a)
Available-for-sale securities:
These are short-term or long-term investments in debt and equity securities with an intention of holding the investment for some strategic purposes like meeting liquidity needs, or manage interest risk.
To find: The missing amounts (a) to (i)
(b)
To Compute: valuation allowance for available-for-sale investment, for 2017.
(c)
To Compute: available-for-sale investment, (fair value), for 2017:
(d)
To Compute: interest receivable for 2017.
(e)
To Compute: Investment in Company J Stock, for 2017.
(f)
To Compute: total assets value for 2017.
(g)
To Compute: retained earnings for 2017.
(h)
To Compute: unrealized gain (loss) on available-for-sale investment, for 2017.
(i)
To Compute: total liabilities and
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Chapter 13 Solutions
EBK FINANCIAL & MANAGERIAL ACCOUNTING
- Balance Sheets At December 31 2018 2017 2018 2017 Liabilities: Accounts payable 29,400 Income taxes payable 61,710 Bonds payable 56,400Total liabilities Assets: Cash Accounts receivable Merchandise inventory Long-term investments Equipment Acc. depreciation Total assets $ 24,640 $ 23,040 32,180 73,125 55,900 175,500 145,500Equity: (33,550) (31.200) Common stock $327.795 $284.850 APIC $65,000 $ 40,380 10,725 10,200 48.750 66.000 $124,475 $116,580 96,000 9,000 63.270 $203.320 $168.270 Total liabilities and equity $327.795 $284.850 117,000 13,000 73,320 Retained earnings Total equity Eddy Inc. Income Statement For Year Ended December 31, 2018 $240,000 Sales Cost of goods sold Depreciation expense Other operating expenses Interest expense Other gains (losses): Loss on sale of equipment $80,900 29,400 48,000 2,000 (160,300) (8,400) 71,300 27,650 $ 43.650 Income before taxes Income taxes expense Net incomearrow_forwardAccounting for equity investments Money Man Investments completed the following transactions during 2018: Requirements Journalize Money Man’s transactions. Explanations are not required. Classify and prepare partial financial statements for Money Man’s 25% Technomite investment for the year ended December 31, 2018.arrow_forwardWhat are the firm's current ratios for 2018 and 2019? Income Statements ($ in millions) Balance Sheets ($ in millions) 2018 2019 Assets 2018 2019 $1,265 | Cash $780 Short-Term investments Sales Revenue $1,180 $35 $20 $660 $20 $5 Less: Cost of goods sold Less: Operating Expenses Less: Depreciation Earnings before interest and taxes Less: Interest paid $75 $92 | Accounts rec. 190 235 $40 $50 Inventory 250 300 $405 $343 Total Current Assets $495 $560 $170 $150 | Net fixed assets 990 1,105 Taxable Income $235 $193 Less: Taxes (40%) $77 Total assets $116 Liabilities and Owner's Equity $94 $1,485 1,665 Net income $141 Dividends (45%) Additions to Retained Earnings $63 $52 2018 2019 $64 Accounts payable Аccruals $78 $125 $100 $10 $10 Notes payable 35 40 Total Current Liabilities $170 $150 Long-term debt 598 790 Total Liabilities $768 $940 Common stock 554 498 Retained earnings Total Equity Total liab.& equity 163 $227 717 $725 $1,485 $1,665arrow_forward
- Cash Accounts receivable (net) Inventories Total current assets Noncurrent assets Current liabilities Long-term liabilities Shareholders' equity Net income Interest expense Income tax expense Sanchez Corporation Selected Financial Information The debt to equity ratio for 2016 is: OA) 0.80 OB) 0.44 Oc) 0.67 OD) 0.13 12/31/16 $ 20,000 100,000 190,000 310,000 230,000 200,000 40,000 300,000 $40,000 10,000 20,000arrow_forwardCurrent Attempt in Progress XYZ provided the following financial information: XYZBalance SheetAs of 12/31/19 Assets: Liabilities and Equity: Cash and marketable securities $27,476 Accounts payable and accruals $154,860 Accounts receivable $143,519 Short-term notes payable $21,255 Inventory $212,379 Total current liabilities $176,115 Total current assets $383,374 Long term debt $155,510 Net plant and equipment $602,704 Total liabilities $331,625 Goodwill and other assets $42,422 Common stock $312,719 Retained earnings $384,156 Total assets $1,028,500 Total liabilities and equity $1,028,500 In addition, it was reported that the firm had a net income of: $158,402 and net sales of: $4,272,431 Calculate the following ratios for this firm (Use 365 days for calculation. Round answers to 2 decimal places, e.g.…arrow_forwardQuantitative Problem: Rosnan Industries' 2018 and 2017 balance sheets and income statements are shown below. Balance Sheets: 2018 2017 Cash and equivalents $70 $55 Accounts receivable 275 300 Inventories 375 350 Total current assets $720 $705 Net plant and equipment 2,000 1,490 Total assets $2,720 $2,195 Accounts payable $150 $85 Accruals 75 50 Notes payable 120 145 Total current liabilities $345 $280 Long-term debt 450 290 Common stock 1,225 1,225 Retained earnings 700 400 Total liabilities and equity $2,720 $2,195 Income Statements: 2018 2017 Sales $2,000 $1,500 Operating costs excluding depreciation 1,250 1,000 EBITDA $750 $500 Depreciation and amortization 100 75 EBIT $650 $425 Interest 62 45 EBT $588 $380 Taxes (40%) 235 152 Net income $353 $228 Dividends paid $53 $48 Addition to retained…arrow_forward
- For years ended December 31 Equity Investee Financial Summary, $ millions 2018 2017 2016 Net sales... Gross margin Net income.. Cummins' share of net income. $7,352 $7,050 $5,654 1,373 1,422 1,182 647 680 499 $ 336 $ 308 $ 260 Royalty and interest income.. 58 49 41 Total equity, royalty and interest from investees... $ 394 $ 357 $ 301 Current assets $3,401 1,449 $3,416 1,379 Noncurrent assets Current liabilities.. Noncurrent liabilities.. Net assets... (2,669) (218) (2,567) (237) $1,963 $1,991 Cummins' share of net assets $1,144 $1,116 a. What assets and liabilities of unconsolidated affiliates are omitted from Cummins' balance sheet as a result of the equity method of accounting for those investments? b. Do the liabilities of the unconsolidated affiliates affect Cummins directly? Explain. c. How does the equity method impact Cummins' ROE and its RNOA components (net operating asset turnover and net operating profit margin)?arrow_forwardOperating Activities Section—Indirect Method The following account balances for the noncash current assets and current liabilities of Suffolk Company are available: December 31 2017 2016 Accounts receivable $42,990 $34,940 Inventory 30,020 40,050 Prepaid rent 17,370 14,980 Totals $90,380 $89,970 Accounts payable $25,770 $18,760 Income taxes payable 6,210 9,840 Interest payable 15,190 11,520 Totals $47,170 $40,120 Net income for 2017 is $35,170. Depreciation expense is $20,070. Assume that all sales and all purchases are on account. Required: 1. Prepare the Operating Activities section of the statement of cash flows using the indirect method. Use the minus sign to indicate cash payments, cash outflows, or decreases in cash. Suffolk Company Partial Statement of Cash Flows For the Year Ended December 31, 2017 Cash Provided by Operating Activities $ Adjustments to reconcile net income to net cash…arrow_forwardCrane Company has these comparative balance sheet data: CRANE COMPANYBalance SheetsDecember 31 2022 2021 Cash $ 27,105 $ 54,210 Accounts receivable (net) 126,490 108,420 Inventory 108,420 90,350 Plant assets (net) 361,400 325,260 $623,415 $578,240 Accounts payable $ 90,350 $ 108,420 Mortgage payable (15%) 180,700 180,700 Common stock, $10 par 252,980 216,840 Retained earnings 99,385 72,280 $623,415 $578,240 Additional information for 2022: 1. Net income was $27,900. 2. Sales on account were $382,300. Sales returns and allowances amounted to $29,000. 3. Cost of goods sold was $207,500. 4. Net cash provided by operating activities was $57,000. 5. Capital expenditures were $28,900, and cash dividends were $17,900. Compute the following ratios at December 31, 2022. (Round current ratio and inventory turnover to 2 decimal…arrow_forward
- Can I please get help with the Liabilities and Equity Percentages, thanks in advance Problem: Prepare a common-size balance sheet from the following information for Blossom Supply Company. (Round answers to 1 decimal place, e.g. 52.7%.) Blossom Supply CompanyBalance Sheet as of June 30, 2017($ thousands) Assets: % of Assets Liabilities and Equity: % of Assets Cash and marketable securities $ 399,000 9.3 % Accounts payable $ 820,000 enter percentages of assets % Accounts receivable 708,000 16.5% Notes payable 110,000 enter percentages of assets % Inventory 1,155,000 26.9 Accrued income taxes 43,800 enter percentages of assets % Other current assets 42,400 1% Total current liabilities $ 973,800 enter percentages of assets % Total current assets $ 2,304,400 53.7% Long-term debt 1,158,000 enter percentages of assets % Net plant and equipment 1,986,000 46.3%…arrow_forwardPlease answer question 16-18 based on the following information from Owl Inc. Income Statement Sales COGS SGA Depreciation EBIT Interest E BT Taxes (35%) Net income Dividend payout a. b. Cash Accounts receivable Inventory Current assets Net fixed assets Total assets Net fixed assets Balance Sheet as of December 31, 2019 22,228 Accounts payable 19,450 Cash Accounts receivable Inventory Current assets 25,495 67,173 Less than $50,000 Between $65,000 and $75,000 C. Between $75,000 and $85,000 d. Between $85,000 and $100,000 205,000 272,173 Total assets 310,029 16. How much is the operating cash flow in 2020? 2019 2020 277,855 333,426 141,641 175,049 27,786 38,344 38,900 46,680 69,528 73,353 4,356 68,997 24,149 44,848 35% 221,671 4,275 65,253 22,839 42,414 50% Balance Sheet as of December 31, 2020 26,674 Accounts payable 26,674 Notes payable 35,010 Current liabilities 88,358 Notes payable Current liabilities Long-term debt Owner's equity Total liab & equity Long-term debt Owner's equity…arrow_forwardProblem 17-5 (AICPA Adapted) Investment in Hall Company at equity statement of financial position: Accounts receivable, net of allowance Fearsome Company showed the following comparative 2021 2020 Cash and cash equivalents 2,350,000 600,000 1,000,000 2,200,000 2,000,000 5,000,000 1,050,000) ( 800,000) 400,000 350,000 700,000 850,000 2,000,000 1,500,000 4,000,000 Inventory Land Property, plant and equipment. Accumulated depreciation Goodwill 400,000 12,500,000 9,000,000 Accounts payable Note payable - long term Bonds payable Share capital, P100 par Share premium Retained earnings Treasury shares, at cost 600,000 500,000 1,600,000 5,250,000 2,700,000 1,850,000 550,000 2,100,000 4,000,000 1,750,000 1,300,000 700,000) 12,500,000 9,000,000 Additional information for 2021 1. The net income for the current year was P3,050,000. 2. Cash dividend paid amounted to P2,500,000. 3. The entity sold equipment costing P200,000, with carrying amount of P50,000, for P70,000 cash. 4. The entity issued…arrow_forward
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