Horngren's Financial & Managerial Accounting, The Financial Chapters (6th Edition)
Horngren's Financial & Managerial Accounting, The Financial Chapters (6th Edition)
6th Edition
ISBN: 9780134486840
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Chapter 10, Problem 8QC

Harvard Co. purchased a trading investment on December 1 of the current year for $30,000. The market value of the stock investment at-year-end is $36,000. What value will be reported in net income for the adjustment, if any?

a. $36,000

b. $(6,000)

c. $6,000

d. $30,000

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Gympa reported on its income statement a net income $647,000 for the year ended December 31 before considering the following: a. During the year, Gympa purchased trading securities b. At year-end , the fair value of the investment portfolio was $50,000 lesshan the cost c. The balance of Retained Earnings was $792,000 on January 1 d. Gympa paid $67,000 in cash dividends during the year. Using the above data, calculate the balance of Retained Earnings on Decemeber 31.
A. Gympa reported on its income statement a net income $647,000 for the year ended December 31 before considering the following:   During the year, Gympa purchased trading securities  At year-end , the fair value of the investment portfolio was $50,000 lesshan the cost  The balance of Retained Earnings was $792,000 on January 1  Gympa paid $67,000 in cash dividends during the year.  Using the above data, calculate the balance of Retained Earnings on Decemeber 31.    A. The Nile House of Fashion has Asset Turnover of 2.65X. What does it mean?  That each dollar of Nile’s asset generates $2.25 in sales  That each dollar of stockholders’ equity generates $2.25 of profit  That Nile’s EPS is $2.25  That each dollar of Nile’s Equity generates a deficit of $2.25  None of the above.
Revenues and operating (marketing and administrative) expenses for the year 2021 are P7,500,000 and P4,000,000 respectively. How much is the change in Retained Earnings for the year 2021 due to the equity securities indicate whether increase or decrease?

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Horngren's Financial & Managerial Accounting, The Financial Chapters (6th Edition)

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