FUND.OF FINANCIAL ACCT.-CONNECT ACCESS
6th Edition
ISBN: 9781260518399
Author: PHILLIPS
Publisher: MCG
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Textbook Question
Chapter 1, Problem 15ME
Relationships among Financial Statements
Items from the 2015 income statement, statement of
TIP: Use Exhibit 1.7 to identify relations among the items, then work backward to solve for amounts.
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During 2017, Ivanhoe Company entered into the following transactions.
1.
Purchased equipment for $317,240 cash.
2.
Issued common stock to investors for $135,850 cash.
3.
Purchased inventory of $65,970 on account.
Using the following tabular analysis, show the effect of each transaction on the accounting equation. For Retained Earnings, use separate columns for Revenues, Expenses, and Dividends if necessary. (If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced. See Illustration 3-3 for example.)
Assets
=
Liabilities
+
Stockholders’ Equity
Cash
+
Inventory
+
Equipment
=
Accounts Payable
+
Common Stock
+
Retained Earnings
(1)
$enter a dollar amount
$enter a dollar amount
$enter a dollar amount
$enter a dollar amount…
Statement of Earnings and Statement of Financial Position Relationships
Each column presents financial information taken from one of four different companies, with items of data missing.
Required:
Use your understanding of the relationships among financial statements and financial statement items to determine the missing values.
Company
Financial Statement Item
Crick
Pascal
Eiffel
Hilbert
Total revenue
$940
$523
$fill in the blank 1
$1,045
Total expense
822
fill in the blank 2
377
fill in the blank 3
Net income (net loss)
fill in the blank 4
289
142
(340)
Total assets
709
1,660
fill in the blank 5
3,250
Total liabilities
304
fill in the blank 6
458
2,267
Total equity
fill in the blank 7
950
93
fill in the blank 8
The financial statements for Tyler Toys, Inc. are shown in the popup window:
LOADING...
.
Calculate the profit margin, return on assets, and return on equity for 2013 and 2014 for Tyler Toys. Should any of these ratios or the change in a ratio warrant concern for the managers of Tyler Toys or the shareholders?
Tyler Toys, Inc.
Income Statement for Years Ending December 31, 2013 and 2014
2014
2013
Revenue
$14,146,094
$13,567,551
Cost of goods sold
$-8,448,688
$-8,131,338
Selling, general, and administrative expenses
$-998,878
$-980,620
Depreciation
$-1,497,580
$-1,472,740
EBIT
$3,200,948
$2,982,853
Interest expense
$-376,634
$-354,060
Taxes
$-1,073,239
$-998,941
Net income
$1,751,075
$1,629,852
Right-click on the table and select Copy to Clipboard and then right-click the
highlighted texts in the popup dialogue box and select Copy in order to paste its…
Chapter 1 Solutions
FUND.OF FINANCIAL ACCT.-CONNECT ACCESS
Ch. 1 - Define accounting.Ch. 1 - Prob. 2QCh. 1 - Briefly distinguish financial accounting from...Ch. 1 - The accounting process generates financial reports...Ch. 1 - Explain what the separate entity assumption means...Ch. 1 - List the three main types of business activities...Ch. 1 - What information should be included in the heading...Ch. 1 - What are the purposes of (a) the balance sheet,...Ch. 1 - Explain why the income statement, statement of...Ch. 1 - Briefly explain the difference between net income...
Ch. 1 - Describe the basic accounting equation that...Ch. 1 - Describe the equation that provides the structure...Ch. 1 - Describe the equation that provides the structure...Ch. 1 - Prob. 14QCh. 1 - Prob. 15QCh. 1 - Prob. 16QCh. 1 - Briefly define what an ethical dilemma is and...Ch. 1 - Prob. 18QCh. 1 - Prob. 1MCCh. 1 - Which of the following is true regarding the...Ch. 1 - Which of the following is false regarding the...Ch. 1 - Which of the following regarding retained earnings...Ch. 1 - Prob. 5MCCh. 1 - Which of the following statements regarding the...Ch. 1 - Prob. 7MCCh. 1 - Which of the following is true? a. FASB creates...Ch. 1 - Which of the following would not be a goal of...Ch. 1 - Prob. 10MCCh. 1 - Prob. 1MECh. 1 - Matching Definitions with Terms or Abbreviations...Ch. 1 - Matching Definitions with Terms Match each...Ch. 1 - Matching Financial Statement Items to Balance...Ch. 1 - Matching Financial Statement Items to Balance...Ch. 1 - Matching Financial Statement Items to Balance...Ch. 1 - Matching Financial Statement Items to Balance...Ch. 1 - Matching Financial Statement Items to the Basic...Ch. 1 - Matching Financial Statement Items to the Four...Ch. 1 - Reporting Amounts on the Statement of Cash Flows...Ch. 1 - Prob. 11MECh. 1 - Preparing a Statement of Retained Earnings Stone...Ch. 1 - Relationships among Financial Statements Items...Ch. 1 - Prob. 14MECh. 1 - Relationships among Financial Statements Items...Ch. 1 - Preparing an Income Statement, Statement of...Ch. 1 - Reporting Amounts on the Four Basic Financial...Ch. 1 - Reporting Amounts on the Four Basic Financial...Ch. 1 - Preparing a Balance Sheet DSW, Inc., is a designer...Ch. 1 - Completing a Balance Sheet and Inferring Net...Ch. 1 - Labeling and Classifying Business Transactions The...Ch. 1 - Preparing an Income Statement and Inferring...Ch. 1 - Preparing an Income Statement Home Realty,...Ch. 1 - Prob. 8ECh. 1 - Preparing an Income Statement and Balance Sheet...Ch. 1 - Analyzing and Interpreting an Income Statement...Ch. 1 - Prob. 11ECh. 1 - Matching Cash Flow Statement Items to Business...Ch. 1 - Preparing an Income Statement. Statement of...Ch. 1 - Interpreting the Financial Statements Refer to...Ch. 1 - Reporting Amounts on the Four Basic Financial...Ch. 1 - Evaluating Financial Statements Refer to CP1-3....Ch. 1 - Preparing an Income Statement, Statement of...Ch. 1 - Prob. 2PACh. 1 - Reporting Amounts on the Four Basic Financial...Ch. 1 - Evaluating Financial Statements Refer to PA1-3....Ch. 1 - Preparing an Income Statement and Balance Sheet...Ch. 1 - Interpreting the Financial Statements Refer to PB...Ch. 1 - Reporting Amounts on the Four Basic Financial...Ch. 1 - Evaluating Financial Statements Refer to PB1-3....Ch. 1 - Finding Financial Information Answer the following...Ch. 1 - Comparing Financial Information Refer to the...Ch. 1 - Prob. 5SDCCh. 1 - Prob. 6SDCCh. 1 - Prob. 1CC
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