What is the current ratio of Nezuko Inc.? Nezuko Inc.Statement of Comprehensive IncomeFor the Year Ended December 31, 2020(Expressed in millions,except per share data)2,700.00(2,025.00)675.00SalesCost of goods soldGross profitsOperating expenses:Selling expensesGeneral and administrative expenses$ (90.00)(67.50)(135.00)Depreciation and amortization expenseTotal operating expenseNet operating income (EBIT or earnings before interest and taxes)Interest expenseEarnings before taxes(292.50)382.50(67.50)315.00(110.25)204.75Income taxesNet IncomeAdditional Information:Dividends paid to stockholders during 2020Number of common shares outstanding45.0090.00Earnings per share (EPS)Dividends per share2.280.50%24 Nezuko Inc.Statement of Financial PositionFor the Year Ended 2020(Expressed in $ millions)AssetsCash90.00Accounts Receivable162.00Inventory378.00Other current assets13.50$ 643.50Tatal current assetsGrass plant and equipmentLess: Accumulated DepreciationNet plant and equipmentTotal Assets1,845.00(517.50)Ŝ 1,327.50$ 1.971.00Liabilities and Owner's Equity$ 189.00Accounts PayableAccrued expenses45.00Shart-term loans54.00$ 288.00771.751.059.75Tatal current liabilitiesLang-term debtTotal LiabilitiesCommon stackholders' equityCommon stack - par valuePaid in capitalRetained earningsTotal common stockholders' equity45.00324.00542.25911.25Total liabilities and stockholders' equityŜ 1971.00

Name: What is the current ratio of Nezuko Inc.? Nezuko Inc.Statement of Comp
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Description: What is the current ratio of Nezuko Inc.? Nezuko Inc.Statement of Comprehensive IncomeFor the Year Ended December 31, 2020(Expressed in millions,except per share data)2,700.00(2,025.00)675.00SalesCost of goods soldGross profitsOperating expenses:Sell

Current ratio means total current assest is divided by the total current liability.…

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What is the current ratio of Nezuko Inc.?

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter14: Statement Of Cash Flows

Section: Chapter Questions

Problem 37E: During 20X1, Craig Company had the following transactions: a. Purchased 300,000 of 10-year bonds...

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Gray Companys financial statements showed income before income taxes of 4,030,000 for the year ended December 31, 2020, and 3,330,000 for the year ended December 31, 2019. Additional information is as follows: Capital expenditures were 2,800,000 in 2020 and 4,000,000 in 2019. Included in the 2020 capital expenditures is equipment purchased for 1,000,000 on January 1, 2020, with no salvage value. Gray used straight-line depreciation based on a 10-year estimated life in its financial statements. As a result of additional information now available, it is estimated that this equipment should have only an 8-year life. Gray made an error in its financial statements that should be regarded as material. A payment of 180,000 was made in January 2020 and charged to expense in 2020 for insurance premiums applicable to policies commencing and expiring in 2019. No liability had been recorded for this item at December 31, 2019. The allowance for doubtful accounts reflected in Grays financial statements was 7,000 at December 31, 2020, and 97,000 at December 31, 2019. During 2020, 90,000 of uncollectible receivables were written off against the allowance for doubtful accounts. In 2019, the provision for doubtful accounts was based on a percentage of net sales. The 2020 provision has not yet been recorded. Net sales were 58,500,000 for the year ended December 31, 2020, and 49,230,000 for the year ended December 31, 2019. Based on the latest available facts, the 2020 provision for doubtful accounts is estimated to be 0.2% of net sales. A review of the estimated warranty liability at December 31, 2020, which is included in other liabilities in Grays financial statements, has disclosed that this estimated liability should be increased 170,000. Gray has two large blast furnaces that it uses in its manufacturing process. These furnaces must be periodically relined. Furnace A was relined in January 2014 at a cost of 230,000 and in January 2019 at a cost of 280,000. Furnace B was relined for the first time in January 2020 at a cost of 300,000. In Grays financial statements, these costs were expensed as incurred. Since a relining will last for 5 years, Grays management feels it would be preferable to capitalize and depreciate the cost of the relining over the productive life of the relining. Gray has decided to nuke a change in accounting principle from expensing relining costs as incurred to capitalizing them and depreciating them over their productive life on a straight-line basis with a full years depreciation in the year of relining. This change meets the requirements for a change in accounting principle under GAAP. Required: 1. For the years ended December 31, 2020 and 2019, prepare a worksheet reconciling income before income taxes as given previously with income before income taxes as adjusted for the preceding additional information. Show supporting computations in good form. Ignore income taxes and deferred tax considerations in your answer. The worksheet should have the following format: 2. As of January 1, 2020, compute the retrospective adjustment of retained earnings for the change in accounting principle from expensing to capitalizing relining costs. Ignore income taxes and deferred tax considerations in your answer.
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