Connect Access Card for Financial Accounting
9th Edition
ISBN: 9781259738678
Author: Robert Libby, Patricia Libby, Frank Hodge Ch
Publisher: McGraw-Hill Education
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Chapter 3, Problem 3.9ME
To determine
Prepare an income statement for Incorporation CB for the month July.
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you are given a role in a scenario, that of preparing an income statement for DL Enterprises for the month ending July 31, 20X8. The DL Enterprises info below may help you with the task of categorizing items.
QUESTION:
For each independent situation below calculate the missing values
Use the following selected data from Business Solutions's income statement for the three months ended March 31, 2022, and from its Complete this question by entering your answers in the tabs below.
March 31, 2022, balance sheet to complete the requirements.
Computer services revenue
Net sales (of goods)
Total sales and revenue
Cost of goods sold.
Net income
Quick assets
Current assets
Total assets
Current liabilities
Total liabilities.
Total equity
Required 1
Required:
1. Compute the gross margin ratio (both with and without services revenue) and net profit margin ratio.
2. Compute the current ratio and acid-test ratio.
3. Compute the debt ratio and equity ratio.
4. What percent of its assets are current? What percent are long term?
Required 2
Complete this question by entering your answers in the tabs below.
$ 25,307
18,693
44,000
Required 3
Gross margin ratio
Net profit margin ratio
14,052
18,833
90,924
95,568
120,268
875
875
119,393
%
Compute the gross margin ratio (both with and…
Blue Spruce Hardware Store Inc. completed the following merchandising transactions in the month of May 2018. At the beginning of May, Blue Spruce's ledger showed Cash of $8,100 and
Common Shares of $8,100.
May 1
Purchased merchandise on account from Hilton Wholesale Supply for $8,100, terms 2/10, n/30.
2
Sold merchandise on account for $4,100, terms 3/10, n/30. The cost of the merchandise sold was $3,090.
5
Received credit from Hilton Wholesale Supply for merchandise returned $300.
9
Received collections in full, less discounts, from customers billed on May 2.
10
Paid Hilton Wholesale Supply in full, less discount.
11
Purchased supplies for cash $820.
12
Purchased merchandise for cash $2,650.
15
Received $220 refund for return of poor-quality merchandise from supplier on cash purchase.
17
Purchased merchandise from Northern Distributors for $2,700, terms 2/10, n/30.
19
Paid freight on May 17 purchase $230.
24
Sold merchandise for cash $5,610. The cost of the merchandise sold was…
Chapter 3 Solutions
Connect Access Card for Financial Accounting
Ch. 3 - Prob. 1QCh. 3 - Prob. 2QCh. 3 - Write the income statement equation and define...Ch. 3 - Explain the difference between a. Revenues and...Ch. 3 - Define accrual accounting and contrast it with...Ch. 3 - Prob. 6QCh. 3 - Explain the expense recognition principle.Ch. 3 - Explain why stockholders equity is increased by...Ch. 3 - Explain why revenues are recorded as credits and...Ch. 3 - Complete the following matrix by entering either...
Ch. 3 - Complete the following matrix by entering either...Ch. 3 - Prob. 12QCh. 3 - State the equation for the net profit margin ratio...Ch. 3 - Which of the following is not a specific account...Ch. 3 - Which of the following is not one of the criteria...Ch. 3 - The expense recognition principle controls a....Ch. 3 - Prob. 4MCQCh. 3 - Prob. 5MCQCh. 3 - Prob. 6MCQCh. 3 - Prob. 7MCQCh. 3 - Prob. 8MCQCh. 3 - Prob. 9MCQCh. 3 - Prob. 10MCQCh. 3 - Prob. 3.1MECh. 3 - Reporting Cash Basis versus Accrual Basis Income...Ch. 3 - Identifying Revenues The following transactions...Ch. 3 - Identifying Expenses The following transactions...Ch. 3 - Prob. 3.5MECh. 3 - Prob. 3.6MECh. 3 - Determining the Financial Statement Effects of...Ch. 3 - Prob. 3.8MECh. 3 - Prob. 3.9MECh. 3 - Identifying the Operating Activities in a...Ch. 3 - Prob. 3.11MECh. 3 - Prob. 3.1ECh. 3 - Reporting Cash Basis versus Accrual Basis Income...Ch. 3 - Identifying Revenues Revenues are normally...Ch. 3 - Identifying Expenses Revenues are normally...Ch. 3 - Prob. 3.5ECh. 3 - Determining Financial Statement Effects of Various...Ch. 3 - Recording Journal Entries Sysco, formed in 1969,...Ch. 3 - Prob. 3.8ECh. 3 - Prob. 3.9ECh. 3 - Analyzing the Effects of Transactions in...Ch. 3 - Preparing an Income Statement Refer to E3-10....Ch. 3 - Prob. 3.12ECh. 3 - Analyzing the Effects of Transactions in...Ch. 3 - Prob. 3.14ECh. 3 - Prob. 3.15ECh. 3 - Prob. 3.16ECh. 3 - Prob. 3.17ECh. 3 - Prob. 3.18ECh. 3 - Prob. 3.19ECh. 3 - Prob. 3.20ECh. 3 - Prob. 3.1PCh. 3 - Recording Journal Entries (AP3-2) Ryan Terlecki...Ch. 3 - Prob. 3.3PCh. 3 - Prob. 3.4PCh. 3 - Prob. 3.5PCh. 3 - Prob. 3.6PCh. 3 - Prob. 3.7PCh. 3 - Recording Nonquantitative Journal Entries (P3-1)...Ch. 3 - Prob. 3.2APCh. 3 - Prob. 3.3APCh. 3 - Prob. 3.4APCh. 3 - Prob. 3.5APCh. 3 - Prob. 3.6APCh. 3 - Accounting for Operating Activities in a New...Ch. 3 - Finding Financial Information Refer to the...Ch. 3 - Finding Financial Information Refer to the...Ch. 3 - Comparing Companies within an Industry Refer to...Ch. 3 - Analyzing a Company over Time Refer to the annual...Ch. 3 - Prob. 3.6CPCh. 3 - Evaluating an Ethical Dilemma Mike Lynch is the...
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- Save-the-Earth Co. reports the following income statement accounts for the year ended December 31. Sales discounts Office salaries expense Rent expense-Office space Advertising expense Sales returns and allowances Office supplies expense Cost of goods sold Sales Insurance expense Sales staff salaries 910 3,600 3,100 820 410 820 12, 200 52,000 2,600 4,100 Required: Prepare a multiple-step income statement for the year ended December 31.arrow_forwardPrepare an income statement using the following information for DL Enterprises for the month of July 2018.arrow_forwardPrepare an income statement using the following information for CK Company for the month of February 2019.arrow_forward
- On March 31, 2019, the balances of the accounts appearing in the ledger of Racine Furnishings Company, a furniture wholesaler, are as follows: a. Prepare a multiple-step income statement for the year ended March 31, 2019. b. Compare the major advantages and disadvantages of the multiple-step and single-step forms of income statements.arrow_forwardABC Merchandise business shows their gross profit and income from operation at the end of the year. Which of the following method of statement prepared by ABC Merchandise business? a. Multi Step income statement b. Balance sheet c. Simple Step income statement d. Trial balancearrow_forwardUse the following selected data from Business Solutions's income statement for the three months ended March 31, 2022, and from its March 31, 2022, balance sheet to complete the requirements. Computer services revenue Net sales (of goods) Total sales and revenue Cost of goods sold Net income Quick assets Current assets Total assets Current liabilities Total liabilities. Total equity Required 1 Required: 1. Compute the gross margin ratio (both with and without services revenue) and net profit margin ratio. 2. Compute the current ratio and acid-test ratio. 3. Compute the debt ratio and equity ratio. 4. What percent of its assets are current? What percent are long term? Required 2 Required 3 $ 27,912 19,428 47,340 13,820 Complete this question by entering your answers in the tabs below. 19,716 89,940 95,224 118,824 Gross margin ratio Net profit margin ratio 1,110 1,110 117,714 % % Compute the gross margin ratio (both with and without services revenue) and net profit margin ratio. Note:…arrow_forward
- The financial statements of Dandy Distributors Ltd. are shown on the "Fcl. Stmts." page. 1 Based on Dandy's financial statements, calculate ratios for the year ended December 31, 2020. Assume all sales are on credit. Show your work. 2 From these ratios, analyze the financial performance of Dandy.arrow_forwardUse the following selected data from Business Solutions's income statement for the three months endeu marit, 22 m its March 31, 2022, balance sheet to complete the requirements. Computer services revenue Net sales (of goods) Total sales and revenue Cost of goods sold. Net income Quick assets Current assets Total assets Current liabilities. Total liabilities Total equity $ 25,721, 19,938 45,659 13,048 19,017 89,544 95,752 122,896 1,040 1,040 121,856 Required: 1. Compute the gross margin ratio (both with and without services revenue) and net profit margin ratio. 2. Compute the current ratio and acid-test ratio. 3. Compute the debt ratio and equity ratio. 4. What percent of its assets are current? What percent are long term?arrow_forwardNeed help with Req 4.arrow_forward
- Subject - account Please help me. Thankyou.arrow_forwardUse the following selected data from Business Solutions’s income statement for the three months ended March 31, 2022, and from its March 31, 2022, balance sheet to complete the requirements. Computer services revenue $ 28,668 Net sales (of goods) 20,628 Total sales and revenue 49,296 Cost of goods sold 12,624 Net income 18,450 Quick assets 88,812 Current assets 95,720 Total assets 122,032 Current liabilities 1,110 Total liabilities 1,110 Total equity 120,922 Compute the gross margin ratio (both with and without services revenue) and net profit margin ratio. Compute the current ratio and acid-test ratio. Compute the debt ratio and equity ratio. What percent of its assets are current? What percent are longterm? SOLVE ALL OTHERWISE LEAVE PLEASE DO NOT GIVE ANSWER IN IMAGEarrow_forwardUse the following selected data from Business Solutions's income statement for the three months ended March 31, 2022, and from its March 31, 2022, balance sheet to complete the requirements. Computer services revenue $ 25, 364 Net sales (of goods) 18, 138 Total sales and revenue 43, 502 Cost of goods sold 15, 644 Net income 19, 551 Quick assets 90, 356 Current assets 97, 288 Total assets 121, 816 Current liabilities 820 Total liabilities 820 Total equity 120, 996 Required: Compute the gross margin ratio (both with and without services revenue) and net profit margin ratio. Compute the current ratio and acid - test ratio. Compute the debt ratio and equity ratio. What percent of its assets are current? What percent are long term?arrow_forward
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