Financial Accounting (12th Edition) (What's New in Accounting)
12th Edition
ISBN: 9780134725987
Author: C. William Thomas, Wendy M. Tietz, Walter T. Harrison Jr.
Publisher: PEARSON
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Textbook Question
Chapter 9, Problem 9.22AE
LO 4, 5
(Learning Objectives 4, 5: Analyze current and long-term liabilities; evaluate debt-paying ability) EnviroFriend Structures. Inc., builds environmentally sensitive structures. The company’s 2018 revenues totaled $2.780 million. At December 31, 2018, and 2017, the company had, respectively, $656 million and $591 million in current assets. The company’s
Requirements
1. Describe each of EnviroFriend’s long-term liabilities and state how the liability arose.
2. What were the company’s total assets at December 31, 2018? Evaluate the company’s leverage and debt ratios at the end of 2017 and 2018. Use year-end figures in place of average where needed for calculating the ratios in this exercise. Did the company improve, deteriorate, or remain about the same over the year?
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E6-17. Liquidity Analyses. [Learning Objective B] Use the following excerpt of Dragonfly
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Assets (dollars in millions)
Current assets
Cash and cash equivalents
Marketable securities
Accounts receivable trade-net
Inventories
Prepaid expenses and other receivables
Total current assets
Property, plant, and equipment-net
Other assets
Total assets
2023
$ 13,420
7623
22,120
47415
1,312
91,890
67045
3,773
$162,708
$ 19,355
2,394
20,872
45,630
1,264
89,515
65.762
3,770
$159.047
You have been provided with the following information for City Projects Ltd:
Statement of Comprehensive Income for the year ended 31 March 2021
R
Revenue (all credit)
Gross profit
Operating profit
Interest expense
610 000
390 000
170 000
17 000|
Profit before tax
153 000
Net profit after tax
110 000
Statement of Financial Position as at 31 March 2021
R
R
Assets
Non -current assets
700 000
Current assets
340 000
Inventory
70 000
REGENT BUSINESS SCHOOL (RBS) JANUARY 2022
16
POSTGRADUATE DIPLOMA IN PROJECT MANAGEMENT - ACADEMIC AND ASSESSMENT CALENDAR
Debtors
150 000
Bank
120 000
1 040 000
Equity and Liabilities
Owners' equity
600 000
Non-current liabilities
300 000
Current liabilities
140 000
1040 000
Required:
Calculate and comment on each of the following ratios (where applicable round off answers to two
decimal places):
4.1 Gross margin
4.2 Current ratio
4.3 Acid-test ratio
You have been provided with the following information for City Projects Ltd:
Statement of Comprehensive Income for the year ended 31 March 2021
R
Revenue (all credit)
Gross profit
Operating profit
Interest expense
610 000
390 000
170 000
17 000|
Profit before tax
153 000
Net profit after tax
110 000
Statement of Financial Position as at 31 March 2021
R
R
Assets
Non -current assets
700 000
Current assets
340 000
Inventory
70 000
REGENT BUSINESS SCHOOL (RBS) JANUARY 2022
16
POSTGRADUATE DIPLOMA IN PROJECT MANAGEMENT - ACADEMIC AND ASSESSMENT CALENDAR
Debtors
150 000
Bank
120 000
1 040 000
Equity and Liabilities
Owners' equity
600 000
Non-current liabilities
300 000
Current liabilities
140 000
1040 000
Required:
Calculate and comment on each of the following ratios (where applicable round off answers to two
decimal places):
4.4 Debtors collection period
4.5 Inventory turnover
4.6 Return on assets
Chapter 9 Solutions
Financial Accounting (12th Edition) (What's New in Accounting)
Ch. 9 - Brownlee Company issued 525,000, 8%, six-year...Ch. 9 - A bond with a face value of 250,000 and a quoted...Ch. 9 - Mission Furniture issued 500,000 in bonds payable...Ch. 9 - Bonds with an 8% stated interest rate were issued...Ch. 9 - Brimfest Corporation issued 2,400,000, 10-year, 6%...Ch. 9 - The Discount on Bonds Payable account a.is an...Ch. 9 - The discount on a bond payable becomes...Ch. 9 - The carrying value of Bonds Payable equals a.Bonds...Ch. 9 - Prob. 9QCCh. 9 - Prob. 10QC
Ch. 9 - Prob. 11QCCh. 9 - When a company retires bonds early, the gain or...Ch. 9 - Which type of lease will not increase a companys...Ch. 9 - Prob. 14QCCh. 9 - The debt ratio is calculated by dividing: a. total...Ch. 9 - Prob. 16QCCh. 9 - Prob. 17QCCh. 9 - Prob. 9.1ECCh. 9 - Prob. 9.1SCh. 9 - (Learning Objective 1: Determine bond prices at...Ch. 9 - (Learning Objective 1: Journalize basic bond...Ch. 9 - Prob. 9.4SCh. 9 - Prob. 9.5SCh. 9 - Prob. 9.6SCh. 9 - Prob. 9.7SCh. 9 - Prob. 9.8SCh. 9 - (Learning Objective 2: Account for bonds payable...Ch. 9 - Prob. 9.10SCh. 9 - LO 4,5 (Learning Objectives 4, 5: Deferred income...Ch. 9 - LO 5 (Learning Objective 5: Compute and evaluate...Ch. 9 - LO 5 (Learning Objective 5: Calculate the leverage...Ch. 9 - LO 6 (Learning Objective 6: Report liabilities)...Ch. 9 - (Learning Objective 1: Issue bonds payable...Ch. 9 - Prob. 9.16AECh. 9 - Prob. 9.17AECh. 9 - LO 2 (Learning Objective 2: Issue bonds payable...Ch. 9 - Prob. 9.19AECh. 9 - LO 4 (Learning Objective 4: Account for deferred...Ch. 9 - (Learning Objective 5: Evaluate debt-paying...Ch. 9 - LO 4, 5 (Learning Objectives 4, 5: Analyze current...Ch. 9 - Prob. 9.23AECh. 9 - (Learning Objective 1: Issue bonds payable...Ch. 9 - Prob. 9.25BECh. 9 - Prob. 9.26BECh. 9 - Prob. 9.27BECh. 9 - Prob. 9.28BECh. 9 - LO 4 (Learning Objective 4: Account for deferred...Ch. 9 - Prob. 9.30BECh. 9 - Prob. 9.31BECh. 9 - Prob. 9.32BECh. 9 - A bond with a face amount of 12,000 has a current...Ch. 9 - The carrying value on bonds equals Bends Payable...Ch. 9 - Prob. 9.35QCh. 9 - Prob. 9.36QCh. 9 - Prob. 9.37QCh. 9 - Prob. 9.38QCh. 9 - Prob. 9.39QCh. 9 - Prob. 9.40QCh. 9 - Prob. 9.41QCh. 9 - Prob. 9.42QCh. 9 - Prob. 9.43QCh. 9 - Prob. 9.44QCh. 9 - Prob. 9.45QCh. 9 - Prob. 9.46QCh. 9 - Prob. 9.47QCh. 9 - Prob. 9.48QCh. 9 - Prob. 9.49QCh. 9 - Prob. 9.50APCh. 9 - (Learning Objectives 1, 6: Issue bonds at a...Ch. 9 - Prob. 9.52APCh. 9 - Prob. 9.53APCh. 9 - (Learning Objectives 2, 3, 6: Issue convertible...Ch. 9 - Prob. 9.55APCh. 9 - Prob. 9.56BPCh. 9 - Prob. 9.57BPCh. 9 - Prob. 9.58BPCh. 9 - Prob. 9.59BPCh. 9 - (Learning Objectives 2, 3, 6: Issue convertible...Ch. 9 - (Learning Objectives 4, 5, 6: Report liabilities...Ch. 9 - Prob. 9.62CEPCh. 9 - Prob. 9.63CEPCh. 9 - Prob. 9.64SCCh. 9 - (Learning Objective 5: Explore an actual...Ch. 9 - Prob. 1FF
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