Compare and contrast the net income margins of both Company A and B. Do you think the company with the lower net income margin is in absolute financial distress? Explain.
Q: Hardy Man, Inc., acquired a machine in 2021 for P 400,000 and erroneously charged the cost to an exp...
A: The straight line method of calculating depreciation is the most simplest way to determine accumulat...
Q: On the statement of financial position, Hernandez Company had retained earnings of USD 650, 000, but...
A: 1. Retained Earnings - Retained earnings is the accumulated balance earned by the company over a per...
Q: Q-3: Following data is pertaining to Assembly department. 8,000 Units beginning; All materials, 50% ...
A: Equivalent units concept is used when opening or ending work in progress is not 100% complete but pa...
Q: Inc. adds materials at the beginning of the process in department USB. Conversion costs were 70% co...
A: Solution: At first, Equivalent units of product will need to be computed based on their completion p...
Q: The following data pertaining to the cash transactions and bank account of ABC Company for May 2022 ...
A: Adjustment in cash Balance at Bank Particulars Amount Bank statement, May 31, 2022 - 95,874 ...
Q: D&R A3 3 - 3 Question 3. FRA Pricing, Valuation, Payoff, and Hedging Today is June 1. Sustainabl...
A: ANSWER: # days LIBOR 30 0.90% 60 1.00% 90 1.05% 120 1.10% 150 1...
Q: Pasay Manufacturing Company manufactures fire extinguishers and uses FIFO method for process and inv...
A: Cost of Goods Sold: It is the carrying value of goods which is sold during a particular period and...
Q: JD Company decided on January 2, 2022, to effect the change in accounting policies in relation to ba...
A: Carrying value of the Accounts Receivable = Accounts Receivable - Estimated uncollectible accounts w...
Q: A company is considering the opportunity to invest into a new 12- year project: manufacturing and se...
A: A financial break even is a point of units sold where profit after tax is equal to $0.
Q: he total costs to account in the Finishing Department amounted to:
A: Equivalent units means where the some goods remain incomplete at the end of process and we need to c...
Q: Pablo Bicarso Unadjusted Trial Balance 31-Dec-02 Account Title Debit $ Credit $ Cash 22,380 Clien...
A: NOTE: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-part...
Q: On October 5, 2016, the Bureau of Internal Revenue (BIR) sent KLM Corp. a Final Assessment Notice (F...
A: The answer is stated below:
Q: Waldron Inc. issued $400,000 bonds with a stated rate of 7% when the market rate was 5%. They are 3-...
A: Period Interest payment Interest expense Amortization Carrying value 0 $421,840 1 $28,000...
Q: 1. Business partners AC, Ian and KR agreed to divide their profit in the ratio 2:4:8. If AC received...
A: As posted multiple independent questions we are answering only first question kindly repost the unan...
Q: adjustment required to record the change? a. Debit - Retained Earnings, P 30,000; Credit - Allowanc...
A: Amoeba Company changed its method of accounting for bad debts from the direct write-off method to th...
Q: Sparkling Beverages makes one of its products by way of three separate stages. Details of productio...
A: As per the given information, there are three processes involved in making a product. These processe...
Q: What is Dick Tracy Corporation’s deductible expense? a. P45,000 b. P75,000 c. P95,000 d. P60,000
A: Tax refers to the amount charged by the government on individuals, partnership firms, HUF’s or any c...
Q: Cory Company's bookkeeper is not familiar with accrual accounting concepts. He determined net income...
A: Journal entries means the book of prime entry including debit and credit item. Adjusting entry means...
Q: What is the current ratio? Use the information below. Current Assets: $450,000 Costs of Goods Sold: ...
A: Lets understand the basics. Current ratio shows that how much current asset is there in compare to c...
Q: 3) A. Umar and Osman manufacture and sell energy drinks. The drinks are sold for RM9.10 a bottle to ...
A: Total Cost = Total Fixed Cost + Average Variable Cost Per Unit * Quantity of Units Produced
Q: The capital accounts of Lorraine Grecco and Carrie Rosenfeld have balances of $64,000 and $99,000, r...
A: We know that, all the incomes and expenses accounts have to be closed to the income statement. But...
Q: Accounting Partners x, y, z capital balances: 150000, 250000, and 450000, respectively. p/l based on...
A: partnership such form of business where two or more person joints their hand in order to start a bus...
Q: Holiday Company produces dog food. All direct materials are entered at the beginning of process. Som...
A: Process costing is used where there are many processes in the same line of business for manufacturin...
Q: In October, Dave quit his job with employer I and in December found a new job with employer II in a ...
A: Moving expenses Moving expenses is the expenses which was incurred at the time of shifting job from ...
Q: The stockholders' equity section of Zuyrib Corporation. Compute how many ordinary stocks are outstan...
A: Ordinary stock outstanding means the common equity stock held with the public (Investors). Treasury ...
Q: On March 13, Folder purchased 100 shares of Straddle Co. stock for $57 per share. On April 5, Folder...
A: Internal Revenue Service- The Internal Revenue Service (IRS) of the United States collects taxes and...
Q: D Company decided on January 2, 2022, to effect the change in accounting policies in relation to bad...
A: solution Concept Debit balance in allowance for bad debt account Normal balance in allowance for bad...
Q: A change from the straight-line method of depreciation to sum-of-years' digits is accounted for as ...
A: Change in accounting estimate relates with an estimates for doubtful allowance, estimate for invento...
Q: For each of the following inventory errors occurring in 2018, determine the effect of the error on 2...
A: Retained earnings means the amount of profit left to company which has not been paid as dividend and...
Q: Total cost of units transferred-out is: Bryan Company employs process costing system. A unit of prod...
A: Meaning of Weighted Average Method: The term 'weighted average cost' in accounting refers to the met...
Q: Pamana Company's bookkeeper is not familiar with accrual accounting concepts. He determined net inco...
A: Net income means the income left after deducting all expenses and including all income whether opera...
Q: Broker A loans Broker B 1,000 shares of IBM for the price of $100 per share at that time. When A ret...
A: Recognised gain refers to the amount of gain from sale of an asset which is taxable, or simply it is...
Q: ABC Company established a petty cash fund for small expenses of the offices of the main building whi...
A: Petty Cash refers to the cash that is kept aside for day-to-day expenses and has a small amount.
Q: Exercise 6-13 (Algo) Depreciation calculation methods LO 3 Millco Inc., acquired a machine that cost...
A: Straight line depreciation Cost of the asset - residual value / useful life of asse Accumulated dep...
Q: n process, beg (1/3 to be completed) ...
A: Solution When there is work in process at the beginning or at the end , then the equivalent units ne...
Q: %24 Metlock Ridge Corporation was organized on January 1, 2018. During its first year, the corporati...
A: Cumulative and Non Cumulative Preference Shares - Non Cumulative Preference Shareholders gets the di...
Q: Please help me answer this one! Read the given case study and answer the following questions.: In Ap...
A: (Answer) 1. The suggestions in order to eliminate work-related tragedies are as follows: 1. Incorp...
Q: Required information [The following information applies to the questions displayed below.] This year...
A: Introduction:- Alimony (also known as aliment in Scotland, maintenance in England, Ireland, Northern...
Q: The information below pertains to Pierpont Corp. for 202 Net income, $1,200,000. Common Stock, $10 p...
A: The formula for calculating basic EPS involves dividing net income by the number of common shares ou...
Q: Nash Corporation has one temporary difference at the end of 2020 that will reverse and cause taxable...
A:
Q: What is the total amount that was disclosed as compensation to key management personnel for the pare...
A: Answer :- compensation is $188,806. Correct Option is:- $ 188,806.
Q: Love Company uses FIFO method of process costing. The company’s cost accountant has provided you wi...
A: Solution: Dove Company Finishing Department Computation of Equivalent unit (FIFO) Particula...
Q: rozen Inc. adds materials at the beginning of the process in department USB. Conversion costs were ...
A: The equivalent units are calculated on the basis of percentage of the work completed during the peri...
Q: Item Inventory Quantity Cost per Unit Market Value per Unit (Net Realizable Value) JFW1 6,330 $10 $1...
A: Solution Concept Lower of cost or market method of inventory valuation Using the Lower of cost or ma...
Q: Isabela Company commercial operations at the beginning of the current year. The following costs are ...
A: Land and building are the different classes of tangible assets (physical assets). Their value is rec...
Q: The following information is given for Gator Company, who uses the FIFO method. Item Quantity Cost ...
A: Inventory should be value at cost or market which ever is lower. First find out purchase cost of inv...
Q: JD Company decided on January 2, 2022 to effect the change in accounting policies in relation to bad...
A: solution Concept Debit balance in allowance for bad debt account Normal balance in allowance for bad...
Q: How much is the previously held equity interest in the acquiree? a. 0.00 b. 150,000.00 c. 310,000.00...
A: As per our protocol we provide solution to the one question only but as you have asked multiple choi...
Q: Which of the following is a book reconciling item? a.notes receivable collected by the bank b.cash o...
A: The bank reconciliation statement is prepared to equate the balances of cash book and passbook with ...
Q: Tamarisk Corporation began 2020 with a $50,600 balance in the Deferred Tax Liability account. At the...
A: Deferred tax liability arises when the tax due for one accounting period arising out of timing diffe...
- Compare and contrast the net income margins of both Company A and B. Do you think the company with the lower net income margin is in absolute financial distress? Explain.
Step by step
Solved in 4 steps with 1 images
- Orbit Limited Statement of Financial Position as at 31 December: 2022 2021 R R ASSETS Non-current assets 11 810 000 7 560 000 Property, plant and equipment 10 025 000 6 250 000 Investments 1 785 000 1 310 000 Current assets 4 190 000 4 690 000 Inventories 1 875 000 2 350 000 Accounts receivable 1 925 000 2 200 000 Cash 390 000 140 000 Total assets 16 000 000 12 250 000 EQUITY AND LIABILITIES Equity ? ? Ordinary share capital 5 480 000 3 680 000 Retained earnings ? ? Non-current liabilities 4 500 000 3 800 000 Loan (20% p.a.) 4 500 000 3 800 000 Current liabilities 2 300 000 1 500 000 Accounts payable 2 300 000 1 500 000 Total equity and liabilities 16 000 000 12 250 000 Statement of Comprehensive Income for the year ended 31 December: 2022 2021 R R Sales 10 800 000 7 150 000 Cost of sales (6 000 000) (3 650 000) Gross profit 4 800 000 3 500 000 Operating expenses (1 800 000) (1 200 000) Depreciation 580 000 200 000…The Canada Technology Corporation (CTC) financial statements follow: Book value per common share of CTC outstanding at December 31,2020 was: a) 4.37 b) 2.72 c) 2.46 d) 6,280Orbit Limited : Statement of Financial Position as at 31 December 2022 2021 Non-current Assets R11 810 000 R7 560 000 Property, Plant, Equipment R10 025 000 R6 250 000 Investments R1 785 000 R1 310 000 Current Assets R4 190 000 R4 690 000 Inventories R 1 875 000 R2 350 000 Account Receivable R1 925 000 R2 200 000 Cash R390 000 R140 000 Toatal Assets R16 000 000 R12 250 000 Equities & Liabilities Equity ? ? Oridanary share capital R5 480 000 R3 680 000 Retained earnings ? ? Non-current Liabilities R4 500 000 R3 800 000 Loan (20% p.a) R4 500 000 R3 800 000 Current Liabilities R2 300 000 R1 500 000 Accounts payable? R2 300 000 R1 500 000 Calculate the increase in the retained earnings over the two-year period.
- Reference is made to the 2022 Balance Sheet of Tram-Ropes limited.Tram-Ropes Limited Balance Sheet 2022Cash 1,000,000.00 Accounts Payable 8,000,000.00Acc. Receivable 12,000,000.00 Notes Payable 8,500,000.00Marketable securities 3,000,000.00 Long-term Debt 20,000,000.00Inventories 7,500,000.00 Common stock 7,500,000.00Fixed Assets 26,500,000.00 Preferred Stock 6,000,000.00Total Assets 50,000,000.00 Total Liabilities and Equity 50,000,000.00Additional Information:i. The Long-Term debt consists of 8% annual coupon bonds, with15 years to maturity and are currently selling for 95% ofpar.ii. The company’s common shares which have a book value of $20per share are currently selling at $25 per share.PREPARED BY THE CI, MGMT2023 4iii. Preferred shares have a book value of $100 per share. Theseshares are currently selling at $120 per share and paysdividends of 6% per annum on book value.iv. The dividend growth rate is expected to be 3%, and dividendfor 2023 is projected to be $5.00 per…Paul Company presented the following information pertaining to its investments in equity securities. FVPL FVOCICost P1,000,000 P1,000,000Market value December 31, 2020 1,050,000 980,000 December 31, 2019 950,000 920,0001. What amount should Paul Company report as unrealized gain on its 2020 profit or loss? a. P160,000 b. P110,000 c. P100,000 d. P 50,000 2.What amount should Paul report as unrealized gains/losses in the shareholders' equity of its December 31, 2020 statement of financial position? a. P60,000 credit b. P20,000 debit c. P80,000 debit d. P20,000 creditPharoah Corporation’s comparative balance sheet is presented below. PHAROAH CORPORATIONBalance SheetDecember 31 Assets 2021 2020 Cash $12,010 $8,980 Accounts receivable 17,810 19,660 Land 16,800 21,840 Buildings 58,800 58,800 Accumulated depreciation—buildings (12,600 ) (8,400 ) Total $92,820 $100,880 Liabilities and Shareholders’ Equity Accounts payable $10,390 $26,120 Common shares 63,000 57,960 Retained earnings 19,430 16,800 Total $92,820 $100,880 Additional information: 1. Profit was $19,010. Dividends declared and paid were $16,380. 2. No noncash investing and financing activities occurred during 2021. 3. The land was sold for cash of $4,120 resulting in a loss of $920 on the sale of the land. Prepare a cash flow statement for 2021 using the indirect method. Lu…
- Paul Company presented the following information pertaining to its investments in equity securities. FVPL FVOCICost P1,000,000 P1,000,000Market value December 31, 2020 1,050,000 980,000 December 31, 2019 950,000 920,000 2.What amount should Paul report as unrealized gains/losses in the shareholders' equity of its December 31, 2020 statement of financial position?The Statement of Financial Position (SFP) of Arthur Corporation on June 30, 202X is presented below:Current Assets P195,000Land 1,320,000Building 660,000Equipment 525,000Total Assets P2,700,000Liabilities P525,000Ordinary Shares, P5 par 900,00Share Premium 825,000Retained Earnings 450,000Total Equities P2,700,000All the assets and liabilities of Arthur were assumed to approximate their fair values except for land and building. It is estimated that the land has a fair value of P2,100,000, and the fair value of the building increased by P480,000. Ezekeil Corporation acquired 80% of Arthur’s outstanding shares for P3,000,000. The non-controlling interest is measured at fair value.Required:a. Determine the goodwill or gain on bargain purchase assuming the consideration paid includes control premium of P852,000. Determine the goodwill or gain on bargain purchase assuming the consideration paid excludes control premium of P138,000 and the fair value of the non-controlling interest is…Financial statements for the Genatron Manufacturing Corporation for the years 2020 and 2019 are shown. Genatron Manufacturing CorporationBalance Sheet 2020 2019 ASSETS Cash $41,847 $50,643 Accts. receivable 261,201 201,804 Inventory 504,430 450,954 Total current assets 807,478 703,401 Fixed assets, net 400,000 300,000 Total assets $1,207,478 $1,003,401 LIABILITIES AND EQUITY Accts. payable $170,208 $134,265 Bank loan 91,242 91,242 Accruals 70,000 50,000 Total current liabilities 331,450 275,507 Long-term debt, 12% 392,625 293,723 Common stock, $10 par 300,000 300,000 Capital surplus 48,173 48,173 Retained earnings 135,230 85,998 Total liabilities & equity $1,207,478 $1,003,401 Genatron Manufacturing CorporationIncome Statement 2020 2019…
- The following are extracts from the financial statements of Captus Ltd. As at 31 March: 2021 2020 Sh.’000’ Sh.’000’ Sh.’000’ Sh.’000’ Fixed assets: Goodwill Freehold land and building Plant and machinery (NBV) Investment at cost Current assets: Stocks Accounts receivable Investments Cash at hand and bank Current liabilities Bank overdraft Accounts payable Proposed dividends Taxation Net current assets 15% debentures Capital and reserves: Authorised, issued and paid Sh.10 Ordinary shares Share premium Revaluation reserve Retained profit 10,050 6,140 1,710 200 18,100 (2,390) (5,850) (450) (820) (9,510) 2,800 16,800 5,860 3,600 29,060 8,590 37,650 (7,500) 30,150 18,000 1,500 4,500 6,150 8,700 7,800 840 430 17,770 (6,540) (5,250) (380) (600) (12,770) 2,900 12,000 6,350 3,750 25,000 5,000 30,000 (9,000) 21,000 15,000 750 -…Liabilities 2021 2020 Assets 2021 2020 ₹ ₹ ₹ ₹ Share Capital 5,00,000 5,00,000 Premises 4,75,000 5,00,000 General Reserve 1,50,000 1,25,000 Machinery 4,22,500 3,75,000 Profit & Loss Ac 76,500 76,250 Equipments 40,500 45,000 Term Loan from ICICI 1,55,000 1,75,000 Stock 74,000 1,00,000 Sundry Creditors 2,31,250 2,75,000 Sundry Debtors 1,60,000 2,00,000 Provision for Taxation 76,250 84,250 Cash 7,000 3,000 Bank 10,000 - Goodwill - 12,500 11,89,000 12,35,500 11,89,000 12,35,500 Other Information: (1) Dividend (interim) of Rs. 25,000 was paid during the year. (2) Depreciation on Premises is provided at 5% & at Equipment at 10% (3) Machinery of Rs. 75,000 was acquired during the year. (4) Income Tax provision for the year was Rs. 75,000. Prepare Cash flow statement?Rodriquez Corporation’s comparative balance sheets are presented below: RODRIQUEZ CORPORATIONComparative Balance SheetsDecember 31 2020 2019 Cash $16,500 $17,400 Accounts receivable 25,300 22,100 Investments 20,150 15,850 Equipment 59,950 69,850 Accumulated depreciation—equipment (13,850 ) (10,300 ) Total $108,050 $114,900 Accounts payable $14,850 $11,150 Bonds payable 10,600 30,100 Common stock 49,500 45,500 Retained earnings 33,100 28,150 Total $108,050 $114,900 Additional information: 1. Net income was $18,550. Dividends declared and paid were $13,600. 2. Equipment which cost $9,900 and had accumulated depreciation of $1,600 was sold for $3,300. 3. No noncash investing and financing activities occurred during 2020. Prepare a statement of cash flows for 2020 using the…