Excerpts from Hulkster Company's December 31, 2021 and 2020, financial statements are presented below: 2021 2020 Accounts receivable Merchandise inventory Net sales Cost of goods sold Total assets Total shareholders' equity $78,000 $ 55,000 47,000 73,000 305, 900 300, 000 152, 000 127, 000 463, 000 424,000 278,000 244,000 Net income 61, 000 47,000
Q: Income Statement For the Year Ended April 30, 2020 $7,700,000 Sales revenue Cost of goods sold…
A: Cashflow statement prepared using the indirect method adjust net income to calculate the cashflow…
Q: The following balances were reported by ABC Co. at December 31, 2019 and 2020: 12/31/20 P2,600,000…
A: Cost of goods sold:- Cost of goods sold is defined as the cost which includes all direct costs that…
Q: The comparative statements of Coronado Company are presented here. Coronado Company Income…
A: "Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: Selected information from the accounting records of Dalton manufacturing company is as follows: Net…
A: "Since you have asked multiple questions, we will solve first question for you. To get any specific…
Q: DCI & Co. reported the following 2021 balances: January 1 P2,175,000 P375,000 December 31 P1,950,000…
A: Cost of goods sold is the amount paid as a cost directly related to sale of products. This is being…
Q: nko Inc. reported the following balances at the end of each year:…
A: >Accounts Payable are the balances of suppliers that have not yet been paid in cash for the…
Q: InThe income statement of Pina Company is shown below. PINA COMPANY INCOME STATEMENT FOR THE YEAR…
A: Cash flow statement is a statement which is prepared to find out the cash comes in and goes out , by…
Q: Excerpts from TPX Company's December 31, 2021 and 2020, financial statements are presented below:…
A:
Q: The comparative statements of Coronado Company are presented here. Coronado Company Income…
A: Earnings per share = Net income / average number of shares issued and outstanding Return on common…
Q: The comparative statements of Sheridan Company are presented here. SHERIDAN COMPANY Income…
A: 1. Ratio Analysis - Ratio Analysis shows the various analysis of the financial statement and helps…
Q: At December 31, 2020, the following information was available from HIBISCUS Company's accounting…
A: We are provided with the cost and the retail price of the goods available for sale. Along with that,…
Q: Excerpts from Hulkster Company's December 31, 2021 and 2020, financial statements are presented…
A: RETURN ON ASSET : = NET INCOME / TOTAL AVERAGE ASSETS
Q: Excerpts from Hulkster Company's December 31, 2021 and 2020, financial statements are presented…
A: Profit margin is a ratio which indicated that how much profit has been generated for each dollar of…
Q: The comparative statements of Coronado Company are presented here. Coronado Company Income…
A: The net change in cash created by a business's activities during a reporting period, less cash…
Q: Excerpts from Hulkster Company's December 31, 2021 and 2020, financial statements are presented…
A: The term inventory refers to both raw materials used in production and final commodities that are…
Q: The income statement of Cheyenne Company is shown below. CHEYENNE COMPANY INCOME STATEMENT FOR THE…
A: Formulas:
Q: The income statement of Pina Company is shown below. PINA COMPANY INCOMESTATEMENT FOR THE YEAR ENDED…
A: Cash receipts=Sale+Decrease in receivables=$6,880,000+$380,000=$7,260,000
Q: The income statement of Whitlock Company is presented here. WHITLOCK COMPANY Income Statement For…
A: Cash flow statement: It is the statement which is consists of each and every cash or cash…
Q: The following balances were reported by ABC Co. at December 31, 2020 and 2019: 12/31/20 P2,600,000…
A: Purchaes = Ending Account balance + Amount paid - Beginning Account balance = P750,000 + P4,900,000…
Q: Excerpts from Stealth Company's December 31, 2021 and 2020, financial statements are presented…
A: Receivable turnover ratio is calculated by dividing the net credit sales by the average receivable.…
Q: The following balances were reported by ABC Co. at December 31, 2020 and 2019: 12/31/20 Inventory…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Presented below are selected account balances for Waterway Co. as of December 31, 2020. Inventory…
A: The closing entries are prepared to close the temporary accounts to income summary account.
Q: The following information is available for cullumber company for three recent fiscal years.…
A: Solution:- Calculation of Inventory turnover ratio as follows under:-
Q: How to compute this problem? Problem: The data shown below were obtained from the financial…
A: ‘’Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: The following data were extracted from the accounting records of Harkins Company for the year ended…
A: a.Calculate the cost of goods sold of Company H.
Q: The comparative statements of Coronado Company are presented here. Coronado Company Income…
A: The ratio analysis helps to analyse the financial statements of the business with various elements…
Q: The income statement of Sweet Company is shown below. SWEET COMPANY INCOME STATEMENT FOR THE YEAR…
A:
Q: Presented below are selected account balances for Homer Winslow Co. as of December 31, 2020.…
A: Closing entries: These are the entries that are prepared to close the temporary accounts to retained…
Q: The following balances were reported by ABC Co. at December 31, 2020 and 2019: 12/31/20 Inventory…
A: First we need to find out purchase from account payable information and then we will calculate the…
Q: The following items were taken from the financial statements of Kramer Manufacturing, Inc., over a…
A:
Q: The following balances were reported by ABC Co. at December 31, 2020 and 2019: 12/31/20 P2,600,000…
A: The cost of goods sold is determined by adding the purchases to the beginning balance of inventory…
Q: The comparative statements of Coronado Company are presented here. Coronado Company Income…
A: "Since you have posted a question with multiple sub parts, we will solve first three sub parts for…
Q: Apollo reported the following in its 2021 financial statements: 2021 Sales P420,000 Cost of goods…
A: formula used: Inventory turnover = Cost of goods sold / Average inventory
Q: Presented below are selected account balances for Johnson Co. as of December 31, 2020.…
A: Record closing entries for Johnson Co. on December 31, 2020 as shown below:
Q: The income statement of Swifty Company is presented here. SWIFTY COMPANY Income Statement For the…
A: The statement of cash flows records all the sources and use of the cash in the business during a…
Q: Selected financial statement data from Western Colorado Stores is shown below. 2021 2020 Net sales…
A: Gross profit ratio = Gross profit / sales
Q: QUESTION 1 The following are extracts of the income statement and the statement of financial…
A: Cash conversion cycle is the total time period taken by the firm to complete its operating cycle. It…
Q: The following information is available for Cullumber Company for three recent fiscal years.…
A: Inventory Turnover Ratio: Inventory Turnover Ratio shows how effectively inventory is managed by…
Q: Income Statement Calculation O'Connor Company's inome statement information for 2019 and 2020 (a…
A: Gross profit = Sales - Cost of goods sold Net Income = Gross profit - Operating Expenses Cost of…
Q: Selected financial statement data for Schmitzer Inc. is shown below: 2021 2020 Balance sheet:…
A:
Q: Retail Corporation reported the following Income Statement for the past two years: Retail…
A: The net income from a company's main, core business operations is known as operating profit. Since…
Q: Excerpts from TPX Company's December 31, 2021 and 2020, financial statements are presented below:…
A: Inventory turnover for 2021= COGS in 2021/average inventory Where, Average inventory =…
Q: The comparative statements of Coronado Company are presented here. Coronado Company Income…
A: Current ratio = current assets /current liabilities Accounts receivables turnover ratio = Net sales…
Q: Excerpts from Stealth Company's December 31, 2021 and 2020, financial statements are presented…
A: Inventory turnover = Cost of goods sold / Average inventory where, Average inventory = (Beginning…
Q: Staley Watch Company reported the following income statement data for a 2 year period: 2019…
A: Following is the answer to the given question
Q: Portions of the financial statements for Alliance Technologies are provided below. ALLIANCE…
A: Non cash expenses should be added back to net income in indirect method
Q: Data taken from the records of XYZ Co. revealed the following for 2020: Inventory - January 1…
A: Gross sales are the sales which are computed by adding gross profit to the cost of goods sold. When…
Q: The following accounts are extracted from the worksheet of X Company on December 31, 2020 Sales…
A: ending inventory=Beginning inventory+Purchases-Purchase returns-Cost of goods…
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
- (Appendix 8.1) Inventory Write-Down The following are the inventories for the years 2019, 2020, and 2021 for Parry Company: Required: 1. Assume the inventory that existed at the end of each year was sold in the subsequent year. Prepare journal entries to record the lower of cost or net realizable value for each of the following alternatives: a. allowance method, periodic inventory system b. direct method, periodic inventory system 2. Next Level Refer to your answer for P8-2. How does the use of the periodic inventory system affect the write-down of inventory to the lower of cost or net realizable value?( Appendix 6B) Inventory Costing Methods Grencia Company uses a periodic inventory system. For 2018 and 2019, Grencia has the following data (assume all purchases and sales are for cash): Required: 1. Compute cost of goods sold, the cost of ending inventory, and gross margin for each year using FIFO. 2. Compute cost of goods sold, the cost of ending inventory, and gross margin for each year using LIFO. 3. Compute cost of goods sold, the cost of ending inventory, and gross margin for each year using the average cost method. ( Note: Use four decimal places for per unit calculations and round all other numbers to the nearest dollar.) 4. CONCEPTUAL CONNECTION Which method would result in the lowest amount paid for taxes? 5. CONCEPTUAL CONNECTION Which method produces the most realistic amount for income? For inventory? Explain your answer. 6. CONCEPTUAL CONNECTION What is the effect of purchases made later in the year on the gross margin when LIFO is employed? When FIFO is employed? Be sure to explain why any differences occur. 7. CONCEPTUAL CONNECTION If you worked Problem 6-68B, compare your answers. What are the differences? Be sure to explain why any differences occurred.( Appendix 6B) Inventory Costing Methods Jet Black Products uses a periodic inventory system. For 2018 and 2019, Jet Black has the following data: All purchases and sales are for cash. Required: 1. Compute cost of goods sold, the cost of ending inventory, and gross margin for each year using FIFO. 2. Compute cost of goods sold, the cost of ending inventory, and gross margin for each year using LIFO. 3. Compute cost of goods sold, the cost of ending inventory, and gross margin for each year using the average cost method. ( Note: Use four decimal places for per unit calculations and round all other numbers to the nearest dollar.) 4. CONCEPTUAL CONNECTION Which method would result in the lowest amount paid for taxes? 5. CONCEPTUAL CONNECTION Which method produces the most realistic amount for income? For inventory? Explain your answer. 6. CONCEPTUAL CONNECTION What is the effect of purchases made later in the year on the gross margin when LIFO is employed? When FIFO is employed? Be sure to explain why any differences occur. 7. CONCEPTUAL CONNECTION If you worked Problem 6-68A, compare your answers. What are the differences? Be sure to explain why any differences occurred.
- (Appendix 8.1) Inventory Write-Down The inventories of Berry Company for the years 2019 and 2020 are as follows: Berry uses the periodic inventory method and the FIFO inventory cost flow assumption. Required: 1. Assume the inventory that existed at the end of 2019 was sold in 2020. Prepare the necessary journal entries at the end of each year to record the correct inventory valuation if Berry uses the: a. direct method b. allowance method 2. Next Level Refer to your answer for E8-6. How does the use of a periodic or perpetual inventory system affect the valuation of inventory?( Appendices 6A and 6B) Inventory Costing Methods Edwards Company began operations in February 2019. Edwards accounting records provide the following data for the remainder of 2019 for one of the items the company sells: Â Edwards uses a periodic inventory system. All purchases and sales were for cash. Required: 1. Compute cost of goods sold and the cost of ending inventory using FIFO. 2. Compute cost of goods sold and the cost of ending inventory using LIFO. 3. Compute cost of goods sold and the cost of ending inventory using the average cost method. ( Note: Use four decimal places for per-unit calculations and round all other numbers to the nearest dollar.) 4. Prepare the journal entries to record these transactions assuming Edwards chooses to use the FIFO method. 5. CONCEPTUAL CONNECTION Which method would result in the lowest amount paid for taxes? 6. CONCEPTUAL CONNECTION Refer to Problem 6-67B and compare your results. What are the differences? Be sure to explain why the differences occurred.( Appendix 6B) Refer to the information for Morgan Inc. above. If Morgan uses a periodic inventory system, what is the cost of goods sold under FIFO at April 30? a. $32,800 b. $38,400 c. $63,600 d. $69,200
- Cost of merchandise sold and related items The following data were extracted from the accounting records of Harkins Company for the year ended April 30, 2019: Increase in estimated returns inventory 11,600 Merchandise inventory, May 1, 2018 380,000 Merchandise inventory, April 30, 2019 415,000 Purchases 3,800,000 Purchases returns and allowances 150,000 Purchases discounts 80,000 Sales 5,850,000 Freight in 16,600 a. Prepare the cost of merchandise sold section of the income statement for the year ended April 30, 2019, using the periodic inventory system. b. Determine the gross profit to be reported on the income statement for the year ended April 30, 2019. c. Would gross profit be different if the perpetual inventory system was used instead of the periodic inventory system?Refer to RE22-2. Assume Heller Company had sales revenue of 510,000 in 2019 and 650,000 in 2020. Prepare Hellers partial income statements (through gross profit) for 2019 and 2020. RE22-2 Heller Company began operations in 2019 and used the LIFO method to compute its 300,000 cost of goods sold for that year. At the beginning of 2020, Heller changed to the FIFO method. Heller determined that its cost of goods sold under FIFO would have been 250,000 in 2019. For 2020, Hellers cost of goods sold under FIFO was 360,000, while it would have been 410,000 under LIFO. Heller is subject to a 21% income tax rate. Compute the cumulative effect of the retrospective adjustment on prior years income (net of taxes) that Heller would report on its retained earnings statement for 2020.Appendix Cost of goods sold and related items The following data were extracted from the accounting records of Harkins Company for the year ended April 30, 20Y8: Estimated returns of current year sales 11,600 Inventory, May 1,20Y7 380,000 Inventory, April 30,20Y8 415,000 Purchases 3,800,000 Purchases returns and allowances 150,000 Purchases discounts 80,000 Sales 5,850,000 Freight in 16,600 a. Prepare the Cost of goods sold section of the income statement for the year ended April 30. 20Y8, using the periodic inventory system. b. Determine the gross profit to be-reported on the income statement for the year ended April 30, 20Y8. c. Would gross profit be different if the perpetual inventory system was used instead of the periodic inventors-system?
- Under U.S. GAAP, LIFO is an acceptable inventory method. Financial statement information for three companies that use LIFO follows. All table numbers are in millions of dollars. Assume these companies adopted IFRS, and thus were required to use FIFO, rather than LIFO. a. Prepare a table with the following columns: (1) Difference between FIFO and LIFO inventory valuation. (2) Revised IFRS net income using FIFO. (3) Difference between FIFO and LIFO inventory valuation as a percent of total current assets. (4) Revised IFRS net income as a percent of the reported net income. b. Complete the table for the three companies. c. For which company would a change to IFRS for inventory valuation have the largest percentage impact on total current assets (Col. 3)? d. For which company would a change to IFRS for inventory valuation have the largest percentage impact on net income (Col. 4)? e. Why might Kroger have a negative impact on net income from using LIFO, while the other two companies have a positive impact on net income from using LIFO?Lower-of-cost-or-market inventory Data on the physical inventory of Katus Products Co. as of December 31 follows: Description Inventory Quantity Market Value per Unit (Net Realizable Value) A54 37 56 C77 24 178 F66 30 132 H83 21 545 K12 375 5 Q58 90 18 S36 8 235 V97 140 20 Y88 17 744 Quantity and cost data from the last purchases invoice of the year and the next-to-the-last purchases invoice are summarized as follows: Description Last Purchases Invoice Next-to-the-Last Purchases Invoice Quantity Purchased Unit Cost Quantity Purchased Unit Cost A54 30 60 40 58 C77 25 174 15 180 F66 20 130 15 128 H83 6 547 15 540 K12 500 6 500 7 Q58 75 25 80 26 S36 5 256 4 260 V97 100 17 115 16 Y88 10 750 8 740 Instructions Determine the inventory at cost and also at the lower of cost or market, using the first-in, first-out method. Record the appropriate unit costs on the inventory sheet, and complete the pricing of the inventory. When there are two different unit costs applicable to an item, proceed as follows: 1. Draw a line through the quantity, and insert the quantity and unit cost of the last purchase. 2. On the following line, insert the quantity and unit cost of the next-to-the-last purchase. 3. Total the cost and market columns and insert the lower of the two totals in the LCM column. The first item on the inventory sheet has been completed as an example. Inventory Sheet December 31 Description Unit Inventory Quantity Cost per Unit Market Value per Unit(Net Realizable Value) Total Cost Market LCM A54 37 30 60 56 1,800 1,680 7 58 56 406 392 2,206 2,072 2,072Periodic inventory accounts, multiple-step income statement, closing entries On December 31, 2019, the balances of the accounts appearing in the ledger of Wyman Company are as follows: Cash 13,500 Accounts Receivable 72,000 Merchandise Inventory, January 1,2019 257,000 Estimated Returns Inventory 35,000 Office Supplies 3,000 Prepaid Insurance 4,500 Land 150,000 Store Equipment 270,000 Accumulated DepreciationStore Equipment 55000 Office Equipment 78,500 Accumulated DepreciationOffice Equipment 16000 Accounts Payable 27,800 Customer Refunds Payable 50,000 Salaries Payable 3,000 Unearned Rent 8,300 Notes Payable 50,000 Shirley Wyman, Capital 515,600 Shirley Wyman, Drawing 25,000 Sales 3280000 Purchases 2650000 Purchases Returns and Allowances 93,000 Purchases Discounts 37,000 Freight In 48,000 Sales Salaries Expense 300,000 Advertising Expense 45,000 Delivery Expense 9,000 Depreciation ExpenseStore Equipment 6,000 Miscellaneous Selling Expense 12,000 Office Salaries Expense 175,000 Rent Expense 28,000 Insurance Expense 3,000 Office Supplies Expense 2,000 Depreciation Expense-Office Equipment 1,500 Miscellaneous Administrative Expense 3,500 Rent Revenue 7,000 Interest Expense 2,000 Instructions 1. Does Wyman Company use a periodic or perpetual inventory system? Explain. 2. Prepare a multiple-step income statement for Wyman Company for the year ended December 31, 2019. The merchandise inventory as of December 31, 2019, was 305,000. The adjustment for estimated returns inventory for sales for the year ending December 31, 2019, was 30,000. 3. Prepare the closing entries for Wyman Company as of December 31, 2019. 4. What would the net income have been if the perpetual inventory system had been used?