Financial Accounting
9th Edition
ISBN: 9781259222139
Author: Robert Libby, Patricia Libby, Frank Hodge Ch
Publisher: McGraw-Hill Education
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Chapter 1, Problem 1.2E
Matching Financial Statement Items to Financial Statement Categories
According to its annual report, P&G’s billion-dollar brands include Pampers, Tide, Ariel, Always, Pantene, Bounty, Charmin, Downy, Olay, Crest, Vicks, Gillette, Duracell, and others. The following are items taken from its recent
| ____ (1) |
____ (9) Income taxes |
| ____ (2) Cash and cash equivalents | ____ (10) Accounts payable |
| ____ (3) Net safes | ____ (11) Trademarks and other intangible assets |
| ____ (4) Debt due within one year | ____ (12) Property, plant, and equipment |
| ____ (5) Taxes payable | ____ (13) Long-term debt |
| ____ (6) |
____ (14) Inventories |
| ____ (7) Cost of products sold | ____ (15) Interest expense |
| ____ (8) Selling, general, and administrative expense |
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Assume that Alpha and Omega compete in the same four-digit SIC code industry and offer comparable products and services. The following
table contains their reported financial performance and condition for the last two years:
Alpha Company
Omega Company
Balance Sheet
Year 1 Year 2 Analysis Year 1 Year 2
Analysis
Assets-Cash
250
480
92%
250
480
92%
Assets-Accounts Receivable
250
330
32%
250
530
112%
Assets-Long-Term
500
900
80%
500
900
80%
Assets
1,000
1,710
71% 1,000
1,910
91%
Liabilities-Current
400
750
88%
400
750
88%
Liabilities-Long-Term
200
375
88%
88%
200
375
Liabilities
600
1,125
88%
600
1,125
88%
Stockholders' Equity
400
585
46%
400
785
96%
Liabilities and Stockholders' Equity 1,000
1,710
71% 1,000
1,910
91%
Income Statement
Revenues
1,200 2,20o
83% 1,200 2,400
100%
Costs of Goods Sold
500
925
85%
500
925
85%
Gross Profit
700
1,275
82%
700
1,475
111%
600
82%
600
1,090
82%
Operating Expenses
Operating Income
1,090
185
85%
385
285%
100
100
Statement of Cash Flows
85%
385
285%…
Prepare the common-size financial statement for the entities below and provide a reasoned
explanation of the benefits relative to ratios when used to compare performance and establish
trends.
Income Statements for year ending 31 December 2022
Timber Co. ltd
$.000
Biscuit Co. Ltd.
$'000
35,119
30,990
12.693
11.088
22,426
13,158
Net revenue
Cost of goods sold
Gross profit
Selling & administrative expenses
Other operating expenses
Operating income
Interest income
Other income (net of expenses)
Profits before tax
Income tax expense
Profits after taxes
819
8,449
833
6,447
14,193
2.384
11,809
19,902
11,358
313
8,231
355
988
8,864
2,040
6,824
Using the below Income Statement Create a Common-Size income statement.
Walmart Inc.'s Consolidated Statement of Income
As of January 31,
(Amounts in millions)
(Amounts in millions, except per share data)
2019
2018
2017
Revenues:
Net sales
$ 510,329
$ 495,761
$ 481,317
Membership and other income
4,076
4,582
4,556
Total revenues
514,405
500,343
485,873
Costs and expenses:
Cost of sales
385,301
373,396
361,256
Operating, selling, general and administrative expenses
107,147
106,510
101,853
Operating income
21,957
20,437
22,764
Interest:
Debt
1,975
1,978
2,044
Capital lease and financing obligations
371
352
323
Interest income
(217)
(152)
(100)
Interest, net
2,129
2,178…
Chapter 1 Solutions
Financial Accounting
Ch. 1 - Define accounting.Ch. 1 - Briefly distinguish financial accounting from...Ch. 1 - Prob. 3QCh. 1 - Prob. 4QCh. 1 - Prob. 5QCh. 1 - Complete the following: Name of Statement...Ch. 1 - What information should be included in the heading...Ch. 1 - What are the purposes of (a) the income statement,...Ch. 1 - Explain why the income statement and the statement...Ch. 1 - Prob. 10Q
Ch. 1 - Prob. 11QCh. 1 - Explain the equation for the income statement....Ch. 1 - Explain the equation for the balance sheet. Define...Ch. 1 - Explain the equation for the statement of cash...Ch. 1 - Explain the equation for retained earnings....Ch. 1 - The financial statements discussed in this chapter...Ch. 1 - Prob. 17QCh. 1 - Prob. 18QCh. 1 - (Supplement A) Briefly differentiate between a...Ch. 1 - Prob. 20QCh. 1 - Which of the following is not one of the four...Ch. 1 - Prob. 2MCQCh. 1 - Prob. 3MCQCh. 1 - Which of the following regarding retained earnings...Ch. 1 - Which of the following is not one of the four...Ch. 1 - Prob. 6MCQCh. 1 - Prob. 7MCQCh. 1 - Which of the following is true regarding the...Ch. 1 - Prob. 9MCQCh. 1 - Prob. 10MCQCh. 1 - Matching Elements with Financial Statements M1-1...Ch. 1 - Matching Financial Statement Items to Financial...Ch. 1 - Prob. 1.3MECh. 1 - Prob. 1.1ECh. 1 - Matching Financial Statement Items to Financial...Ch. 1 - Matching Financial Statement Items to Financial...Ch. 1 - Preparing a Balance Sheet Honda Motor Corporation...Ch. 1 - Completing a Balance Sheet and Inferring Net...Ch. 1 - Prob. 1.6ECh. 1 - Preparing an Income Statement and Inferring...Ch. 1 - Prob. 1.8ECh. 1 - Inferring Values Using the Income Statement and...Ch. 1 - Inferring Values Using the Income Statement and...Ch. 1 - Preparing an Income Statement and Balance Sheet...Ch. 1 - Preparing an Income Statement and Balance Sheet...Ch. 1 - Preparing a Statement of Stockholders Equity...Ch. 1 - Focus on Cash Flows: Matching Cash Flow Statement...Ch. 1 - Preparing an Income Statement, Statement of...Ch. 1 - Analyzing a Student's Business and Preparing an...Ch. 1 - Comparing Income with Cash Flow (Challenging)...Ch. 1 - Evaluating Data to Support a Loan Application...Ch. 1 - Preparing an Income Statement, Statement of...Ch. 1 - Analyzing a Students Business and Preparing an...Ch. 1 - Prob. 1.3APCh. 1 - Prob. 1.1CONCh. 1 - Finding Financial Information LO1-1 Refer to the...Ch. 1 - Prob. 1.2CPCh. 1 - Comparing Companies within an Industry Refer to...Ch. 1 - Using Financial Reports: Identifying and...Ch. 1 - Prob. 1.5CPCh. 1 - Prob. 1.6CPCh. 1 - Prob. 1.7CP
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