Concept explainers
a.
The impact on assets and liabilities in terms of absolute dollar impact and percentage change if the company makes the most conservative choices.
Given information:
The
b.
The impact on assets and liabilities in terms of absolute dollar impact and percentage change if the company makes the least conservative choices.
c.
The impact on the current ratio and debt to equity ratio of the given adjustments in most and least conservative choices.
d.
To explain: Whether management will take care about the choices related to given adjustments.
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Intermediate Accounting (2nd Edition)
- Just Dew It Corporation 2018 and 2019 Balance Sheets Assets Liabilities and Owner’s Equity 2018 2019 2018 2019 Current Assets Current Liabilities Cash $11,135 $13,407 Accounts payable $45,166 $48,185 Accounts Receivable 28,419 30,915 Notes payable 17,773 18,257 Inventory 51,163 56,295 Total $62,939 $66,442 Total $90,717 $100,617 Long term debt $44,000 $39,000 Owners’ equity Net plant and equipment $326,456 $357,560 Common stock and paid-in surplus $50,000 $50,000 Retained earnings 260,234 302,735 Total $310,234 $352,735 Total assets $417,173 $458,177 Total liabilities and owners’ equity $417,173 $458,177 For each account on this company’s balance sheet, show the change in the account during 2019 and note…arrow_forwardFont Paragraph Styles The current asset section of the Excalibur Tire Company's balance sheet consists of cash, marketable securities, accounts receivable, and inventory. The December 31, 2021, balance sheet revealed the following: Inventory Total assets Current ratio Acid-test ratio Debt to equity ratio $1,000,000 $3,500,000 2.20 1.20 1.5 Required: Determine the following 2021 balance sheet items: 1. Current assets 2. Shareholders' equity 3. Long-term assets 4. Long-term liabilitiesarrow_forwardSandhill Co. has these comparative balance sheet data: SANDHILL CO.Balance SheetsDecember 31 2020 2019 Cash $ 29,205 $ 58,410 Accounts receivable (net) 136,290 116,820 Inventory 116,820 97,350 Plant assets (net) 389,400 350,460 $671,715 $623,040 Accounts payable $ 97,350 $ 116,820 Mortgage payable (15%) 194,700 194,700 Common stock, $10 par 272,580 233,640 Retained earnings 107,085 77,880 $671,715 $623,040 Additional information for 2020: 1. Net income was $34,900. 2. Sales on account were $378,200. Sales returns and allowances amounted to $29,600. 3. Cost of goods sold was $204,700. 4. Net cash provided by operating activities was $57,300. 5. Capital expenditures were $28,200, and cash dividends were $13,800. Compute the following ratios at December 31, 2020. (Round current ratio and inventory turnover to 2 decimal places, e.g. 1.83…arrow_forward
- Sandhill Co. has these comparative balance sheet data: SANDHILL CO.Balance SheetsDecember 31 2020 2019 Cash $ 29,205 $ 58,410 Accounts receivable (net) 136,290 116,820 Inventory 116,820 97,350 Plant assets (net) 389,400 350,460 $671,715 $623,040 Accounts payable $ 97,350 $ 116,820 Mortgage payable (15%) 194,700 194,700 Common stock, $10 par 272,580 233,640 Retained earnings 107,085 77,880 $671,715 $623,040 Additional information for 2020: 1. Net income was $34,900. 2. Sales on account were $378,200. Sales returns and allowances amounted to $29,600. 3. Cost of goods sold was $204,700. 4. Net cash provided by operating activities was $57,300. 5. Capital expenditures were $28,200, and cash dividends were $13,800. Only the first 3 were answered the last time, I need all of these answered now. Compute the following ratios at December 31,…arrow_forwardNeed help filling in the blank area'sarrow_forwardFinancial statements for the Genatron Manufacturing Corporation for the years 2020 and 2019 are shown. Genatron Manufacturing CorporationBalance Sheet 2020 2019 ASSETS Cash $41,847 $50,643 Accts. receivable 261,201 201,804 Inventory 504,430 450,954 Total current assets 807,478 703,401 Fixed assets, net 400,000 300,000 Total assets $1,207,478 $1,003,401 LIABILITIES AND EQUITY Accts. payable $170,208 $134,265 Bank loan 91,242 91,242 Accruals 70,000 50,000 Total current liabilities 331,450 275,507 Long-term debt, 12% 392,625 293,723 Common stock, $10 par 300,000 300,000 Capital surplus 48,173 48,173 Retained earnings 135,230 85,998 Total liabilities & equity $1,207,478 $1,003,401 Genatron Manufacturing CorporationIncome Statement 2020 2019…arrow_forward
- PROBLEM I The current asset section of the statement of financial position prepared by the accountant of II Company as of December 31, 2024 as follows: Current Assets: Cash Financial asset at fair value through profit or loss Accounts receivable Inventory Other current assets TOTAL CURRENT ASSETS 536,000 500,000 3,285,000 3,500,000 140,000 P7,961,000 The company determines its inventory at year-end by physical count. An examination of the accounts showed the following: a. On December 31, 2024, the company issued and recorded a check payable to a vendor dated January 15, 2025 in the amount of P80,000. b. The financial assets were purchased during the year 2024 for P500,000. Fair value at December 31 was P550,000. c. Accounts receivable includes selling price of goods invoiced to a customer on December 27, 2024. The goods cost P120,000 and were billed at 150% of cost. The goods were shipped FOB destination on December 27, 2024 and were received by the customer on January 5, 2025. d.…arrow_forwardHelp me answer this A. Marketable securities for general aviation inc for 2020 B. Accounts receivable for general aviation inc for 2020 C.Inventory for general aviation inc for 2020arrow_forwardSolar Electric Inc. Balance Sheet 32 Marks ACB As at December 31, 2023 Account Title Debit Credit Assets Current Assets Cash 100,649 Accounts Receivable 35,860 Interest Rceivable 9,113 Prepaid Insurance 7,370 Short-Term Investment- Citi Inc 237,000 Short-Term Investment- Bonds 135,000 Inventory 90,640 Valuation Allowance for Fair Value Adjustment 50,700 Total Current Assets 666,332 Non-current Assets Investment in HSBC Inc. Common Shares 503,840 Long-Term Investment- Bond 145,000 Property, Plant & Equipment 280,000 Accumulated Depreciation 86,000 Total Non-Current Assets 842,840 Total Assets 1,509,172 Liabilities Current Liabilities Accounts Payable 212,400 Interest Payable 31,167 Unearned Revenue 21,000 Total Current Liabilities 264,567 Long-Term Liabilities Bonds Payable 340,000 Discount on Bonds Payable 15,741 Bank Loan 225,000 Total-Long Term Liabilities 549,259 Total Liabilities 813,826 Shareholders Equity Common Shares 362,000 Preferred Shares 80,000 Retained Earnings 348,385…arrow_forward
- What is Ratio Corporation's Fiscal 2021 Times Interest Earned Ratio? 1.41 2.57 4.5 1.63arrow_forwardLendell Company has these comparative balance sheet data: Lendell CompanyBalance SheetsDecember 31 2020 2019 Cash $ 16,000 $ 31,000 Accounts receivable (net) 69,000 60,000 Inventory 59,000 51,000 Plant assets (net) 198,000 179,000 $342,000 $321,000 Accounts payable $50,000 $60,700 Mortgage payable (15%) 107,500 107,500 Common stock, $10 par 136,500 121,000 Retained earnings 48,000 31,800 $342,000 $321,000 Additional information for 2020: 1. Net income was $24,700. 2. Sales on account were $414,050. Sales returns and allowances amounted to $20,600. 3. Cost of goods sold was $198,000. 4. Net cash provided by operating activities was $44,300. 5. Capital expenditures were $26,400, and cash dividends were $8,800. Compute the following ratios at December 31, 2020. (Round current ratio to 2 decimal places, e.g. 1.67. Round…arrow_forwardCullumber Company has these comparative balance sheet data: CULLUMBER COMPANYBalance SheetsDecember 31 2022 2021 Cash $ 16,350 $ 32,700 Accounts receivable (net) 76,300 65,400 Inventory 65,400 54,500 Plant assets (net) 218,000 196,200 $376,050 $348,800 Accounts payable $ 54,500 $ 65,400 Mortgage payable (15%) 109,000 109,000 Common stock, $10 par 152,600 130,800 Retained earnings 59,950 43,600 $376,050 $348,800 Additional information for 2022: 1. Net income was $34,000. 2. Sales on account were $383,300. Sales returns and allowances amounted to $26,600. 3. Cost of goods sold was $200,600. 4. Net cash provided by operating activities was $59,000. 5. Capital expenditures were $26,400, and cash dividends were $16,500. Compute the following ratios at December 31, 2022. (Round current ratio and inventory turnover to 2 decimal…arrow_forward
- Intermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning