Helpp plz dssets, working capital (CA - CL). and current ratio. Indicate increase with "+," indicatedecrease withteicate the effects of the transactions listed below on each of the following: total currentProblem 1total revenue to be tranand equipment replacerlodging property has 20Its room revenue is 70of its total revenue.an initial current ratio of greater than 1.0.¨and indicate no effect or effect cannot be determined with "0." AssumeTotalCurrentWorkingСapitalCurrent1. Food is sold for cash.AssetsRatioRequired:2. Equipment is sold at less thanits net book value.1. Determine the2. Determine th3. Beverages are sold on account.3. Determine4. A cash dividend is declared.5. Accrued payroll is paid.The Brooklyncredit and co6. Treasury stock is purchased.7. A fully depreciated fixed assetis retired.year has 365 8. Equipment is purchased withlong-term notes.Ratio Analysis 2819. Utility expenses are paid (theywere not previously accrued).10. A cash dividend is paid.Problem 2

Current assets are the assets that are sold or used in the period of one year.

Answered: Indicate the effects c assets, working…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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and fixed assets turnover ratio of 2? an What is the current ratio of a business with net sales of IL 44, 000, Fotal assets ofTL 30,000, permanent capital of TL 28,000 A) 3 B) 3,5 C) 4 D) 4,5 E) 4,6 What is the current ratio of a business with net sales of IL 44, 000, Fotal assets ofTL 30,000, permanent capital of TL 28,000 A) 3 B) 3,5 C) 4 D) 4,5 E) 4,6
Use attachment to answer the following Required: a. Calculate return on common equity and disaggregate ROCE for Years 5 and 9 using end-of-year values for com- putations requiring an average (assume fixed assets and working capital are operating and a 50% tax rate). b. Comment on Texas Telecom’s use of financial leverage.
The financial statements of TVS Motors report the following information (all values are in millions). PBDIT: Rs. 8020, PBIT: Rs. 6100 and PBT: Rs. 5650. Total Assets: Rs. 29010, Current liabilities: Rs. 18850 and non-current liabilities: Rs. 9240. The return on capital employed (ROCE) is equal to??
The following information is available from the annualreport of Frixell, Inc.: Currentliabilities . . . . $300,000Operatingincome . . . . . 240,000Net income . . . . 80,000 Currentassets . . . . $ 480,000Average totalassets . . . . 2,000,000Average totalequity . . . . 800,000Which of the following statements are correct? (More thanone statement may be correct.)a. The return on equity exceeds the return on assets.b. The current ratio is 0.625 to 1.
If given the following information: Current Assets - 2073Current Liabilities - 1634Cash - 1182Inventory - 316Net working capital - 934Total Assets - 3873Average Daily Operating Costs - 344 Find the Current Ratio.
If total assets increased P20,000 during a period of time and total liabilities increased by P12,000 during the same period, the amount and direction (increase or decrease) of the period's change in capital is: Choices: a.P32,000, increase b.P32,000, decrease c.P8,000 increase d.P8,000 decrease
The working capital provided from operations in Seat’s Statement of Cash Flow for 20x2 was $8,000,000. For 20x2 depreciation on fixed assets was a $3,800,000, amortization of goodwill was $100,000, and dividends on common stock were $2,000,000. Based on the information given above, seat’s net income for 20x2 was............. a. $ 2,100,000 b. $ 4,100,000 c. $ 8,000,000 d. $ 11,900,000
Complete the following tasks: a. Consider the following worksheet with information extracted from a financial statement: 2018 Assets Liabilities Equity Reported ($) 500 000 100 000 400 000 An analyst makes an adjustment that decreases goodwill by $100 000 and equity (profit) by $100 000. This goodwill was acquired on consolidation, hence there are no tax adjustments. Using the worksheet approach, what would be the change in the debt to assets ratio? b. Consider the following information: Net working capital/total assets = 0.9 Retained earnings/total earnings = 0.15 EBIT/total assets = 1.1 MV of equity/BV of total liabilities = 2 Sales/total assets = 2.5 Compute the Z-score. Is there a likelihood of financial distress?
Based on the below, what inferences (make at least two) can you make when comparing the facilities of the 2 firms (assume they both use the same depreciation method)? $ in millions Firm A Firm B Gross PP&E $100 $100.0 Accumulated Depreciation (75.0) (40.0) Net PP&E 25.0 60.0 Annual Depreciation Exp 5.0 10.0
Required Prepare journal entries for (a) the sale of equipment, (b) the allocation of its gain or loss, (c) the payment of liabilities at book value, and (d) the distribution of cash in each of the following separate cases: Equipment is sold for (1) $650,000; (2) $530,000; (3) $200,000 and partners with capital deficits pay their deficits in cash; and (4) $150,000 and partners with deficits do not pay their deficits. (Round to the nearest dollar.)
The following are Statement of Financial Position and Statement of ComprehensiveIncome of Lala Electronics Sdn. Bhd.Table 3: Statement of Financial Position and Statement of Comprehensive Income of Lala Electronics Sdn. Bhd. Lala Electronics Sdn. Bhd. Statement of Financial Position as at 31/12/2020Non-Current Asset: RM RMInvestment 270,000Fixed Assets at cost 1,596,000Accumulated Depreciation (857,000)Net Book Value 739,000Current Asset:Cash 178,000Account Receivable 678,000Inventory 1,329,000Prepaid Expenses 56,000 2,241,000Total assets 3,250,000Current Liabilities:Account Payable 148,000Interest Payable 36,000Income Taxes Payable 448,000Other Accrued Liabilities 191,000Total Current Liabilities 823,000Long Term Liabilities:Bank Loan 631,000Total Liabilities 1,454,000Equity:Capital 782,000Appropriate Profit (RetainedEarnings) 1,014,000 1,796,0003,250,000Lala Electronics Sdn. Bhd. Statement of Comprehensive Income for the year ended 31/12/2020RM RM Sales 3,992,000(-) COGS…
PROBLEM The balance sheet contains the following major sections: a. Current assets b. Long-term investments c. Property, plant, and equipment d. Intangible assets e. Other assets f. Current liabilities g. Long-term liabilities h. Contributed capital i. Retained earnings j. Accumulated other comprehensive income _____ 1. Unexperied insurance _____ 2. Idle machinery _____ 3. Unrealized increase in avaiblable for sale securities _____ 4. Land _____ 5. Fund to retire preferred stock _____ 6. Additional paid-in capital on common stock _____ 7. Deferred income taxes-noncurrent _____ 8. Obligation for future pension payments _____ 9. Trademark _____ 10. Unearned ticket sales Required: Using the letters (a) through (j), indicate in what section the accounts would be classified.

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Indicate the effects c assets, working capi decrease with O a an initial current rati 1. Food is sold for 2. Equipment is sc its net book valu 3. Beverages are se 4. A cash dividenc 5. Accrued payrol! 6. Treasury stock i 7. A fully deprecia is retired.