MVP Company has below ratios for the year 2021: ROA = 10% Current Ratio = 2:1 What is the effect of the following transactions on the above ratios? ( DECREASE, INCREASE, NO EFFECT)
Q: Cost Driver rate
A: Cost driver refers to the cost which is affected by some specific business activities and influenced…
Q: Miller Company has an unfavourable materials price variance. Which of the following would be the…
A: Introduction:- The following formula used to calculate as follows under:- Material price variance…
Q: ABC Co. receives P210,000 3-year non-interest bearing note. Collections is on the principal and…
A: Note receivable is one of the current asset of the business. It means amount is to be received…
Q: Bed & Bath, a retailing company, has two departments-Hardware and Linens. The company's most recent…
A: Financial advantage (disadvantage) of discontinuing the Linens Department = Saving in avoidable…
Q: The difference between the federal minimum wage and the tipped wage involves: Muitiple Choice An…
A: Federal government set required minimum wages for the worker who receives the tips on a regular…
Q: Cash Budget Khloe Company imports gift items from overseas and sells them to gift shops and…
A: Cash Budget is a summary of Cash Receipts and disbursements made during the period. In cash budget…
Q: The tax rate on income on Philippine Bonds (PH Bonds) 0% 10% 20%
A: A bond is a form of collecting money from the general public or banks. The bond is a type of…
Q: ABE Company factored P100,000 of its accounts receivable to Cee Company for P85,000. An allowance…
A: a. 80,750 b. 16,250 Explanation:
Q: At the end of the month, the schedule of accounts payable (a list of ending amounts owed to…
A: Accounts payable is a part of current liabilities which shows the amount due to creditors in respect…
Q: Kingcade Corporation keeps careful track of the time required to fill orders. Data concerning a…
A: Formula used: Delivery time = Wait time + Throughput time Sum of both wait time and throughput time…
Q: Acme Ltd. manufactures point of sale terminals used by businesses to process transactions. At the…
A: Calculation of Desired Ending inventory for October Ending inventory for October = Budget unit sales…
Q: Determine the selling price for goods sold on credit
A: All other information are not required. Cost of goods sold on credit and profit percentage are given…
Q: Claire Corporation owns 80% of Jerald, Inc. ordinary stock. During 2020, Claire sold Jerald for…
A: Claire Corporation owns 80% of Jerald, Inc. The intra-company sales would be eliminated from the sum…
Q: Class Discussion No. 3 Please review the following information and explain the "total expense" for…
A:
Q: Dexter Industries purchased packaging equipment on January 8 for $392,400. The equipment was…
A: Depreciation: - Depreciation is the reduction in the value of asset as its use or wear and tear…
Q: The following selected transactions relate to investment activities of Ornamental Insulation…
A: Available for sale securities refer to those securities purchased by a business entity for the…
Q: At the beginning of the current year, Bert Company purchased a mineral mine for P26,400,000 with…
A: Lets understand the basics. Depletion needs to calculate when there is extraction of mineral…
Q: 11. Biscoe. has historically used FIFO inventory costing method. In year 4 the company decided to…
A: A journal entry is a form of accounting entry that is used to report a business transaction in a…
Q: half yearly payments of £74,000 in advance -Note the Interest rate inherent in the lease is 3%…
A: Lease Accounting Financial lease Accounting, recording transaction in the books of leasee
Q: The Matilda produces two products, Alpha and Beta, and uses the conventional method of allocating…
A: Activity based costing is one of the costing method under which all indirect costs are being…
Q: Which of the following describes the order in which the four types of budgets must be prepared?a.…
A: Budgeting is the process of estimation of expected revenues and expenses of the entity over a…
Q: Brown Inc. has 5,000 shares of 6%, $50 par value, cumulative preferred stock and 100,000 shares of…
A: As per IAS 33, Earnings per share The cumulative preferred stock holders will be eligible for…
Q: Nizam Company produces speaker cabinets. Recently, Nizam switched from a traditional departmental…
A: The process of attributing expenses to the activities or objects that caused the costs to be…
Q: Mr Johannes started business with Cash N$200000; purchased goods for cash N$60 000 and on credit…
A: The Goods can be sold for cash and can be on credit. The goods that are sold for cash are added to…
Q: On Jan 1, 20X1, ABC Corp received a P300,000 3-year note from a customer. The principal and interest…
A:
Q: You are considering two job offers: Job 1 is a full-time position that pays $58,000 annually and Job…
A: Number of Hours in a week: 40 Hours Payment per hour: $26 Gross Annual Income: ? Gross annual income…
Q: At the end of the month, the schedule of accounts payable (a list of ending amounts owed to…
A: Accounts payable is a part of current liabilities which shows the amount due to creditors in respect…
Q: Why would the company redeem the bonds prior to the maturity date if they were going to recognize a…
A: A bond appears to be a debt owing to a firm or government that pays holders a predetermined interest…
Q: Cash Budget Friendly Freddie’s is an independently owned major appliance and electronics discount…
A: given The following cash receipts and disbursements data apply to the fourth quarter of the…
Q: Identified steps for proving and ruling a journal page. Be specific. Explain
A: Answer:- Journal meaning:- A journal is a detailed record that documents all of a company's…
Q: On August 1, 20X1 ABC Corp received an interest bearing note due July 31, 20X4. Maturity value is…
A: Note receivable is one of the current asset being held by the business. On this note receivable,…
Q: 00 units of electricity valued at N$2 450. In the stateme rrent asset n-current asset ng-term…
A: There are two types of assets current assets and non current assets that depends on the time period…
Q: On January 16, Gee Company accepted a P600,000, 10%, 90-day note from a customer. On February 15,…
A: Comment- Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the…
Q: At December 31, 2019 and 2018, New Corporation had outstanding 4,000 shares of P 100 par 12%…
A: Cumulative preference shareholders are paid dividend including the arrears before the payment of…
Q: Cash Budget Friendly Freddie’s is an independently owned major appliance and electronics discount…
A: Cash Budget- A cash budget is a type of budget that is used to plan an entity's cash receipts and…
Q: Given: The 456 Company purchased office supplies from A-One Supplies worth P124,000 on July 06,…
A: In the given question, A-one Supplies has offered a trade discount of 15% and 10%: It implies that…
Q: Acquiree Inc. has 100,000 shares of P2 par value stock outstanding. Acquirer Co. purchased 30,000…
A: Goodwill = Acquisition date fair value/purchase consideration - Net assets at Fair value
Q: Topper Toys has developed a new toy called the Brainbuster. The company has a standard cost system…
A: Lets understand the basics. Material price variance is a variance between the standard price at…
Q: if the recession led Shalimar's top management to assume that in the next year 10 percent of credit…
A: Cash Receipt Budget is the pre estimation of the total cash receipts from the sales of products,…
Q: Bonneau Corporation has 100,000 shares of $10 par common stock outstanding. On July 31, the Board of…
A: Working Note: No. of shares issued = No. of common shares outstanding x Stock dividend rate =…
Q: S1: Government grant related to depreciable asset is usually recognized as income over the useful…
A: Introduction:- Government grants are support by government in the form of take of resources to an…
Q: RO 50,000 RO 5,000 RO 3,000 Sales Opening stock Closing stock Purchases Selling expenses RO 35,000…
A: Formula: Gross profit ratio = ( Gross profit / Net sales ) x 100
Q: Henredon purchased a high precision programmable router for shaping furniture components for $85000.…
A: Income Tax Payment: An income tax payable account is a kind of account that appears on a company's…
Q: Matchroom's investment appraisal committee have worked out the Net Cash flows in the working shown…
A: The discount rate required to make a project's net present value (NPV) zero is called the Internal…
Q: Mary Jarvis is a single individual who is working on fling her tax return for the previous year. She…
A: The tax liability refers to the income tax payable by the taxpayers on the taxable income. The tax…
Q: Alec bought a home for $202,000. He had a $48,000 down payment and got a 30-year fixed r mortgage at…
A: Amount of loan = purchase price of the home - down payment made Hence loan amount = 202,000 - 48,000…
Q: Instructions (a) Determine the pension expense to be reported on the income statement for 2021. (b)…
A:
Q: On January 1, 2018, Thomas Company issued $100,000, 5-year, 12% bonds, with interest payable…
A: A bond refers to a type of security under which the issuer owes the holder a debt, and is…
Q: S Company had the following balances at the time it was acquired by P Company: Cash…
A:
Q: On January 4, 2021, Runyan Bakery paid $340 million for 10 million shares of Lavery Labeling Company…
A: Investment accounts consist of the shares in which the company has invested its money and holds some…
Step by step
Solved in 2 steps with 1 images
- During 20X2, Evans Company had the following transactions: a. Cash dividends of 6,000 were paid. b. Equipment was sold for 2,880. It had an original cost of 10,800 and a book value of 5,400. The loss is included in operating expenses. c. Land with a fair market value of 15,000 was acquired by issuing common stock with a par value of 3,600. d. One thousand shares of preferred stock (no par) were sold for 4.20 per share. Evans provided the following income statement (for 20X2) and comparative balance sheets: Required: Prepare a worksheet for Evans Company.ABC COMPANY In 2X20, ABC Company has the following data on its statement of financial position: • Cash – P15,000,000 • Marketable securities – P20,000,000 • Property, plant, and equipment – P30,000,000 • Long-term debt – P36,000,0000 • Inventory – P25,000,000 • Short-term debt – P15,000,000 • Accounts payable – P15,000,0000 During the year, the company reported a P12,000,000 of net income. The company’s total asset in the previous year was P60,000,000. Requirement: Compute for the ff. 1. Current assets 2. Current liabilities 3. Current ratio 4. Debt to asset ratio 5. Return on assetsPresented below is the trial balance of Walter Corporation at December 31, 2020.Cash 197,000Sales 7,900,000Trading Securities (at cost, P145,000) 153,000Cost of goods sold 4,800,000Long-term investments in bonds 299,000Long-term investment in share capital - ordinary 277,000Short-term notes payable 90,000Accounts payable 455,000Selling expenses 2,000,000Investment revenue 63,000Land 260,000Buildings 1,040,000Dividends payable 136,000Accrued liabilities 96,000Accounts receivables 435,000Accumulated Depreciation – Building 352,000Allowance for doubtful accounts 25,000Administrative Expenses 900,000Interest Expense 211,000Inventories 597,000Provision for pension (long term) 80,000Long term notes payable 900,000Equipment 600,000Bonds Payable 1,000,000Accumulated Depreciation – Equipment 60,000Franchise 160,000Shares Capital – Ordinary 1,000,000Treasury Shares 191,000Patent 195,000Retained Earnings 78,000Other comprehensive income 80,000 Requirements:1. How much is the total assets?2. How…
- The company issued 2,500, P125 par ordinary shares for an outstanding bank loan ofP350,000. On this date, shares are quoted at P150 per share. Compute for the increase in share premium* a. ₱0 b. ₱25,000 c. ₱37,500 d. ₱62,500Pleaase provide solution for the following. Answers are already given 9. Pineapple Co. reported total assets of P2,100,000 and total liabilities of P1,360,000 in its December31, 2020 balance sheet. The following transactions occurred during 2021:• On August 1, Pineapple Co. issued an additional 10,000 ordinary shares at P25 per share• The company paid dividends totaling P160,000• Net income during the year was P220,000• Reacquired treasury shares of 4,000 at P30; subsequently reissued 2,000 shares for P39 per share• No other changes occurred in Stockholders’ Equity during the year.What is the balance of the Stockholders’ Equity section in its December 31, 2021 balance sheet?a) P800,000b) P1,008,000-answerc) P1,050,000d) P1,370,000 12. In 2020, Lychee Appliance Manufacturing introduced a fully automatic washing machine with a dryer.The sales price per unit, which comes with a warranty, is P40,000. The company offers a three-yearwarranty against defects and provides service other than…A Company provided the following balances on December 31, 2021: Subscription receivable 100,000 Losses from investment in equity FVTOCI 60,000 Accrued taxes 15,000 Ordinary share capital 2,500,000 Profit for the year 1,200,000 Retained earnings, beginning balance3,500,000 Salaries payable 80,000 Share dividends payable 50,000 Treasury shares, at cost 300,000 Unamortized issue cost on notes payable 10,000 Unearned rent income 60,000 Accounts payable (net of accounts with debit balances of P100,000) 300,000 Dividends paid 250,000 Mortgage payable (P800,000 due in 8 months) 3,000,000 Trade notes payable, due on January 31, 2023 600,000 Share premium 200,000 Preference share capital 1,300,000 Discount on notes payable 200,000 [Q3]: Determine the total amount of (7) current liabilities, (8) non-current liabilities, (9) retained earnings and (10) shareholder’s equity on December 31, 2021.
- Additional information: * All purchases of inventories are on credit * The selling and administrative expenses include depreciation of R320 000 * Property, plant and equipment were purchased during the year but there were no disposals * The total dividends for the year ended 31 December 2021 amounted to R360 000 * The issued share capital consisted of 100 000 ordinary shares * The market price of the shares on 31 December 2021 was R35Category Prior Year Current Year Accounts payable ??? ??? Accounts receivable 320,715 397,400 Accruals 40,500 33,750 Additional paid in capital 500,000 541,650 Cash 17,500 47,500 Common Stock 94,000 105,000 COGS 328,500 431,139.00 Current portion long-term debt 33,750 35,000 Depreciation expense 54,000 54,349.00 Interest expense 40,500 41,741.00 Inventories 279,000 288,000 Long-term debt 337,728.00 398,725.00 Net fixed assets 946,535 999,000 Notes payable 148,500 162,000 Operating expenses (excl. depr.) 126,000 162,280.00 Retained earnings 306,000 342,000 Sales 639,000 847,106.00 Taxes 24,750 48,618.00 What is the current year's return on assets (ROA)? (Round to 4 decimal places.)Category Prior Year Current Year Accounts payable ??? ??? Accounts receivable 320,715 397,400 Accruals 40,500 33,750 Additional paid in capital 500,000 541,650 Cash 17,500 47,500 Common Stock 94,000 105,000 COGS 328,500 428,571.00 Current portion long-term debt 33,750 35,000 Depreciation expense 54,000 54,035.00 Interest expense 40,500 42,155.00 Inventories 279,000 288,000 Long-term debt 339,577.00 401,377.00 Net fixed assets 946,535 999,000 Notes payable 148,500 162,000 Operating expenses (excl. depr.) 126,000 162,171.00 Retained earnings 306,000 342,000 Sales 639,000 849,094.00 Taxes 24,750 47,192.00 What is the current year's entry for long-term debt on a common-sized balance sheet? (ROUND TO 4 DECIMAL PLACES.)
- C. Reither Co. reports the following information for 2025: sales revenue $700,000 cost of goodssold $500,000, operating expenses $80,000, and an unreliazed holding loss on available-for-sale debt securities of 2025 of $60,000. It declared and paid a cash dividend of $10,000 in 2025. C. Reither Co. has Janaury 1, 2025, balances in common stock $350,000; accumulated other comprehensive income $80,000; and retained earnings $90,000. It issued no stock during 2025. Prepare a statement of stockholders' equity. (Ignore income taxes).Category Prior Year Current Year Accounts payable 3,147.00 5,976.00 Accounts receivable 6,925.00 8,910.00 Accruals 5,635.00 6,187.00 Additional paid in capital 19,527.00 13,950.00 Cash ??? ??? Common Stock 2,850 2,850 COGS 22,974.00 18,270.00 Current portion long-term debt 500 500 Depreciation expense 975.00 976.00 Interest expense 1,278.00 1,155.00 Inventories 3,048.00 6,717.00 Long-term debt 16,569.00 22,919.00 Net fixed assets 75,968.00 73,882.00 Notes payable 4,045.00 6,584.00 Operating expenses (excl. depr.) 19,950 20,000 Retained earnings 35,870.00 34,759.00 Sales 46,360 45,347.00 Taxes 350 920 What is the firm's cash flow from operations? What is the firm's dividend payment in the current year? What is the firm's net income in the current year?Category Prior Year Current Year Accounts payable 3,123.00 5,969.00 Accounts receivable 6,987.00 8,940.00 Accruals 5,642.00 6,108.00 Additional paid in capital 19,885.00 13,325.00 Cash ??? ??? Common Stock 2,850 2,850 COGS 22,986.00 18,120.00 Current portion long-term debt 500 500 Depreciation expense 1,035.00 988.00 Interest expense 1,290.00 1,167.00 Inventories 3,006.00 6,743.00 Long-term debt 16,856.00 22,001.00 Net fixed assets 75,521.00 74,000.00 Notes payable 4,072.00 6,540.00 Operating expenses (excl. depr.) 19,950 20,000 Retained earnings 35,244.00 34,874.00 Sales 46,360 45,055.00 Taxes 350 920 What is the firm's cash flow from financing?