Question: Firm Q has short term debt of $

> The following information was available for the year ended December 31, 2022: Required: a. Calculate the inventory turnover for 2022. b. Calculate the number of days’ sales in inventory for 2022, using year-end inventories.

> Assume that a company’s current ratio is 3.0, working capital is $300,000, and the acid test ratio is 1.2. a. How much does the company have in current assets? b. If the only current assets shown on the balance sheet are Cash, Accounts Receivable, and Me

> The following amounts were reported on the December 31, 2022, balance sheet: Required: a. Calculate working capital at December 31, 2022. b. Calculate the current ratio at December 31, 2022. c. Calculate the acid-test ratio at December 31, 2022.

> During the fiscal year ended June 30, 2023, Jones Co. had a 4-for-1 stock split. In its annual report for 2023, the company reported earnings per share for the year ended June 30, 2022, on a restated basis, of $1.35. Required: Calculate the originally re

> For the year ended December 31, 2022, Spike Inc. reported earnings per share of $6.30. During 2023, the company had a 3-for-1 stock split. Required: Calculate the 2022 earnings per share that will be reported in Spike’s 2023 annual report for comparative

> Net income was $84,200; accounts receivable increased by $17,600; inventory decreased by $12,100; proceeds from the issuance of common stock were $22,500; accounts payable decreased by $7,400; purchase of land was $51,000; depreciation and amortization e

> The following summarized data (amounts in millions) are taken from the September 26, 2020, and September 28, 2019, comparative financial statements of Apple Inc., a company that designs, manufactures, and markets mobile communication and media devices an

> Net cash provided by operating activities for the year ended December 31, 2022, was $117,300. The cash balance on December 31, 2022, was $66,500. The net decrease in cash for the year was $38,000. Net cash used by financing activities was $48,200. Requir

> Net income was $388,500 for the year. Throughout the year the company had outstanding 5,000 shares of $6.50, $100 par value preferred stock and 80,000 shares of common stock. Required: Calculate basic earnings per share of common stock for the year.

> Selling, general, and administrative expenses were $78,000; net sales were $520,000; interest expense was $11,600; research and development expenses were $61,400; net cash provided by operating activities was $67,300; income tax expense was $17,100; cost

> Net sales for the year were $600,000 and cost of goods sold was $426,000 for the company’s existing products. A new product is presently under development and has an expected selling price of not more than $90 per unit in order to remain competitive with

> Pool Patrol, Inc. offers professional pool cleaning services to residential customers. The company cleans each pool that it services once per month throughout the year. Homeowners are billed for an annual fee payable in advance prior to their anniversary

> On April 10, 2022, Amelia Inc. purchased 1,800 shares of its own common stock in the market for $23 per share. On September 28, 2022, the company sold 700 of these shares in the open market at a price of $26 per share. Required: Use the horizontal model

> Assume that you own 400 shares of common stock of a company, that you have been receiving cash dividends of $5 per share per year, and that the company has a 2-for-1 stock split. Required: a. How many shares of common stock will you own after the stock s

> Assume that an investor owns 1,900 shares of $10 par value common stock and the company has a 5- for-1 stock split when the market price per share is $108. Required: a. How many shares of common stock will the investor own after the stock split? b. What

> Bill & Lisa Ltd. did not pay dividends on its 6.5%, $100 par value cumulative preferred stock during 2021 or 2022. Since 2015, 275,000 shares of this stock have been outstanding. Bill & Lisa Ltd. Has been profitable in 2023 and is considering a cash divi

> Altuve Co. was incorporated on January 1, 2022, at which time 250,000 shares of $1 par value common stock were authorized, and 110,000 of these shares were issued for $17 per share. Net income for the year ended December 31, 2022, was $1,500,000. Altuve

> You were asked to obtain a recent annual report of a company that you were interested in reviewing throughout this term. Required: a. Please locate the five-year (or longer) selected financial data (usually in the management discussion and analysis secti

> The balance sheet caption for common stock is the following: Required: a. Calculate the dollar amount that will be presented opposite this caption. b. Calculate the total amount of a cash dividend of $0.50 per share. c. What accounts for the difference b

> On July 1, 2022, $60 million face amount of 7%, 10-year bonds were issued. The bonds pay interest on an annual basis on June 30 each year. The market interest rates were slightly higher than 7% when the bonds were sold. Required: a. How much interest wil

> Vicki Co. issued $1 million face amount of 8%, 20-year bonds on April 1, 2022. The bonds pay interest on an annual basis on December 31 each year. Required: a. Assume that market interest rates were slightly lower than 8% when the bonds were sold. Would

> The balance of the Estimated Warranty Liability account was $25,000 on January 1, 2022, and $34,400 on December 31, 2022. Based on an analysis of warranty claims during the past several years, this year’s warranty provision was established at 1.5% of sal

> For the payroll period ended on May 28, 2022, gross pay was $119,000, net pay was $91,000, FICA tax withholdings were $7,000, income tax withholdings were $17,000, and medical insurance contributions were $4,000. Required: Use the horizontal model (or wr

> On December 1, 2022, an advance rent payment of $25,800, representing a three-month prepayment for the months of December, January, and February, was received in cash from the company’s tenant. Required: Use the horizontal model (or write the journal ent

> On December 1, 2022, Hocking Inc. obtained a four-month working capital loan from its bank. The face amount of the note signed by the treasurer was $100,000. The interest rate charged by the bank was 6%. The bank made the loan on a discount basis. Requir

> Congratulations! You have just won $2 billion in the largest Powerball jackpot payoff ever! You will receive payments of $100,000,000 per year for the next 20 years. Required: Using a present value table, your calculator, or a computer program present va

> Backstreets Co. recently acquired all of Jungleland Inc.’s net assets in a business acquisition. The cash purchase price was $9.4 million. Jungleland’s assets and liabilities had the following appraised values immediately prior to the acquisition: land,

> Creations Unlimited purchased camera equipment for its photo studio on January 6, 2022, at a cost of $17,000. The equipment had a four-year useful life and an estimated salvage value of $3,000. The equipment was depreciated for two full years on a straig

> At the beginning of the year, the net assets of Shannon Co. were $492,600. The only transactions affecting stockholders’ equity during the year were net income of $70,200 and dividends of $15,400. Required: Calculate Shannon Co.’s return on equity (ROE)

> Assume that Gandolfi Construction Co. calculated depreciation expense for the CAT 336DL earth mover on the straight-line method and reported $950,000 of net income for the year ended December 31, 2022. The company’s average total assets for 2022 were $10

> Gandolfi Construction Co. purchased a CAT 336DL earth mover at a cost of $1,200,000 in January 2022. The company’s estimated useful life of this heavy equipment is 10 years, and the estimated salvage value is $300,000. Required: a. Using straight-line de

> Stucki Holdings Corp. incurred the following expenditures: $5,700 cost to replace the transmission in a company-owned vehicle; $19,300 cost of annual property insurance on the company’s production facilities; $15,100 cost to develop and register a design

> Fesco Jewelers Ltd. Purchased store fixtures, display cases, and a maximum-security commercial safe for a lump-sum price of $18,000 from a bankrupt competitor. Appraised values were as follows: store fixtures, $9,000; display cases, $13,500; commercial s

> In 2019, Trader Co. acquired a parcel of land for a cash purchase price of $175,000 with the intention of building a retail store in the near future. In late 2020, in the midst of the COVID-19 crisis, Trader Co. was unable to secure the bank financing re

> On September 1, 2022, a commercial tenant paid its landlord $18,000 in cash as an advance rent payment on its store location. The six-month lease period ends on February 28, 2023, at which time the contract may be renewed. Required: a. Use the horizontal

> a. Use the horizontal model or write the journal entry to record the payment of a one-year insurance premium of $9,000 on May 1, 2022. b. Use the horizontal model or write the adjusting entry that will be made at the end of every month to show the amount

> The beginning inventory was 900 units at a cost of $10 per unit. Goods available for sale during the year were 3,900 units at a total cost of $43,200. In May, 1,800 units were purchased at a total cost of $19,800. The only other purchase transaction occu

> Sales during the year were 500 units. Beginning inventory was 400 units at a cost of $6 per unit. Purchase 1 was 200 units at $7 per unit. Purchase 2 was 100 units at $8 per unit. Required: Calculate cost of goods sold and ending inventory under the foll

> The Allowance for Bad Debts account had a balance of $19,200 at the beginning of the year and $24,400 at the end of the year. During the year (including the year-end adjustment), bad debts expense of $36,600 was recognized. Required: Calculate the total

> At the beginning of the year, accounts receivable were $30,000 and the allowance for bad debts was $1,500. During the year, sales (all on account) were $100,000, cash collections were $94,000, bad debts expense totaled $2,000, and $1,000 of accounts rece

> a. Firm D has net income of $54,000, sales of $1,200,000, and average total assets of $750,000. Calculate the firm’s margin, turnover, and ROI. b. Firm E has net income of $132,000, sales of $2,200,000, and ROI of 9.6%. Calculate the firm’s turnover and

> Refer to Mini-Exercise 5.1. Required: a. Show the reconciling items in a horizontal model, or write the adjusting journal entry (or entries) that should be prepared to reflect the reconciling items for Happ Inc. at August 31. b. What is the amount of cas

> The balance in Happ Inc.’s general ledger Cash account was $16,200 at August 31, before reconciliation. The August 31 balance shown in the bank statement was $14,900. Reconciling items included deposits in transit, $2,100; bank service charges, $100; NSF

> a. The Supplies account had a balance of $2,400 at the beginning of the month and $3,200 at the end of the month. The cost of supplies purchased during the month was $7,800. Calculate the cost of supplies used during the month. b. Wages Payable had a bal

> a. Accounts Payable had a balance of $15,000 at the beginning of the month and $21,400 at the end of the month. During the month, purchases on account amounted to $34,600. Calculate the payments to suppliers during the month. b. Accounts Receivable had a

> The transactions and adjustments related to the second month of operations of Zoe Amelia Corp. were as follows: a. Paid wages that had been accrued at the end of the prior month. b. Collected accounts receivable from sales recorded in the prior month. c.

> The transactions and adjustments related to the first month of operations of Zoe Amelia Corp. were as follows: a. Issued common stock to the initial stockholders in exchange for their cash investment. b. Signed a lease for office space and paid the first

> A company’s preclosing trial balance shows the following accounts and amounts: a. Calculate total assets on the balance sheet. b. Calculate total liabilities on the balance sheet. c. Calculate the total of all accounts with debit balanc

> Use A for Assets; L for Liabilities; SE for Stockholders’ Equity; R for Revenues; and E for Expenses in your answers to parts a–f below: a. The debit side is the normal balance for which accounts? b. Which accounts are increased with debits? c. Which acc

> Refer to Case 4.32 for the financial statement data needed for the analysis of this case. You should also review the solution to Case 4.32, provided by your instructor, before attempting to complete this case. Required: a. Case 4.32 presents the 2022 inc

> Firm P has accounts receivable of $19,000, cash of $11,000, property, plant, and equipment of $310,000, merchandise inventory of $26,000, accounts payable of $24,000, other accrued liabilities of $16,000, common stock of $250,000, and retained earnings o

> Firm O has a current ratio of 3.5 and current liabilities of $56,000. Required: Calculate Firm O’s current assets and working capital.

> Firm N has a current ratio of 2.6 and current assets of $169,000. Required: Calculate Firm N’s current liabilities and working capital.

> Firm M has a margin of 11%, turnover of 1.4, sales of $840,000, and average stockholders’ equity of $400,000. Required: Calculate Firm M’s average total assets, net income, return on investment (ROI), and return on equity (ROE).

> Firm L had net assets at the end of the year of $660,000. The only items affecting stockholders’ equity during the year were net income of $162,000 and dividends of $42,000. Required: Calculate Firm L’s average stockholders’ equity and return on equity (

> Firm K has a margin of 9%, turnover of 1.6, and sales of $4,000,000. Required: Calculate Firm K’s net income, average total assets, and return on investment (ROI).

> Firm J has net income of $124,800, sales of $960,000, and average total assets of $640,000. Required: Calculate Firm J’s margin, turnover, and return on investment (ROI).

> Listed here are a number of accounts: Income tax expense, Accumulated depreciation, Notes payable, Land, Sales, Common stock, Cost of goods sold, Equipment, Accounts receivable, Rent expense, Supplies, Buildings, Service revenue, Cash. Which of the follo

> Listed here are a number of accounts: Land, Common stock, Merchandise inventory, Equipment, Cost of goods sold, Accounts receivable, Interest expense, Supplies, Long-term debt, Cash, Sales, Accounts payable, Buildings, Retained earnings. Which of the fol

> Net income for the year was $72,000. During the year, net cash provided by operating activities was $201,000; net cash used for investing activities was $168,000; net cash provided by financing activities was $47,000. Required: Calculate net increase (de

> Partially completed financial statements for Whittaker Inc. follow: Required: a. Complete the income statement and balance sheet for Whittaker Inc. Show how each amount was determined. b. After completing a, use your answers to recompute each of the fina

> Alpha Inc. and Beta Co. are sheet metal processors that supply component parts for consumer product manufacturers. Alpha has been in business since 1985 and is operating in its original plant facilities. Much of its equipment was acquired in the 80s and

> For each of the following expenditures, indicate the type of account (asset or expense) in which the expenditure should be recorded. Explain your answers. a. $3,700 for repairing damage that resulted from the careless unloading of a new machine. b. $25,3

> For each of the following expenditures, indicate the type of account (asset or expense) in which the expenditure should be recorded. Explain your answers. a. $22,000 annual cost of routine repair and maintenance expenditures for a fleet of delivery vehic

> Crow Co. purchased some of the machinery of Hare Inc., a bankrupt competitor, at a liquidation sale for a total cost of $136,200. Crow’s cost of moving and installing the machinery totaled $12,300. The following data are available: Requ

> Prepare a bank reconciliation as of June 30 from the following information: a. The June 30 cash balance in the general ledger is $1,940. b. The June 30 balance shown on the bank statement is $1,168. c. Checks issued but not returned with the bank stateme

> Prepare an answer sheet with the column headings shown here. For each of the following transactions or adjustments, indicate the effect of the transaction or adjustment on the appropriate balance sheet category and on net income by entering for each acco

> Prepare an answer sheet with the column headings shown here. For each of the following transactions or adjustments, indicate the effect of the transaction or adjustment on the appropriate balance sheet category and on net income by entering for each acco

> Prepare an answer sheet with the column headings shown here. For each of the following transactions or adjustments, indicate the effect of the transaction or adjustment on the appropriate balance sheet category and on net income by entering for each acco

> Prepare an answer sheet with the column headings shown here. For each of the following transactions or adjustments, indicate the effect of the transaction or adjustment on the appropriate balance sheet category and on net income by entering for each acco

> On November 1, 2022, Wenger Co. paid its landlord $31,800 in cash as an advance rent payment on its store location. The six-month lease period ends on April 30, 2023, at which time the contract may be renewed. Required: a. Use the horizontal model or wri

> The annual reports of the Coca Cola Co. and PepsiCo Inc. indicate the following for the year ended December 31, 2020 (amounts in millions): Required: a. Calculate ROI and ROE for each company for 2020. b. Based on the results of your ROI and ROE analysis

> Stockholders’ equity totaled $246,000 at the beginning of the year. During the year, net income was $36,000, dividends of $9,000 were declared and paid, and $30,000 of common stock was issued at par value Required: Calculate total stockholders’ equity at

> a. Use the horizontal model or write the journal entry to record the payment of a one-year insurance premium of $4,800 on April 1, 2022. b. Use the horizontal model or write the adjusting entry that will be made at the end of every month to show the amou

> Mannisto Inc. uses the FIFO inventory cost flow assumption. In a year of rising costs and prices, the firm reported net income of $1,500,000 and average assets of $10,000,000. If Mannisto had used the LIFO cost flow assumption in the same year, its cost

> Husemann Co.’s assets include notes receivable from customers. During fiscal 2022, the amount of notes receivable averaged $525,000, and the interest rate of the notes averaged 4.2%. Required: a. Calculate the amount of interest revenue earned by Huseman

> Agrico Inc. accepted an 8-month, 12% (annual rate), $7,000 note from one of its customers on July 15, 2022; interest is payable with the principal at maturity. Required: a. Use the horizontal model or write the journal entry to record the interest earned

> Annual credit sales of Nadak Co. total $240 million. The firm gives a 2% cash discount for payment within 10 days of the invoice date; 90% of Nadak’s accounts receivable are paid within the discount period. Required: a. What is the total amount of cash d

> On January 1, 2022, the balance in Kubera Co.’s Allowance for Bad Debts account was $25,160. During the year, a total of $65,700 of delinquent accounts receivable was written off as bad debts. The unadjusted balance in the Allowance for Bad Debts account

> On January 1, 2022, the balance in Tabor Co.’s Allowance for Bad Debts account was $21,600. During the first 11 months of the year, bad debts expense of $24,910 was recognized. The balance in the Allowance for Bad Debts account at November 30, 2022, was

> a. Show the reconciling items in a horizontal model or write the adjusting journal entry (or entries) that should be prepared to reflect the reconciling items of Exercise 5.10. b. What is the amount of cash to be included in the August 31 balance sheet f

> a. Show the reconciling items in a horizontal model or write the adjusting journal entry (or entries) that should be prepared to reflect the reconciling items of Exercise 5.9. b. What is the amount of cash to be included in the June 30 balance sheet for

> Prepare a bank reconciliation as of August 31 from the following information: a. The August 31 balance shown on the bank statement is $9,050. b. There is a deposit in transit of $1,300 at August 31. c. Outstanding checks at August 31 totaled $1,620. d. I

> A friend has $5,000 that he has saved from his part-time job. He will need his money, plus any interest earned on it, in six months and has asked for your help in deciding whether to put the money in a bank savings account at 3% interest or to lend it to

> Write the journal entry(ies) for each of the transactions of Exercise 4.7. Data from Exercise 4.7: Record transactions and calculate financial statement amounts. The transactions relating to the formation of Blue Co. Stores Inc. and its first month of o

> This exercise provides practice in understanding the operation of T-accounts and transaction analysis. For each situation, you must solve for a missing amount. Use a T-account for the balance sheet account, show in a horizontal model, or prepare journal

> Answer these questions that are related to the following Interest Payable T-account: a. What is the amount of the February 28 adjustment? b. What account would most likely have been credited for the amount of the February transactions? c. What account wo

> A bookkeeper prepared the year-end financial statements of Giftwrap, Inc. The income statement showed net income of $216,000, and the balance sheet showed ending retained earnings of $810,000. The firm’s accountant reviewed the bookkeeper’s work and dete

> Proco had an account payable of $63,000 due to Shirmoo Inc., one of its suppliers. The amount was due to be paid on January 31. Proco did not have enough cash on hand then to pay the amount due, so Proco’s treasurer called Shirmoo’s treasurer and agreed

> On May 1, 2022, Tabor Co. received an $21,000 note from a customer in settlement of an $21,000 account receivable from that customer. The note bore interest at the rate of 9% per annum, and the note plus interest was payable April 30, 2023. Required: Use

> During the month of April, Riley Co. had cash receipts from customers of $780,000. Expenses totaled $624,000, and accrual basis net income was $218,000. There were no gains or losses during the month. Required: a. Calculate the revenues for Riley Co. for

> On February 1, 2022, the balance of the retained earnings account of Blue Power Corporation was $132,000. Revenues for February totaled $47,000, of which $41,500 was collected in cash. Expenses for February totaled $54,000, of which $38,400 was paid in c

> Enter the following column headings across the top of a sheet of paper: Enter the transaction or adjustment letter in the first column and show the effect, if any, of the transaction entry or adjustment on the appropriate balance sheet category or on the

> Enter the following column headings across the top of a sheet of paper. Enter the transaction or adjustment letter in the first column and show the effect, if any, of the transaction entry or adjusting entry on the appropriate balance sheet category or o

> Evans Inc. had current liabilities at April 30 of $275,000. The firm’s current ratio at that date was 2.1. Required: a. Calculate the firm’s current assets and working capital at April 30. b. Assume that management paid $27,500 of accounts payable on Apr

> Prepare an answer sheet with the column headings shown after the following list of transactions. Record the effect, if any, of the transaction entry or adjusting entry on the appropriate balance sheet category or on the income statement by entering the a

> Prepare an answer sheet with the column headings shown after the following list of transactions. Record the effect, if any, of the transaction entry or adjusting entry on the appropriate balance sheet category or on the income statement by entering the a

> Write the journal entry(ies) for each of the transactions of Exercise 4.8. Data from Exercise 4.8: The following are the transactions relating to the formation of Gray Mowing Services Inc. and its first month of operations. Prepare an answer sheet with

> Your friend Amber has approached you seeking advice concerning two investment opportunities that she is presently considering. Her classmate Simone has asked her for a loan of $5,000 to help establish a small business; her neighbor Riley would like to bo

> For the year ended December 31, 2022, Settles Inc. earned an ROI of 12.6%. Sales for the year were $120 million, and average asset turnover was 2.8. Average stockholders’ equity was $25 million. Required: a. Calculate Settles Inc.’s margin and net income