward customer credit accounts and extends $180,000 in new credit for sales. What amount is recorded in the statement of cash flow? O A. $250,000 B. $320,000 C. $180,000 D. $70,000 SUBMITarrow_forward
- Question 24 Muscarella Inc. has the following balance sheet and income statement data: Cash $ 14,000 Accounts payable $ 42,000 Receivables 70,000 Other current liabilities 28,000 Inventories 210,000 Total CL $ 70,000 Total CA $294,000 Long-term debt 70,000 Net fixed assets 126,000 Common equity 280,000 Total assets $420,000 Total liab. and equity $420,000 Sales $280,000 Net income $ 21,000 The new CFO thinks that inventories are excessive and could be lowered sufficiently to cause the current ratio to equal the industry average, 2.70, without affecting either sales or net income. Assuming that inventories are sold off and not replaced to get the current ratio to the target level, and that the funds generated are used to buy back common stock at book value, by how much would the ROE change? a. 4.28% b. 5.21% c. 4.73% d. 4.50% e. 4.96%arrow_forwardson.1 Prezas Company's balance sheet showed total current assets of $5,250, all of which were required in operations. Its current liabilities consisted of $1,040 of accounts payable, $600 of 6% short-term notes payable to the bank, and $310 of accrued wages and taxes. What was its net operating working capital? a. $3,900 b. $4,650 c. $1,350 d. $1,950 e. $3,300arrow_forward5arrow_forward
- 17.3arrow_forward2. 7 Days' cash on hand Financial statement data for years ending December 31 for Newton Company follow: Line Item Description 20Y9 20Y8 Cash (end of year) $25,500 $24,250 Short-term investments (end of year) 8,270 9,460 Operating expenses 60,135 63,780 Depreciation expense 13,225 11,400 Determine the days’ cash on hand for 20Y8 and 20Y9. Assume 365 days in a year. Round all calculations to one decimal place. Year Days’ Cash on Hand 20Y8: fill in the blank 1 of 2 days 20Y9: fill in the blank 2 of 2 days Feedback Area Feedback Days' Cash on Hand = (Cash and Short-Term Investments) ÷ [(Operating Expenses - Depreciation Expense) ÷ 365 days] to obtain the ratio.arrow_forward5 %24 %24 Free Cash Flow Burkhalter Inc. reported the following on the company's statement of cash flows in Year 2 and Year 1: Year 2 Year 1 Net cash flows from operating activities 000' Net cash flows used for investing activities (000 Net cash flows used for financing activities (000 Seventy percent of the net cash flows used for investing activities was used to replace existing capacity. a. Determine Burkhalter's free cash flow for both years. Year 1 b. Has Burkhalter's free cash flow improved or declined from Year 1 to Year 2? Declined Check My Work 3 more Check My Work uses remaining. f4 f5 O 91 4. Rarrow_forward
- CASH Transactions Debit Credit Cash receipts 1,280,000 Cash Disbursements 825,000 December 31 balances 455,000 You are contacted by the management to compute its net income using the accrual basis of accounting. During the process of preparation, the following were identified by you that will impact your computation: Property, plant and equipment are depreciated on a straight line basis. Annual depreciation is P 105,000. Prepaid insurance of P 18,000 was recognized as expense when it was paid. P 12,000 of the balance relates to year 2023. The entire amount of P 120,000 which was received as advance rental for office space in its building was recognized as rent income when received. P 70,000 of the amount will be earned in 2023. Employees are due P 28,000 at the end of 2022. Uncollected interest from investment at the end of 2022 is P 31,700. It is estimated that your 2022 fee for accounting services that have not been billed will be P 5,000. QUESTIONS: What is the…arrow_forwardaa.3arrow_forward3: 4: te 5: ge 6: Given the data in the following table, the Net Cash Flow from Operating Activities in 2023 was $ • NOTE: The table below applies to questions 5 to 11 (it is included on each of these questions). The balance sheet accounts listed below are the only items on the company's balance sheet for each year and the income statement accounts are the only items on the company's income statement for each year. 1) 430 Item Accounts payable Accounts receivable Accruals Cash Common Stock COGS Depreciation expense Interest expense Inventories Long-term debt Net fixed assets Notes payable Operating expenses (excl. depr.) Retained earnings Sales Taxes 2022 570 530 1,020 320 2,020 4,020 220 190 3,020 1,520 2,720 770 320 ??? 5,020 140 2023 370 ??? 1,120 570 2,270 4.260 370 210 3.270 1,670 2,520 600 450 820 6,020 160 Darrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Financial Accounting: The Impact on Decision Make...AccountingISBN:9781305654174Author:Gary A. Porter, Curtis L. NortonPublisher:Cengage Learning
Financial Accounting: The Impact on Decision Make...
Accounting
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Cengage Learning
Financial ratio analysis; Author: The Finance Storyteller;https://www.youtube.com/watch?v=MTq7HuvoGck;License: Standard Youtube License