Or Houston, m Teponed uhe foiOWing linanIcial statements for 2016 Requirement Reference Reference Calculate the following, enter all amounts in thousands, New borrowing or payment of long-term notes payable. Motorvehicles of Houston had only one long-term note payable transaction during the year. b. Iasuance of common stock or retirement of common stock Motorvehicles of Houston had only one common stock transaction during the Motorvehicles of Houston, Inc. Motorvehicles of Houston, Inc. Comparative Balance Sheets Income Statement December 31, 2018 and 2017 Year Ended December 31, 2018 (In thousands) year Assets 2018 2017 Liabilities 2018 2017 (In thousands) c. Payment of cash dividends (same as dividends declared). 740 Current Current Service revenue Cash 13 Accounts payable 48 S 43 Cost of goods sold 300 27 S Print Done Accounts receivable 51 47 Salary payable 31 27 Salary expense 60 Inventory 73 89 Accrued liabilities 11 14 Depreciation expense 90 Prepaid expenses 7 7 Long-term note payable 68 58 Other expenses 120 8 Plant assets, net 230 185 Total expenses 570 Long-term investments 51 75 Stockholders' Equity 170 Net income Common stock 46 39 236 235 Retained earnings Print Done %24 440 S 416 Total 440 S 416 Total

Or Houston, m Teponed uhe foiOWing linanIcial statements for 2016 Requirement Reference Reference Calculate the following, enter all amounts in thousands, New borrowing or payment of long-term notes payable. Motorvehicles of Houston had only one long-term note payable transaction during the year. b. Iasuance of common stock or retirement of common stock Motorvehicles of Houston had only one common stock transaction during the Motorvehicles of Houston, Inc. Motorvehicles of Houston, Inc. Comparative Balance Sheets Income Statement December 31, 2018 and 2017 Year Ended December 31, 2018 (In thousands) year Assets 2018 2017 Liabilities 2018 2017 (In thousands) c. Payment of cash dividends (same as dividends declared). 740 Current Current Service revenue Cash 13 Accounts payable 48 S 43 Cost of goods sold 300 27 S Print Done Accounts receivable 51 47 Salary payable 31 27 Salary expense 60 Inventory 73 89 Accrued liabilities 11 14 Depreciation expense 90 Prepaid expenses 7 7 Long-term note payable 68 58 Other expenses 120 8 Plant assets, net 230 185 Total expenses 570 Long-term investments 51 75 Stockholders' Equity 170 Net income Common stock 46 39 236 235 Retained earnings Print Done %24 440 S 416 Total 440 S 416 Total

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 13EB: Fortune Accounting reports $1,455,000 in credit sales for 2018 and $1,678,430 in 2019. It has an...

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The following selected accounts and their current balances appear in the ledger of Clairemont Co. for the fiscal year ended May 31, 2019: Instructions 1. Prepare a multiple-step income statement. 2. Prepare a statement of owners equity. 3. Prepare a balance sheet, assuming that the current portion of the note payable is 50,000. 4. Briefly explain how multiple-step and single-step income statements differ.
Real-world annual report The financial statements for Nike, Inc. (NKE), are presented in Appendix E at the end of the text. The following additional information is available (in thousands): Instructions 1. Determine the following measures for the fiscal years ended May 31, 2017, and May 31, 2016. Round ratios and percentages to one decimal place. a. Working capital b. Current ratio c. Quick ratio d. Accounts receivable turnover e. Number of days sales in receivables f. Inventory turnover g. Number of days sales in inventory' h. Ratio of liabilities to stockholders equity i. Asset turnover j. Return on total assets, assuming interest expense is 82 million for the year ending May 31. 2017, and 33 million for the year ending May 31, 2016. k. k. Return on common stockholders equity l. Price-eamings ratio, assuming that the market price was 52.81 per share on May 31, 2017, and 54.35 per share on May 31, 2016. m. m. Percentage relationship of net income to sales 2. What conclusions can be drawn from these analyses?
Inferring Accounts Receivable Amounts At the end of 2019, Karras Inc. had a debit balance of 141,120 in its accounts receivable. Additionally, Karras had a credit balance in its allowance for doubtful accounts of 4,350 and 9,420 at the beginning and end of the year, respectively. During the year, Karras made credit sales of 1,530,000, collected receivables in the amount of 1,445,700, and recorded bad debt expense of 83, 750. Required: Next Level Compute the amount of accounts receivable that Karras wrote off during the year and the amount of accounts receivable at the beginning of the year.
Using the following select financial statement information from Black Water Industries, compute the number of days sales in receivables ratios for 2018 and 2019 (round answers to two decimal places). What do the outcomes tell a potential investor about Black Water Industries?
Using the following select financial statement information from Black Water Industries, compute the accounts receivable turnover ratios for 2018 and 2019 (round answers to two decimal places). What do the outcomes tell a potential investor about Black Water Industries?
Ratio Analysis Rising Stars Academy provided the following information on its 2019 balance sheet and state mcnt of cash flows: Long-term debt S 4,400 Interest expense S 398 Total liabilities 8,972 Net income 559 Total assets 38,775 Interest payments 432 Total equity 29,803 Cash flows from operations 1.015 Operating income 1.223 Income tax expenses 266 Income taxes paid 150 Required: Calculate the following ratios for Rising Stars: (a) debt to equity, (b) debt to total assets, (c) long-term debt to equity, (d) times interest earned (accrual basis), and (e) times interest earned (cash basis). (Note: Round answers to three decimal places.) CONCEPTUAL CONNECTION Interpret these results. 3.What does it mean if a bond is callable
Jars Plus recorded $861,430 in credit sales for the year and $488,000 in accounts receivable. The uncollectible percentage is 2.3% for the income statement method, and 3.6% for the balance sheet method. A. Record the year-end adjusting entry for 2018 bad debt using the income statement method. B. Record the year-end adjusting entry for 2018 bad debt using the balance sheet method. C. Assume there was a previous debit balance in Allowance for Doubtful Accounts of $10,220, record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method. D. Assume there was a previous credit balance in Allowance for Doubtful Accounts of $5,470, record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method.
Financial statement analysis The financial statements for Nike, Inc., are presented in Appendix D at the end of the text. Use the following additional information (in thousands): Instructions 1. Determine the following measures for the fiscal years ended May 31, 2016, and May 31, 2015. Round ratios and percentages to one decimal place. a. Working capital b. Current ratio c. Quick ratio d. Accounts receivable turnover e. Number of days sales in receivables f. Inventory turnover g. Number of days sales in inventory h. Ratio of liabilities to stockholders equity i. Asset turnover j. Return on total assets. k. Return on common stockholders equity l. Price-earnings ratio, assuming that the market price was 54.90 per share on May 29, 2016, and 52.81 per share on May 30, 2015 m. Percentage relationship of net income to sales 2. What conclusions can be drawn from these analyses?
Using the following select financial statement information from Mover Supply Depot, compute the accounts receivable turnover ratios for 2018 and 2019 (round answers to two decimal places). What do the outcomes tell a potential investor about Mover Supply Depot if the industry average is 4 times?
The following select financial statement information from Candid Photography. Compute the accounts receivable turnover ratios and the number of days sales in receivables ratios for 2018 and 2019 (round answers to two decimal places). What do the outcomes tell a potential investor about Candid Photography if industry average for accounts receivable turnover ratio is 3 times and days sales in receivables ratio is 150 days?
Starlight Enterprises has net credit sales for 2019 in the amount of $2,600,325, beginning accounts receivable balance of $844,260, and an ending accounts receivable balance of $604,930. Compute the accounts receivable turnover ratio and the number of days sales in receivables ratio for 2019 (round answers to two decimal places). What do the outcomes tell a potential investor about Starlight Enterprises if the industry average is 1.5 times and the number of days sales ratio is 175 days?
Berry Farms has an accounts receivable balance at the end of 2018 of $425,650. The net credit sales for the year are $924,123. The balance at the end of 2017 was $378,550. What is the number of days sales in receivables ratio for 2018 (round all answers to two decimal places)?