Exercise 2. Reconstruct the year-end balance and the income statement for 2019 of the Paradise Corp.Current ratioAcid test ratioWorking CapitalCurrent liabilities to total debtAverage Age of receivablesFixed assets to stockholders' equity 1.66 213 based on capital stockThe company has no prepaid expenses nor intangible assets (1 year = 360 days )2:1 Inventory turnover65:1 Gross Profit percentageP 20,000 Eamings per share33 1/3 % Capital Stock outstanding27 days Percentage of retained earnings3X40%P.2010,000 shares20%I

Name: Exercise 2. Reconstruct the year-end balance and the income statement
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Description: Exercise 2. Reconstruct the year-end balance and the income statement for 2019 of the Paradise Corp.Current ratioAcid test ratioWorking CapitalCurrent liabilities to total debtAverage Age of receivablesFixed assets to stockholders' equity 1.66 213 b

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Exercise 2. Reconstruct the year-end balance and the income statement for 2019 of the Paradise Corp. 2:1 Inventory turnover 65:1 Gross Profit percentage P 20,000 Eamings per share 33 1/3 % Capital Stock outstanding 27 days Percentage of retained eamings Current ratio 3X 40% P.20 10,000 shares Acid test ratio Working Capital Current liabilities to total debt Average Age of receivables Foxed assets to stockholders' eguity 1.66 2/3 based on capital stock The company has no prepaid expenses nor intangible assets (1 year = 360 days ) 20%

Exercise 2. Reconstruct the year-end balance and the income statement for 2019 of the Paradise Corp. 2:1 Inventory turnover 65:1 Gross Profit percentage P 20,000 Eamings per share 33 1/3 % Capital Stock outstanding 27 days Percentage of retained eamings Current ratio 3X 40% P.20 10,000 shares Acid test ratio Working Capital Current liabilities to total debt Average Age of receivables Foxed assets to stockholders' eguity 1.66 2/3 based on capital stock The company has no prepaid expenses nor intangible assets (1 year = 360 days ) 20%

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter1: Accounting And The Financial Statements

Section: Chapter Questions

Problem 46E: OBJECTIVE 6 Exercise 1-46 Income Statement ERS Inc. maintains and repairs office equipment. ERS had...

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Problem 1-65A Relationships Among Financial Statements Carson Corporation reported the following amounts for assets and liabilities at the beginning and end of a recent year. Required: Calculate Carsons net income or net loss for the year in each of the following independent situations: Carson declared no dividends. and its common stock remained unchanged. Carson declared no dividends and issued additional common stock for $40,000 cash. Carson declared dividends totaling $5000 and its common stack remained unchanged. Carson declared dividends totaling $20,000 and issued additional common stock for $35,000.
Income Statement and Retained Earnings Huff Company presents the following items derived from its December 31, 2019, adjusted trial balance: The following information is also available for 2019 and is not reflected in the preceding accounts: 1. The common stock has been outstanding all year. A cash dividend of 1.28 per share was declared and paid. 2. Land was sold at a pretax gain of 6,300. 3. Division X (a major component of the company) was sold at a pretax gain of 4,700. It had incurred a 9,500 pretax operating loss during 2019. 4. A tornado, which is an unusual event in the area, caused a 5,400 pretax loss. 5. The income tax rate on all items of income is 30%. 6. The average shareholders equity is 90,000. Required: 1. Prepare a 2019 multiple-step income statement for Huff. 2. Prepare a 2019 retained earnings statement. 3. Compute the 2019 return on common equity (Net Income 4 Average Shareholders Equity).
Problem 1-65B Relationships Among Financial Statements Leno Corporation reported the following amounts for assets and liabilities at the beginning and end of a recent year. Required: Calculate Lenos net income or net loss for the year in each of the following independent situations: Leno declared no dividends, and its common stock remained unchanged. Leno declared no dividends and issued additional common stock for $15,000 cash. Leno declared dividends totaling $10,000 and its common slack remained unchanged. Leno declared dividends totaling $12,000 and issued additional common stock for $20,000.
Problem 1-563 Applying the Fundamental Accounting Equation At the beginning of 2019, KJ Corporation had total assets of $525,100, total liabilities of $290,800. common stock of $100000. and retained earnings of $134,900. During 2019. KJ had net income of $205,500. paid dividends of $70,000. and 1ssued additional common stock for $36,000 KJs total assets at the end of 2019 were $10,100. Required: Calculate the amount of Liabilities that KJ must have at the end of 2019 in order for the balance sheet equation to balance.
(Appendix 21.1) Visual Inspection The following changes in account balances were taken from Walson Companys adjusted trial balance at the end of 2019: In addition, the following information was obtained from the companys records: Land was sold, at cost, for 1,900. Dividends of 4,000 were declared and paid. Equipment was purchased for 10,400. Common stock was issued for 9,000. Beginning cash balance was 17,000. Required: Using visual inspection and the direct method, prepare Walsons 2019 statement of cash flows. (A separate schedule reconciling net income to cash provided by operating activities is not necessary.)
Return on assets The following data (in millions) were adapted from recent financial statements of Tootsie Roll Industries Inc. (TR): What is Tootsie Roll’s percent of the cost of sales to sales? Round to one decimal place.
Return on assets The following data (in millions) were adapted from recent financial statements of Tootsie Roll Industries Inc. (TR): The percent a company adds to its cost of sales to determine selling price is called a markup. What is Tootsie Roll’s markup percent? Round to one decimal place.
Return on assets The following data (in millions) were adapted from recent financial statements of Tootsie Roll Industries Inc. (TR): What is the percentage of net income to sales for Tootsie Roll? Round to one decimal place.
OBJECTIVE 6 Exercise 1-46 Income Statement ERS Inc. maintains and repairs office equipment. ERS had an average of 10,000 shares of common stock outstanding for the year. The following income statement account balances are available for ERS at the end of 2019. Required: 1. Prepare a single-step income statement for ERS for 2019. 2. CONCEPTUAL CONNECTION Compute net profit margin for ERS. If ERS is able to increase its service revenue by $100,000, what should be the effect on future income? 3. CONCEPTUAL CONNECTION Assume that ERS net profit margin was 8.5% for 2018. As an investor, what conclusions might you draw about ERS future profitability?
Comprehensive: Income Statement and Supporting Schedules The following s a partial list of the account balances, after adjustments, of Silvoso Company on December 31, 2019: The following information is also available: 1. The company declared and paid a 0.60 per share cash dividend on its common stock. The stock was outstanding the entire year. 2. A physical count determined that the December 31, 2019, ending inventory is 34,100. 3. A tornado destroyed a warehouse, resulting in a pretax loss of 12,000. The last tornado in this area had occurred 10 years earlier. 4. On May 1, 2019, the company sold an unprofitable division (R). From January through April, Division R (a major component of the company) had incurred a pretax operating loss of 8,700. Division R was sold at a pretax gain of 10,000. 5. The company is subject to a 30% income tax rate. Its income tax expense for 2019 totals 4,230. The breakdown is as follows: 6. The company had average shareholders equity of 150,000 during 2019. Required: 1. As supporting documents for Requirement 2, prepare separate supporting schedules for cost of goods sold, selling expenses, general and administrative expenses, and depreciation expense. 2. Prepare a 2019 multiple-step income statement for Silvoso. Include any related note to the financial statements. 3. Prepare a 2019 retained earnings statement. 4. Next Level What was Silvosos return on common equity for 2019? What is your evaluation of Silvosos return on common equity if last year it was 10%?
Cornerstone Exercise 1-18 Balance Sheet An analysis of the transactions of Cavernous Homes Inc. yields the following totals at December 31, 2019: cash, $3,200; accounts receivable, $4,500; notes payable, $5,000; supplies, $8,100; common stock, $7,000; and retained earnings, 9,800. Required: Prepare a balance sheet for Cavernous Homes Inc. at December 31 , 2019.
Return on assets The financial statements of The Hershey Company (HSY) are shown in Exhibits 6 through 9 of this chapter. Based upon these statements, answer the following questions. Hershey had total assets of $4,412 (million) at the beginning of the year. Compute the return on assets for Hershey for the year shown in Exhibits 6-9.