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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Textbook Question
Chapter 4, Problem 4.8ME
Reporting an Income Statement with Earnings per Share
Romncy’s Marketing Company has the following adjusted
| Debit | Credit | |
| Cash | 1,500 | |
| 2,200 | ||
| Interest receivable | 100 | |
| Prepaid insurance | 1,600 | |
| Long-term notes receivable | 2,800 | |
| Equipment | 15,290 | |
| 3,000 | ||
| Accounts payable | 2,400 | |
| Accrued expenses payable | 3,920 | |
| Income taxes payable | 2,700 | |
| Unearned rent revenue | 500 | |
| Common stock (800 shares) | 80 | |
| Additional paid-in capital | 3,620 | |
| Retained camings | 2,000 | |
| Sales revenue | 38,500 | |
| Interest revenue | 100 | |
| Rent revenue | 800 | |
| Wages expense | 19,500 | |
| Depreciation expense | 1,800 | |
| Utilities expense | 380 | |
| Insurance expense | 750 | |
| Rent expense | 9,000 | |
| Income tax expense | 2,700 | |
| Total | 57,620 | 57,620 |
Prepare a multistep income statement in good form for the current year. Include earnings per share (rounded to two decimal places).
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1. Accounts receivable turnover (assume all sales are on account)
2. Average collection period
Weat.
Sub: accounting
Solomon Company's income statement information follows:
Net sales
Income before interest and taxes
Net income after taxes
Interest expense
Stockholders' equity, December 31 (Year 1: $197,000)
Common stock, December 31
The average number of shares outstanding was 7,700 for Year 3 and 7,000 for Year 2.
Required
Compute the following ratios for Solomon for Year 3 and Year 2.
a. Number of times interest was earned.
Note: Round your answer to 2 decimal places.
a. Times interest earned
b. Earnings per share
c. Price-earnings ratio
d. Return on average equity
e. Net margin
Year 3
b. Earnings per share based on the average number of shares outstanding.
Note: Round your answer to 2 decimal places.
c. Price-earnings ratio (market prices: Year 3, $64 per share; Year 2, $73 per share).
Note: Round your answer to 2 decimal places.
d. Return on average equity.
Note: Round your percentage answer to 2 decimal places (for example, 0.2345 should be entered as 23.45).
e. Net margin.
Note: Round your…
Chapter 4 Solutions
Connect Access Card for Financial Accounting
Ch. 4 - What is the purpose of recording adjusting...Ch. 4 - List the four types of adjusting entries, and give...Ch. 4 - What is a contra-asset? Give an example of one.Ch. 4 - Explain how the financial statements relate to...Ch. 4 - What is the equation for each of the following...Ch. 4 - Explain the effect of adjusting entries on cash.Ch. 4 - How is earnings per share computed and...Ch. 4 - Prob. 8QCh. 4 - What are the purposes for closing the books?Ch. 4 - Differentiate among (a) permanent, (b) temporary,...
Ch. 4 - Explain why the income statement accounts are...Ch. 4 - Prob. 12QCh. 4 - Which of the following accounts would not appear...Ch. 4 - Which account is least likely to appear in an...Ch. 4 - Prob. 3MCQCh. 4 - On June 1, 2016, Oakcrest Company signed a...Ch. 4 - Prob. 5MCQCh. 4 - An adjusted trial balance a. Shows the ending...Ch. 4 - JJ Company owns a building. Which of the following...Ch. 4 - Prob. 8MCQCh. 4 - Prob. 9MCQCh. 4 - If a company is successful in acquiring several...Ch. 4 - Preparing a Trial Balance Hagadorn Company has the...Ch. 4 - Matching Definitions with Terms Match each...Ch. 4 - Matching Definitions with Terms Match each...Ch. 4 - Recording Adjusting Entries (Deferred Accounts) In...Ch. 4 - Determining Financial Statement Effects of...Ch. 4 - Recording Adjusting Entries (Accrued Accounts) In...Ch. 4 - Prob. 4.7MECh. 4 - Reporting an Income Statement with Earnings per...Ch. 4 - Prob. 4.9MECh. 4 - Reporting an Income Statement with Earnings per...Ch. 4 - Prob. 4.11MECh. 4 - Recording Closing Entries Refer to the adjusted...Ch. 4 - Prob. 4.1ECh. 4 - Prob. 4.2ECh. 4 - Recording Adjusting Entries Diane Company...Ch. 4 - Prob. 4.4ECh. 4 - Prob. 4.5ECh. 4 - Recording Adjusting Entries and Reporting Balances...Ch. 4 - Determining Financial Statement Effects of...Ch. 4 - Recording Seven Typical Adjusting Entries...Ch. 4 - Prob. 4.9ECh. 4 - Determining Financial Statement Effects of Seven...Ch. 4 - Determining Financial Statement Effects of Seven...Ch. 4 - Recording Transactions Including Adjusting and...Ch. 4 - Prob. 4.13ECh. 4 - Determining Financial Statement Effects of...Ch. 4 - Inferring Transactions Deere Company is the...Ch. 4 - Analyzing the Effects of Errors on Financial...Ch. 4 - Prob. 4.17ECh. 4 - Recording the Effects of Adjusting Entries and...Ch. 4 - Reporting a Correct Income Statement with Earnings...Ch. 4 - Recording Four Adjusting Entries and Completing...Ch. 4 - Prob. 4.21ECh. 4 - Recording Four Adjusting Entries and Completing...Ch. 4 - Prob. 4.1PCh. 4 - Prob. 4.2PCh. 4 - Prob. 4.3PCh. 4 - Prob. 4.4PCh. 4 - Prob. 4.5PCh. 4 - Prob. 4.6PCh. 4 - Prob. 4.7PCh. 4 - Prob. 4.1APCh. 4 - Prob. 4.2APCh. 4 - Prob. 4.3APCh. 4 - Prob. 4.4APCh. 4 - Determining Financial Statement Effects of...Ch. 4 - Prob. 4.6APCh. 4 - Prob. 4.7APCh. 4 - Prob. 4.1CONCh. 4 - Recording Transactions (Including Adjusting and...Ch. 4 - Recording Transactions (Including Adjusting and...Ch. 4 - Finding Financial Information Refer to the...Ch. 4 - Finding Financial Information Refer to the...Ch. 4 - Comparing Companies within an Industry and Over...Ch. 4 - Prob. 4.4CPCh. 4 - Prob. 4.5CPCh. 4 - Prob. 4.6CPCh. 4 - Prob. 4.7CPCh. 4 - Prob. 4.8CPCh. 4 - Prob. 4.9CP
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