Intermediate Accounting (2nd Edition)
2nd Edition
ISBN: 9780134730370
Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Publisher: PEARSON
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Chapter 6, Problem 1JC
a.
To determine
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.
To determine
The impact on assets and liabilities in terms of absolute dollar impact and percentage change if the company makes the least conservative choices.
c.
To determine
The impact on the current ratio and debt to equity ratio of the given adjustments in most and least conservative choices.
d.
To determine
To explain: Whether management will take care about the choices related to given adjustments.
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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…
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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 liabilities
Financial 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…
Chapter 6 Solutions
Intermediate Accounting (2nd Edition)
Ch. 6 - What are the limitations of the balance sheet?Ch. 6 - What does a firms liquidity measure?Ch. 6 - Prob. 6.3QCh. 6 - What are the four major components of stockholders...Ch. 6 - Prob. 6.5QCh. 6 - Prob. 6.6QCh. 6 - Where is accumulated other comprehensive income...Ch. 6 - Prob. 6.8QCh. 6 - Prob. 6.9QCh. 6 - What are the two main balance sheet formats?...
Ch. 6 - Prob. 6.11QCh. 6 - Prob. 6.12QCh. 6 - What are the two formatting options for reporting...Ch. 6 - What is financial statement articulation?Ch. 6 - How is net income closed? Is the closing entry the...Ch. 6 - Why are the notes to the financial statements an...Ch. 6 - Prob. 6.17QCh. 6 - What is a subsequent event?Ch. 6 - What is a subsequent event under IFRS?Ch. 6 - How do firms report a material subsequent event on...Ch. 6 - Prob. 6.21QCh. 6 - Over what period must management assess the...Ch. 6 - Prob. 6.23QCh. 6 - Prob. 6.24QCh. 6 - Prob. 6.25QCh. 6 - Prob. 6.26QCh. 6 - Prob. 6.27QCh. 6 - Prob. 6.28QCh. 6 - Prob. 6.29QCh. 6 - Prob. 6.30QCh. 6 - Prob. 6.31QCh. 6 - Who is responsible for designing and implementing...Ch. 6 - Prob. 6.33QCh. 6 - What are the two key measures of liquidity?...Ch. 6 - What does the debt-to-equity ratio measure for a...Ch. 6 - What does a high current ratio indicate about a...Ch. 6 - Is it useful to compare working capital among...Ch. 6 - Sykes Corporations comparative balance sheets at...Ch. 6 - During Year 1, Brianna Company had the following...Ch. 6 - Which of the following items would not be included...Ch. 6 - Kong Co. purchased a three-month U.S. Treasury...Ch. 6 - Prob. 6.5MCCh. 6 - Prob. 6.6MCCh. 6 - In its year-end income statement, Black Knights...Ch. 6 - On is current year income statement, Vegas...Ch. 6 - Advantages of the Statement of Financial Position....Ch. 6 - Prob. 6.2BECh. 6 - Prob. 6.3BECh. 6 - Account Classification: Current and Noncurrent...Ch. 6 - Classified Balance Sheet. Armstrong Associates...Ch. 6 - Classified Balance Sheet, Report Format. Martell...Ch. 6 - Classified Balance Sheet, Account Format. Using...Ch. 6 - Classified Balance Sheet. Report Format.Bowe...Ch. 6 - Classified Balance Sheet, Account Format. Using...Ch. 6 - Classification as Operating. Investing, or...Ch. 6 - Prob. 6.11BECh. 6 - Classification as Operating, Investing, or...Ch. 6 - Classification as Operating. Investing, or...Ch. 6 - Classification as Operating, Investing, or...Ch. 6 - Classification as Operating, Investing, or...Ch. 6 - Classification as Operating, Investing, or...Ch. 6 - Classification as Operating, Investing, or...Ch. 6 - Prob. 6.18BECh. 6 - Statement of Cash Flows, Indirect Method. Identity...Ch. 6 - Financial Statement Articulation. Complete the...Ch. 6 - Prob. 6.21BECh. 6 - Prob. 6.22BECh. 6 - Prob. 6.23BECh. 6 - Prob. 6.24BECh. 6 - Statement of Cash Flows, Indirect Method. Tennis...Ch. 6 - Statement of Cash Flows, Direct Method. Use the...Ch. 6 - Prob. 6.27BECh. 6 - Ratio Analyses. Green Grasshopper Incorporated is...Ch. 6 - Classification of Assets and Liabilities. Darin...Ch. 6 - Prob. 6.2ECh. 6 - Prob. 6.3ECh. 6 - Prob. 6.4ECh. 6 - Prepare Balance Sheet. Blackburn Building Products...Ch. 6 - Prepare Balance Sheet. Lake Company provided the...Ch. 6 - Statement of Cash Flows, Indirect Method. Tulsa...Ch. 6 - Prob. 6.8ECh. 6 - Prob. 6.9ECh. 6 - Prob. 6.10ECh. 6 - Prob. 6.11ECh. 6 - Financial Statement Articulation. Use the...Ch. 6 - Prob. 6.13ECh. 6 - Prob. 6.14ECh. 6 - Prob. 6.15ECh. 6 - Prob. 6.16ECh. 6 - Prob. 6.17ECh. 6 - Solvency Analyses. The following items are from...Ch. 6 - Prepare Balance Sheet. Larkin Corporation provided...Ch. 6 - Prob. 6.2PCh. 6 - Prepare Balance Sheet. Jennings Incorporated...Ch. 6 - Prepare Stockholders Equity Section of Balance...Ch. 6 - Prepare Stockholders Equity Section of Balance...Ch. 6 - Prepare Classified Balance Sheet.Centre Company...Ch. 6 - Prepare a classified balance sheet at December 31...Ch. 6 - Contents of the Annual Report, Financial Statement...Ch. 6 - Statement of Cash Flows, Operating Activities...Ch. 6 - Statement of Cash Flows, Operating Activities...Ch. 6 - Statement of Cash Flows, Direct Method. Prepare...Ch. 6 - Statement of Cash Flows, Indirect Method. Prepare...Ch. 6 - Prob. 6.13PCh. 6 - Statement of Cash Flows, Operating Activities...Ch. 6 - Statement of Cash Flows, Direct Method. Prepare...Ch. 6 - Prob. 6.16PCh. 6 - Prob. 1JCCh. 6 - UseFoot Locker. Inc.sbalance sheet and other...Ch. 6 - Prob. 1SSCCh. 6 - Surfing the Standards Case 2: True and Fair...Ch. 6 - Basis for Conclusions Cases Basis for Conclusions...Ch. 6 - Prob. 2BCC
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