Question: The financial statements for Tootsie Roll

> On July 31, 2014, Redeker Company had a cash balance per books of $6,140. The statement from Nashota State Bank on that date showed a balance of $7,690.80. A comparison of the bank statement with the Cash account revealed the following facts. 1. The bank

> Flint Hills Middle School wants to raise money for a new sound system for its auditorium. The primary fund-raising event is a dance at which the famous disc jockey Jay Dee will play classic and not-so-classic dance tunes. Trent Greeley, the music and the

> Suppose the 2014 financial statements of 3M Company report net sales of $23.1 billion. Accounts receivable (net) are $3.2 billion at the beginning of the year and $3.25 billion at the end of the year. Compute 3M’s accounts receivable turnover. Compute 3M

> Granada Theater is in the Greenbelt Mall. A cashier’s booth is located near the entrance to the theater. Two cashiers are employed. One works from 1:00 to 5:00 P.M., the other from 5:00 to 9:00 P.M. Each cashier is bonded. The cashiers receive cash from

> Lambert Center began operations on July 1. It uses a perpetual inventory system. During July, the company had the following purchases and sales. Instructions: (a) Determine the ending inventory under a perpetual inventory system using (1) FIFO, (2) mo

> Pember Inc. is a retailer operating in Edmonton, Alberta. Pember uses the perpetual inventory method. Assume that there are no credit transactions; all amounts are settled in cash. You are provided with the following information for Pember Inc. for the m

> You have the following information for Wooderson Gems. Wooderson uses the periodic method of accounting for its inventory transactions. Wooderson only carries one brand and size of diamonds—all are identical. Each batch of diamonds purc

> The management of Tinker Inc. asks your help in determining the comparative effects of the FIFO and LIFO inventory cost flow methods. For 2014, the accounting records show these data. Inventory, January 1 (10,000 units) ………………………………. $ 35,000 Cost of 12

> Groves Company Inc. had a beginning inventory of 100 units of Product MLN at a cost of $8 per unit. During the year, purchases were: Groves Company uses a periodic inventory system. Sales totaled 1,500 units. Instructions: (a) Determine the cost of go

> Dunbar Distribution markets CDs of numerous performing artists. At the beginning of March, Dunbar had in beginning inventory 2,500 CDs with a unit cost of $7. During March, Dunbar made the following purchases of CDs. During March 12,000 units were sold

> P6-1A Aber Limited is trying to determine the value of its ending inventory as of February 28, 2014, the company’s year-end. The accountant counted everything that was in the warehouse, as of February 28, which resulted in an ending inventory valuation o

> At the beginning of the current season on April 1, the ledger of Flint Hills Pro Shop showed Cash $2,500; Inventory $3,500; and Common Stock $6,000. The following transactions occurred during April 2014. Apr. 5 Purchased golf bags, clubs, and balls on

> Yang Inc. operates a retail operation that purchases and sells snowmobiles, among other outdoor products. The company purchases all inventory on credit and uses a periodic inventory system. The Accounts Payable account is used for recording inventory pur

> During its first year of operations, Gehrig Company had credit sales of $3,000,000, of which $400,000 remained uncollected at year-end. The credit manager estimates that $18,000 of these receivables will become uncollectible. (a) Prepare the journal entr

> At the end of Ermler Department Store’s fiscal year on November 30, 2014, these accounts appeared in its adjusted trial balance. Freight-In ……………………………………………………. $ 5,060 Inventory (beginning) ……………………………………. 41,300 Purchases ……………………………………………………. 613,000

> The trial balance of Customer Choice Wholesale Company contained the accounts shown at December 31, the end of the company’s fiscal year. Adjustment data: 1. Depreciation is $8,000 on buildings and $7,000 on equipment. (Both are opera

> An inexperienced accountant prepared this condensed income statement for Sundberg Company, a retail firm that has been in business for a number of years. SUNDBERG COMPANY Income Statement For the Year Ended December 31, 2014 Revenues Net sales ………………………

> Lambert Department Store is located in midtown Metropolis. During the past several years, net income has been declining because suburban shopping centers have been attracting business away from city areas. At the end of the company’s fiscal year on Novem

> At the beginning of the current season on April 1, the ledger of Flint Hills Pro Shop showed Cash $2,500; Inventory $3,500; and Common Stock $6,000. The following transactions were completed during April 2014. Apr. 5 Purchased golf bags, clubs, and bal

> McCoy Warehouse distributes hardback books to retail stores and extends credit terms of 2/10, n/30 to all of its customers. During the month of June, the following merchandising transactions occurred. June 1 Purchased books on account for $1,040 (inclu

> Waters Hardware Store completed the following merchandising transactions in the month of May. At the beginning of May, Waters’ ledger showed Cash of $8,000 and Common Stock of $8,000. May 1 Purchased merchandise on account from Hauke Wholesale Supply f

> At the end of its first year of operations, Mordica Company chose to use the revaluation framework allowed under IFRS. Mordica’s ledger shows Plant Assets $480,000 and Accumulated Depreciation—Plant Assets $60,000. Prepare journal entries to record the f

> The financial statements of Zetar plc are presented in Appendix C. The company’s complete annual report, including the notes to its financial statements, is available in the Investors section at www.zetarplc.com. Instructions: Visit Zetar’s corporate we

> The financial statements of Zetar plc are presented in Appendix C. The company’s complete annual report, including the notes to its financial statements, is available in the Investors section at www.zetarplc.com. Instructions: Using the notes to the com

> In its first month of operation, Kuhlman Company purchased 100 units of inventory for $6, then 200 units for $7, and finally 140 units for $8. At the end of the month, 180 units remained. Compute the amount of phantom profit that would result if the comp

> The financial statements of Zetar plc are presented in Appendix C. The company’s complete annual report, including the notes to its financial statements, is available in the Investors section at www.zetarplc.com. Instructions: Visit Zetar’s corporate we

> Reinsch Company reported the following amounts (in euros) in 2014: Net income, €150,000; Unrealized gain related to revaluation of buildings, €10,000; and Unrealized loss on nontrading securities, €(35,000). Determine Reinsch’s total comprehensive income

> Purpose: Use an annual report to identify a company’s plant assets and the depreciation method used. Address: www.annualreports.com, or go to www.wiley.com/college/kimmel Steps 1. Select a particular company. 2. Search by company name. 3. Follow instruct

> The financial statements of The Hershey Company are presented in Appendix B, following the financial statements for Tootsie Roll Industries in Appendix A. Instructions: (a) Based on the information in these financial statements and the accompanying note

> Refer to the financial statements and the Notes to Consolidated Financial Statements of Tootsie Roll Industries in Appendix A. Appendix A: Instructions: Answer the following questions. (a) What were the total cost and book value of property, plant, an

> Purpose: Use an annual report to identify a company’s plant assets and the depreciation method used. Address: www.annualreports.com, or go to www.wiley.com/college/kimmel Steps 1. Select a particular company. 2. Search by company name. 3. Follow instruct

> The financial statements of The Hershey Company are presented in Appendix B, following the financial statements for Tootsie Roll in Appendix A. Appendix A: Appendix B: Instructions (a) Based on the information contained in these financial statement

> Refer to the financial statements of Tootsie Roll Industries and the accompanying notes to its financial statements in Appendix A. Appendix A: Instructions: (a) Calculate the accounts receivable turnover and average collection period for 2011. (Use &a

> As a new auditor for the CPA firm of Good and Rich, you have been assigned to review the internal controls over mail cash receipts of Lyman Company. Your review reveals that checks are promptly endorsed “For Deposit Only,” but no list of the checks is pr

> The international accounting firm Ernst & Young performed a global survey on fraud. The results of that survey are summarized in a report titled “Driving Ethical Growth—New Markets, New Challenges” (Ernst & Young, 11th Global Fraud Survey). You can find

> Presented below is information for Zhou Co. for the month of January 2014. Instructions: (a) Prepare an income statement using the format presented on page 245. Assume a 25% tax rate. (b) Calculate the profit margin and the gross profit rate. Cost

> The financial statements of The Hershey Company are presented in Appendix B, following the financial statements for Tootsie Roll in Appendix A. Appendix B: Appendix A: Instructions: Answer the following questions for each company. (a) What is the bala

> The financial statements of Tootsie Roll are presented in Appendix A of this book, together with an auditor’s report—Report of Independent Auditors. Instructions: Using the financial statements and reports, answer these questions about Tootsie Roll’s i

> Suppose the following information is from the 2014 annual report of American Greetings Corporation (all dollars in thousands). The notes to the company’s financial statements also include the following information. Finished products,

> If your school has a subscription to the FASB Codification, go to http://aaahg.org/ ascLogin.cfm to log in and prepare responses to the following. (a) Access the glossary (“Master Glossary”) to answer the following. (1) What is the definition provided fo

> There are many situations in business where it is difficult to determine the proper period in which to record revenue. Suppose that after graduation with a degree in finance, you take a job as a manager at a consumer electronics store called Midwest Ele

> Andrea Tabares was just hired as the assistant treasurer of Northshore Stores, a specialty chain store company that has nine retail stores concentrated in one metropolitan area. Among other things, the payment of all invoices is centralized in one of the

> The following situation is presented in chronological order. 1. Shafer decides to buy a surfboard. 2. He calls Surfing USA Co. to inquire about their surfboards. 3. Two days later, he requests Surfing USA Co. to make him a surfboard. 4. Three days later,

> Three years ago, Sue Kienholz and her brother-in-law Jeremy Reyes opened Megamart Department Store. For the first 2 years, business was good, but the following condensed income statement results for 2014 were disappointing. Sue believes the problem lie

> The July 15, 2010, edition of CFO.com contains an article by Marie Leone entitled “Sucking the LIFO out of Inventory.” Instructions: Read the article, which can be found at www.cfo.com/printable/article.cfm/14508745, and answer the following questions.

> The financial statements of The Hershey Company appear in Appendix B, following the financial statements for Tootsie Roll in Appendix A. Appendix A: Instructions: (a) Based on the information in the financial statements, compute these 2011 values for

> You have the following information for Vincent Inc. for the month ended October 31, 2014. Vincent uses a periodic method for inventory. Instructions: (a) Calculate (i) ending inventory, (ii) cost of goods sold, (iii) gross profit, and (iv) gross pr

> The February 21, 2012, edition of the New York Times contains an article by Stephanie Clifford entitled “High-End Retailers Report Strong Profits, but Wal-Mart Still Struggles.” Instructions: Read the article and answer the following questions. (a) Expl

> The financial statements of The Hershey Company appear in Appendix B, following the financial statements for Tootsie Roll in Appendix A. Appendix A: Appendix B: Instructions: (a) Based on the information contained in these financial statements, determ

> On March 1, 2014, Zobrist Company acquired real estate, on which it planned to construct a small office building, by paying $80,000 in cash. An old warehouse on the property was demolished at a cost of $8,200; the salvaged materials were sold for $1,700.

> Basic information relating to a new machine purchased by Hinshaw Company is presented in E9-5. Data given in E 9-5: Hinshaw Company purchased a new machine on October 1, 2014, at a cost of $90,000. The company estimated that the machine has a salvage va

> Jayhawk Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2014, at a cost of $100,000. Over its 4-year useful life, the bus is expected to be driven 160,000 miles. Salvage value is expected to be $

> Gonzalez Corporation reported net income of $58,000. Depreciation expense for the year was $132,000. The company calculates depreciation expense using the straight line method, with a useful life of 10 years. Top management would like to switch to a 15-y

> Haley Company, organized in 2014, has these transactions related to intangible assets in that year: Jan. 2 Purchased a patent (5-year life) $280,000. Apr. 1 Goodwill acquired as a result of purchased business (indefinite life) $360,000. July 1 Acqu

> Bakely Company reports the following information (in millions) during a recent year: net sales, $11,408.5; net earnings, $264.8; total assets, ending, $4,312.6; and total assets, beginning, $4,254.3. Instructions: (a) Calculate the (1) return on assets

> Shonrock International is considering a significant expansion to its product line. The sales force is excited about the opportunities that the new products will bring. The new products are a significant step up in quality above the companyâ€&#

> The management of Rosenquist Corp. is considering the effects of various inventory costing methods on its financial statements and its income tax expense. Assuming that the price the company pays for inventory is increasing, which method will: (a) provid

> The following expenditures relating to plant assets were made by Watkens Company during the first 2 months of 2014. 1. Paid $7,000 of accrued taxes at the time the plant site was acquired. 2. Paid $200 insurance to cover a possible accident loss on new f

> Shannon Corp. had the following balances in receivable accounts at October 31, 2014 (in thousands): Allowance for Doubtful Accounts $52; Accounts Receivable $2,910; Other Receivables $189; Notes Receivable $1,353. Instructions: Prepare the balance sheet

> Malone Supply Co. has the following transactions related to notes receivable during the last 2 months of the year. The company does not make entries to accrue interest except at December 31. Nov. 1 Loaned $60,000 cash to B. Carr on a 12-month, 7% note

> Stine Company has accounts receivable of $95,400 at March 31, 2014. An analysis of the accounts shows these amounts Credit terms are 2/10, n/30. At March 31, 2014, there is a $2,100 credit balance in Allowance for Doubtful Accounts prior to adjustment.

> At the beginning of the current period, Griffey Corp. had balances in Accounts Receivable of $200,000 and in Allowance for Doubtful Accounts of $9,000 (credit). During the period, it had net credit sales of $800,000 and collections of $763,000. It wrote

> Kimbrel Corp. significantly reduced its requirements for credit sales. As a result, sales during the current year increased dramatically. It had receivables at the beginning of the year of $38,000 and ending receivables of $191,000. Credit sales were $38

> The following ratios are available for Lin Inc. Instructions: (a) Is Lin’s short-term liquidity improving or deteriorating in 2014? Be specific in your answer, referring to relevant ratios. (b) Do changes in turnover ratios affect pro

> Suppose the following information was taken from the 2014 financial statements of FedEx Corporation, a major global transportation/delivery company. Instructions: Answer each of the following questions. (a) Calculate the accounts receivable turnover an

> The cash records of Downs Company show the following. For July: 1. The June 30 bank reconciliation indicated that deposits in transit total $580. During July, the general ledger account Cash shows deposits of $16,900, but the bank statement indicates tha

> This information relates to the Cash account in the ledger of Treanor Company. Balance September 1—$16,400; Cash deposited—$64,000 Balance September 30—$17,600; Checks written—$62,8

> Iris Company purchased land and a building on January 1, 2014. Management’s best estimate of the value of the land was $100,000 and of the building $250,000. However, management told the accounting department to record the land at $230,000 and the buildi

> Sun Company is trying to determine the value of its ending inventory as of March 31, 2014, the company’s year-end. The following transactions occurred, and the accountant asked your help in determining whether they should be recorded or not. (a) On March

> The following information applies to Bowling Green Metals Corporation for the year ended December 31, 2012: Total revenues from regular operations …………………………………..$832,000 Total expenses from regular operations ……………………………………..776,000 Extraordinary gain,

> At the end of 2012, vandals destroyed your financial records. Fortunately, the controller had kept certain statistical data related to the income statement, as follows: a. Cost of goods sold was $2 million. b. Administrative expenses were 20% of the co

> The following information for Decher Automotives covers the year ended 2012: Administrative expense………………………….. $ 62,000 Dividend income…………………………………… 10,000 Income taxes $............................................. 100,000 Interest expense ……………………………

> D. H. Muller Company presented the following income statement in its 2011 annual report: The asset side of the balance sheet is summarized as follows: Required: a. Based on these data, compute the following for 2011, 2010, and 2009: 1. Net profit margi

> Selected financial data for Squid Company are as follows: Required: a. Compute the following for 2011, 2010, and 2009: 1. Net profit margin 2. Return on assets 3. Total asset turnover 4. DuPont analysis 5. Return on investment 6. Return on total e

> Dorex, Inc., presented the following comparative income statements for 2011, 2010, and 2009: Required: a. Calculate the following for 2011, 2010, and 2009: 1. Net profit margin 2. Return on assets 3. Total asset turnover 4. DuPont analysis 5. Operat

> Day Ko Incorporated presented the following comparative income statements for 2011 and 2010: Required: a. How did 2011 net sales compare with 2010? b. How did 2011 net earnings compare with 2010? c. Calculate the following for 2011 and 2010: 1. Net prof

> Revenue and expense data for Vent Molded Plastics and for the plastics industry as a whole follow: Required: Convert the dollar figures for Vent Molded Plastics into percentages based on net sales. Compare these with the industry average, and comment on

> The balance sheet for Schultz Bone Company at December 31, 2011 had the following account balances: Income before income tax was $200,000, and income taxes were $80,000 for the current year. Required: Calculate each of the following: a. Return on asset

> Income statement data for Starr Canning Corporation are as follows: Required: a. Prepare an income statement in comparative form, stating each item for both years as a percent of sales (vertical common-size analysis). b. Comment on the findings in (a).

> The income statement of Rawl Company for the year ended December 31, 2012, shows the following: Net sales ………………………………………………………………………………$360,000 Cost of sales…………………………………………………………………………… 190,000 Gross profit…………………………………………………………………………….. 170,000 Sellin

> Ahl Enterprise lists the following data for 2011 and 2010: Required: Calculate the net profit margin, return on assets, total asset turnover, and return on common equity for both years. Comment on the results. (For return on assets and total asset turnov

> The Bishop Company has a balance in the warranty obligation account of $400,000. An analysis of the products sold under warranty indicates that a balance of $900,000 should be adequate for this year-end. The president of Bishop Company directs that the b

> Answer the following multiple-choice questions: a. Which of the following is not considered to be a nonrecurring item? 1. Discontinued operations 2. Extraordinary items 3. Cumulative effect of change in accounting principle 4. Interest expense 5. N

> Consecutive five-year balance sheets and income statements of Mary Lou Szabo Corporation are as follows: Required: a. Compute the following for the years ended December 31, 2009–2011: 1. Net profit margin 2. Total asset turnover 3.

> Transactions affect various financial statement amounts. Required: Indicate the effects of the previous transactions on each of the following: net profit, retained earnings, total stockholders’ equity. Use + to indicate an increase,

> Dexall Company recently had a fire in its store. Management must determine the inventory loss for the insurance company. Since the firm did not have perpetual inventory records, the insurance company has suggested that it might accept an estimate using t

> The following financial information is for A. Galler Company for 2011, 2010, and 2009: Required: a. For 2011, 2010, and 2009, determine the following: 1. Return on assets (using end-of-year total assets) 2. Return on investment (using end-of-year long

> Consecutive five-year balance sheets and income statements of Laura Gibson Corporation are shown below and on the following page. Required: a. Compute the following for the years ended December 31, 2007–2011: 1. Times interest earned 2.

> Allen Company and Barker Company are competitors in the same industry. Selected financial data from their 2011 statements follow. Required: a. Compute the following ratios for each company: 1. Times interest earned 2. Debt ratio 3. Debt/equity ratio

> The following items are from Taperline Corporation on December 31, 2012. Assume a flat 40% corporate tax rate on all items, including the casualty loss. Sales …………………………………………. $670,000 Rentalincome……………………………………..3,600Gain on the sale of fixed assets……

> For the year ended June 30, 2011, A.E.G. Enterprises presented the financial statements below. Early in the new fiscal year, the officers of the firm formalized a substantial expansion plan. The plan will increase fixed assets by $190 million. In additio

> Mr. Parks has asked you to advise him on the long-term debt-paying ability of Arodex Company. He provides you with the following ratios: Required: a. Give the implications and the limitations of each item separately and then the collective influence that

> Individual transactions often have a significant impact on ratios. This problem will consider the direction of such an impact. Required: Indicate the effect of each of the transactions on the ratios listed. Use + to indicate an increase, âˆ&

> Kaufman Company’s balance sheet follows: Required a. Compute the debt ratio. b. Compute the debt/equity ratio. c. Compute the ratio of total debt to tangible net worth. d. Comment on the amount of debt that Kaufman Company has As

> Sherwill’s statement of consolidated income is as follows: Note: Depreciation expense totals $200; operating lease payments total $150; and preferred dividends total $50. Assume that one-third of operating lease payments is for interest

> Jones Petro Company reports the following consolidated statement of income: Required: a. Compute the times interest earned. b. Compute the fixed charge coverage. $2,989 Operating revenues Costs and expenses: Cost of rentals and royalties Cost of sa

> Consider the following operating figures: Required: a. Compute the times interest earned. b. Compute the cash basis times interest earned. Net sales $1,079,143 Cost and deductions: Cost of sales 792,755 264,566 4,311 5,059 1,066,691 $ Selling and

> Answer the following multiple-choice questions: a. Which of the following ratios can be used as a guide to a firm’s ability to carry debt from an income perspective? 1. Debt ratio 2. Debt to tangible net worth 3. Debt/equity 4. Times interest earned

> The inventory and sales data for this year for G. Rabbit Company are as follows: Required: Using the above data from G. Rabbit Company, compute the following: a. The accounts receivable turnover in days b. The inventory turnover in days c. The opera

> D. Szabo Company had an average inventory of $280,000 and a cost of goods sold of $1,250,000. Required : Compute the following: a. The inventory turnover in days b. The inventory turnover