FINANCIAL ACCOUNTING
6th Edition
ISBN: 9781618533111
Author: DYCKMAN
Publisher: Cambridge Business Publishers
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Chapter 1, Problem 45P
a.
To determine
Prepare an income statement of company F for the year 2017 and 2016.
b.
To determine
Calculate the return on equity of Company F for the year 2017 and 2016.
c.
To determine
Calculate the debt-to-equity ratio of company F for the year 2017 and 2016.
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The below tables shows Dynamic Mattress’s year-end 2016 and 2018 balance sheets, and its income statement for 2017.
Dynamic MattressYear-End Balance Sheet for 2016(figures in $ millions)
Assets
Liabilities and Shareholders’ Equity
Current Assets:
Current Liabilities:
Cash
$
46
Bank loans
$
46
Marketable securities
23
Accounts payable
140
Accounts receivable
123
Inventory
215
Total current assets
$
407
Total current liabilities
$
186
Fixed assets:
Gross investment
$
263
Long-term debt
38
Less depreciation
83
Net worth (equity and retained earnings)
363
Net fixed assets
$
180
Total assets
$
587
Total liabilities and net worth
$
587
Dynamic MattressYear-End Balance Sheet for 2017(figures in $ millions)
Assets
Liabilities and Shareholders’ Equity
Current Assets:
Current Liabilities:
Cash
$
176.0
Debt due within a year (bank…
The below tables shows Dynamic Mattress’s year-end 2016 and 2018 balance sheets, and its income statement for 2017.
Dynamic MattressYear-End Balance Sheet for 2016(figures in $ millions)
Assets
Liabilities and Shareholders’ Equity
Current Assets:
Current Liabilities:
Cash
$
22
Bank loans
$
22
Marketable securities
11
Accounts payable
80
Accounts receivable
111
Inventory
155
Total current assets
$
299
Total current liabilities
$
102
Fixed assets:
Gross investment
$
251
Long-term debt
26
Less depreciation
71
Net worth (equity and retained earnings)
351
Net fixed assets
$
180
Total assets
$
479
Total liabilities and net worth
$
479
Dynamic MattressYear-End Balance Sheet for 2017(figures in $ millions)
Assets
Liabilities and Shareholders’ Equity
Current Assets:
Current Liabilities:
Cash
$
32.0
Debt due within a year (bank…
Flynn Plastics Company reports the following data in its September 30, 2015, financial statements:
Gross sales $225 000
Current assets $50 000
Long-term assets $130 000
Current liabilities $33 000
Long-term liabilities $52 000
Net income $11 250
(a) Compute the owners’ equity.
(b) Compute the current ratio.
(c) Compute the debt-to-equity ratio.
Chapter 1 Solutions
FINANCIAL ACCOUNTING
Ch. 1 - Prob. 1MCCh. 1 - Prob. 2MCCh. 1 - Prob. 3MCCh. 1 - Prob. 4MCCh. 1 - Prob. 5MCCh. 1 - Prob. 1QCh. 1 - Prob. 2QCh. 1 - Prob. 3QCh. 1 - Prob. 4QCh. 1 - Prob. 5Q
Ch. 1 - Prob. 6QCh. 1 - Prob. 7QCh. 1 - Prob. 8QCh. 1 - Prob. 9QCh. 1 - Prob. 10QCh. 1 - Prob. 11QCh. 1 - Prob. 12QCh. 1 - Prob. 13QCh. 1 - Prob. 14QCh. 1 - Prob. 15QCh. 1 - Prob. 16QCh. 1 - Prob. 17QCh. 1 - Prob. 18QCh. 1 - Prob. 19MECh. 1 - Prob. 20MECh. 1 - Prob. 21MECh. 1 - Prob. 24MECh. 1 - Prob. 25MECh. 1 - Prob. 26MECh. 1 - Prob. 27ECh. 1 - Prob. 28ECh. 1 - Prob. 29ECh. 1 - Prob. 30ECh. 1 - Prob. 31ECh. 1 - Prob. 32ECh. 1 - Prob. 33ECh. 1 - Prob. 34ECh. 1 - Prob. 35ECh. 1 - Prob. 36PCh. 1 - Prob. 37PCh. 1 - Prob. 38PCh. 1 - Prob. 39PCh. 1 - Prob. 40PCh. 1 - Prob. 41PCh. 1 - Prob. 42PCh. 1 - Prob. 43PCh. 1 - Prob. 44PCh. 1 - Prob. 45PCh. 1 - Prob. 46CPCh. 1 - Prob. 47CPCh. 1 - Prob. 48CPCh. 1 - Prob. 49CPCh. 1 - Prob. 50CP
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