MANAGERIAL ACCOUNTING FUND. W/CONNECT
5th Edition
ISBN: 9781259688713
Author: Wild
Publisher: MCG
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Chapter 13, Problem 3PSB
Kato Corporation began the month of June with $300.000 of current assets, a
An acid-test ratio of 1.4:1. During the month, it completed the following transactions (the company uses
A perpetual inventory system).
June 1 Sold merchandise inventory that cost $75.000 for $120.000 cash.
3 Collected S88.000 cash on an account receivable.
5 Purchased SI 50,000 of merchandise inventory on credit.
7 Borrowed S 100.000 cash by giving the bank a 60-day, 10% note.
10 Borrowed $120.000 cash by signing a long-term secured now.
12 Purchased machinery for $275.000 cash.
IS Declared a SI per share cash dividend on its S0.000 shares of outstanding common stock.
19 Wrote off a $5.000
22 Paid SI 2.0(N) cash to settle an account payable.
30 Paid the dividend declared on June 15.
Required
Prepare a table showing the company’s (I) current ratio. (2) acid-test ratio, and (3)
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Plum Corporation began the month of May with $700,000 of current assets, a current ratio of 2.50:1, andan acid-test ratio of 1.10:1. During the month, it completed the following transactions (the company usesa perpetual inventory system).May 2 Purchased $50,000 of merchandise inventory on credit.8 Sold merchandise inventory that cost $55,000 for $110,000 cash.10 Collected $20,000 cash on an account receivable.15 Paid $22,000 cash to settle an account payable.17 Wrote off a $5,000 bad debt against the Allowance for Doubtful Accounts account.22 Declared a $1 per share cash dividend on its 50,000 shares of outstanding common stock.26 Paid the dividend declared on May 22.27 Borrowed $100,000 cash by giving the bank a 30-day, 10% note.28 Borrowed $80,000 cash by signing a long-term secured note.29 Used the $180,000 cash proceeds from the notes to buy new machinery. RequiredPrepare a table, showing Plum’s (1) current ratio, (2) acid-test ratio, and (3) workingcapital after each transaction.…
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current ratio of 2.50:1, and an acid-test ratio of 1.10:1. During the month, it
completed the following transactions (the company uses a perpetual inventory
system). May 2 Purchased $50,000 of merchandise inventory on credit. May 8 Sold
merchandise inventory that cost $55,000 for $110,000 cash. May 10 Collected $20,000
cash on an account receivable. May 15 Paid $22,000 cash to settle an account
payable. May 17 Wrote off a $5,000 bad debt against the Allowance for Doubtful
Accounts account. May 22 Declared a $1 per share cash dividend on its 50,000
shares of outstanding common stock. May 26 Paid the dividend declared on May
22. May 27 Borrowed $100,000 cash by giving the bank a 30-day, 10% note. May 28
Borrowed $80,000 cash by signing a long-term secured note. May 29 Used the $
180,000 cash proceeds from the notes to buy new machinery. Required: Complete
the table below showing Plum's (1) current ratio, (2)…
Koto Corporation began the month of June with $300,000 of current assets, a current ratio of 2.5:1, and anacid-test ratio of 1.4:1. During the month, it completed the following transactions (the company uses aperpetual inventory system).June 1 Sold merchandise inventory that cost $75,000 for $120,000 cash.3 Collected $88,000 cash on an account receivable.5 Purchased $150,000 of merchandise inventory on credit.7 Borrowed $100,000 cash by giving the bank a 60-day, 10% note.10 Borrowed $120,000 cash by signing a long-term secured note.12 Purchased machinery for $275,000 cash.15 Declared a $1 per share cash dividend on its 80,000 shares of outstanding common stock.19 Wrote off a $5,000 bad debt against the Allowance for Doubtful Accounts account.22 Paid $12,000 cash to settle an account payable.30 Paid the dividend declared on June 15.RequiredPrepare a table, showing the company’s (1) current ratio, (2) acid-test ratio, and(3) working capital after each transaction. Round ratios to two…
Chapter 13 Solutions
MANAGERIAL ACCOUNTING FUND. W/CONNECT
Ch. 13 - Prob. 1MCQCh. 13 - Prob. 2MCQCh. 13 - Prob. 3MCQCh. 13 - Prob. 4MCQCh. 13 - Prob. 5MCQCh. 13 - Prob. 1DQCh. 13 - Prob. 2DQCh. 13 - Prob. 3DQCh. 13 - Prob. 4DQCh. 13 - Prob. 5DQ
Ch. 13 - Prob. 6DQCh. 13 - Prob. 7DQCh. 13 - Prob. 8DQCh. 13 - Prob. 9DQCh. 13 - Prob. 10DQCh. 13 - Prob. 11DQCh. 13 - Prob. 12DQCh. 13 - Where on the income statement does a company...Ch. 13 - Prob. 14DQCh. 13 - Prob. 15DQCh. 13 - Prob. 16DQCh. 13 - Use Samsungs financial statements in Appendix A to...Ch. 13 - Prob. 1QSCh. 13 - Prob. 2QSCh. 13 - Prob. 3QSCh. 13 - Prob. 4QSCh. 13 - Prob. 5QSCh. 13 - Prob. 6QSCh. 13 - Prob. 7QSCh. 13 - Prob. 8QSCh. 13 - Prob. 9QSCh. 13 - Prob. 1ECh. 13 - Prob. 2ECh. 13 - Prob. 3ECh. 13 - Prob. 4ECh. 13 - Prob. 5ECh. 13 - Prob. 6ECh. 13 - Prob. 7ECh. 13 - Prob. 8ECh. 13 - Prob. 9ECh. 13 - Prob. 10ECh. 13 - Prob. 11ECh. 13 - Prob. 12ECh. 13 - Prob. 13ECh. 13 - Prob. 14ECh. 13 - Prob. 15ECh. 13 - Prob. 1PSACh. 13 - Prob. 2PSACh. 13 - Prob. 3PSACh. 13 - Selected year-end and financial statement of...Ch. 13 - Prob. 5PSACh. 13 - Prob. 6PSACh. 13 - Prob. 1PSBCh. 13 - Prob. 2PSBCh. 13 - Kato Corporation began the month of June with...Ch. 13 - Prob. 4PSBCh. 13 - Prob. 5PSBCh. 13 - Prob. 6PSBCh. 13 - This serial Problem began in Chapter 1 and...Ch. 13 - Refer to Apples financial statements in appendix A...Ch. 13 - Prob. 2BTNCh. 13 - Prob. 3BTNCh. 13 - Prob. 4BTNCh. 13 - Prob. 5BTNCh. 13 - Prob. 6BTNCh. 13 - Prob. 7BTNCh. 13 - Prob. 8BTNCh. 13 - Prob. 9BTN
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