Survey of Accounting (Accounting I)
8th Edition
ISBN: 9781305961883
Author: Carl Warren
Publisher: Cengage Learning
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Chapter 5, Problem 5.1.5MBA
Ratio of cash to monthly cash expenses
AcelRx Pharmaceuticals, Inc. (ACRX),
Develops therapies for pain relief for a variety of patients. including cancer and trauma patients. The following data (in thousands) were adapted from financial statements of a recent year.
AceIRx had negative
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Cash to Monthly Cash Expenses Ratio
Amicus Therapeutics, Inc., is a biopharmaceutical company that develops drugs for the treatment of various diseases, including Parkinson’s disease. Amicus Therapeutics reported the following financial data (in thousands) for three recent years:
For Years Ended December 31
Year 3
Year 2
Year 1
Cash and cash equivalents
$11,880
$19,170
$31,820
Net cash flows from operations
(26,400)
(32,400)
(44,400)
a. Determine the monthly cash expenses for Year 3, Year 2, and Year 1 (in thousands).
Year 3:
$fill in the blank 1 per month
Year 2:
$fill in the blank 2 per month
Year 1:
$fill in the blank 3 per month
b. Determine the ratio of cash to monthly cash expenses for Year 3, Year 2, and Year 1 as of December 31. Round to one decimal place.
Year 3:
fill in the blank 4 months
Year 2:
fill in the blank 5 months
Year 1:
fill in the blank 6 months
Fan-Tastic Sports Gear Inc. recorded $2,900,000 of sales last year and projects sales to increase by $350,000 in the current year. Last year, 80% of sales were on account, with övel
300 customer accounts. Bad debt expense was $26, 187.
1. Assume that Fan-Tastic Sports Gear Inc. used the allowance method last year, and the allowance account at the end of the year had a debit balance of $2.240. The company
estimated uncollectible accounts expense using the percent of credit sales method and expected 0.75% of credit sales to be uncollectible. What is the amount of the adjusting entry
to provide for doubtful accounts on December 317 Round all computations to the nearest dollar. S
2. How much higher (lower) would Fan-Tastic Sports Gear Inc's net income have been under the allowance method assumption previously shown in (1) than under the direct write off
method? (Enter "o it there is no change.) Higher by S
Balance sheet
3. Usina the allowance method, the net realizable value of the…
Self Test Problems:
Note: When converting from annual data to daily data or vice versa, assume there are 365 days per
year.
The Stower Manufacturing Company's balance sheet and income statement for last year are as follows:
Balance Sheet (in Millions of Dollars)
Liabilities and Equity
$887 Accounts payable
2,075 Accrued liabilities (salaries and
Assets
Cash and marketable securities
$724
Accounts receivable
benefits)
2,120 Other current liabilities
332
Inventories*
1,665
Other current assets
300 Total current liabilities
2,721
$5,382 Long-term debt and other liabilities
3,707 Common stock
687 Retained earnings
Total current assets
1,677
Plant and equipment (net)
296
Other assets
5,082
.------
Total assets
$9,776 Total stockholders' equity
$5,378
Total liabilities and equity
$9,776
*Assume that averoge inventory over the year $2,120 milion, that is, the same as ending inventory.
Income Statement (in Millions of Dollars)
$11,990
6,946
2,394
Net Sales*
Cost of sales
Selling, general, and…
Chapter 5 Solutions
Survey of Accounting (Accounting I)
Ch. 5 - Prob. 1SEQCh. 5 - Prob. 2SEQCh. 5 - Prob. 3SEQCh. 5 - Adjustments to the company’s records based on the...Ch. 5 - Prob. 5SEQCh. 5 - Prob. 1CDQCh. 5 - Prob. 2CDQCh. 5 - Prob. 3CDQCh. 5 - Prob. 4CDQCh. 5 - Prob. 5CDQ
Ch. 5 - Prob. 6CDQCh. 5 - Prob. 7CDQCh. 5 - Prob. 8CDQCh. 5 - Prob. 9CDQCh. 5 - Assume that Leslie Hunter, accounts payable clerk...Ch. 5 - Prob. 11CDQCh. 5 - The accounting clerk pays all obligations by...Ch. 5 - Prob. 13CDQCh. 5 - Prob. 14CDQCh. 5 - Do items reported as a credit memorandum on the...Ch. 5 - Prob. 16CDQCh. 5 - Prob. 17CDQCh. 5 - Prob. 5.1ECh. 5 - Prob. 5.2ECh. 5 - Prob. 5.3ECh. 5 - Prob. 5.4ECh. 5 - Prob. 5.5ECh. 5 - Prob. 5.6ECh. 5 - Prob. 5.7ECh. 5 - Prob. 5.8ECh. 5 - Prob. 5.9ECh. 5 - Prob. 5.10ECh. 5 - Prob. 5.11ECh. 5 - Prob. 5.12ECh. 5 - Prob. 5.13ECh. 5 - Prob. 5.14ECh. 5 - Prob. 5.15ECh. 5 - Prob. 5.16ECh. 5 - Prob. 5.17ECh. 5 - Prob. 5.18ECh. 5 - Prob. 5.19ECh. 5 - Entries for note collected by bank Accompanying a...Ch. 5 - Prob. 5.21ECh. 5 - Prob. 5.22ECh. 5 - Prob. 5.23ECh. 5 - Prob. 5.24ECh. 5 - Prob. 5.25ECh. 5 - Prob. 5.1PCh. 5 - Prob. 5.2.1PCh. 5 - Prob. 5.2.2PCh. 5 - Prob. 5.3.1PCh. 5 - Prob. 5.3.2PCh. 5 - Prob. 5.4.1PCh. 5 - Prob. 5.4.2PCh. 5 - Prob. 5.4.3PCh. 5 - Prob. 5.4.4PCh. 5 - Prob. 5.1.1MBACh. 5 - Prob. 5.1.2MBACh. 5 - Prob. 5.1.3MBACh. 5 - Prob. 5.1.4MBACh. 5 - Ratio of cash to monthly cash expenses AcelRx...Ch. 5 - Prob. 5.2.1MBACh. 5 - Prob. 5.2.2MBACh. 5 - Ratio of cash to monthly cash expenses Pacira...Ch. 5 - Ratio of cash to monthly cash expenses Pacira...Ch. 5 - Prob. 5.2.5MBACh. 5 - Prob. 5.3.1MBACh. 5 - Prob. 5.3.2MBACh. 5 - Prob. 5.3.3MBACh. 5 - Prob. 5.3.4MBACh. 5 - Prob. 5.3.5MBACh. 5 - Prob. 5.4.1MBACh. 5 - Prob. 5.4.2MBACh. 5 - Prob. 5.1CCh. 5 - Prob. 5.2CCh. 5 - Prob. 5.3CCh. 5 - Prob. 5.4CCh. 5 - Prob. 5.5.1CCh. 5 - Prob. 5.5.2CCh. 5 - Prob. 5.5.3CCh. 5 - Prob. 5.6C
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