Loose Leaf for Fundamental Accounting Principles
23rd Edition
ISBN: 9781259687709
Author: John J Wild, Ken Shaw Accounting Professor, Barbara Chiappetta Fundamental Accounting Principles
Publisher: McGraw-Hill Education
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Textbook Question
Chapter 4, Problem 13E
Exercise 4-13
Computing the
A1
Use the information in the adjusted trial] balance reported in Exercise 4•11 to compute the current ratio as of the
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QS 17-4 (Algo) Horizontal analysis LO P1
Compute the annual dollar changes and percent changes for each of the following accounts. (Decreases should be indicated with a
minus sign. Round percent change to one decimal place.)
Short-term investments
Accounts receivable
Notes payable
Percent Change: =
Short-term investments
Accounts receivable
Notes payable
$
Current Year Prior Year
$ 377,232
99,828
0
$ 236,026
103,326
90,624
Horizontal Analysis - Calculation of Percent Change
Numerator:
Current Year
377,232 $
99,828
0
Prior Year
236,026
103,326
90,624
Denominator:
Dollar Change
Percent Change
%
%
%
QS 13-4 (Algo) Horizontal analysis LO P1
Compute the annual dollar changes and percent changes for each of the following accounts.
Note: Decreases should be indicated with a minus sign. Round percent change to one decimal place.
Short-term investments
Accounts receivable
Notes payable
Percent Change =
Short-term investments
Accounts receivable
Notes payable
S
Current Year
$ 378,398
100,704
0
Prior Year
$ 237,313
104,650
91,913
Horizontal Analysis - Calculation of Percent Change
Numerator:
Current Year
378,398 $
100,704
0
Prior Year
237,313
104,650
91,913
Denominator:
Dollar Change
Percent Change
%6
%6
%
QUESTION 39
Sally's Shed had account balances in Accounts Receivable of $415,000 and in Allowance for Uncollectible Accounts
of $800 (debit) before any adjustments on December 31. An analysis on December 31 determined that the
allowance for uncollectible accounts should be 4% of accounts receivable. The amount of the end of period
adjustment would be:
A. $15,190
OB. $15,800
OC. $16,600
D. $17,400
Chapter 4 Solutions
Loose Leaf for Fundamental Accounting Principles
Ch. 4 - Prob. 1DQCh. 4 - Prob. 2DQCh. 4 - Prob. 3DQCh. 4 - Prob. 4DQCh. 4 - Prob. 5DQCh. 4 - Prob. 6DQCh. 4 - 7. Why are the debit and credit entries in the...Ch. 4 - Prob. 8DQCh. 4 - Prob. 9DQCh. 4 - Prob. 10DQ
Ch. 4 - Prob. 11DQCh. 4 - 12. How do reversing entries simplify...Ch. 4 - If a company recorded accrued salaries expense of...Ch. 4 - Prob. 14DQCh. 4 - Prob. 15DQCh. 4 - Prob. 16DQCh. 4 - Prob. 17DQCh. 4 - Prob. 1QSCh. 4 - Prob. 2QSCh. 4 - Prob. 3QSCh. 4 - Prob. 4QSCh. 4 - Prob. 5QSCh. 4 - Prob. 6QSCh. 4 - Prob. 7QSCh. 4 - Prob. 8QSCh. 4 - Prob. 9QSCh. 4 - Prob. 10QSCh. 4 - Prob. 11QSCh. 4 - Prob. 12QSCh. 4 - Exercise 4-1
Extending adjusted account balances...Ch. 4 - Prob. 2ECh. 4 - Prob. 3ECh. 4 - Exercise 4-4 Completing a work sheet Pl The...Ch. 4 - Exercise 4-5 Determining effects of closing...Ch. 4 - Prob. 6ECh. 4 - Exercise 4-7 Preparing a work sheet and recording...Ch. 4 - Prob. 8ECh. 4 - Prob. 9ECh. 4 - Prob. 10ECh. 4 - Prob. 11ECh. 4 - Prob. 12ECh. 4 - Exercise 4-13 Computing the current ratio A1 Use...Ch. 4 - Prob. 14ECh. 4 - Prob. 15ECh. 4 - Prob. 16ECh. 4 - Prob. 17ECh. 4 - Problem 4-1A Applying the accounting cycle C1 C2...Ch. 4 - Prob. 2APSACh. 4 - Prob. 3APSACh. 4 - Prob. 4APSACh. 4 - Problem 4-5A Preparing trial balances, closing...Ch. 4 - Prob. 6APSACh. 4 - Prob. 1BPSBCh. 4 - Prob. 2BPSBCh. 4 - Prob. 3BPSBCh. 4 - Prob. 4BPSBCh. 4 - Prob. 5BPSBCh. 4 - Prob. 6BPSBCh. 4 - Business Solutions P2 P3 (This serial problem...Ch. 4 - Prob. 1GLPCh. 4 - Prob. 2GLPCh. 4 - Prob. 3GLPCh. 4 - Prob. 4GLPCh. 4 - Prob. 5GLPCh. 4 - Prob. 1BTNCh. 4 - Prob. 2BTNCh. 4 - Prob. 3BTNCh. 4 - Prob. 4BTNCh. 4 - Prob. 5BTNCh. 4 - Prob. 6BTNCh. 4 - Prob. 7BTNCh. 4 - Prob. 8BTNCh. 4 - Prob. 9BTN
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- Required information Exercise 13-9 (Algo) Analyzing and interpreting liquidity LO P3 [The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash $ 35,715 $4 41,747 $ 42,626 Accounts receivable, net Merchandise inventory Prepaid expenses 62,300 82,500 10,959 89,400 50,100 58,000 114,000 11,501 348,728 4,736 Plant assets, net 319,170 270,838 Total assets $599,344 $ 516,676 $ 426,300 Liabilities and Equity Accounts payable Long-term notes payable Common stock, $10 par value Retained earnings $150,729 $ 88,191 $ 56,834 113,803 120,024 95,154 162,500 162,500 162,500 145,961 $ 516,676 172,312 111,812 Total liabilities and equity $599,344 $ 426,300 The company's income statements for the current year and one year ago follow. Assume that all sales are on credit: For Year Ended December 31 1 Yr Ago $ 614,844 Current Yr Sales $ 779,147 Cost of goods sold Other operating expenses $…arrow_forwardRatio of sales to assets The Home Depot reported the following data (in millions) in its recent financial statements: a. Determine the ratio of sales to assets for The Home Depot for Year 2 and Year 1. Round to two decimal places. b. What conclusions can be drawn from these ratios concerning the trend in the ability of The Home Depot to effectively use its assets to generate sales?arrow_forwardAppendix 1 Adjusting entry for gross method The following data were extracted from the accounting records of Sacajawea Mercantile Co. for the year ended June 30, 20Y4: a. Journalize the June 30, 20Y4, adjusting entry for estimated sales discounts. b. How would sales and accounts receivable be reported on the financial statements for the year ending June 30, 20Y4?arrow_forward
- 2Aarrow_forwardPlease assist from question 5.1.4, 5.1.5 and 5.1.6arrow_forwardPE 6-7B Customer allowances and returns Assume the following data for Casper Company before its year-end adjustments: Journalize the adjusting entries for the following: Estimated customer allowances Estimated customer returnsarrow_forward
- Sales transactions Using transactions listed in P4-2, indicate the effects of each transaction on the liquidity metric working capital and profitability metric gross profit percent. Indicate the gross profit percent for each sale (rounding to one decimal place) in parentheses next to the effect of the sale on the company’s ability to attain an overall gross profit percent of 30%.arrow_forwardExercise 14-1A (Algo) Horizontal analysis LO 14-1 Adams Corporation reported the following operating results for two consecutive years. Required a. Compute the percentage changes in Adams Corporation's income statement components between the two years. Note: Negative amounts should be indicated by a minus sign. Round your answers to 1 decimal place. (i.e., .234 should be entered as 23.4). Sales Cost of goods sold Gross margin Operating expenses Income before taxes Income taxes Net income (loss) CADAMS CORPORATION Income Statement Vanza $ 1,299,000 $1,004,500 798,885 500,115 301,000 199,115 61,600 137,515 S $ 602,700 401,800 195,500 206,300 52,700 153,600 Poicenton Change %arrow_forwardQuestion 2Alex is currently considering to invest his money in one of the companies between Company A and Company B. The summarized final accounts of the companies for their last completed financial year are as follows: a. Calculate the following ratios for Company A and Company B. State clearly the formulae used for each ratio: i. Gross Profit Marginii. Net Profit Marginiii. Inventory Turnover Period (days)iv. Receivables Collection Period (days)arrow_forward
- A4arrow_forwardExercise 9-15A (Algo) Using the current ratio to make comparisons LO 9-7 The following information was drawn from the balance sheets of the Kansas and Montana companies. Kansas $52,000 33,800 Montana $74,000 37,000 Current assets Current liabilities Required a. Compute the current ratio for each company. b. Which company has the greater likelihood of being able to pay its bills? c. Assume that both companies have the same amount of total assets. Speculate as to which company would produce the higher return-on-assets ratio. Complete this question by entering your answers in the tabs below. Required A Required B Required C Compute the current ratio for each company. (Round your answers to 2 decimal places.) Current Ratio Kansas Montana to 1 to 1arrow_forwardReturn on assets The financial statements of The Hershey Company (HSY) are shown in Exhibits 6 through 9 of this chapter. Based upon these statements, answer the following questions. The percent that a company adds to its cost of sales to determine the selling price is called a markup. That is Hershey’s markup percent? Round to one decimal place.arrow_forward
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