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Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN: 9781305654174
Author: Gary A. Porter, Curtis L. Norton
Publisher: Cengage Learning
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Textbook Question
Chapter 1, Problem 1.5AP
Income Statement, Statement of
The following list, in alphabetical order, shows the various items that regularly appear on the financial statements of Sterns Audio Book Rental Corp. The amounts shown for balance sheet items are balances as of December 31, 2016 (with the exception of retained earnings, which is the balance on January 1, 2016), and the amounts shown for income statement items are balances for the year ended December 31, 2016.
Required
- Prepare an income statement for the year ended December 31, 2016.
- Prepare a statement of retained earnings for the year ended December 31, 2016.
- Prepare a balance sheet at December 31, 2016.
- You have $1,000 to invest. On the basis of the statements you prepared, would you use it to buy stock in this company? Explain. What other information would you want before deciding?
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Students have asked these similar questions
epare an income statement for the year ended December 31, 2018, which includes amounts
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Present deferred income taxes as a noncurrent liability.
To the extent information is available that should be disclosed, include the parenthetical
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Subject : Accounting
As per the latest annual report, the following information is made available from
the financial statements of ABC Inc. for the year 2019.
Sales
COGS
EBIT
EBITDA
Interest Expense
Net Income
Total Debt
Total Assets.
Particulars
Net Fixed Assets
Total Equity
Current Assets
Current Liabilities
Cash & Cash Equivalents
Accounts Receivables
Inventories
Accounts Payable
Required:
Amount (in millions)
Current Ratio
Quick Ratio
Cash Ratio
Debt to Equity Ratio
Debt Ratio
Receivables Turnover Ratio
Inventory Turnover Ratio.
Gross Margin
Operating Profit Margin
Net Margin
£250,174
£151,782
£53,930
(a) You are required to calculate the following ratios:
£66,477
£3,576
£45,256
£98,047
£328,516
£27,378
£80,488
£152,819
£95,718
£38,844
£12,926
£4,106
£46,236
b) After calculating all 10 ratios, explain how the above results can aid ABC Inc's
decision making process.
Chapter 1 Solutions
Financial Accounting: The Impact on Decision Makers
Ch. 1 - Prob. 1.1KTQCh. 1 - Prob. 1.1ECh. 1 - Prob. 1.2ECh. 1 - The Accounting Equation For each of the following...Ch. 1 - The Accounting Equation Ginger Enterprises began...Ch. 1 - The Accounting Equation Using the accounting...Ch. 1 - Changes in Owners Equity The following amounts are...Ch. 1 - The Accounting Equation For each of the following...Ch. 1 - Classification of Financial Statement Items...Ch. 1 - Classification of Financial Statement Items Regal...
Ch. 1 - Net Income (or Loss) and Retained Earnings The...Ch. 1 - Statement of Retained Earnings Ace Corporation has...Ch. 1 - Accounting Principles and Assumptions The...Ch. 1 - Prob. 1.13ECh. 1 - Prob. 1.14ECh. 1 - Prob. 1.15MCECh. 1 - Prob. 1.16MCECh. 1 - Prob. 1.1PCh. 1 - Users of Accounting Information and Their Needs...Ch. 1 - Prob. 1.3PCh. 1 - Prob. 1.4PCh. 1 - Income Statement, Statement of Retained Earnings,...Ch. 1 - Income Statement and Balance Sheet Green Bay...Ch. 1 - Prob. 1.7PCh. 1 - Statement of Retained Earnings for The Coca-Cola...Ch. 1 - Prob. 1.9PCh. 1 - Prob. 1.10MCPCh. 1 - Prob. 1.1APCh. 1 - Users of Accounting Information and Their Needs...Ch. 1 - Prob. 1.3APCh. 1 - Prob. 1.4APCh. 1 - Income Statement, Statement of Retained Earnings,...Ch. 1 - Income Statement and Balance Sheet Fort Worth...Ch. 1 - Corrected Financial Statements Heidis Bakery Inc....Ch. 1 - Statement of Retained Earnings for Brunswick...Ch. 1 - Prob. 1.9APCh. 1 - Prob. 1.10AMCPCh. 1 - Prob. 1.1DCCh. 1 - Reading and Interpreting Chipotles Financial...Ch. 1 - Comparing Two Companies in the Same Industry:...Ch. 1 - Prob. 1.5DCCh. 1 - Prob. 1.6DCCh. 1 - Prob. 1.7DC
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