
GB 112/212 MANAGERIAL ACC. W/ACCESS >C<
17th Edition
ISBN: 9781260218831
Author: Libby
Publisher: MCG CUSTOM
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Chapter 13, Problem 10MCQ
To determine
Identify the ratio that are least preferred by creditors while providing loan to the borrowers.
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On December 1, Jasmin Ernst organized Ernst Consulting. On December 3, the owner contributed $84,920 in assets to
launch the business. On December 31, the company's records show the following items and amounts.
Cash withdrawals by owner
Consulting revenue
Salaries expense
Cash
$ 8,450
Accounts receivable
16,950
Office supplies
4,080
Rent expense
Land
46,020
Office equipment
18,860
Telephone expense
Accounts payable
9,280
Owner investments
84,920
Miscellaneous expenses
$ 2,930
16,950
4,420
7,900
860
680
Exercise 1-18 (Algo) Preparing an income statement LO P2
Using the above information prepare a December income statement for the business.
ERNST CONSULTING
Income Statement
Revenues
Rent expense
Salaries expense
Telephone expense
Total revenues
$
4,420
7,900
860
$
SA
Assets
Cash
8,450
Accounts receivable
16,950
Office supplies
4,080
Land
46,020
Office equipment
18,860
navable
9,280
13,180
5
11
of 14
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Assets
Current Assets
Cash
Credit card receivables
Accounts receivable
Marketable securities
Food Inventories
Prepaid expenses
Total Current Assets
Golden Bay Balance Sheet as at December 31
Year 2018
Year 2019
$ 18,500
9,807
$ 29,400
11,208
5,983
6,882
15,400
2,000
12,880
14,700
10 800
14 900
73370
79 090
Property Plant & Equipment
Land
Building
Equipment
Furnishings
$ 60,500
828,400
114,900
75,730
(330,100)
16 600
766 030
839 400
$ 60,500
884,400
157,900
81,110
(422,000)
18 300
7 80 210
859 300
Net: Accumulated depreciation
China, glass, silver, & linen
Total Assets
Liabilities & Stockholders' Equity
Current Liabilities
Accounts payable
Accrued expenses payable
Taxes payable
Current mortgage payable
Total Current assets
$ 19,200
4,200
12,400
26 900
62 700
$16,500
5,000
20,900
26 000
68 400
Long-term liabilities
Mortgage payable
Total Liabilities $
$512 800
$486 400
575 500
$555 200
Stockholders' Equity
Common stock ($5 par. 40,000 shares issued & OS) $200,000
Retained earnings…
Mat lives in Barbados and is desirous of starting his own business from inheritances that his parents left him. He approached you for advice on the best type of business to register. Mr. Mat said he would love to gain benefits from any tax relief that is available that the government has to offer. Give advice to Mr. Mat whether it would be more beneficial to start a Company or an Individual Trading Business. outline for Mr. Mat why setting up either a company, or a trading as business is more advantageous over the other. cover matters like: Tax rates, Available tax reliefs and or tax credits Ease of operations of a company, as well as ease of operations of an individual trading business.
Chapter 13 Solutions
GB 112/212 MANAGERIAL ACC. W/ACCESS >C<
Ch. 13 - Who are the primary users of financial statements?Ch. 13 - When considering an investment in stock, investors...Ch. 13 - How does product differentiation differ from cost...Ch. 13 - What are the two general methods for making...Ch. 13 - What are component percentages? Why are they...Ch. 13 - What is ratio analysis? Why is it useful?Ch. 13 - What do profitability ratios focus on? What is an...Ch. 13 - What do turnover ratios focus on? What is an...Ch. 13 - What do liquidity ratios focus on? What is an...Ch. 13 - What do solvency ratios focus on? What is an...
Ch. 13 - What do market ratios focus on? What is an example...Ch. 13 - Prob. 12QCh. 13 - Explain why rapid growth in total sales might not...Ch. 13 - A company has total assets of 500,000 and...Ch. 13 - Prob. 2MCQCh. 13 - Prob. 3MCQCh. 13 - Prob. 4MCQCh. 13 - Prob. 5MCQCh. 13 - Prob. 6MCQCh. 13 - Prob. 7MCQCh. 13 - Prob. 8MCQCh. 13 - Prob. 9MCQCh. 13 - Prob. 10MCQCh. 13 - Prob. 13.1MECh. 13 - Prob. 13.2MECh. 13 - Prob. 13.3MECh. 13 - Computing the Financial Leverage Percentage...Ch. 13 - Analyzing the Inventory Turnover Ratio A...Ch. 13 - Prob. 13.6MECh. 13 - Prob. 13.7MECh. 13 - Prob. 13.8MECh. 13 - Prob. 13.9MECh. 13 - Prob. 13.10MECh. 13 - Using Financial Information to Identify Companies...Ch. 13 - Prob. 13.2ECh. 13 - Prob. 13.3ECh. 13 - Prob. 13.4ECh. 13 - Prob. 13.5ECh. 13 - Prob. 13.6ECh. 13 - Prob. 13.7ECh. 13 - Prob. 13.8ECh. 13 - Prob. 13.9ECh. 13 - Prob. 13.10ECh. 13 - Inferring Financial Information from Ratios E13-11...Ch. 13 - Prob. 13.12ECh. 13 - Prob. 13.13ECh. 13 - Prob. 13.1PCh. 13 - Prob. 13.2PCh. 13 - Prob. 13.3PCh. 13 - Prob. 13.4PCh. 13 - Prob. 13.5PCh. 13 - Computing Comparative Financial Statements and...Ch. 13 - Analyzing Financial Statements Using Ratios Use...Ch. 13 - Prob. 13.8PCh. 13 - Prob. 13.9PCh. 13 - Prob. 13.1APCh. 13 - Prob. 13.2APCh. 13 - Calculating Profitability, Turnover, Liquidity,...Ch. 13 - Prob. 13.4APCh. 13 - Prob. 13.5APCh. 13 - Prob. 13.6APCh. 13 - Prob. 13.1CPCh. 13 - Prob. 13.2CPCh. 13 - Comparing Companies within an Industry Refer to...Ch. 13 - Prob. 13.4CPCh. 13 - Inferring Information from the DuPont Model Ratios...Ch. 13 - Prob. 13.6CP
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