Signin/Signup
Signin/Signup
Info
Warning
Danger

Accounting Answers, Flashcards, Essays and Textbook Solutions

The hard task of handling college homework is one of the most common challenges in the path of student success. No student ever says, "Hey I love homework! Give me more!" (However nerdy they are) Yet, it is an unavoidable part of your college experience.

Ask an Expert

Our Experts can answer your tough homework and study questions.

Answers in as fast as 15 minutes
Post a Question
For each of the following activities that may take place during the accounting period, indicate the effect (a-g) on the statement of cash flows prepared using the indirect method.  Choices may be selected as theanswer for more than one question. a.                        increase cash from operating activities b.                       decrease cash from operating activities c.                       .
12 Views
View Answer
139.  The comparative balance sheet of Barry Company for Years 1 and 2 ended December 31 appears below incondensed form: Year 2 Year 1 Cash $  72,000 $  42,500 Accounts receivable (net) 61,000 70,200 Inventories 121,000 105,000 Investments — 100,000 Equipment 515,000 425,000 Accumulated depreciation—equipment (153,000) (175,000) $616,000 $567,700 Accounts payable $ 59,750 $ 47,250 Bonds payable — 75,000 Common stock, $20 par 375,000 325,000 Premium on common stock 50,000 25,000 Retained earnings 131,250    95,450 $616,000 $567,700 Additional data for the current year are as follows: (a)        Net income,.
10 Views
View Answer
139.  Sales reported on the income statement were $690,000.  The accounts receivable balance declined $39,000 overthe year.  Determine the amount of cash received from customers. 140.  Selected data taken from the accounting records of Laser Inc. for the current year ended December 31 are asfollows: Balance,December 31 Balance,January 1 Accrued operating expenses $ 5,590 $ 6,110 Accounts.
9 Views
View Answer
138.  Condensed data taken from the ledger of St. Louis Company at December 31, for the current and preceding years,are as follows: Year 2 Year 1 Current assets $160,000 $130,000 Property, plant, and equipment 450,000 400,000 Intangible assets 20,700 30,000 Current liabilities 70,000 80,000 Long-term liabilities 210,000 250,000 Common stock 225,000 150,000 Retained earnings 125,700 80,000 Prepare a comparative balance sheet, with horizontal analysis, for December 31, Year 2 and Year 1. (Roundpercents to.
17 Views
View Answer
138.  A company reported the following: Net income $270,000 Preferred dividends $10,000 Shares of common stock outstanding 20,000 Market price per share of common stock $36.40 Calculate the company’s price­earnings ratio.  Round your answer to one decimal place. 139.  Why would you compare or not compare Coca-Cola and Pepsi-Cola (PepsiCo) as companies to each other? 140.  .
9 Views
View Answer
139.  Balances of the current asset and current liability accounts at the end and beginning of the year are as follows: End Beginning Cash $ 67,000 $73,000 Accounts receivable (net) 73,000 60,000 Inventories 54,000 47,000 Accounts payable (merchandise creditors) 43,000 37,000 Salaries payable 2,800 3,800 Sales (on account) 210,000 Cost of merchandise sold 70,000 Operating expenses other than depreciation 67,000 Use the direct method to prepare the cash flows from operating activities section of.
10 Views
View Answer
129.Which of the following would appear as an extraordinary item on the income statement? a.loss resulting from the sale of fixed assets b.gain resulting from the disposal of a segment of the business c.loss from land condemned for public use d.liquidating dividend 130.A loss on disposal of a segment would be reported in the income.
9 Views
View Answer
139.  The comparative balance sheet of ConnieJo Company, for December 31, Years 1 and 2 ended December 31appears below in condensed form: Cash Year 2 $  45,000 Year 1 $ 53,500 Accounts receivable (net) 51,300 58,000 Inventories 147,200 135,000 Investments 0 60,000 Equipment 493,000 375,000 Accumulated depreciation—equipment (113,700) (128,000) $622,800 $553,500 Accounts payable $61,500 $42,600 Bonds payable, due Year 4 0 100,000 Common stock, $10 par 250,000 200,000 50,000 160,900 $553,500 $623,000 348,500 $274,500 100,000 $174,500 Paid­in capital in excess of par—common stock 75,000 Retained earnings 236,300 $622,800 The income statement for.
11 Views
View Answer
69.Horizontal analysis is a technique for evaluating financial statement data a.for one period of time b.over a period of time c.on a certain date d.as it may appear in the future 70.Horizontal analysis of comparative financial statements includes a.development of common-sized statements b.calculation of liquidity ratios c.calculation of dollar amount changes and percentage changes from the previous to.
6 Views
View Answer
138.  Why would you or why wouldn’t you compare an organization like Ford Motor Company to the local car dealer“Johnson City Ford/Lincoln/Mercury” in vertical and horizontal analysis? 139.  The balance sheet data of Randolph Company for two recent years appears below: Assets: Year 2 Year 1 Current assets $ 440 $280 Plant assets 675 520 Total assets $1,115 $800 Liabilities and stockholders'.
10 Views
View Answer
139.  On the basis of the following data for Garrett Co. for Years 1 and 2 ended December 31, prepare a statement ofcash flows using the indirect method of reporting cash flows from operating activities.  Assume that equipmentcosting $125,000 was purchased for cash and equipment costing $85,000 with accumulated depreciation.
17 Views
View Answer
138.  The following selected data were taken from the financial statements of the Winter Group for the three most recentyears of operations: Dec. 31, Year 3 Dec.31, Year 2 Dec. 31, Year 1 Total assets $3,000,000 $2,700,000 $2,400,000 Notes payable (10% interest) 1,000,000 1,000,000 1,000,000 Common stock 400,000 400,000 400,000 Preferred $6 stock, $100 par 200,000 200,000 200,000 Retained earnings 1,126,000 896,000 600,000 The Year 3 net income was $242,000 and the Year 2.
11 Views
View Answer
138.  The following data are taken from the financial statements: Current Preceding Year Year Sales $3,600,000 $4,000,000 Cost of goods sold 2,000,000 2,700,000 Average inventory 372,000 352,000 Inventory, end of year 372,000 347,000 (a) (b) Determine for each year (1) the inventory turnover, round answer to one decimal place. (2) the number of days' sales in inventory. Round intermediate calculations to two decimalplaces and the final answer to whole.
14 Views
View Answer
138.  A company reports the following: Net income $150,000 Preferred dividends $10,000 Shares of common stock outstanding 20,000 Market price per share of common stock $35 Calculate the company’s earnings per share on common stock. 139.  A company reports the following: Net income $350,000 Preferred dividends 50,000 Average stockholders’ equity 1,000,000 Average common stockholders’ equity 800,000 Determine the (a) rate earned on stockholders’ equity, and (b) rate earned on.
8 Views
View Answer
138.  Cash and accounts receivable for Adams Company are provided below: Current Year Prior Year Cash $70,000 $50,000 Accounts receivable (net) 70,400 80,000 What is the amount and percentage of increase or decrease that would be shown with horizontal analysis? 139.  The following items were taken from the financial statements of Tilden, Inc., over a three-year period: Item Year 3 Year.
71 Views
View Answer
11.Using vertical analysis of the income statement, a company's net income as a percentage of sales is 15%;therefore, the cost of goods sold as a percentage of sales must be 85%. a.True b.False 12.In the vertical analysis of an income statement, each item is generally stated as a percentage of total assets. a.True b.False 13.Factors that.
17 Views
View Answer
138.  What is a major advantage of using percentages rather than dollar changes in doing horizontal and vertical analysis? 139.  The following items are reported on a company’s balance sheet: Cash $230,000 Marketable securities 50,000 Accounts receivable 200,000 Inventory 240,000 Accounts payable 300,000 Determine the (a) current ratio, and (b) quick ratio.  Round your answer to one decimal place. 140.  The following items.
10 Views
View Answer
139.  Selected data for the current year ended December 31 are as follows: Balance Balance December 31 January 1 Accrued expenses (operating expenses) $29,500 $ 22,000 Accounts payable (merchandise creditors) 90,000 135,000 Inventories 42,500 68,000 Prepaid expenses 23,000 20,000 During the current year, the cost of merchandise sold was $620,000 and the operating expenses other thandepreciation were $142,000.  The direct method is used for presenting the cash.
10 Views
View Answer
138.  Revenue and expense data for Bluestem Company are as follows: Year 2 Year 1 Administrative expenses $ 37,000 $ 20,000 Cost of goods sold 350,000 320,000 Income tax 40,000 32,000 Sales 800,000 700,000 Selling expenses 150,000 110,000 (a)          Prepare a comparative income statement, with vertical analysis, stating each item for bothyears as a percent of sales. (b)         Comment upon significant changes disclosed by the comparative income statement. Round percentages.
10 Views
View Answer
139.  The comparative balance sheets of Posner Company, for Years 1 and 2 ended December 31, appear below incondensed form: Cash Year 2 $ 53,000 Year 1 $ 50,000 Accounts receivable (net) 37,000 48,000 Inventories 108,500 100,000 Investments — 70,000 Equipment 573,200 450,000 Accumulated depreciation—equipment (142,000) (176,000) $629,700 $542,000 Accounts payable $ 62,500 $ 43,800 Bonds payable, due Year 2 — 100,000 Common stock, $10 par 325,000 285,000 Paid­in capital in excess of par—common stock 80,000 55,000 Retained earnings 162,200 58,200 $629,700 $542,000 The income statement for the current.
8 Views
View Answer
Identify the section of the statement of cash flows (a-d) where each of the following items would bereported.                     Operating activities                     Financing activities                     Investing activities                     Schedule of noncash financing and investing 181.        Increase in income taxes payable 182.        Dividends received on investment 183.        Sale of machinery held for use by the company 184.        Issuance of.
9 Views
View Answer
138.  A company reports the following: Sales$1,200,000 Average accounts receivable (net)50,000 Determine the (a) accounts receivable turnover, and (b) number of days’ sales in receivables. Round your answerto one decimal place. 139.  A company reports the following: Cost of goods sold$610,000 Average inventory80,000 Determine the (a) inventory turnover, and (b) number of days’ sales in inventory.   Round.
8 Views
View Answer
Indicate the section (operating activities, investing activities, financing activities, or none) in which each of thefollowing would be reported on the statement of cash flows prepared by the indirect method: (a)          gain on sale of fixed assets (b)         net income (c)          retirement of long-term debt (d)         sale of capital stock (e)          distribution of stock dividends (f)         .
13 Views
View Answer
41.The dividend yield rate is equal to the dividends per share divided by the par value per share of common stock. a.True b.False 42.Comparing dividends per share to earnings per share indicates the extent to which the corporation is retaining itsearnings for use in operations. a.True b.False 43.When you are interpreting financial ratios, it is useful.
12 Views
View Answer
138.  Revenue and expense data for Young Technologies are as follows: Year 2 Year 1 Sales $500,000 $440,000 Cost of goods sold 325,000 242,000 Selling expense 70,000 79,200 Administrative expenses 75,000 70,400 Income tax expense 10,500 16,400 (a)                 Prepare an income statement in comparative form, stating each item for both years as anamount and as a percent of sales. Round to the nearest whole percent. (b)                Comment on the.
20 Views
View Answer
139.  The Dickinson Company reported net income of $155,000 for the current year. Depreciation recorded on buildingsand equipment amounted to $65,000 for the year.  In addition, a building with an original cost of $250,000 andaccumulated depreciation of $190,000 on the date of the sale, was sold for $75,000.  Balances of.
16 Views
View Answer
138.  The following data are taken from the financial statements: Current Preceding Year Year Current assets $  745,000 $  820,000 Property, plant, and equipment 1,510,000 1,400,000 Current liabilities (non-interest-bearing) 160,000 140,000 Long-term liabilities, 12% 400,000 400,000 Preferred 10% stock 250,000 250,000 Common stock, $25 par 1,200,000 1,200,000 Retained earnings, beginning of year 230,000 160,000 Net income for year 110,000 155,000 Preferred dividends declared (25,000) (25,000) Common dividends declared (70,000) (60,000) Determine for the current year the (a) rate earned on total assets, (b) rate earned on stockholders'.
9 Views
View Answer
99.Based on the above data, what is the quick ratio, rounded to one decimal point? a. 1.7 b. 2.9 c. 1.1 d. 1.0 100.The tendency of the rate earned on stockholders' equity to vary disproportionately from the rate earned on totalassets is a.leverage b.solvency c.yield d.quick assets The balance sheets at the end of each of the first two years.
12 Views
View Answer
139.        Samuel Company’s accumulated depreciation—equipment increased by $6,000, while patents decreased by $2,200between balance sheet dates.  There were no purchases or sales of depreciable or intangible assets during theyear.  In addition, the income statement showed a loss of $3,200 from the sale of investments. Assume no changesin noncash current assets.
19 Views
View Answer
139.  The board of directors of Kendall Co. declared cash dividends totaling $390,000 during the current year.  Thecomparative balance sheet indicates dividends payable of $58,000 at the beginning of the year and $73,000 at theend of the year.  What was the amount of cash payments Kendall Co. made to stockholders.
7 Views
View Answer
21.A balance sheet shows cash, $75,000; marketable securities, $115,000; receivables, $150,000; and inventories,$222,500. Current liabilities are $225,000.  The current ratio is 2.5. a.True b.False 22.If a firm has a current ratio of 2, the subsequent receipt of a 60-day note receivable on account will cause the ratioto decrease. a.True b.False 23.If a firm has a quick.
8 Views
View Answer
59.The percentage analysis of increases and decreases in individual items in comparative financial statements is called a.vertical analysis b.solvency analysis c.profitability analysis d.horizontal analysis 60.Which of the following is the most useful in analyzing companies of different sizes? a.comparative statements b.common-sized financial statements c.price-level accounting d.audit report 61.The percent of fixed assets to total assets is an example of a.vertical analysis b.solvency.
9 Views
View Answer
89.Based on the following data for the current year, what is the number of days' sales in inventory? Sales on account during year$1,204,500 Cost of merchandise sold during year657,000 Accounts receivable, beginning of year75,000 Accounts receivable, end of year85,000 Inventory, beginning of year85,600 Inventory, end of year a. 51.298,600 b. 44.4 c. 6.5 d. 7.5 90.Which of the following ratios provides.
8 Views
View Answer
79.Based on the above data, what is the amount of working capital? a. $238,000 b. $128,000 c. $168,000 d. $203,000 80.Based on the above data, what is the quick ratio, rounded to one decimal point? a. 2.7 b. 2.6 c. 1.7 d. 0.9 81.A company with working capital of $720,000 and a current ratio of 2.2 pays a $125,000 short-term.
9 Views
View Answer
138.  Selected data from the Carmen Company at year end are presented below: Total assets $2,000,000 Average total assets 2,200,000 Net income 250,000 Sales 1,300,000 Average common stockholders' equity 1,000,000 Net cash provided by operating activities 275,000 Shares of common stock outstanding 10,000 Calculate: (a) ratio of sales to assets; (b) rate earned on total assets; (c) rate earned on common stockholders' equityand (d) earnings.
9 Views
View Answer
138.  Define solvency and profitability.  How are they alike? 139.  A company reports the following: Sales$2,400,000 Average total assets1,500,000 Determine the ratio of sales to assets.  Round your answer to one decimal place. 140.  A company reports the following: Sales$2,520,000 Average total assets1,400,000 Determine the ratio of sales to assets.  Round your answer to one decimal place. 141.  A.
9 Views
View Answer
139.  Kennedy, Inc. reported the following data: Net income $118,000 Depreciation expense 15,000 Loss on disposal of equipment (10,000) Gain on sale of building 20,000 Increase in accounts receivable 7,000 Decrease in accounts payable (2,000) Prepare the cash flows from operating activities section of the statement of cash flows using the indirect method. 140.  Lamar Corporation purchased land for $150,000.  Later in the year,.
12 Views
View Answer
51.A clean audit opinion is the same as a qualified audit opinion. a.True b.False 52.Unusual items affecting the current period’s income statement consist of changes in accounting principles anddiscontinued operations. a.True b.False 53.When a corporation discontinues a segment of its operations at a loss, the loss should be reported as a separateitem after income from continuing.
7 Views
View Answer
1.Comparable financial statements are designed to compare the financial statements of two or more corporations. a.True b.False 2.In horizontal analysis, the current year is the base year. a.True b.False 3.On a common-sized income statement, all items are stated as a percent of total assets or equities at year-end. a.True b.False 4.The analysis of increases and decreases in the amount.
19 Views
View Answer
138.  The following data are available for Martin Solutions, Inc. Year 2 Year 1 Sales $1,139,600 $1,192,320 Beginning inventory 80,000 64,000 Cost of goods sold 500,800 606,000 Ending inventory 72,000 80,000 (1)             Determine for each year: (a)         The inventory turnover (b)         The number of days’ sales in inventory (Round intermediate calculation to the nearestwhole number and your final answer to one decimal place). (2)             What conclusions can be.
12 Views
View Answer
139.  On the basis of the details of the common stock account presented below, calculate the total amount to be recordedin financing section of the statement of cash flows. Assume any stock issues were at par. Indicate whether the amount results in an increase or decrease in cash. Common Stock, $10 Par Balance Date Item Debit Credit Debit Credit Jan..
12 Views
View Answer
119.What is the rate earned on common stockholders’ equity for Diane Company? a. 6.75% b. 14.8% c. 7.4% d. 13.5% 120.What is the price earnings ratio for Diane Company? a.8.0 times b.2.5 times c.4.0 times d.6.0 times 121.The following information pertains to Newman Company. Assume that all balance sheet amounts represent bothaverage and ending balance figures and that all sales.
9 Views
View Answer
31.The ratio of fixed assets to long-term liabilities provides a measure of a firm’s ability to pay dividends. a.True b.False 32.A decrease in the ratio of liabilities to stockholders' equity indicates an improvement in the margin of safety forcreditors. a.True b.False 33.In computing the ratio of sales to assets, long-term investments are excluded from average total.
7 Views
View Answer
138.  The following items are reported on Denver Company’s balance sheet: Cash $190,000 Marketable securities 160,000 Accounts receivable (net) 240,000 Inventory 350,000 Accounts payable 600,000 Determine (a) the current ratio and (b) the quick ratio. Round to one decimal place. 139.  For Garrison Corporation, the working capital at the end of the current year is $10,000 more than the workingcapital at the.
11 Views
View Answer
109.The particular analytical measures chosen to analyze a company may be influenced by all of the following except a.industry type b.capital structure c.diversity of business operations d.product quality or service effectiveness 110.Which of the following is nota characteristic evaluated in ratio analysis? a.liquidity b.profitability c.solvency d.marketability 111.Short-term creditors are typically most interested in analyzing a company's a.marketability b.profitability c.operating results d.solvency 112.A common measure of.
10 Views
View Answer
139.  Complete each of the columns on the table below, indicating in which section each item would be reported on thestatement of cash flows (operating, investing, or financing), the amount that would be reported, and whether theitem would create an increase or decrease in cash. For item that affect more.
11 Views
View Answer
138.  The following data are taken from the balance sheet at the end of the current year. Cash $154,000 Accounts receivable 210,000 Inventory 240,000 Prepaid expenses 15,000 Temporary investments 350,000 Property, plant, and equipment 375,000 Accounts payable 245,000 Accrued liabilities 4,000 Income tax payable 10,000 Notes payable, short-term 85,000 Determine the (a) working capital, (b) current ratio, and (c) quick ratio. Round ratios to the nearest tenth. 139.  The following data are.
15 Views
View Answer

Can't find what you're looking for ?

Ask our exprts a study questions, on us.
Get free Homework Help*