Test Company (S millions)Income StatementRevenuesCost of Goods SoldOperating IncomeInterest ExpensesNet Income201620172018126,03451,55627,4144,733131,650125,98052,55751,42427,0594,37633,0604,920You will receive company financials in class for assignment. Analysis17,87913,12730,101the company's financial condition:Balance SheetCurrent AssetsCash & Cash EquivalentsReceivablesInventory1) liquidity22,3554,82029,9132,07923,49326,3952,88013,45717,5131,2022) asset management1,2521,03433,0373) profitabilityCurrent LiabilitiesPayables35,05219,36230,34019,59321,2324) leverageLong-term DebtShareolders EquityTotal Assets103,24017,842105,433113,64224,03244,687244,175244,180257,1435) overall financial condition a debt and equity investorOther Data44,36817,830EBITDA42.987Capital Expenditures49,07727,71717,593Company Stock PriceBetaDividend Payout RatioEstimated Long-term GrowthCommon Shares Outstanding10-year U.S. Treasury Rate$47.870.8835%2.9%4,0792.40%

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Answered: Test Company (S millions) Income…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter6: Merchandising Transactions

Section: Chapter Questions

Problem 11MC: A retailer returns $400 worth of inventory to a manufacturer and receives a full refund. What...

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Refer to RE22-2. Assume Heller Company had sales revenue of 510,000 in 2019 and 650,000 in 2020. Prepare Hellers partial income statements (through gross profit) for 2019 and 2020. RE22-2 Heller Company began operations in 2019 and used the LIFO method to compute its 300,000 cost of goods sold for that year. At the beginning of 2020, Heller changed to the FIFO method. Heller determined that its cost of goods sold under FIFO would have been 250,000 in 2019. For 2020, Hellers cost of goods sold under FIFO was 360,000, while it would have been 410,000 under LIFO. Heller is subject to a 21% income tax rate. Compute the cumulative effect of the retrospective adjustment on prior years income (net of taxes) that Heller would report on its retained earnings statement for 2020.
A retailer returns $400 worth of inventory to a manufacturer and receives a full refund. What accounts recognize this return before the retailer remits payment to the manufacturer? A. accounts payable, merchandise inventory B. accounts payable, cash C. cash, merchandise inventory D. merchandise inventory, cost of goods sold
LUNA Inc. pre-audit statement of income for the year ended December 31, 2020 is shown below:Sales P 2,964,000Cost of goods sold 1,926,000Gross income 1,038,000Operating expensesRent P250,000Salaries 345,000Utilities 219,000Advertising 30,000Warranty 14,000Other expenses _ 35,500 893,500Net income P 144,500 You obtained the following information from the company’s accounting records: 1. Some of Luna's…
LUNA Inc. pre-audit statement of income for the year ended December 31, 2020 is shown below:Sales P 2,964,000Cost of goods sold 1,926,000Gross income 1,038,000Operating expensesRent P250,000Salaries 345,000Utilities 219,000Advertising 30,000Warranty 14,000Other expenses _ 35,500 893,500Net income P 144,500 You obtained the following information from the company’s accounting records: Some of Luna's…
LUNA Inc. pre-audit statement of income for the year ended December 31, 2020 is shown below:Sales P 2,964,000Cost of goods sold 1,926,000Gross income 1,038,000Operating expensesRent P250,000Salaries 345,000Utilities 219,000Advertising 30,000Warranty 14,000Other expenses _ 35,500 893,500Net income P 144,500 You obtained the following information from the company’s accounting records: Some of Luna's…
LUNA Inc. pre-audit statement of income for the year ended December 31, 2020 is shown below:Sales P 2,964,000Cost of goods sold 1,926,000Gross income 1,038,000Operating expensesRent P250,000Salaries 345,000Utilities 219,000Advertising 30,000Warranty 14,000Other expenses _ 35,500 893,500Net income P 144,500 You obtained the following information from the company’s accounting records: Some of Luna's…
LUNA Inc. pre-audit statement of income for the year ended December 31, 2020 is shown below:Sales P 2,964,000Cost of goods sold 1,926,000Gross income 1,038,000Operating expensesRent P250,000Salaries 345,000Utilities 219,000Advertising 30,000Warranty 14,000Other expenses _ 35,500 893,500Net income P 144,500 You obtained the following information from the company’s accounting records: Some of Luna's…
Smile JungkookCompany reported the following balances at the end of each year: 2020 2019 InventoryP2,600,000 P2,900,000 , Accounts Payable 750,000 500,000 The entity paid suppliers P4,900,000 during the year ended December 31, 2020.What should be the amount to be reported for cost of goods sold in 2020?
Calculate net profit Details Debit(OMR) Credit(OMR) General expenses 11700 Prepaid Rent 5100 Cost of goods sold 99700 Salaries 9300 Depreciation 1560 Account Payable 3575 Net Sales 150000 Other income 2500 Select one: a. OMR 34715 b. OMR 30240 c. OMR 39815 d. OMR 31140
The income statement of Stellar Company is shown below. STELLAR COMPANYINCOME STATEMENTFOR THE YEAR ENDED DECEMBER 31, 2020Sales revenue$6,910,000Cost of goods soldBeginning inventory$1,920,000Purchases4,420,000Goods available for sale6,340,000Ending inventory1,590,000Cost of goods sold4,750,000Gross profit2,160,000Operating expensesSelling expenses450,000Administrative expenses710,0001,160,000Net income$1,000,000 Additional information: 1. Accounts receivable decreased $370,000 during the year.2. Prepaid expenses increased $170,000 during the year.3. Accounts payable to suppliers of merchandise decreased $280,000 during the year.4. Accrued expenses payable decreased $110,000 during the year.5. Administrative expenses include depreciation expense of $60,000. Prepare the operating activities section of the statement of cash flows using the direct method. STELLAR COMPANYStatement of Cash Flows (Partial)choose the accounting periodselect an opening section nameselect an item$enter a…
The income statement of Marin Company is shown below. MARIN COMPANYINCOME STATEMENTFOR THE YEAR ENDED DECEMBER 31, 2020Sales revenue$7,430,000Cost of goods soldBeginning inventory$2,090,000Purchases4,770,000Goods available for sale6,860,000Ending inventory1,440,000Cost of goods sold5,420,000Gross profit2,010,000Operating expensesSelling expenses440,000Administrative expenses690,0001,130,000Net income$880,000 Additional information: 1. Accounts receivable decreased $350,000 during the year.2. Prepaid expenses increased $150,000 during the year.3. Accounts payable to suppliers of merchandise decreased $260,000 during the year.4. Accrued expenses payable decreased $130,000 during the year.5. Administrative expenses include depreciation expense of $60,000. Prepare the operating activities section of the statement of cash flows for the year ended December 31, 2020, for Marin Company, using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in…
. Bryan is a retailer whose Trial Balance at 2020 December 31 is given below:DR CR$ $Purchases and Sales 72 000 119 400Returns 750Carriage Inwards 930Wages and Salaries 27 670General Expenses 4 750Cash at Bank 4 210Cash in Hand 150Premises 62 520Fixtures and Fittings 9 000Inventory at 2020 January 01 5 550Accounts Receivable and Payable 7 200 4 850Motor Vehicle at cost 13 150Provision for Depreciation onMotor Vehicle at 2020 January 01 2 630Capital at 2020 January 01 82 500Drawings 3 000---------- ----------210 130 210 130====== ======The following additional information is available:1. Inventory at 2020 December 31 was valued at $5 200.2. General Expenses of $400 paid for the year 2021.3. A debt of $200 is to be written off as bad.4. Provision is to be made for doubtful debts of 5% on Accounts Receivables (after writing offthe Bad Debt of $200) at 2020 December 31.5. Depreciation is to be provided for 2020 as follows:Fixtures and Fittings at 10% using the straight -line method; Motor…

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