Cornerstones of Financial Accounting
4th Edition
ISBN: 9781337690881
Author: Jay Rich, Jeff Jones
Publisher: Cengage Learning
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Textbook Question
Chapter 11, Problem 66.5C
Comparative Analysis: Under Armour, Inc., versus Columbia Sportswear
Refer to the 10-K reports of Under Armour, Inc., and Columbia Sportswear that are available for download from the companion website at CengageBrain.com.
Required:
Are debt and equity likely to be available as inflows of cash in the near future?
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Using Excel for financial statement analysis
Download an Excel temp/ate for this problem online in MyAccountingLab or at http://www.pearsonhighered.com/Horngren Riverside Sweets, a retail candy store chain, reported the following figures:
Additional financial information:
a. 75% of net sales revenue are on account.
b. Market price of stock is $36 per share on June 30, 2019.
c. Annual dividend for 2019 was $1.50 per share.
d. All short-term investments are cash equivalents.
Requirements
Perform a horizontal analysis on the balance sheet for 2018 and 2019.
Perform a vertical analysis on the income statement.
Compute the following ratios:
a. Working Capital
b. Current Ratio
c. Acid-Test (Quick) Ratio
d. Cash Ratio
e. Accounts Receivable Turnover
f. Days’ Sales in Receivables
g. Inventory Turnover
h. Days’ Sales in Inventory
i. Gross Profit Percentage
j. Debt Ratio
k. Debt to Equity Ratio
l. Times-Interest-Earned Ratio
m. Profit Margin Ratio
n. Rate of Return on Total Assets
o. Asset…
While reviewing the March 31, 2020, balance sheet of Business Solutions, Santana Rey notes that the business has built a large cash balance of $68,057. Its most recent bank money market statement shows that the funds are earning an annualized return of 0.75%. S. Rey decides to make several investments with the desire to earn a higher return on the idle cash balance. Accordingly, in April 2020, Business Solutions makes the following investments in trading securities. Apr. 16 Purchases Johnson & Johnson bonds for $10,000. Apr. 30 Purchases Starbucks notes for $4,400. On June 30, 2020, the fair value of the Johnson & Johnson bonds is $12,000 and the Starbucks notes is $3,800. Required 1. Prepare journal entries to record the April purchases of trading securities by Business Solutions. 2. On June 30, 2020, prepare the adjusting entry to record any necessary fair value adjustment to its portfolio of trading securities.
While reviewing the March 31, 2022, balance sheet of Business Solutions, Santana Rey notes that the business has built a large cash balance of $68,057. Its most recent bank money market statement shows that the funds are earning an annualized return of 0.75%. S. Rey decides to make several investments with the desire to earn a higher return on the idle cash balance. Accordingly, in April 2022, Business Solutions makes the following investments in trading securities.
April 16
Purchases Johnson & Johnson bonds for $10,000.
April 30
Purchases Starbucks notes for $4,400.
On June 30, 2022, the fair value of the Johnson & Johnson bonds is $12,000 and the Starbucks notes is $3,800. Required:1. Prepare journal entries to record the April purchases of trading securities by Business Solutions.2. On June 30, 2022, prepare the adjusting entry to record any necessary fair value adjustment to its portfolio of trading securities.
Chapter 11 Solutions
Cornerstones of Financial Accounting
Ch. 11 - Prob. 1DQCh. 11 - Prob. 2DQCh. 11 - How is a statement of cash flows different from an...Ch. 11 - Prob. 4DQCh. 11 - What are the three categories into which inflows...Ch. 11 - Prob. 6DQCh. 11 - Why are direct exchanges of long-term debt for...Ch. 11 - Describe the relationship between changes in cash...Ch. 11 - What are two ways to report a companys net cash...Ch. 11 - Why are depreciation, depletion, and amortization...
Ch. 11 - Prob. 11DQCh. 11 - Prob. 12DQCh. 11 - What does an increase in inventory imply? How...Ch. 11 - Prob. 14DQCh. 11 - Prob. 15DQCh. 11 - Prob. 16DQCh. 11 - Prob. 17DQCh. 11 - What balance sheet account changes might you...Ch. 11 - Prob. 19DQCh. 11 - Prob. 20DQCh. 11 - Prob. 21DQCh. 11 - Prob. 22DQCh. 11 - Prob. 23DQCh. 11 - Prob. 24DQCh. 11 - Which of the following is not a use of the...Ch. 11 - Which of the following would be classified as a...Ch. 11 - Prob. 3MCQCh. 11 - Which of the following is an example of a cash...Ch. 11 - Prob. 5MCQCh. 11 - Which of the following statements is true? a. Net...Ch. 11 - Mullinix Inc. reported the following information:...Ch. 11 - Which item is added to net income when computing...Ch. 11 - Refer to the information for Cornett Company...Ch. 11 - Prob. 10MCQCh. 11 - Chasse Building Supply Inc. reported net cash...Ch. 11 - Smoltz Company reported the following information...Ch. 11 - Prob. 13MCQCh. 11 - Classification of Cash Flows Stanfield Inc....Ch. 11 - Classification of Cash Flows Patel Company...Ch. 11 - Prob. 16CECh. 11 - Analyzing Changes in Balance Sheet Accounts Refer...Ch. 11 - Prob. 18CECh. 11 - Prob. 19CECh. 11 - Determining Net Cash Flow from Investing...Ch. 11 - Prob. 21CECh. 11 - Prob. 22CECh. 11 - Cash Receipts from Customers Singleton Inc. had...Ch. 11 - Prob. 24CECh. 11 - Prob. 25CECh. 11 - Prob. 26BECh. 11 - Prob. 27BECh. 11 - Analyzing Balance Sheet Accounts A review of the...Ch. 11 - Prob. 29BECh. 11 - Prob. 30BECh. 11 - Prob. 31BECh. 11 - Prob. 32BECh. 11 - Prob. 33BECh. 11 - Classification of Cash Flows A review of the...Ch. 11 - Classification of Cash Flows The following are...Ch. 11 - Analyzing Changes in Balance Sheet Accounts A...Ch. 11 - Analyzing the Accounts Casey Company uses a...Ch. 11 - Analyzing the Accounts The controller for Summit...Ch. 11 - Reporting Net Cash Flow from Operating Activities...Ch. 11 - Prob. 40ECh. 11 - Determining Cash Flows from Investing Activities...Ch. 11 - Determining Cash Flows 1from Investing Activities...Ch. 11 - Determining Cash Flows from Financing Activities...Ch. 11 - Prob. 44ECh. 11 - Partial Statement of Cash Flows Service Company...Ch. 11 - Prob. 46ECh. 11 - Prob. 47ECh. 11 - Preparing Net Cash Flows from Operating...Ch. 11 - Preparing a Statement of Cash Flows-Direct Method...Ch. 11 - Preparing a Statement of Cash Flows-Direct Method...Ch. 11 - Prob. 51ECh. 11 - Prob. 52PSACh. 11 - Prob. 53PSACh. 11 - Classification of Cash Flows Rolling Meadows...Ch. 11 - Prob. 55PSACh. 11 - Preparing a Statement of Cash Flows Monon Cable...Ch. 11 - Prob. 57PSACh. 11 - Preparing Net Cash Flows from Operating...Ch. 11 - Using a Spreadsheet to Prepare a Statement of Cash...Ch. 11 - Prob. 52PSBCh. 11 - Prob. 53PSBCh. 11 - Prob. 54PSBCh. 11 - Preparing a Statement of Cash Flows Volusia...Ch. 11 - Prob. 56PSBCh. 11 - Prob. 57PSBCh. 11 - Prob. 58PSBCh. 11 - Using a Spreadsheet to Prepare a Statement of Cash...Ch. 11 - Prob. 60.1CCh. 11 - Prob. 60.2CCh. 11 - Prob. 60.3CCh. 11 - Prob. 61.1CCh. 11 - Profitability Declines and the Statement of Cash...Ch. 11 - Prob. 61.3CCh. 11 - Prob. 61.4CCh. 11 - Prob. 62.1CCh. 11 - Prob. 62.2CCh. 11 - Prob. 62.3CCh. 11 - Income, Cash Flow, and Future Losses On January L...Ch. 11 - Income, Cash Flow, and Future Losses On January L...Ch. 11 - Income, Cash Flow, and Future Losses On January L...Ch. 11 - Prob. 63.4CCh. 11 - Researching Accounting Standards: Dissenting Views...Ch. 11 - Prob. 64.2CCh. 11 - Prob. 65.1CCh. 11 - Prob. 65.2CCh. 11 - Prob. 65.3CCh. 11 - Prob. 65.4CCh. 11 - Prob. 65.5CCh. 11 - Prob. 65.6CCh. 11 - Prob. 65.7CCh. 11 - Prob. 65.8CCh. 11 - Prob. 66.1CCh. 11 - Prob. 66.2CCh. 11 - Prob. 66.3CCh. 11 - Prob. 66.4CCh. 11 - Comparative Analysis: Under Armour, Inc., versus...Ch. 11 - Prob. 67.1CCh. 11 - CONTINUING PROBLEM: FRONT ROW ENTERTAINMENT The...
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Comparative Analysis: Under Armour, Inc., versus Columbia Sportswear Refer to the 10-K reports of Under Armour, Inc., and Columbia Sportswear that are available for download from the companion website at CengageBrain.com. Required: Compare the values and trends of these ratios when evaluating Under Armours and Columbias short-term liquidity.
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Comparative balance sheet accounts of Sheridan Inc. are presented below.
SHERIDAN INC.COMPARATIVE BALANCE SHEET ACCOUNTSAS OF DECEMBER 31, 2020 AND 2019
December 31
Debit Accounts
2020
2019
Cash
$41,600
$33,700
Accounts Receivable
70,500
60,600
Inventory
29,700
23,700
Equity investments
22,300
38,900
Machinery
29,900
18,800
Buildings
67,600
56,300
Land
7,600
7,600
$269,200
$239,600
Credit Accounts
Allowance for Doubtful Accounts
$2,200
$1,500
Accumulated Depreciation—Machinery
5,600
2,300
Accumulated Depreciation—Buildings
13,500
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34,700
24,800
Accrued Payables
3,300
2,600
Long-Term Notes Payable
20,900
31,300
Common Stock, no-par
150,000
125,000
Retained Earnings
39,000
43,100
$269,200
$239,600
Additional data (ignoring taxes):
1.…
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Ayayai Inc., a greeting card company, had the following statements prepared as of December 31, 2020.
AYAYAI INC.COMPARATIVE BALANCE SHEETAS OF DECEMBER 31, 2020 AND 2019
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12/31/19
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$6,000
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Accounts receivable
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Salaries and wages payable
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Short-term loans payable
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Metlock Inc., a greeting card company, had the following statements prepared as of December 31, 2020.
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12/31/19
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$5,900
$6,900
Accounts receivable
61,400
51,200
Short-term debt investments (available-for-sale)
34,700
18,000
Inventory
40,200
59,700
Prepaid rent
5,000
4,100
Equipment
152,700
130,200
Accumulated depreciation—equipment
(35,400
)
(25,000
)
Copyrights
45,700
49,900
Total assets
$310,200
$295,000
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$46,300
$40,400
Income taxes payable
3,900
6,000
Salaries and wages payable
8,100
3,900
Short-term loans payable
8,100
10,100
Long-term loans payable
60,200
69,400
Common stock, $10 par
100,000
100,000
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Accounts payable -5,189,350 Accounts receivable -4,224,948
Owner’s Equity -16,240,316 Short-term investments – 9,495,393
Short-term borrowings: Inventories – 1,076,000
Payable to PPE supplier - 1,200,000
Accrued taxes – 434,575
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Swifty Corp. has decided to expand its operations. The bookkeeper recently completed the following statement of financial position in order to obtain additional funds for expansion:
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551,000
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150,000
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720,000
Equipment (net)
180,000
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90,000
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22,000
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https://www.stock-analysis-on.net/NYSE/Company/Honeywell-International-Inc/Financial-Statement/Statement-of-Cash-Flows
https://www.wsj.com/market-data/quotes/SDXAY/financials/annual/cash-flow
that is the link to both statement
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5..
Your answer is partially correct.
Windsor Inc., a greeting card company, had the following statements prepared as of December 31, 2020.
WINDSOR INC.COMPARATIVE BALANCE SHEETAS OF DECEMBER 31, 2020 AND 2019
12/31/20
12/31/19
Cash
$6,100
$7,100
Accounts receivable
62,400
51,000
Short-term debt investments (available-for-sale)
34,700
18,100
Inventory
40,400
60,300
Prepaid rent
4,900
4,000
Equipment
154,100
130,600
Accumulated depreciation—equipment
(34,900
)
(24,800
)
Copyrights
46,400
49,800
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$314,100
$296,100
Accounts payable
$46,500
$40,200
Income taxes payable
4,000
6,000
Salaries and wages payable
8,100
4,100
Short-term loans payable
7,900
10,100
Long-term loans payable
59,600
68,400
Common stock, $10…
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From the balance sheet prepare a proforma income statement where revenues can increase by 2% and the firm can borrow at 5.5%
BALANCE SHEET
2021
Cash and cash equivalents
280
Receivables
2588
Inventory
2516
Other CA
189
TOTAL CA
5573
Fixed assets
5024
TOTAL ASSETS
10597
Accounts payable
4713
Short term debt
78
TOTAL CL
4790
LT debt
921
Shareh. Equity
4886
TOTAL LIAB. AND SHARH. EQUITY
10597
INCOME STATEMENT
2021
Sales
19418
COGS
13136
Depreciations
354
SG&A
4952
EBIT
976
Interest Expenses
52
Tax
268
Net income
656
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Pro Forma Forecasts
Actual
Projected
Projected
Projected
Projected
Projected
2021
2022
2023
2024
2025
2026
COGS/REVENUES
SGA/SALES
INVENTORIES/COGS
OTHER CA/SALES
AR/SALES
AP/COGS
SALES/FIXED ASSETS
DEPR/ FIXED ASSETS
EQUITY/INVESTED CAPITAL
ST DEBT/INVESTED…
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WHISPERING INC.COMPARATIVE BALANCE SHEETAS OF DECEMBER 31, 2020 AND 2019
12/31/20
12/31/19
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$6,100
$7,000
Accounts receivable
61,600
51,500
Short-term debt investments (available-for-sale)
34,900
18,100
Inventory
39,900
60,400
Prepaid rent
5,000
4,100
Equipment
154,100
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(24,900
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Copyrights
45,500
50,500
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6,000
Salaries and wages payable
8,100
4,000
Short-term loans payable
7,900
10,000
Long-term loans payable
60,500
69,300
Common stock, $10 par
100,000
100,000…
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