Managerial Accounting
7th Edition
ISBN: 9781260247886
Author: Wild
Publisher: MCG
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Textbook Question
Chapter 1, Problem 3MCQ
What is Ella Company’s acid-test ratio?
a.2.39
b.0.69
c.131
d.6.69
e.3.88
Use the following information for question 2 through 5.
| Ella Company |
| Assets |
| Cash…………………….............. $ 86,000 |
| Merchandise inventory…………………….. 122,000 |
| Prepaid insurance…………………………….. 12,000 |
| Long-term investments……………………….. 98,000 |
| Plant assets, net……………………………. 436,000 |
| Total assets……………………. $830,000 |
| Liabilities and Equity………………… |
| Current liabilities……………… $124,000 |
| Long-term liabilities………………… 90,000 |
| Common stock……………………………. 300,000 |
| Total liabilities and equity………………. $830,000 |
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Mixon Company’s year-end balance sheets show the following:
EXERCISE 1–3
Evaluating Short-Term Liquidity
2006
Cash ............................ $ 30,800 Accountsreceivable,net ............. 88,500 Merchandiseinventory ............... 111,500 Prepaidexpenses ................... 9,700 Plantassets,net ................... 277,500
Totalassets ....................... $518,000
Accountspayable ................... $128,900 Long-term notes payable secured
by mortgages on plant assets . . . . . . . 97,500 Commonstock,$10parvalue ......... 162,500 Retainedearnings .................. 129,100
Totalliabilitiesandequity ............ $518,000
2005
$ 35,625 62,500 82,500 9,375 255,000
$445,000
2004
$ 36,800 49,200 53,000 4,000 229,500
$372,500 $ 49,250
82,500 162,500 78,250
$372,500
$445,000
$ 75,250
102,500 162,500 104,750
49
Required:
Compare the year-end short-term liquidity position of this company at the end of 2006, 2005, and 2004 by computing the: (a) current ratio…
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Cash . ............................................. $21,800Accounts Receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,200Finished Goods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,900Work in Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . —Materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,400Building . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 300,000Accumulated Depreciation—Building . .............. $3,000Machinery and Equipment ......................... 88,000Accumulated Depreciation—Mach. and Equip. . ..... 2,200Accounts Payable . ................................. 8,900Payroll . . .......................................... —Capital Stock . . . ................................... 422,550Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .…
Chapter 1 Solutions
Managerial Accounting
Ch. 1 - Prob. 1MCQCh. 1 - What is Ella Company’s current ratio? a.0.69...Ch. 1 - What is Ella Company’s acid-test ratio? a.2.39...Ch. 1 - What is Ella Company’s debt ratio? a. 25.78% b....Ch. 1 - What is Ella Company’s equity ratio? a.25.78%...Ch. 1 - Describe the managerial accountant’s role in...Ch. 1 - Distinguish between managerial and financial...Ch. 1 - Prob. 3DQCh. 1 - Prob. 4DQCh. 1 - Distinguish between (a) factory overhead and (b)...
Ch. 1 - Prob. 6DQCh. 1 - What product cost is both a prime cost and a...Ch. 1 - APPLE Assume that we tour Apple’s factory where it...Ch. 1 - Prob. 9DQCh. 1 - Prob. 10DQCh. 1 - Prob. 11DQCh. 1 - Prob. 12DQCh. 1 - Prob. 13DQCh. 1 - Prob. 14DQCh. 1 - Prob. 15DQCh. 1 - Prob. 16DQCh. 1 - Prob. 17DQCh. 1 - What are the three categories of manufacturing...Ch. 1 - List several examples of factory overhead.Ch. 1 - Prob. 20DQCh. 1 - GOOGLE Prepare a proper title for the annual...Ch. 1 - Prob. 22DQCh. 1 - Prob. 23DQCh. 1 - Prob. 24DQCh. 1 - Prob. 25DQCh. 1 - Prob. 1QSCh. 1 - Prob. 2QSCh. 1 - Fixed and variable costs C2 Listed below are...Ch. 1 - QS 14-4 Direct and indirect costs C2
Diez Company...Ch. 1 - Classifying product costs C2 Identify each of the...Ch. 1 - QS 14-6 Product and period costs C3
Identify each...Ch. 1 - Prob. 7QSCh. 1 - Prob. 8QSCh. 1 - Prob. 9QSCh. 1 - Prob. 10QSCh. 1 - Prob. 11QSCh. 1 - Prob. 12QSCh. 1 - Prob. 13QSCh. 1 - Prob. 14QSCh. 1 - Prob. 15QSCh. 1 - Prob. 16QSCh. 1 - Raw materials inventory management A1 Nestlé...Ch. 1 - Exercise 14-1 Sources of accounting information C1...Ch. 1 - Prob. 2ECh. 1 - Exercise 14-3 Cost classifications for a service...Ch. 1 - Exercise 14-4 Cost classifications for a service...Ch. 1 - Prob. 5ECh. 1 - Prob. 6ECh. 1 - Prob. 7ECh. 1 - Prob. 8ECh. 1 - Exercise 14-9 Preparing financial statements for a...Ch. 1 - Prob. 10ECh. 1 - Prob. 11ECh. 1 - Prob. 12ECh. 1 - Prob. 13ECh. 1 - Prob. 14ECh. 1 - Prob. 15ECh. 1 - Prob. 16ECh. 1 - Exercise 14-17 Lean business practice C6 Many...Ch. 1 - Prob. 18ECh. 1 - Prob. 19ECh. 1 - Prob. 1PSACh. 1 - Prob. 2PSACh. 1 - Prob. 3PSACh. 1 - Prob. 4PSACh. 1 - Prob. 5PSACh. 1 - Prob. 1PSBCh. 1 - Prob. 2PSBCh. 1 - Problem 14-3B Schedule of cost of goods...Ch. 1 - Problem 14-4B Ending inventory computation and...Ch. 1 - Prob. 5PSBCh. 1 - Prob. 1SPCh. 1 - Prob. 1AACh. 1 - Both Apple and Google (Alphabet) invest in...Ch. 1 - Samsung’s 2017 annual report discloses the...Ch. 1 - Prob. 1BTNCh. 1 - Prob. 2BTNCh. 1 - Prob. 3BTNCh. 1 - Prob. 4BTNCh. 1 - Prob. 5BTNCh. 1 - Prob. 6BTN
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