Question: Four different corporations, Amber, Blue, Coral,

> Amazon.com, Inc. (AMZN) is the world’s leading Internet retailer of merchandise and media. Amazon also designs and sells electronic products, such as e-readers. Netflix, Inc. (NFLX) is one of the world’s leading Intern

> Use the data in MAD 8-2 and MAD 8-3 to analyze the accounts receivable turnover ratios of Ralph Lauren Corporation and L Brands, Inc. MAD 8-2: Ralph Lauren Corporation (RL) designs, markets, and distributes a variety of apparel, home décor

> L Brands, Inc. (LB) sells women’s clothing and personal health care products through specialty retail stores including Victoria’s Secret and Bath & Body Works stores. L Brands reported the following (in millions) f

> Ralph Lauren Corporation (RL) designs, markets, and distributes a variety of apparel, home décor, accessory, and fragrance products. The company’s products include such brands as Ralph Lauren, Polo by Ralph Lauren, and Chap

> Amazon.com, Inc. (AMZN) is one of the largest Internet retailers in the world. Best Buy, Inc. (BBY) is a leading retailer of consumer electronics and media products in the United States. Amazon and Best Buy compete in similar markets; however, Best Buy s

> Three companies that compete in the athletic and activewear market segment are Nike, Inc. (NKE), lululemon athletica inc. (LULU), and Under Armour, Inc. (UAA). Nike is the largest designer and seller of athletic footwear and apparel in the world. Lululem

> Krispy Kreme Doughnuts, Inc. (KKD) is a leading retailer and wholesaler of doughnuts. Krispy Kreme owns or franchises more than 1,100 stores where the “hot” light tells you if doughnuts are cooking. Dunkinâ€

> The unadjusted trial balance of PS Music as of July 31, 20Y5, along with the adjustment data for the two months ended July 31, 20Y5, are shown in Chapter 3. Based upon the adjustment data, the following adjusted trial balance was prepared: Instructions

> Apache Corporation (APA) is an independent energy company that explores, develops, and produces oil and gas products. Apache operates worldwide, including in the United States, Canada, and the North Sea. The profitability of the oil and gas business is h

> Amazon.com, Inc. (AMZN) is one of the largest Internet retailers in the world. Netflix, Inc. (NFLX) provides digital streaming and DVD rentals in the United States. Amazon and Netflix compete in streaming and digital services; however, Amazon also sells

> Monster Beverage Corporation (MNST) develops, markets, and sells energy and other alternative beverage brands. Brown-Forman Corporation (BF.B) manufactures and sells a wide variety of spirit and wine beverages, such as Jack Daniel’s&Aci

> The general merchandise retail industry has a number of segments represented by the following companies: Company Name Merchandise Concept Costco Wholesale Corporation (COST) ………â&#1

> Darden Restaurants, Inc. (DRI) is the largest full-service restaurant company in the world. It operates over 2,200 restaurants under a variety of brand names, including Olive Garden, Bahama Breeze, and Long Horn Steakhouse. Panera Bread Company (PNRA) op

> Amazon.com, Inc. (AMZN) is one of the largest Internet retailers in the world. Target Corporation (TGT) is one of the largest value-priced general merchandisers operating in the United States. Target sells through nearly 1,800 brick-and-mortar stores and

> J. C. Penney Company, Inc. (JCP) is a large general merchandise retailer in the United States. The following data (in millions) were obtained from its financial statements for four recent years: a. Compute the asset turnover ratio for each year. Round

> The Kroger Company (KR), a national supermarket chain, reported the following data (in millions) in its financial statements for a recent year: Total sales ………………………………………………………………. $115,337 Total assets: Beginning of year ……………………………………………………….. 33,897

> The Home Depot (HD) reported the following data (in millions) in its recent financial statements: a. Determine the asset turnover ratio for Home Depot for Year 2 and Year 1. Round to two decimal places. b. What conclusions can be drawn from these ratio

> CSX Corporation (CSX) and Union Pacific Corporation (UNP) are major railroads, operating primarily in the eastern and western portion of the United States, respectively. YRC Worldwide Inc. (YRCW) is one of the largest trucking companies in the United Sta

> The unadjusted trial balance that you prepared for PS Music at the end of Chapter 2 should appear as follows: The data needed to determine adjustments are as follows: • During July, PS Music provided guest disc jockeys for KXMD for a

> The asset turnover ratios for two recent years for Dollar Tree, Inc. (DLTR) are shown in the Analysis for Decision Making section of this chapter. Using your results from MAD 5-2, compare and interpret the asset turnover ratios for Dollar Tree and Dollar

> Dollar General Corporation (DG) is a discount retailer with more than 12,000 stores. It offers a wide range of merchandise normally for $10 or less. The following data (in millions) were taken from recent financial statements of Dollar General: a. Comp

> Amazon.com, Inc. (AMZN) is one of the largest Internet retailers in the world. Netflix, Inc. (NFLX) provides digital streaming and DVD rentals in the United States. Amazon and Netflix compete in streaming and digital services; however, Amazon also sells

> Alphabet Inc. (GOOG) and Microsoft Corporation (MSFT) design and distribute consumer and enterprise software, including overlaps in search, business productivity, and mobile operating systems. Alphabet’s primary source of revenue is fro

> Sears Holdings Corporation (SHLD) is one of the largest mall-based retailers in the United States. The following year-end data were taken from a recent Sears balance sheet (in millions): a. Compute the working capital and the current ratio as of Decemb

> The following year-end data were taken from recent balance sheets of Under Armour, Inc. (UA) (in millions): a. Compute the working capital and the current ratio as of December 31, Year 2 and Year 1. Round to one decimal place. b. What conclusions conce

> The Foot Locker, Inc. (FL) and The Finish Line, Inc. (FINL) are two retail athletic footwear chains. The current assets and current liabilities from recent balance sheets for both companies are as follows (in millions): a. Compute the working capital f

> Data (in millions) from recent financial statements of Zynga Inc. (ZNGA), Electronic Arts Inc. (EA), and Take-Two Interactive Software, Inc. (TTWO) are as follows: a. Compute the working capital for Year 2 and Year 1 for each company. b. Which company

> Amazon.com, Inc. (AMZN) is the largest internet retailer in the United States. Best Buy, Inc. (BBY) is a leading retailer of technology and media products in the United States. Amazon and Best Buy compete in similar markets; however, Best Buy sells throu

> The following income statement data for AT&T Inc. (T) and Verizon Communications Inc. (VZ) were taken from their recent annual reports (in millions): a. Prepare a vertical analysis of the income statement for AT&T. Round to one decimal place. b

> Dynamic Weight Loss Co. offers personal weight reduction consulting services to individuals. After all the accounts have been closed on June 30, 20Y7, the end of the fiscal year, the balances of selected accounts from the ledger of Dynamic Weight Loss ar

> The following data are taken from recent financial statements of Nike, Inc. (NKE) (in millions): a. Determine the amount of change (in millions) and percent of change in operating income from Year 1 to Year 2. Round to one decimal place. b. Determine t

> Chipotle Mexican Grill, Inc. (CMG) is a quick-service restaurant providing a focused menu of burritos, tacos, and salads. Chipotle’s income statements through operating income for two recent years are as follows (in thousands): a. Pre

> World Wrestling Entertainment, Inc. (WWE) is a sports media and entertainment company primarily focused on professional wrestling. WWE’s income statements through operating income for two recent years are as follows (in thousands): *$

> Pandora Media, Inc. (P) provides Internet music platform services in North America. Pandora’s income statements through operating income for two recent years are as follows (in thousands): a. Prepare a vertical analysis of the two inc

> Amazon.com, Inc. (AMZN) is the largest Internet retailer in the United States. Amazon’s income statements through operating income for two recent years are as follows (in millions): a. Prepare a vertical analysis of the two income sta

> The following data (in millions) are taken from the financial statements of Wal-Mart Stores, Inc. (WMT): a. For Walmart, determine the amount of change in millions and the percent of change rounded to one decimal place from Year 1 to Year 2 for: 1. Rev

> The following data (in millions) are taken from the financial statements of Target Corporation (TGT), the owner of Target stores: a. For Target, determine the amount of change in millions and the percent of change rounded to one decimal place from Year

> Vera Bradley, Inc. (VRA) is a leading designer, producer, and retailer of fashion handbags, accessories, and travel items for women. Income statements for two recent years for Vera Bradley are as follows: a. Prepare a horizontal analysis of the two inc

> Chipotle Mexican Grill, Inc. (CMG) is a quick-service restaurant providing a focused menu of burritos, tacos, and salads. Chipotle’s income statements for the end of two recent years are as follows: a. Prepare a horizontal analysis of

> Amazon.com, Inc. (AMZN) is the largest Internet retailer in the United States. Amazon’s income statements for two recent years follow: a. Prepare a horizontal analysis of the income statements. Round percentages to one decimal place.

> The transactions completed by PS Music during June 20Y5 were described at the end of Chapter 1. The following transactions were completed during July, the second month of the business’s operations: Enter the following transactions on P

> The following total liabilities and stockholders’ equity information (in millions) is provided for Papa John’s International, Inc. (PZZA) and Yum! Brands, Inc. (YUM) at the end of a recent year: Yum! Brands is a much

> Using your answers for The Home Depot, Inc. (HD) in MAD 1-2 and Lowe’s Companies, Inc. (LOW) in MAD 1-3, compare and interpret Home Depot’s ratio of liabilities to stockholders’ equity to that of Lowe

> Lowe’s Companies, Inc. (LOW), a major competitor to The Home Depot, Inc. (HD) in the home improvement retail business, operates over 1,800 stores. Lowe’s recently reported the following end-of-year balance sheet data (

> The Home Depot, Inc. (HD), is the world’s largest home improvement retailer and one of the largest retailers in the United States based on sales volume. Home Depot operates over 2,200 stores that sell a wide assortment of building, home

> Amazon.com, Inc. (AMZN) is one of the largest Internet retailers in the world. We will use Amazon as a continuing company exercise to reinforce the various tools and techniques for analyzing financial statements. We will begin with the ratio of liabiliti

> The following preliminary unadjusted trial balance of Ranger Co., a sports ticket agency, does not balance: When the ledger and other records are reviewed, you discover the following: (1) the debits and credits in the cash account total $77,600 and $62

> The following balance sheet was prepared by Labyrinth Services Co. for its year ended August 31, 20Y3. a. List the errors in the preceding balance sheet. b. Prepare a corrected balance sheet. Labyrinth Services Co. Balance Sheet For the Year Ended

> The accounts in the ledger of Seaside Furniture Company as of August 20Y5 are listed in alphabetical order as follows. All accounts have normal balances. The balance of the cash account has been intentionally omitted. Prepare an unadjusted trial balanc

> Based upon the T accounts in Exercise 2-13, prepare the nine journal entries from which the postings were made. Journal entry explanations may be omitted. Exercise 2-13: Rocky Mountain Tours Co. is a travel agency. The nine transactions recorded by Roc

> Peyton Smith enjoys listening to all types of music and owns countless CDs. Over the years, Peyton has gained a local reputation for knowledge of music from classical to rap and the ability to put together sets of recordings that appeal to all ages. Duri

> Rocky Mountain Tours Co. is a travel agency. The nine transactions recorded by Rocky Mountain Tours during June 20Y2, its first month of operations, are indicated in the following T accounts: Indicate for each debit and each credit: (a) whether an asset

> As of January 1, Retained Earnings had a credit balance of $314,000. During the year, dividends totaled $10,000, and the business incurred a net loss of $320,000. a. Compute the balance of Retained Earnings as of the end of the year. b. Assuming that the

> During the month, Bavarian Auto Co. received $1,245,000 in cash and paid out $974,200 in cash. a. Does this information indicate that Bavarian Auto Co. had net income of $270,800 during the month? Explain. b. If the balance of the cash account is $421,00

> a. A vacant lot acquired for $115,000 is sold for $298,000 in cash. What is the effect of the sale on the total amount of the seller’s (1) assets, (2) liabilities, and (3) stockholders’ equity? b. Assume that the seller owes $80,000 on a loan for the lan

> Triton Consulting is a consulting firm owned and operated by Jayson Neese. The following end of- period spreadsheet was prepared for the year ended April 30, 20Y3: Based on the preceding spreadsheet, prepare an income statement, statement of stockholde

> On February 11, 20Y9, Quick Fix Company purchased $2,250 of supplies on account. In Quick Fix’s chart of accounts, the supplies account is No. 15, and the accounts payable account is No. 21. a. Journalize the February 11, 20Y9, transaction on page 73 of

> Innovative Consulting Co. has the following accounts in its ledger: Cash, Accounts Receivable, Supplies, Office Equipment, Accounts Payable, Common Stock, Retained Earnings, Dividends, Fees Earned, Rent Expense, Advertising Expense, Utilities Expense, Mi

> Identify each of the following accounts of Liken Services Co. as asset, liability, stockholders’ equity, revenue, or expense, and state in each case whether the normal balance is a debit or a credit: a. Accounts Payable b. Accounts Receivable c. Cash d.

> Demo Consulting is a consulting firm owned and operated by Jesse Flatt. The following end of period spreadsheet was prepared for the year ended August 31, 20Y9: Based on the preceding spreadsheet, prepare an income statement, statement of stockholders&

> The following accounts were taken from the unadjusted trial balance of Murray Co., a congressional lobbying firm. Indicate whether or not each account would normally require an adjusting entry. If the account normally requires an adjusting entry, use the

> Adieu Company reported the following current assets and current liabilities for two recent years: a. Compute the quick ratio on December 31 for each year. Round to one decimal place. b. Interpret the company’s quick ratio. Is the quic

> LeadCo School is a newly organized business that teaches people how to inspire and influence others. The list of accounts to be opened in the general ledger is as follows: Accounts Payable ………………………………….………………………. Prepaid Insurance Accounts Receivable …

> Superior Interiors is owned and operated by Ken Lopez, an interior decorator. In the ledger of Superior Interiors, the first digit of the account number indicates its major account classification (1—assets, 2—liabilities, 3—stockholders’ equity, 4—revenu

> The Boeing Company (BA) is one of the world’s major aerospace firms with operations involving commercial aircraft, military aircraft, missiles, satellite systems, and information and battle management systems. As of a recent year, Boeing had $4,639 milli

> PepsiCo, Inc. (PEP), the parent company of Frito-Lay snack foods and Pepsi beverages, had the following current assets and current liabilities at the end of two recent years: a. Determine the (1) current ratio and (2) quick ratio for both years. Round

> The following data were taken from the balance sheet of Nilo Company at the end of two recent fiscal years: a. Determine for each year (1) the working capital, (2) the current ratio, and (3) the quick ratio. Round ratios to one decimal place. b. What c

> Anson Industries, Inc., reported the following information on its 20Y1 income statement: Sales. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,000,000 Cost of goods sold. . . . . . . . . . . . . . . . .

> The table that follows shows the stock price, earnings per share, and dividends per share for three companies for a recent year: a. Determine the price-earnings ratio and dividend yield for the three companies. Round ratios and percentages to one decim

> Ralph Lauren Corporation (RL) sells apparel through company-owned retail stores. Financial information for Ralph Lauren follows (in thousands): Assume the apparel industry average return on total assets is 8.0%, and the average return on stockholders&a

> The following selected data were taken from the financial statements of Vidahill Inc. for December 31, 20Y7, 20Y6, and 20Y5: The 20Y7 net income was $372,000, and the 20Y6 net income was $492,000. No dividends on common stock were declared between 20Y5

> Three major segments of the transportation industry are motor carriers, such as YRC Worldwide (YRCW); railroads, such as Union Pacific (UNP); and transportation logistics services, such as C.H. Robinson Worldwide, Inc. (CHRW). Financial statement informa

> On April 1, a patent with an estimated useful economic life of 12 years was acquired for $1,500,000. In addition, on December 31, it was estimated that goodwill of $6,000,000 was impaired. a. Record the acquisition of patent. b. Journalize the adjusting

> Recent balance sheet information for two companies in the food industry, Mondelez International, Inc. (MDLZ), and The Hershey Company (HSY), is as follows (in thousands): a. Determine the ratio of liabilities to stockholders’ equity f

> Hasbro, Inc. (HAS), and Mattel, Inc. (MAT), are the two largest toy companies in North America. Condensed liabilities and stockholders’ equity from a recent balance sheet are shown for each company as follows (in thousands): The opera

> An analysis of the general ledger accounts indicates that delivery equipment, which cost $75,000 and on which accumulated depreciation totaled $58,000 on the date of sale, was sold for $20,200 during the year. Using this information, indicate the items t

> An analysis of the general ledger accounts indicates that office equipment, which cost $245,000 and on which accumulated depreciation totaled $112,500 on the date of sale, was sold for $105,900 during the year. Using this information, indicate the items

> The income statement disclosed the following items for the year: Depreciation expense ……………………………………………………………. $ 57,600 Gain on disposal of equipment …………………………………………………. 33,600 Net income …………………………………………………………………………… 508,000 The changes in the curren

> The net income reported on the income statement for the current year was $214,000. Depreciation recorded on equipment and a building amounted to $99,300 for the year. Balances of the current asset and current liability accounts at the beginning and end o

> The net income reported on the income statement for the current year was $93,700. Depreciation recorded on store equipment for the year amounted to $31,200. Balances of the current asset and current liability accounts at the beginning and end of the year

> List the errors you find in the following statement of cash flows. The cash balance at the beginning of the year was $240,000. All other amounts are correct, except the cash balance at the end of the year. Shasta Inc. Statement of Cash Flows For th

> On the basis of the details of the following fixed asset account, indicate the items to be reported on the statement of cash flows: ACCOUNT Land ACCOUNT NO. Balance Date Item Debit Credit Debit Credit Jan. 1 Balance 925,000 Mar. 12 Purchased for cas

> In a prior year, United Continental Holdings, Inc. (UAL), the parent company of United Airlines, reported a net loss of $723 million from operations. However, on its statement of cash flows, it reported $935 million of cash flows from operating activitie

> Climate Control Systems Co. offers its services to residents in the Spokane area. Selected accounts from the ledger of Climate Control Systems for the fiscal year ended December 31, 20Y2, are as follows: Prepare a statement of stockholdersâ€

> Professional Products Inc., a wholesaler of office products, was organized on February 5 of the current year, with an authorization of 50,000 shares of preferred 2% stock, $60 par and 1,000,000 shares of $8 par common stock. The following selected transa

> On May 15, Helena Carpet Inc., a carpet wholesaler, issued for cash 750,000 shares of no-par common stock (with a stated value of $1.50) at $4, and on June 30, it issued for cash 17,500 shares of preferred stock, $50 par at $60. a. Journalize the entries

> On January 22, Jefferson County Rocks Inc., a marble contractor, issued for cash 210,000 shares of $30 par common stock at $34, and on February 27, it issued for cash 15,000 shares of preferred stock, $9 par at $12. a. Journalize the entries for January

> Sumter Pumps Corporation, a manufacturer of industrial pumps, reports the following results for the year ended December 31, 20Y3: Retained earnings, January 1, 20Y3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $59,650,000 Net income . .

> Specialty Auto Racing Inc. retails racing products for BMWs, Porsches, and Ferraris. The following accounts and their balances appear in the ledger of Specialty Auto Racing on July 31, the end of the current year: Common Stock, $36 par. . . . . . . . .

> SprayCo Inc. develops and produces spraying equipment for lawn maintenance and industrial uses. On March 9 of the current year, SprayCo reacquired 62,000 shares of its common stock at $51 per share. On June 9, 48,000 of the reacquired shares were sold at

> Mystic Lake Inc. bottles and distributes spring water. On July 9 of the current year, Mystic Lake reacquired 60,000 shares of its common stock at $42 per share. On September 22, Mystic Lake sold 45,000 of the reacquired shares at $51 per share. The remai

> Selected transactions completed by Canyon Ferry Boating Corporation during the current fiscal year are as follows: Journalize the transactions. 8. Split the common stock 2 for 1 and reduced the par from $100 to $50 per share. After the split, there

> Healthy Life Co. is an HMO for businesses in the Fresno area. The following account balances appear on Healthy Life’s balance sheet: Common stock (3,000,000 shares authorized; 2,200,000 shares issued), $15 par, $33,000,000; Paid-in capital in excess of p

> Determine the present value of $200,000 to be received at the end of each of four years, using an interest rate of 7%, compounded annually, as follows: a. By successive computations, using the present value of $1 table in Exhibit 5. Exhibit 5: b. By u

> Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 20Y8, were as follows: a. Issued 15,000 shares of $20 par common stock at $30, receiving cash. b. Issued 4,000 shares of $80 par preferred 5% stock at $10

> Palisade Creek Co. is a retail business that uses the perpetual inventory system. The account balances for Palisade Creek as of May 1, 20Y6 (unless otherwise indicated), are as follows: During May, the last month of the fiscal year, the following trans

> Photo Chemicals produces two types of photograph-developing fluids at a cost of E1.00 per litre. Let: x1 = litre of product 1 x2 = litre of product 2 Photo Chemicals management requires that at least 30 litres of product 1 and at least 20 litres

> A local health clinic is keen to raise awareness and understanding of AIDS/HIV in the local community and has managed to attract some funding for local advertising. The clinic would like to determine the best way to allocate a monthly advertising budge

> Management Decision Systems (MDS) is a consulting company that specializes in the development of decision support systems. MDS obtained a contract to develop a computer system to assist the management of a large company in formulating its capital expen

> For Problem 6: a. How much would profit increase if an additional 30 hours became available in the cutting and dyeing department (i.e., if b1 were increased from 630 to 660)? b. How much would profit decrease if 40 hours were removed from the sewin