ACCOUNTING (LOOSELEAF)-W/STD.GDE+ACCESS
27th Edition
ISBN: 9781337692298
Author: WARREN
Publisher: CENGAGE L
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Textbook Question
Chapter 4, Problem 4.6BPE
Current assets and current liabilities for Brimstone Company follow:
| 2019 | 2018 | |
| Current assets | $1,586,250 | $1,210,000 |
| Current liabilities | 705,000 | 550,000 |
a. Determine the working capital and current ratio for 2019 and 2018.
b. Does the change in the current ratio from 2018 to 2019 indicate a favorable or an unfavorable change?
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Assuming that you are analysing the following company’s assets and obligations:
year
2020
2019
current assets
6,857
6,877
current liabiities
4,732
4,374
Calculate its working capital and current ratio. Which would be a better year?
Condensed financial data of Novak Company for 2020 and 2019 are presented below.
NOVAK COMPANYCOMPARATIVE BALANCE SHEETAS OF DECEMBER 31, 2020 AND 2019
2020
2019
Cash
$1,830
$1,180
Receivables
1,710
1,320
Inventory
1,590
1,920
Plant assets
1,890
1,710
Accumulated depreciation
(1,220
)
(1,190
)
Long-term investments (held-to-maturity)
1,320
1,440
$7,120
$6,380
Accounts payable
$1,190
$890
Accrued liabilities
210
260
Bonds payable
1,400
1,580
Common stock
1,940
1,660
Retained earnings
2,380
1,990
$7,120
$6,380
NOVAK COMPANYINCOME STATEMENTFOR THE YEAR ENDED DECEMBER 31, 2020
Sales revenue
$6,720
Cost of goods sold
4,680
Gross margin
2,040
Selling and administrative expenses
920
Income from operations…
Condensed financial data of Whispering Company for 2020 and 2019 are presented below.
WHISPERING COMPANYCOMPARATIVE BALANCE SHEETAS OF DECEMBER 31, 2020 AND 2019
2020
2019
Cash
$1,830
$1,130
Receivables
1,770
1,290
Inventory
1,620
1,920
Plant assets
1,940
1,680
Accumulated depreciation
(1,190
)
(1,170
)
Long-term investments (held-to-maturity)
1,300
1,410
$7,270
$6,260
Accounts payable
$1,220
$910
Accrued liabilities
210
260
Bonds payable
1,420
1,530
Common stock
1,890
1,710
Retained earnings
2,530
1,850
$7,270
$6,260
WHISPERING COMPANYINCOME STATEMENTFOR THE YEAR ENDED DECEMBER 31, 2020
Sales revenue
$7,100
Cost of goods sold
4,760
Gross margin
2,340
Selling and administrative expenses
930
Income from…
Chapter 4 Solutions
ACCOUNTING (LOOSELEAF)-W/STD.GDE+ACCESS
Ch. 4 - Why do some accountants prepare an end-of-period...Ch. 4 - Describe the nature of the assets that compose the...Ch. 4 - Prob. 3DQCh. 4 - Prob. 4DQCh. 4 - Why are closing entries required at the end of an...Ch. 4 - What is the difference between adjusting entries...Ch. 4 - What is the purpose of the post-closing trial...Ch. 4 - Prob. 8DQCh. 4 - What is the natural business year?Ch. 4 - Prob. 10DQ
Ch. 4 - Flow of accounts into financial statements The...Ch. 4 - Flow of accounts into financial statements The...Ch. 4 - Statement of owner's equity Marcie Davies owns and...Ch. 4 - Statement of owner's equity Blake Knudson owns and...Ch. 4 - Classified balance sheet The following accounts...Ch. 4 - Classified balance sheet The following accounts...Ch. 4 - Closing entries After the accounts have been...Ch. 4 - Closing entries After the accounts have been...Ch. 4 - Accounting cycle From the following list of steps...Ch. 4 - Accounting cycle From the following list of steps...Ch. 4 - Working capital and current ratio Current assets...Ch. 4 - Working capital and current ratio Current assets...Ch. 4 - Flow of accounts into financial statements The...Ch. 4 - Classifying accounts Balances for each of the...Ch. 4 - Financial statements from the end-of-period...Ch. 4 - Financial statements from the end-of-period...Ch. 4 - Income statement The following account balances...Ch. 4 - Income statement; net loss The following revenue...Ch. 4 - Income statement FedEx Corporation had the...Ch. 4 - Statement of owners equity Apex Systems Co. offers...Ch. 4 - Statement of owners equity; net loss Selected...Ch. 4 - Classifying assets Identify each of the following...Ch. 4 - Balance sheet classification At the balance sheet...Ch. 4 - Balance sheet Optimum Weight Loss Co. offers...Ch. 4 - Balance sheet List the errors you find in the...Ch. 4 - Identifying accounts to be closed From the list...Ch. 4 - Closing entries Prior to closing, total revenues...Ch. 4 - Closing entries with net income Assume that the...Ch. 4 - Closing entries with net loss Stylist Services Co....Ch. 4 - Identifying permanent accounts Which of the...Ch. 4 - Post-closing trial balance An accountant prepared...Ch. 4 - Steps in the accounting cycle Rearrange the...Ch. 4 - Working capital and current ratio The following...Ch. 4 - Prob. 4.22EXCh. 4 - Completing an end-of-period spreadsheet List (a)...Ch. 4 - Adjustment data on an end-of-period spreadsheet...Ch. 4 - Completing an end-of-period spreadsheet Alert...Ch. 4 - Prob. 4.26EXCh. 4 - Adjusting entries from an end-of-period...Ch. 4 - Closing entries from an end-of-period spreadsheet...Ch. 4 - Reversing entry The following adjusting entry for...Ch. 4 - Adjusting and reversing entries On the basis of...Ch. 4 - Adjusting and reversing entries On the basis of...Ch. 4 - Entries posted to wages expense account Portions...Ch. 4 - Entries posted to wages expense account Portions...Ch. 4 - Financial statements and closing entries Beacon...Ch. 4 - Financial statements and closing entries Finders...Ch. 4 - T accounts, adjusting entries, financial...Ch. 4 - Ledger accounts, adjusting entries, financial...Ch. 4 - Complete accounting cycle For the past several...Ch. 4 - Financial statements and closing entries Last...Ch. 4 - Financial statements and closing entries The...Ch. 4 - T accounts, adjusting entries, financial...Ch. 4 - Ledger accounts, adjusting entries, financial...Ch. 4 - Complete accounting cycle For the past several...Ch. 4 - The unadjusted trial balance of PS Music as of...Ch. 4 - Kelly Pitney began her consulting business, Kelly...Ch. 4 - Prob. 4.1CPCh. 4 - Communication Your friend, Daniel Nat, recently...Ch. 4 - Financial statements The following is an excerpt...Ch. 4 - Financial statements Assume that you recently...
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