Requirement 1. ComputeCurrentWorkingDebt-to-these ratios:RatioCapitalCash RatioDebt Ratio Equity RatioRound ratios to twodecimal places orformat as percentages orAccountsDays SalesInventory Days Sales inInventoryGross Profit ReceivablePercentagecurrency as appropriate.inTurnoverTurnover Receivables2019 Total Assets =Rate ofRate ofAssetReturn onStockholders'| EarningsEquityReturn onTurnoverTotal AssetsRatioPer Share2019 SHE =Price/*Current Stock Price isEarningsDividend$10.00 per shareRatio*Dividend YieldРayoutDividend per share=Requirement 2. Based onthe ratios computed above,analyze the company'sability to pay its debts (bothcurrent and long term).Refer to at least 3 specificratios in your analysis.Requirement 3: Based onthe ratios computed above,analyze the company'smanagement of inventory.Refer to at least 2 specificratios in your analysis.Requirement 4: Based onthe ratios computed above,analyze the company'smanagement of receivables.Refer to at least 2 specificratios in your analysis. Solar Solutions began operations on January 1, 2015, and is now in its sixth year of operations. It is a retail sales company with a large amount of online sales.The adjusted trial balance as of December 31, 2020 appears below, along with prior year balance sheet data and some additional transaction data for 2020.SOLAR SOLUTIONSAdjusted Trial Balance12/31/202020202019Account TitleAdjusted Trial BalancePost-Closing Trial Balance$ 125,600DebitCreditDebitCredit35,000Cash122,200125,6006,000Accounts Receivable55,00035,00015,60047,00021,000Prepaid Insurance5,0006,000Inventory46,00015,600Office EquipmentMachinery & ToolsAccumulated DepreciationAccounts PayableSalaries Payable|Sales Tax PayableNote Payable-Long TermCommon Stock, $10 parRetained Earnings63,00047,000(16,000)59,00021,000$ 234,200$21,00016,00011,20016,8002,6002,7002,0004,00031,00022,100240,000160,00028,60028,600Dividends10,000Sales RevenueCost of Goods Sold235,000127,600Rent ExpenseSalaries ExpenseInsurance ExpenseAdvertising ExpenseDepreciation ExpenseInterest Expense20,00036,00011,8006,0005,0001,800Income Tax Expense3,000$571,400 $571,400 $250,200250,200Transaction Data for 2020 (Note, these transactions were included in the trial balance numbers above.)Cash paid for purchase of office equipmentCash paid for purchase of toolsAcquisition of Machinery with Notes Payable-Long-termPayment on Long Term DebtCash payment of dividends6,00010,00038,000?10,000Cash receipt from issuance of 10,000 shares of common stock80,000

We know the basic formula of Current Ratio = Current Asset / Current Liability Working Capital =…

Working Capital Requirement 1. Compute Current Debt-to- these ratios: Ratio Cash Ratio Debt Ratio Equity Ratio Round ratios to two decimal places or format as percentages or Accounts Days Sales Gross Profit Receivable Days Sales in Inventory currency as appropriate. Inventory in Turnover Percentage Turnover Receivables

Working Capital Requirement 1. Compute Current Debt-to- these ratios: Ratio Cash Ratio Debt Ratio Equity Ratio Round ratios to two decimal places or format as percentages or Accounts Days Sales Gross Profit Receivable Days Sales in Inventory currency as appropriate. Inventory in Turnover Percentage Turnover Receivables

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter6: Accounting For Merchandising Businesses

Section: Chapter Questions

Problem 5PA: The following selected accounts and their current balances appear in the ledger of Clairemont Co....

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Based on the data presented in Exercise 6-25, journalize the closing entries. On March 31, 2019, the balances of the accounts appearing in the ledger of Racine Furnishings Company, a furniture wholesaler, are as follows: a. Prepare a multiple-step income statement for the year ended March 31, 2019. b. Compare the major advantages and disadvantages of the multiple-step and single-step forms of income statements.
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Selected accounts and related amounts for Clairemont Co. for the fiscal year ended May 31, 2016, are presented in Problem 6-5A. Instructions 1. Prepare a single-step income statement in the format shown in Exhibit 11. 2. Prepare a statement of owners equity. 3. Prepare an account form of balance sheet, assuming that the current portion of the note payable is 50,000. 4. Prepare closing entries as of May 31, 2016.
The trial balance of Jillson Company as of December 31, the end of its current fiscal year, is as follows: Here are the data for the adjustments. ab. Merchandise Inventory at December 31, 54,845.00. c. Store supplies inventory (on hand), 488.50. d. Insurance expired, 680. e. Salaries accrued, 692. f. Depreciation of store equipment, 3,760. Required Complete the work sheet after entering the account names and balances onto the work sheet.
Williams Mechanic Services prepared the following work sheet for the year ended March 31,20--. Required 1. Complete the work sheet. (Skip this step if using CLGL.) 2. Prepare an income statement. 3. Prepare a statement of owners equity. Assume that there was an additional investment of 5,000 on March 13. 4. Prepare a balance sheet. 5. Journalize the closing entries using the four steps in the correct sequence. 6. Prepare a post-dosing trial balance. Check Figure Post-closing trial balance total, 31,765
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.
The following accounts appear in the ledger of Celso and Company as of June 30, the end of this fiscal year. The data needed for the adjustments on June 30 are as follows: ab.Merchandise inventory, June 30, 54,600. c.Insurance expired for the year, 475. d.Depreciation for the year, 4,380. e.Accrued wages on June 30, 1,492. f.Supplies on hand at the end of the year, 100. Required 1. Prepare a work sheet for the fiscal year ended June 30. Ignore this step if using CLGL. 2. Prepare an income statement. 3. Prepare a statement of owners equity. No additional investments were made during the year. 4. Prepare a balance sheet. 5. Journalize the adjusting entries. 6. Journalize the closing entries. 7. Journalize the reversing entry as of July 1, for the wages that were accrued in the June adjusting entry. Check Figure Net income, 14,066
Using the adjusted trial balance data below for the Rollins Company, prepare a Multi-step Income Statement Note: Enter all amounts as positive amounts and in order of how they appear on the trial balance Rollins Company Adjusted Trial Balance December 31, 2020 Account Debit Credit Cash 240,000 Accounts Receivable 966,000 Merchandise Inventory 1,690,000 Supplies 13,500 Prepaid Rent 8,000 Land 85,000 Equipment 3,573,000 Accum. Deprec. - Equip. 1,820,000 Accounts Payable 342,000 Salaries Payable 45,500 Unearned Revenue 40,000 Sales Tax Payable 22,500 Note Payable 300,000 Common Stock 500,000 Retained Earnings 2,629,000…
American Chip Corporation's reporting year-end is December 31. The following is a partial adjusted trial balance as of December 31, 2021. Account Title Debits Credits Retained earnings 80,000 Sales revenue 750,000 Interest revenue 3,000 Cost of goods sold 420,000 Salaries expense 100,000 Rent expense 15,000 Depreciation expense 30,000 Interest expense 5,000 Insurance expense 6,000 Required:Prepare the necessary closing entries at December 31, 2021.
The adjusted trial balance columns of the worksheet for Carla Vista Company are as follows. CARLA VISTA COMPANYWorksheet (partial)For the Month Ended April 30, 2020 Adjusted Trial Balance Account Titles Dr. Cr. Cash 11,600 Accounts Receivable 7,700 Prepaid Rent 2,500 Equipment 23,300 Accumulated Depreciation—Equip. 5,500 Notes Payable 5,600 Accounts Payable 4,800 Owner’s Capital 29,740 Owner’s Drawings 3,800 Service Revenue 15,400 Salaries and Wages Expense 10,500 Rent Expense 900 Depreciation Expense 740 Interest Expense 90 Interest Payable 90 Totals 61,130 61,130
The adjusted trial balance columns of the worksheet for Sheridan Company are as follows. SHERIDAN COMPANYWorksheet (partial)For the Month Ended April 30, 2020 Adjusted Trial Balance Account Titles Dr. Cr. Cash 12,000 Accounts Receivable 7,500 Prepaid Rent 2,200 Equipment 22,800 Accumulated Depreciation—Equip. 5,100 Notes Payable 5,800 Accounts Payable 5,000 Owner’s Capital 29,440 Owner’s Drawings 3,800 Service Revenue 15,100 Salaries and Wages Expense 10,700 Rent Expense 700 Depreciation Expense 740 Interest Expense 40 Interest Payable 40 Totals 60,480 60,480