liabilities: Cash. Accounts receivable.. Finished goods.. Work in process.. Materials. $ 5,000 10,000 6,000 2,000 4,000 500 ..........*.** ........ ...... ........ .......... .... Prepaid expenses. .. Property, plant, and equipment (net).. Current liabilities.. 30,000 17,500 .... prepaid expenses, current liabilities, and common stock were the same on December 3 198, as they had been on Decemher 31, 19A. Inventorles were reduced by exactly 50 except for the finished goods inventory, which was reduced by 33V%. Plant assets (non were reduced by depreciation of $4,000, charged 4 to factory overhead and v administrative expense. Sales of $60,000 were made on account, costing $38,000. Direct labor cost was $9,000. Factory overhead was applied at a rate of 100% of direct labor cost leaving $2,000 underapplied that was closed into the cost of goods sold account. Tolel marketing and administrative expenses amounted to 10% and 15%, respectively, of the gross sales. Required: (1) Prepare a balance sheet as of December 31, 19B. (2) Prepare an income statement for the year 19B, with details of the cost of goods manufactured and sold. (AICPA adapted)

liabilities: Cash. Accounts receivable.. Finished goods.. Work in process.. Materials. $ 5,000 10,000 6,000 2,000 4,000 500 ..........*.** ........ ...... ........ .......... .... Prepaid expenses. .. Property, plant, and equipment (net).. Current liabilities.. 30,000 17,500 .... prepaid expenses, current liabilities, and common stock were the same on December 3 198, as they had been on Decemher 31, 19A. Inventorles were reduced by exactly 50 except for the finished goods inventory, which was reduced by 33V%. Plant assets (non were reduced by depreciation of $4,000, charged 4 to factory overhead and v administrative expense. Sales of $60,000 were made on account, costing $38,000. Direct labor cost was $9,000. Factory overhead was applied at a rate of 100% of direct labor cost leaving $2,000 underapplied that was closed into the cost of goods sold account. Tolel marketing and administrative expenses amounted to 10% and 15%, respectively, of the gross sales. Required: (1) Prepare a balance sheet as of December 31, 19B. (2) Prepare an income statement for the year 19B, with details of the cost of goods manufactured and sold. (AICPA adapted)

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter9: Metric-analysis Of Financial Statements

Section: Chapter Questions

Problem 9.4.10P: Twenty metrics of liquidity, solvency, and profitability The comparative financial statements of...

See similar textbooks

Similar questions

The following items were excerpted from Poeltl, Inc.'s balance sheets: December 31, 2023December 31, 2022Cash$86,300$59,000Accounts receivable65,60070,600Inventory157,000150.300Property and equipment794,500745,400Accumulated depreciation(184,000)(168,200)Accounts payable61,00050,600Wages payable20,40023,000 Poeltl's 2023 income statement showed net income of $463,000, depreciation expense of $57,000, and a gain on disposal of equipment of $16,000. On Poeltl's 2023 statement of cash flows, how much is Net Cash Provided by Operating Activities?
58. The following balance sheet was prepared by the bookkeeper for Strawberry Company as ofDecember 31, 2021.• Cash- P80,000• Accounts receivable (net)- P52,200• Inventories- P57,000• Investments- P76,300• Equipment (net)- P96,000• Patents- P32,000• Accounts payable- P75,000• Long-term liabilities- P100,000• Stockholders' equity- P218,500The following additional information is provided:1. Cash includes the cash surrender value of a life insurance policy P9,400, and a bank overdraftof P2,500 has been deducted.2. The net accounts receivable balance includes:(a) accounts receivable- debit balances P60,000;(b) accounts receivable- credit balances P4,000;(c) allowance for doubtful accounts P3,800.3. Inventories do not include goods costing P3,000 shipped out on consignment. Receivables ofP3,000 were recorded on these goods.4. Investments include investments in equity securities at fair value through P/L- P19,000 andinvestments in equity securities at fair value through OCI- P48,300, and…
Calculate the following for Co. XYZ: c. Average collection period (365 days) d. Times interest earned Assets: Cash and marketable securities $400,000Accounts receivable 1,415,000Inventories 1,847,500Prepaid expenses 24,000Total current assets $3,686,500Fixed assets 2,800,000Less: accumulated depreciation 1,087,500Net fixed assets $1,712,500Total assets $5,399,000Liabilities: Accounts payable $600,000Notes payable 875,000Accrued taxes Total current liabilities $1,567,000Long-term debt 900,000Owner's equity Total liabilities and owner's equity Co. XYZ Income Statement: Net sales (all credit) $6,375,000Less: Cost of goods sold 4,375,000Selling and administrative expense 1,000,500Depreciation expense 135,000Interest expense Earnings before taxes $765,000Income taxes Net income Common stock dividends $230,000Change in retained earnings
Sandy Corporation’s balance sheet at January 2, 20x5 is as follows:Sandy-Dr(Cr)Cash and receivables P200,000,000Inventories 600,000,000.00Property, plant and equipment, net 7,500,000,000.00 Current liabilities (400,000,000.00)Long-term debt (7,200,000,000.00)Capital stock (7,200,000.00)Retained earnings (25,000,000.00)Accumulated othercomprehensive income (5,000,000.00) An analysis of Sandy’s assets and liabilities reveals that book values of some reported itemsdo not reflect their market values at the date of acquisition:● Inventories are overvalued by P200,000,000● Property, plant and equipment is overvalued by P2,000,000,000● Long-term debt is undervalued by P100,000,000 On January 2, 20x5, Velasco issues new stock with a market value of P700,000,000 toacquire the assets and liabilities of Sandy. Stock registration fees are P100,000,000, paid incash. Consulting, accounting, and legal fees connected with the merger are P150,000,000,paid in cash. In addition, Velasco enters into an…
On September 1, 2020, the account balances of Tom Cruise Repair, Inc. were asfollows.No Debit No Credit101 Cash £4,880 158 Accumulated DepreciationEquipment£2,100112 AccountsReceivable3,520 201 Accounts Payable 3,400126 Supplies 2,000 209 Unearned Service Revenue 1,400157 Equipment 18,000 212 Salaries and Wages Payable 500311 Share Capital-Ordinary 10,000320 Retained Earnings 11,000£28,400 £28,400During September, the following summary transactions were completed.Sept. 8 Paid £1,700 for salaries due employees, of which £1,200 is for September.10 Received £1,200 cash from customers on account.12 Received £3,400 cash for services performed in September.15 Purchased store equipment on account £3,000.17 Purchased supplies on account £1,200.20 Paid creditors £4,500 on account.22 Paid September rent £500.25 Paid salaries £1,050.27 Performed services on account and billed customers for services provided£1,600.29 Received £750 from customers for future service.Adjustment data consist of:1.…
JEY-4322 Inc. reported the following data for last year: JEY-4322 Inc.Balance Sheet Beginning BalanceEnding BalanceAssets Cash$ 128,000$ 139,000Accounts receivable331,000481,000Inventory567,000471,000Plant and equipment, net894,000869,000Investment in Tesla Inc.400,000428,000Land (undeveloped)246,000249,000Total assets$ 2,566,000$ 2,637,000Liabilities and Stockholders' Equity Accounts payable$ 382,000$ 341,000Long-term debt981,000981,000Stockholders' equity1,203,0001,315,000Total liabilities and stockholders' equity$ 2,566,000$ 2,637,000 JEY-4322 Inc.Income StatementSales $ 3,880,000Operating expenses 3,336,800Net operating income 543,200Interest and taxes: Interest expense$ 111,000 Tax expense197,000308,000Net income $ 235,200 JEY-4322 Inc. paid dividends of $123,200 last year. The “Investment in Tesla Inc.” item on the balance sheet represents an investment in the stock of another company. The company's minimum required rate of return is 15%. What was the company’s residual income…
Pip’s Paw Patrol had the following account Balances on Dec 31, 2021:BOOK Value FMVCurrent Assets $225,000 $250,000Land $320,000 $350,000Building $450,000 $650,000Accum Dep ($50,000)Equipment $195,000 $50,000Accum Dep ($100,000)Current Liabilities ($75,000) ($75,000)Bonds Payable ($200,000) ($300,000)Common Stock ($65,000)Paid in Capital ($700,000)Pip’s industry anticipates an 8% return on investments of P/E/P before accumulated depreciation andPip generated a $120,000 profit in 2021. Pip would like to be paid for 4 years of excess earnings.REQUIRED:a. Calculate the Goodwillb. Calculate the pricec. Record the purchase of the Pip Paw Patrol on the books of the BUYER, assume they issued100,000 shares of $2 par value common stock and paid $40,000 in legal and accounting fees and$50,000 in stock issuance costs to their broker.d. Record the sale of the company on the books of the seller.
Pip’s Paw Patrol had the following account Balances on Dec 31, 2021:BOOK Value FMVCurrent Assets $225,000 $250,000Land $320,000 $350,000Building $450,000 $650,000Accum Dep ($50,000)Equipment $195,000 $50,000Accum Dep ($100,000)Current Liabilities ($75,000) ($75,000)Bonds Payable ($200,000) ($300,000)Common Stock ($65,000)Paid in Capital ($700,000)Pip’s industry anticipates an 8% return on investments of P/E/P before accumulated depreciation andPip generated a $120,000 profit in 2021. Pip would like to be paid for 4 years of excess earnings.REQUIRED:a. Calculate the Goodwillb. Calculate the price
Pip’s Paw Patrol had the following account Balances on Dec 31, 2021:BOOK Value FMVCurrent Assets $225,000 $250,000Land $320,000 $350,000Building $450,000 $650,000Accum Dep ($50,000)Equipment $195,000 $50,000Accum Dep ($100,000)Current Liabilities ($75,000) ($75,000)Bonds Payable ($200,000) ($300,000)Common Stock ($65,000)Paid in Capital ($700,000)Pip’s industry anticipates an 8% return on investments of P/E/P before accumulated depreciation andPip generated a $120,000 profit in 2021. Pip would like to be paid for 4 years of excess earnings.REQUIRED:c. Record the purchase of the Pip Paw Patrol on the books of the BUYER, assume they issued100,000 shares of $2 par value common stock and paid $40,000 in legal and accounting fees and$50,000 in stock issuance costs to their broker.d. Record the sale of the company on the books of the seller
Marina Company Statement of Financial Position June 30, 2020 AssetsCurrent Assets Cash P 21,000.00 Accounts Receivables 160,000.00 Merchandise Inventory 300,000.00 Prepaid Expenses 9,000.00Total Current Assets P 490,000.00Property, Plant and Equipment 810,000.00Total Assets P 1,300,000.00 Liabilities and EquityLiabilities: Current Liabilities P 200,000.00 Bonds Payable, 10% 300,000.00Total Liabilities P 500,000.00Equity:…
Marina Company Statement of Financial Position June 30, 2020 AssetsCurrent Assets Cash P 21,000.00 Accounts Receivables 160,000.00 Merchandise Inventory 300,000.00 Prepaid Expenses 9,000.00Total Current Assets P 490,000.00Property, Plant and Equipment 810,000.00Total Assets P 1,300,000.00 Liabilities and EquityLiabilities: Current Liabilities P 200,000.00 Bonds Payable, 10% 300,000.00Total Liabilities P 500,000.00Equity:…
Marina Company Statement of Financial Position June 30, 2020 AssetsCurrent Assets Cash P 21,000.00 Accounts Receivables 160,000.00 Merchandise Inventory 300,000.00 Prepaid Expenses 9,000.00Total Current Assets P 490,000.00Property, Plant and Equipment 810,000.00Total Assets P 1,300,000.00 Liabilities and EquityLiabilities: Current Liabilities P 200,000.00 Bonds Payable, 10% 300,000.00Total Liabilities P 500,000.00Equity:…