Required a) Using the above information, calculate the following ratios to one (1) decimal place: (i) (ii) (ii) Current ratio Acid test ratio Gross profit margin
Q: A) Calculate the total Current Assets, Total Assets, Total Liabilities and Equity, Gross profit,…
A: A.
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Q: a. Prepare an income statement for the year using the "functional" method with supporting notes. b.…
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Q: Required: Calculate following Ratios I) Current Ratio I) Acid Test Ratio II) IV) Long term Debt to…
A: Answer and calculations are given below
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A: A financial ratio, also known as an accounting ratio, is the magnitude of two numerical values taken…
Q: Gross profit ration Net Profit ratio Current Ratio
A: Thank you for posting questions. Since you have posted multiple questions, as per the guideline I am…
Q: The income statement is also known as the Select one: Oa. Net Income and Expense Statement Ob. Cash…
A: Financial statements: These refer to the formal or official records of the activities of the…
Q: calculated the current ratio, acid test ratio, account receivable turnover ratio, net profit margin…
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A: Here we have to calculate and determine the different mentioned financial ratios.
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A: The first 3 subdivisions are answered for you. Please resubmit specifying the subdivisions you want…
Q: The primary focus of horizontal analysis isa. the income statement only.b. the balance sheet only.c.…
A: Financial statements can be analysed by using two methods. 1) Vertical method. 2) Horizontal method.…
Q: Questions: 1. Make a comparison for each company based on computed ratio. 2. What is your…
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A: Under the composite analysis one variable is taken from the profit and loss statement while another…
Q: Calculate the following ratios a. Gross profit ration b.Net Profit ratio c. Current Ratio d. Liquid…
A: The accounting ratio is represented as a ratio that exactly is a comparison between two financial…
Q: indicate whether the statement describes a multiple-step income statement or asingle-step income…
A:
Q: Which of the following ratios is a measure of solvency? Multiple Choice Total asset turnover.…
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A: The ratios are majorly classified into 3 forms Ratios from Profit & loss statement, Ratios from…
Q: I: Common-size analysis all accounts are presented as percentage of total liabilities in Balance…
A: Financial statements are those statements and reports which are prepared at the end of the period…
Q: Given the information above, give the following ratios, a.) acid test Ratio b.) working capital c.)…
A: Ratio Analysis - The ratio is the technique used by the prospective investor or an individual or…
Q: When performing vertical analysis of an income statement, the base amount is ________. A sales…
A: Vertical analysis of income statement shows each item of income statement as a percentage of sales…
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A: Note: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts…
Q: what is recasting of the income statement, and give three examples of items that are recasted?
A: The company prepares the income statement to know the net income or losses that arise during the…
Q: 1. Profitability ratios Name of Ratio Formula Computation Goss profit margin Gross Profit Net Sales…
A: Solution:- 1)Gross profit margin =Gross profit / Net sales x 100
Q: Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, (c) accounts…
A: Hi student Since there are multiple subparts, we will answer only first three subparts.
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A: "Since you have posted a question with multiple sub parts, we will solve first three sub parts for…
Q: List five ratios that are automatically provided by the vertical analysis of income statements.
A: Vertical analysis: The comparison of an item of a financial statement against the total amount of…
Q: Which of the following is a solvency ratio? a. Times interest earned. b. Inventory turnover ratio.…
A: The correct option is (A) Times Interest Earned Explanation: This ratio is the measure of a…
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A: Income statement: It is one of the financial statements prepared by an organization. This statement…
Q: 1. Common Size Income Statement a. How are the ratios computed? b. How are the ratios in the…
A: Note: Since you have asked multiple questions we will solve the first question for you. If you want…
Q: Based on the information above compute and interpret: 1.Profitability Ratio a) Gross Profit Ratio b)…
A: 1. Profitability ratios a) Gross Profit Margin = (Gross profit / Net sales ) *100 Gross profit =…
Q: Prepare a multiple-step income statement. (Li either a negative sign preceding the number e.g.-
A: An income statement is a financial statement prepared at the end of the accounting year, to know the…
Q: Given the information, give the following ratios; a. acid test ratio b. working capital c.…
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Q: On a multiple step income statement, the account interest expense would be located unde
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- Notes Receivable Link Communications programs voicemail systems for businesses. For a recent project, they charged $135 000. The customer secured this amount by signing a note bearing 9% interest on February 1, 2019. Required: 1. Prepare the journal entry to record the sale on February 1, 2019. 2. Determine how much interest Link will receive if the note is repaid on December 1, 2019. 3. Prepare Links journal entry to record the cash received to pay off the note and interest on December 1, 2019.Percentage of Credit Sales Method Ruby Red manufactures, markets, and distributes citrus flavored soft drinks across the globe. Ruby Red hired a collection agency in 2018 to increase collection rates from customers. As a result, Ruby estimates that only 2% of its 2019 credit sales will be written off, compared to the 4% of 2018s credit sales that were estimated to be uncollectible. At December 31, 2019, Ruby Red has a $12,800 credit balance in its allowance for doubtful accounts and credit sales of $1,570,000. Required: Use the percentage of credit sales method to calculate the bad debt expense.Exercise 4-54 Operating Cycle and Current Receivables a. Dither and Sly are attorneys-at-law who specialize in federal income tax law. The): complete their typical case in 6 months or less and collect from the typical client within 1 additional month. b. Johnstons Market specializes in fresh meat and fish. All merchandise must be sold within one week of purchase. Almost all sales are for cash and any receivables are generally paid by the end of the following month. c. Mortondos is a womens clothing store specializing in high-style merchandise. Merchandise spends an average of 7 months on the rack following purchase. Most sales are on credit and the typical customer pays within 1 month of sale. d. Trees Inc. grows Christmas trees and sells them to various Christmas tree lots. Most sales are for cash. It takes 6 years to grow a tree. Required: For each of the businesses described above, indicate the length of the operating cycle.
- ( Appendix 5A) Sales Discounts Ramsden Inc. provided consulting services with a gross price of $25,000 and terms of 2/10, n/30. Required: 1. Prepare the necessary journal entries to record the sale under the gross method. 2. Prepare the necessary journal entries to record collection of the receivable, assuming the customer pays within 10 days. 3. Prepare the necessary journal entries to record collection of the receivable, assuming the customer pays after 10 days.Sold goods for $650, credit terms net 30 days. Which journal would the company use to record this transaction? A. sales journal B. purchases journal C. cash receipts journal D. cash disbursements journal E. general journalRatio Analysis The following information was taken from Nash Inc.s trial balances as of December 31, 2018, and December 31, 2019. Required: 1. Calculate the net profit margin and accounts receivable turnover for 2019. ( Note: Round answers to two decimal places.) 2. How much does Nash make on each sales dollar? 3. How many days does the average receivable take to be paid (assuming all sales are on account)?
- Write-Off of Uncollectible Accounts King Enterprises had 27 customers utilizing its financial planning services in 2019. Each customer paid King $25,000 for receiving Kings assistance. King estimates that 2% of its $675,000 credit sales in 2019 will be uncollectible. During 2020, King wrote off $2,700 related to services performed in 2019. Required: 1. Prepare the journal entry to record the defaulted balance. 2. Prepare the adjusting entry to record the bad debt expense for 2019.A seller sells $800 worth of goods on credit to a customer, with a cost to the seller of $300. Shipping charges are $100. The terms of the sale are 2/10, n/30, FOB Destination. What, if any, journal entry or entries will the seller record for these transactions?Appendix 1 Discount taken in next fiscal year Using the data for Sacajawea Mercantile Co. in Exercise 5-35, assume that Mark Bishop pays his June 30, 20Y4, account receivable of 1,500 on July 6, 20Y4, and takes a 2% sales discount. Journalize the entry to record the payment on account from Mark Bishop.
- ( Appendix 5A) Sales Discounts Harry Gardner provides tax services for small businesses. This years tax season has proved especially lucrative for Harry; he earned $45,000 for providing his services. Harry uses terms of 1/10, n/30 in billing his customers. Required: 1. Prepare the necessary journal entries to record the sale, assuming Harry does not expect his customers to pay within the discount period. 2. Prepare the necessary journal entries to record collection of the receivable assuming the customer pays within 10 days. 3. Prepare the necessary journal entries to record collection of the receivable assuming the customer pays after 10 days.Codification Situation You are conducting an accounting research project for your boss. Your boss has asked you to determine the appropriate U.S. GAAP that specifies how your company should recognize revenues from the sales of products in a retail store. Your boss is confused because most customers pay cash, but some customers purchase on credit terms, and pay in cash 30 days later. Your manager also wants you to determine the GAAP guidance for how revenue should be recognized in income. Your manager has a lot of knowledge and experience in accounting and has heard about, but has never used, the FASB Accounting Standards Codification system. Directions Use the FASB Accounting Standards Codification system to conduct the research your manager has assigned to you. Use the Codification to determine how to recognize revenue from retail sales, including the right to return. Be prepared to show your manager the specific FASB ASC references that provide the appropriate guidance. Also prepare a brief memo explaining to your manager the different levels of the Codification and how to use the Codification system.