E9-1 (Algo) Identifying Current Liabilities, Computing Working Capital, and Explaining Working CapitalLO 9-1, 9-4, 9-5Diane Corporation is preparing its year-end balance sheet. The company records show the following selected amounts at the end ofthe year:Total assetsTotal noncurrent assetsLiabilities:Notes payable (8%, due in 5 years)Accounts payableIncome taxes payableLiability for withholding taxesRent revenue collected in advanceBonds payable (due in 15 years)Wages payableProperty taxes payable.Note payable (10%, due in 6 months)Interest payableCommon stockRequired:1-a. What is the amount of current liabilities?Current liabilities1-b. Compute working capital.Working capital$590,000360,000O YesO No24,00054,00012,0002,0009,000120,0009,0005,00014,000600170,0002. Would your computation be different if the company reported $310,000 worth of contingent liabilities in the notes to its financialstatements? E9-13 (Algo) Computing Four Present Value Problems LO 9-7On January 1 of this year, Shannon Company completed the following transactions (assume a 10% annual interest rate): (FV of $1. PV of$1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided.)a. Bought a delivery truck and agreed to pay $61,500 at the end of three years.b. Rented an office building and was given the option of paying $11,500 at the end of each of the next three years or paying$29,500 immediately.c. Established a savings account by depositing a single amount that will increase to $93,000 at the end of seven years.d. Decided to deposit a single sum in the bank that will provide 10 equal annual year-end payments of $41,500 to a retiredemployee (payments starting December 31 of this year).Required:a. What is the cost of the truck that should be recorded at the time of purchase? (Round your answer to nearest whole dollar.)Cost of the truckb. Which option for the office building results in the lowest present value?O Pay in single installmentO Pay in three installmentsc. What single amount must be deposited in this account on January 1 of this year? (Round your answer to nearest whole dollar.)Amount to depositd. What single sum must be deposited in the bank on January 1 of this year? (Round your answer to nearest whole dollar.)Amount to deposit

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Description: E9-1 (Algo) Identifying Current Liabilities, Computing Working Capital, and Explaining Working CapitalLO 9-1, 9-4, 9-5Diane Corporation is preparing its year-end balance sheet. The company records show the following selected amounts at the end ofthe

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E9-1 (Algo) Identifying Current Liabilities, Computing Working Capital, and Explaining Working Capital LO 9-1, 9-4, 9-5 Diane Corporation is preparing its year-end balance sheet. The company records show the following selected amounts at the end of the year: Total assets Total noncurrent assets Liabilities: Notes payable (8%, due in 5 years) Accounts payable Income taxes payable. Liability for withholding taxes Rent revenue collected in advance. Bonds payable (due in 15 years) Wages payable Property taxes payable Note payable ( 10%, due in 6 months) Interest payable Common stock Required: 1-a. What is the amount of current liabilities? Current liabilities 1-b. Compute working capital. Working capital $590,000 360,000 O Yes O No 24,000 54,000 12,000 2,000 9,000 120,000 9,000 5,000 14,000 600 170,000 2. Would your computation be different if the company reported $310,000 worth of contingent liabilities in the notes to its financial statements?

E9-1 (Algo) Identifying Current Liabilities, Computing Working Capital, and Explaining Working Capital LO 9-1, 9-4, 9-5 Diane Corporation is preparing its year-end balance sheet. The company records show the following selected amounts at the end of the year: Total assets Total noncurrent assets Liabilities: Notes payable (8%, due in 5 years) Accounts payable Income taxes payable. Liability for withholding taxes Rent revenue collected in advance. Bonds payable (due in 15 years) Wages payable Property taxes payable Note payable ( 10%, due in 6 months) Interest payable Common stock Required: 1-a. What is the amount of current liabilities? Current liabilities 1-b. Compute working capital. Working capital $590,000 360,000 O Yes O No 24,000 54,000 12,000 2,000 9,000 120,000 9,000 5,000 14,000 600 170,000 2. Would your computation be different if the company reported $310,000 worth of contingent liabilities in the notes to its financial statements?

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter17: Corporations: Introduction And Operating Rules

Section: Chapter Questions

Problem 47P

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