Financial Accounting - Access
4th Edition
ISBN: 9781259958533
Author: SPICELAND
Publisher: MCG
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Chapter 12, Problem 12.4AP
To determine
To Calculate: The given risk ratios for VG Systems for 2018.
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The income statement, balance sheets, and additional information for Virtual Gaming Systems are provided.
VIRTUAL GAMING SYSTEMSIncome StatementFor the year ended December 31, 2021
Net sales
$2,530,000
Gain on sale of land
3,500
Total revenues
2,533,500
Expenses:
Cost of goods sold
$1,615,000
Operating expenses
608,000
Depreciation expense
26,000
Interest expense
27,000
Income tax expense
73,000
Total expenses
2,349,000
Net income
$184,500
VIRTUAL GAMING SYSTEMSBalance SheetsDecember 31
2021
2020
Assets
Current assets:
Cash
$265,120
$206,940
Accounts receivable
71,700
87,000
Inventory
149,500
138,000
Prepaid rent
4,180
6,360
Long-term assets:
Investments
188,000
100,000
Land
211,500
263,000
Equipment
236,000
213,000
Accumulated depreciation
(132,500)
(106,500)
Total assets
$993,500
$907,800
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable…
The income statement, balance sheets, and additional information for Video Phones, Inc., are provided.
VIDEO PHONES, INC.
Income Statement
For the Year Ended December 31, 2021
Net sales
$
3,436,000
Expenses:
Cost of goods sold
$
2,250,000
Operating expenses
918,000
Depreciation expense
33,000
Loss on sale of land
8,600
Interest expense
18,000
Income tax expense
54,000
Total expenses
3,281,600
Net income
$
154,400
VIDEO PHONES, INC.
Balance Sheets
December 31
2021
2020
Assets
Current assets:
Cash
$
267,160
$
194,280
Accounts receivable
87,600
66,000
Inventory
105,000
141,000
Prepaid rent
13,440
6,720
Long-term assets:
Investments
111,000
0
Land
216,000
252,000
Equipment
282,000
216,000…
The income statement, balance sheets, and additional information for Video Phones, Inc., are provided.
VIDEO PHONES, INC.
Income Statement
For the Year Ended December 31, 2021
Net sales
$
3,386,000
Expenses:
Cost of goods sold
$
2,200,000
Operating expenses
908,000
Depreciation expense
32,000
Loss on sale of land
8,500
Interest expense
17,500
Income tax expense
53,000
Total expenses
3,219,000
Net income
$
167,000
VIDEO PHONES, INC.
Balance Sheets
December 31
2021
2020
Assets
Current assets:
Cash
$
270,300
$
185,900
Accounts receivable
86,500
65,000
Inventory
105,000
140,000
Prepaid rent
13,200
6,600
Long-term assets:
Investments
110,000
0
Land
215,000
250,000
Equipment
280,000
215,000…
Chapter 12 Solutions
Financial Accounting - Access
Ch. 12 - Prob. 1RQCh. 12 - Prob. 2RQCh. 12 - Prob. 3RQCh. 12 - Prob. 4RQCh. 12 - 5.In performing horizontal analysis, why is it...Ch. 12 - Prob. 6RQCh. 12 - Prob. 7RQCh. 12 - Prob. 8RQCh. 12 - Prob. 9RQCh. 12 - Prob. 10RQ
Ch. 12 - Prob. 11RQCh. 12 - Prob. 12RQCh. 12 - Prob. 13RQCh. 12 - Prob. 14RQCh. 12 - Prob. 15RQCh. 12 - Prob. 16RQCh. 12 - Prob. 17RQCh. 12 - Prob. 18RQCh. 12 - Prob. 19RQCh. 12 - Prob. 20RQCh. 12 - Prob. 12.1BECh. 12 - Prob. 12.2BECh. 12 - Prob. 12.3BECh. 12 - Prob. 12.4BECh. 12 - Prob. 12.5BECh. 12 - Universal Sports Supply began the year with an...Ch. 12 - Prob. 12.7BECh. 12 - Prob. 12.8BECh. 12 - Prob. 12.9BECh. 12 - Prob. 12.10BECh. 12 - Prob. 12.11BECh. 12 - Prob. 12.12BECh. 12 - Prob. 12.13BECh. 12 - Classify each of the following accounting...Ch. 12 - Classify each of the following accepted accounting...Ch. 12 - Prob. 12.1ECh. 12 - Prob. 12.2ECh. 12 - Prob. 12.3ECh. 12 - Prob. 12.4ECh. 12 - Prob. 12.5ECh. 12 - Refer to the information for Adrian Express in...Ch. 12 - Prob. 12.7ECh. 12 - Calculate profitability ratios (LO124) Refer to...Ch. 12 - Prob. 12.9ECh. 12 - The income statement for Stretch-Tape Corporation...Ch. 12 - Prob. 12.11ECh. 12 - LeBrons Bookstores has two divisions, books and...Ch. 12 - Prob. 12.13ECh. 12 - Prob. 12.14ECh. 12 - Distinguish between conservative and aggressive...Ch. 12 - Prob. 12.1APCh. 12 - Prob. 12.2APCh. 12 - Prob. 12.3APCh. 12 - Prob. 12.4APCh. 12 - Prob. 12.5APCh. 12 - Prob. 12.6APCh. 12 - Game-On Sports operates in two distinct segments:...Ch. 12 - Prob. 12.2BPCh. 12 - Prob. 12.3BPCh. 12 - Prob. 12.4BPCh. 12 - Prob. 12.5BPCh. 12 - Prob. 12.6BPCh. 12 - Prob. 12.1APCPCh. 12 - Prob. 12.2APFACh. 12 - Prob. 12.3APFACh. 12 - Prob. 12.4APCACh. 12 - Prob. 12.5APECh. 12 - Prob. 12.7APWCCh. 12 - Prob. 12.8APEM
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- The comparative balance sheet of Prime Sports Gear, Inc., at December 31, the end of the fiscal year, is as follows: Additional data obtained from the records of Prime Sports Gear are as follows: a. Net income for 2013 was 121,610. b. Depreciation reported on income statement for 2013 was 46,500. c. Purchased 165,000 of new equipment, putting 90,000 cash down and issuing 75,000 of bonds for the balance. d. Old equipment originally costing 19,500, with accumulated depreciation of 7,950, was sold for 8,000. e. Retired 60,000 of bonds. f. Declared cash dividends of 64,000. g. Issued 1,500 shares of common stock at 27 cash per share. Open the file CASHFLOW from the website for this book at cengagebrain.com. First, enter the formulas. Then, complete the worksheet in the manner described next. According to the problem, cash increased from 39,600 to 67,210 during the year. This is a 27,610 increase. To record this increase on the worksheet, move to row 17. Since this is the first account you are analyzing, enter the letter a in column C. Then enter 27610 in column D (a debit since cash increased). This brings the year-end balance (column G) to 67,210, its proper balance. Now move to the bottom part of the statement where you see the categories Operating Activities, Investing Activities, and so on. The credit side of the entry has to be entered here. The proper space for this cash entry is on row 59. Enter the letter a in cell E59 and 27610 in cell F59. Notice the totals at the bottom of the page (row 60) now agree. The next account balance that changed is accounts receivable. It increased by 9,035. To enter this change on the worksheet, enter the letter b in cell C18 and 9035 in cell D18 (again, a debit since accounts receivable increased). This brings the year-end balance in column G to 121,250, its proper balance. The change in accounts receivable balance is an operating activity adjustment (as explained in your textbook). Enter the credit side of this entry in cells E34 and F34, and enter the explanation Increase in accounts receivable in cell A34. Note: Your textbook probably shows Net income as the first item under Operating Activities. We will get to that later. The sequence in which you enter items on this worksheet is not important. All other balance sheet accounts must be analyzed in the same manner, placing appropriate debit or credit entries in the top part of the worksheet to obtain the proper balances in column G, and then entering the second side of the entry in the appropriate row on the bottom part of the worksheet. You should use letter references to identify all entries. Also, you must enter a description of the entry in column A under the appropriate activity category. Although a sequence of analyzing the balance sheet from top to bottom is suggested here, this order is not necessary. As mentioned earlier, your textbook may specify a different sequence. Also, note that some accounts may have both debit and credit adjustments to them. The worksheet is not a substitute for a statement of cash flows, but it does provide you with all the numbers you need to properly prepare one. You will be done with your analysis when: a. The individual account balances at December 31, 2013, as shown on the worksheet (column G) equal those shown in the given problem data. b. The transaction column totals are equal (cells D60 and F60). c. The sum of the operating, investing, and financing activities (cell G59) equals the change in cash (cell D59 or F59). When you are finished, enter your name in cell A1. Save your completed file as CASHFLOW2. Print the worksheet when done. Also print your formulas. Check figure: Total credits at 12/31/2013 (cell G31), 860,460.arrow_forwardThe comparative balance sheet of Prime Sports Gear, Inc., at December 31, the end of the fiscal year, is as follows: Additional data obtained from the records of Prime Sports Gear are as follows: a. Net income for 2013 was 121,610. b. Depreciation reported on income statement for 2013 was 46,500. c. Purchased 165,000 of new equipment, putting 90,000 cash down and issuing 75,000 of bonds for the balance. d. Old equipment originally costing 19,500, with accumulated depreciation of 7,950, was sold for 8,000. e. Retired 60,000 of bonds. f. Declared cash dividends of 64,000. g. Issued 1,500 shares of common stock at 27 cash per share. You have been asked to prepare a statement of cash flows for Prime Sports Gear for 2013. Review the worksheet called CASHFLOW that has been provided to assist you in preparing the statement. The worksheet has been designed so that as you make entries in columns D and F, column G will be automatically updated. For example, FORMULA1 should be entered as =B17+D17F17. Columns C and E are to be used to enter letter references for each of the debit and credit entries on the worksheet.arrow_forwardThe following income statement and balance sheets for Laser World are provided: LASER WORLD Income Statement For the year-ended December 31, 2021 Sales revenue $ 2,260,000 Cost of goods sold 1,500,000 Gross profit 760,000 Expenses: Operating expenses 345,000 Depreciation expense 66,000 Loss on sale of land 4,600 Interest expense 24,000 Income tax expense 58,000 Total expenses 497,600 Net income $ 262,400 LASER WORLD Balance Sheet December 31 2021 2020 Assets Current assets: Cash $127,000 $104,000 Accounts receivable 91,000 72,000 Inventory 200,000 180,000 Prepaid rent 12,000 12,000 Long-term assets: Land 270,000 210,000 Equipment 270,000 220,000 Accumulated depreciation (74,000) (46,000) Total assets $896,000 $752,000 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $57,000 $56,000 Interest payable 8,900…arrow_forward
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- [The following information applies to the questions displayed below.]Income statement and balance sheet data for The Athletic Attic are provided below. THE ATHLETIC ATTIC Income Statements For the years ended December 31 2022 2021 Net sales $ 11,240,000 $ 9,700,000 Cost of goods sold 7,340,000 6,000,000 Gross profit 3,900,000 3,700,000 Expenses: Operating expenses 1,660,000 1,610,000 Depreciation expense 200,000 200,000 Interest expense 46,000 46,000 Income tax expense 472,000 410,000 Total expenses 2,378,000 2,266,000 Net income $ 1,522,000 $ 1,434,000 THE ATHLETIC ATTIC Balance Sheets December 31 2022 2021 2020 Assets Current assets: Cash $ 231,000 $ 160,000 $ 216,000 Accounts receivable 996,000 746,000 766,000 Inventory…arrow_forward[The following information applies to the questions displayed below.]Income statement and balance sheet data for The Athletic Attic are provided below. THE ATHLETIC ATTIC Income Statements For the years ended December 31 2022 2021 Net sales $11,240,000 $9,700,000 Cost of goods sold 7,340,000 6,000,000 Gross profit 3,900,000 3,700,000 Expenses: Operating expenses 1,660,000 1,610,000 Depreciation expense 200,000 200,000 Interest expense 46,000 46,000 Income tax expense 472,000 410,000 Total expenses 2,378,000 2,266,000 Net income $1,522,000 $1,434,000 THE ATHLETIC ATTIC Balance Sheets December 31 2022 2021 2020 Assets Current assets: Cash $231,000 $160,000 $216,000 Accounts receivable 996,000 746,000 766,000 Inventory 1,731,000 1,361,000 1,031,000 Supplies 136,000 106,000 81,000 Long-term assets: Equipment 1,340,000 1,340,000 1,340,000 Less: Accumulated…arrow_forwardUse the following excerpts from Victrolia Company’s financial information. 2018 Income Statment Balance Sheets Sales $455,000 Cost of Goods Sold (221,500) Operating Expenses, other thanDepreciation Expense (58,600) Depreciation Expense (20,000) Gain on Sale of Plant Assets 23,500 Net Income $178,400 Dec. 31,2018 Cash $329,450 Accounts Receivable 39,750 Inventory 31,000 Accounts Payable 17,550 Accured Liabilities 3,500 Dec. 31, 2017 Cash $133,500 Accounts Receivable 36,500 Inventory 35,000 Accounts Payable 19,550 Accured Liabilities 2,200 Additional Information: Plant assets were sold for $45,000; book value $16,500 Dividends of $24,000 were declared and paid Prepare a statement of cash flows (direct method) for the year 2018. Use the minus sign to indicate cash out flows, a decrease in cash or cash payments. Victrolia CompanyStatement of…arrow_forward
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