Accounting Information Systems
11th Edition
ISBN: 9781337552127
Author: Ulric J. Gelinas, Richard B. Dull, Patrick Wheeler, Mary Callahan Hill
Publisher: Cengage Learning
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Question
Chapter 4, Problem 14RQ
Summary Introduction
To determine: The guidelines for grouping logical activities for a logical DFD.
Introduction:
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The Albertville City Council decided to pool the investments of its General Fund with Albertville Schools and Richwood Township in an investment pool to be managed by the city. Each of the pool participants had reported its investments at fair value as of the end of 2022. At the date of the creation of the pool, February 15, 2023, the fair value of the investments of each pool participant was as follows:
Investments
12/31/22
2/15/23
City of Albertville General Fund
$
897,000
$
935,000
Albertville Schools
4,214,000
4,394,500
Richwood Township
4,030,000
4,020,500
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$
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$
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On June 15, Richwood Township decided to withdraw $3,080,000 for a capital projects payment. At the date of the withdrawal, the fair value of the Treasury notes had increased by $37,000. Assume that the trust fund was able to redeem the CDs necessary to complete…
Stevens Textile Corporation's 2019 financial statements are shown below
Balance Sheet as of December 31, 2019 (Thousands of Dollars)
Cash
$ 1,080
Accounts payable
$ 4,320
Receivables
6,480
Accruals
2,880
Inventories
9,000
Line of credit
0
Total current assets
$16,560
Notes payable
2,100
Net fixed assets
12,600
Total current liabilities
$ 9,300
Mortgage bonds
3,500
Common stock
3,500
Retained earnings
12,860
Total assets
$29,160
Total liabilities and equity
$29,160
Income Statement for December 31, 2019 (Thousands of Dollars)
Sales
$36,000
Operating costs
34,000
Earnings before interest and taxes
$ 2,000
Interest
160
Pre-tax earnings
$ 1,840
Taxes (25%)
460
Net income
$ 1,380
Dividends (40%)
$ 552
Addition to retained earnings
$ 828
Stevens grew rapidly in 2019 and financed the growth with notes payable and long-term bonds. Stevens expects sales to grow by 20% in the next year but will finance…
At year-end 2019, Wallace Landscaping’s total assets were $2.30 million, and its accounts payable were $430,000. Sales, which in 2019 were $2.9 million, are expected to increase by 20% in 2020. Total assets and accounts payable are proportional to sales, and that relationship will be maintained. Wallace typically uses no current liabilities other than accounts payable. Common stock amounted to $630,000 in 2019, and retained earnings were $330,000. Wallace has arranged to sell $180,000 of new common stock in 2020 to meet some of its financing needs. The remainder of its financing needs will be met by issuing new long-term debt at the end of 2020. (Because the debt is added at the end of the year, there will be no additional interest expense due to the new debt.) Its net profit margin on sales is 5%, and 50% of earnings will be paid out as dividends.
What was Wallace's total long-term debt in 2019? Round your answer to the nearest dollar.
$
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Chapter 4 Solutions
Accounting Information Systems
Ch. 4 - Prob. 1RQCh. 4 - Prob. 2RQCh. 4 - Describe each symbol used in constructing DFDs.Ch. 4 - Prob. 4RQCh. 4 - Prob. 5RQCh. 4 - Prob. 6RQCh. 4 - What is a logical DFD?Ch. 4 - Prob. 8RQCh. 4 - When is a set of DFDs balanced (i.e., leveled)?Ch. 4 - Prob. 10RQ
Ch. 4 - Prob. 11RQCh. 4 - Prob. 12RQCh. 4 - Prob. 13RQCh. 4 - Prob. 14RQCh. 4 - Prob. 15RQCh. 4 - Prob. 16RQCh. 4 - How will systems documentation differ between...Ch. 4 - Prob. 1DQCh. 4 - Prob. 2DQCh. 4 - Prob. 3DQCh. 4 - Prob. 1SPCh. 4 - Prob. 2SPCh. 4 - Narrative 1: Freshplace Grocery At Freshplace...Ch. 4 - Prob. 4SPCh. 4 - Narrative 1: Freshplace Grocery At Freshplace...Ch. 4 - Prob. 6SPCh. 4 - Prob. 1PCh. 4 - Prepare a narrative to describe the system...Ch. 4 - Prob. 3PCh. 4 - Narrative 1: Good Buy, Inc (good-buy.com) Good...Ch. 4 - Prob. 5PCh. 4 - Prob. 6PCh. 4 - Narrative 1: Good Buy, Inc (good-buy.com) Good...Ch. 4 - Prob. 8P
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