Concept explainers
Financial statements, including statement of cash flows
Pendray Systems Corporation began operations on January 1, 20Y5 as an online retailer of computer software and hardware. The following financial statement data were taken from Pcndrays records at the end of its first year of operations. December 31, 20Y5.
Instructions
Prepare a statement of
Want to see the full answer?
Check out a sample textbook solutionChapter 1 Solutions
Survey of Accounting (Accounting I)
Additional Business Textbook Solutions
Managerial Accounting: Creating Value in a Dynamic Business Environment
Accounting For Governmental & Nonprofit Entities
Intermediate Accounting (2nd Edition)
Horngren's Financial & Managerial Accounting, The Financial Chapters (6th Edition)
Principles Of Taxation For Business And Investment Planning 2020 Edition
Auditing and Assurance Services (16th Edition)
- CASH DIVIDENDS AND INCOME TAXES During the year ended December 31, 20-2, Tatu Company completed the following selected transactions: REQUIRED Prepare journal entries for the transactions.arrow_forwardStatement of stockholders equity; net loss Selected accounts from the ledger of Restoration Arts for the fiscal year ended April 30, 20Y5, are as follows: Prepare a statement of stockholders equity for the year.arrow_forwardRatio of liabilities to stockholders equity and times interest earned The following data were taken from the financial statements of Hunter Inc. for December 31 of two recent years: The income before income tax expense was 480,000 and 420,000 for the current and previous years, respectively. A. Determine the ratio of liabilities to stockholders equity at the end of each year. Round to one decimal place. B. Determine the times interest earned ratio for both years. Round to one decimal place. C. What conclusions can be drawn from these data as to the companys ability to meet its currently maturing debts?arrow_forward
- Current Position Analysis The following data were taken from the balance sheet of Nilo Company at the end of two recent fiscal years: Current Year Previous YearCurrent assets: Cash $577,600 $448,800 Marketable securities 668,800 504,900 Accounts and notes receivable (net) 273,600 168,300 Inventories 601,900 442,900 Prepaid expenses 310,100 283,100 Total current assets $2,432,000 $1,848,000 Current liabilities: Accounts and notes payable (short-term) $440,800 $462,000 Accrued liabilities 319,200 198,000 Total current liabilities $760,000 $660,000 a. Determine for each year (1) the working capital, (2) the current ratio, and (3) the quick ratio. Round ratios to one decimal place. Current…arrow_forwardIncome Statement, Statement of stockholders’ equity, and Balance Sheet Viva Travel Service reported assets, liabilities, revenues and expenses for September 30, 20Y6 below. As of October 1, 20Y5, the beginning of the current year, Viva Travel Service reported retained earnings as $60,900, and common stock as $7,500. During the current year, dividends in the amount of $28,600 were paid. Accounts payable $22,290 Accounts receivable 134,312 Common stock 15,000 Cash 240,858 Fees earned 801,300 Miscellaneous expense 6,230 Rent expense 103,770 Supplies 10,380 Supplies expense 16,600 Utilities expense 62,260 Wages expense 296,480 Instructions: Question Content Area 1. Prepare an income statement for the current year ended September 30, 20Y6. Viva Travel ServiceIncome StatementFor the Year Ended September 30, 20Y6 $- Select - Operating expenses: $- Select - - Select - - Select - - Select - - Select -…arrow_forwardCurrent Position Analysis The following data were taken from the balance sheet of Albertini Company at the end of two recent fiscal years: Current Year Previous Year Current assets: Cash $620,200 $495,600 Marketable securities 718,100 557,600 Accounts and notes receivable (net) 293,700 185,800 Inventories 314,200 179,900 Prepaid expenses 161,800 115,100 Total current assets $2,108,000 $1,534,000 Current liabilities: Accounts and notes payable (short-term) $394,400 $413,000 Accrued liabilities 285,600 177,000 Total current liabilities $680,000 $590,000 a. Determine for each year (1) the working capital, (2) the current ratio, and (3) the quick ratio. Round ratios to one decimal place. Current Year Previous Year 1. Working capital $fill in the blank 1 $fill in the blank 2 2. Current ratio fill in the blank 3 fill in the blank 4…arrow_forward
- The financial statements for Castile Products, Incorporated are given below: Castile Products, Incorporated Balance Sheet December 31 Assets Current assets: Cash Accounts receivable, net Merchandise inventory Prepaid expenses Total current assets Property and equipment, net Total assets Liabilities and Stockholders' Equity Liabilities: Current liabilities Bonds payable, 11% Total liabilities Stockholders' equity: Common stock, $10 per value Retained earnings Total stockholders' equity Total liabilities and stockholders' equity Sales Castile Products, Incorporated Income Statement For the Year Ended December 31 Cost of goods sold Gross margin Selling and administrative expenses Net operating income Interest expense Net income before taxes Income taxes (30%) Net income $ 24,000 260,000 380,000 8,000 672,000 820,000 $ 1,492,000 $ 260,000 400,000 660,000 $ 150,000 682,000 832,000 $ 1,492,000 $ 2,260,000 1,250,000 1,010,000 640,000 370,000 44,000 326,000 97,800 $ 228,200 Account balances at…arrow_forwardCurrent Position Analysis The following data were taken from the balance sheet of Nilo Company at the end of two recent fiscal years: Current Year Previous Year Current assets: Cash $594,300 $495,600 Marketable securities 688,200 557,600 Accounts and notes receivable (net) 281,500 185,800 Inventories 852,700 575,800 Prepaid expenses 439,300 368,200 Total current assets $2,856,000 $2,183,000 Current liabilities: Accounts and notes payable (short-term) Accrued liabilities Total current liabilities $394,400 $413,000 285,600 177,000 $680,000 $590,000 a. Determine for each year (1) the working capital, (2) the current ratio, and (3) the quick ratio. Round ratios to one decimal place. Current Year Previous Year 1. Working capital 2. Current ratio 3. Quick ratio $ SAarrow_forwardCurrent Position Analysis The following data were taken from the balance sheet of Albertini Company at the end of two recent fiscal years: Current Year Previous Year Current assets: Cash $273,600 $201,600 Marketable securities 316,800 226,800 Accounts and notes receivable (net) 129,600 75,600 Inventories 760,300 589,300 Prepaid expenses 391,700 376,700 Total current assets $1,872,000 $1,470,000 Current liabilities: Accounts and notes payable (short-term) $278,400 $294,000 Accrued liabilities 201,600 126,000 Total current liabilities $480,000 $420,000 a. Determine for each year (1) the working capital, (2) the current ratio, and (3) the quick ratio. Round ratios to one decimal place. Current Year Previous Year 1. Working capital $ $ 2. Current ratio 3. Quick ratio b. The liquidity of Albertini has improved from the preceding year to the current year. The working capital, current ratio, and quick ratio have…arrow_forward
- Current Position Analysis The following data were taken from the balance sheet of Nilo Company at the end of two recent fiscal years: Current Year Previous Year Current assets: Cash $454,900 $374,000 Marketable securities 526,700 420,800 Accounts and notes receivable (net) 215,400 140,200 Inventories 1,122,700 738,100 Prepaid expenses 578,300 471,900 Total current assets $2,898,000 $2,145,000 Current liabilities: Accounts and notes payable (short-term) $365,400 $385,000 Accrued liabilities 264,600 165,000 Total current liabilities $630,000 $550,000 a. Determine for each year (1) the working capital, (2) the current ratio, and (3) the quick ratio. Round ratios to one decimal place. Current Year Previous Year 1. Working capital $fill in the blank 1 $fill in the blank 2 2. Current ratio fill in the blank 3 fill in the blank 4 3.…arrow_forwardCurrent Position Analysis The following data were taken from the balance sheet of Nilo Company at the end of two recent fiscal years: Current Year Previous Year Current assets: Cash $395,200 $324,000 Marketable securities 457,600 364,500 Accounts and notes receivable (net) 187,200 121,500 Inventories 617,800 411,800 Prepaid expenses 318,200 263,200 Total current assets $1,976,000 $1,485,000 Current liabilities: Accounts and notes payable (short-term) $301,600 $315,000 Accrued liabilities 218,400 135,000 Total current liabilities $520,000 $450,000 a. Determine for each year (1) the working capital, (2) the current ratio, and (3) the quick ratio. Round ratios to one decimal place. Current Year Previous Year 1. Working capital %24 2. Current ratio 3. Quick ratioarrow_forwardCurrent position analysisarrow_forward
- Financial And Managerial AccountingAccountingISBN:9781337902663Author:WARREN, Carl S.Publisher:Cengage Learning,Financial AccountingAccountingISBN:9781337272124Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage LearningCollege Accounting, Chapters 1-27AccountingISBN:9781337794756Author:HEINTZ, James A.Publisher:Cengage Learning,
- College Accounting, Chapters 1-27 (New in Account...AccountingISBN:9781305666160Author:James A. Heintz, Robert W. ParryPublisher:Cengage LearningManagerial Accounting: The Cornerstone of Busines...AccountingISBN:9781337115773Author:Maryanne M. Mowen, Don R. Hansen, Dan L. HeitgerPublisher:Cengage LearningCentury 21 Accounting Multicolumn JournalAccountingISBN:9781337679503Author:GilbertsonPublisher:Cengage