Financial & Managerial Accounting
13th Edition
ISBN: 9781285866307
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Chapter 13MJ, Problem 2IFRS
(a)
To determine
Generally Accepted Accounting Principles (GAAP): These are the guidelines necessary to create accounting principles for the implementation of financial information reporting in the Country U.
International Financial Reporting Standards (IFRS): IFRS are a set of international accounting standards which are framed, approved, and published by International Accounting Standards Board (IASB) for the preparation and disclosure of international financial reports.
To explain: The differences in the presentation of
(b)
To determine
To compare: The financial statement terms used by Company L and MJ International
(c)
To determine
To discuss: The term ‘revaluation reserves’ reported in equity section by Company L
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Thetrial balances of Parker and Sargent companies of Exercise 3 for December 31, 2016, are presented as follows: Parker SargentCurrent Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102,000 115,000Depreciable Fixed Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 400,000 200,000Accumulated Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (130,000) (40,000)Investment in Sargent Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 320,000Current Liabilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (80,000)Common Stock ($10 par) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (300,000)(100,000)
Retained Earnings, January 1, 2016. . . . . . . . . . . . . . . . .…
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Return on assets
The financial statements of The Hershey Company (HSY) are shown in Exhibits 6 through 9. Based upon these statements, answer the following questions.
1. What are Hershey's sales (in millions)?
2. What is Hershey's cost of sales (in millions)?
3. What is Hershey's net income (in millions)?
4. What is Hershey's percent of the cost of the sales to sales? Round to one decimal place.
5. The percent that a company adds to its cost of sales to determine the selling price is called a markup. What is Hershey's markup percent? Round to one decimal place.
6. What is the percentage of net income to sales for Hershey? Round to one decimal place.
7. Hershey had total assets of $5,554 (millions) at the beginning of the year. Compute the return on assets for Hershey for the year shown in Exhibits 6–9. Round to one decimal place.
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Financial & Managerial Accounting
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