INTERMEDIATE ACCOUNTING(LL)-W/2 ACCESS
9th Edition
ISBN: 9781260180657
Author: SPICELAND
Publisher: MCG
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Textbook Question
Chapter 16, Problem 16.9BYP
Judgment Case 16–9
Analyzing the effect of
• LO16–8
Real World Financials
The following is a portion of the balance sheets of Macy’s, Inc. for the years ended January 30, 2016 and January 31, 2015:
Macy’s debt to equity ratio for the year ended January 30, 2016, was 3.84, calculated as ($20,576 – 4,253) ÷ 4,253. Some analysts argue that long-term deferred tax liabilities should be excluded from liabilities when computing the debt to equity ratio.
Required:
1. What is the rationale for the argument that long-term deferred tax liabilities should be excluded from liabilities when computing the debt to equity ratio?
2. What would be the effect on Macy’s debt to equity ratio of excluding deferred tax liabilities from its calculation? What would be the percentage change?
3. What might be the rationale for not excluding long-term deferred tax liabilities from liabilities when computing the debt to equity ratio?
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#10
Item
Prior year
Current year
Accounts payable
8,123.00
7,716.00
Accounts receivable
6,048.00
6,607.00
Accruals
997.00
1,500.00
Cash
???
???
Common Stock
10,094.00
11,603.00
COGS
12,653.00
18,393.00
Current portion long-term debt
4,911.00
5,090.00
Depreciation expense
2,500
2,763.00
Interest expense
733
417
Inventories
4,245.00
4,824.00
Long-term debt
14,141.00
13,226.00
Net fixed assets
51,826.00
54,004.00
Notes payable
4,339.00
9,940.00
Operating expenses (excl. depr.)
13,977
18,172
Retained earnings
28,688.00
30,532.00
Sales
35,119
45,044.00
Taxes
2,084
2,775
What is the firm's total change in cash from the prior year to the current year?
Answer format: Number: Round to: 0 decimal places.
PROBLEM 13.2A Reporting Investing Activities L LO13-4
An analysis of the income statement and the balance sheet accounts of Hampton, Inc., at December 31 of the current year, provides the
following information.
Page 611
Income statement items:
Gain on Sale of Marketable Securities
$ 42,000
Loss on Sales of Plant Assets
33,000
Analysis of balance sheet accounts:
Marketable Securities account:
Debit entries
$ 75,000
Credit entries
90,000
Notes Receivable account:
Debit entries
210,000
Credit entries
162,000
Plant and Equipment accounts:
Debit entries to plant asset accounts
196,000
Credit entries to plant asset accounts
120,000
Debit entries to accumulated depreciation accounts
75,000
#9
Item
Prior year
Current year
Accounts payable
8,123.00
7,716.00
Accounts receivable
6,048.00
6,607.00
Accruals
997.00
1,500.00
Cash
???
???
Common Stock
10,094.00
11,603.00
COGS
12,653.00
18,393.00
Current portion long-term debt
4,911.00
5,090.00
Depreciation expense
2,500
2,763.00
Interest expense
733
417
Inventories
4,245.00
4,824.00
Long-term debt
14,141.00
13,226.00
Net fixed assets
51,826.00
54,004.00
Notes payable
4,339.00
9,940.00
Operating expenses (excl. depr.)
13,977
18,172
Retained earnings
28,688.00
30,532.00
Sales
35,119
45,044.00
Taxes
2,084
2,775
What is the firm's cash flow from financing?
Answer format: Number: Round to: 0 decimal places.
Chapter 16 Solutions
INTERMEDIATE ACCOUNTING(LL)-W/2 ACCESS
Ch. 16 - Prob. 16.1QCh. 16 - A deferred tax liability (or asset) is described...Ch. 16 - Prob. 16.3QCh. 16 - Prob. 16.4QCh. 16 - Temporary differences result in future taxable or...Ch. 16 - Identify three examples of differences with no...Ch. 16 - The income tax rate for Hudson Refinery has been...Ch. 16 - Suppose a tax reform bill is enacted that causes...Ch. 16 - A net operating loss occurs when tax-deductible...Ch. 16 - Prob. 16.10Q
Ch. 16 - Additional disclosures are required pertaining to...Ch. 16 - Additional disclosures are required pertaining to...Ch. 16 - Prob. 16.13QCh. 16 - Prob. 16.14QCh. 16 - IFRS and U.S. GAAP follow similar approaches to...Ch. 16 - Temporary difference LO161 A company reports...Ch. 16 - Prob. 16.2BECh. 16 - Temporary difference LO162 A company reports...Ch. 16 - Prob. 16.4BECh. 16 - Temporary difference; income tax payable given ...Ch. 16 - Valuation allowance LO162, LO163 At the end of...Ch. 16 - Valuation allowance LO162, LO163 VeriFone Systems...Ch. 16 - Temporary and permanent differences; determine...Ch. 16 - Calculate taxable income LO161, LO164 Shannon...Ch. 16 - Multiple tax rates LO165 J-Matt, Inc., had pretax...Ch. 16 - Change in tax rate LO165 Superior Developers...Ch. 16 - Net operating loss carryforward LO167 During its...Ch. 16 - Net operating loss carryback LO167 AirParts...Ch. 16 - Tax uncertainty LO169 First Bank has some...Ch. 16 - Intraperiod tax allocation LO1610 Southeast...Ch. 16 - Temporary difference; taxable income given LO161...Ch. 16 - Prob. 16.2ECh. 16 - Prob. 16.3ECh. 16 - Prob. 16.4ECh. 16 - Prob. 16.5ECh. 16 - Prob. 16.6ECh. 16 - Identify future taxable amounts and future...Ch. 16 - Calculate income tax amounts under various...Ch. 16 - Determine taxable income LO161, LO162 Eight...Ch. 16 - Prob. 16.10ECh. 16 - Deferred tax asset; income tax payable given;...Ch. 16 - Prob. 16.12ECh. 16 - Prob. 16.13ECh. 16 - Multiple differences LO164, LO166 For the year...Ch. 16 - Multiple t ax rates LO162, LO165 Allmond...Ch. 16 - Prob. 16.16ECh. 16 - Deferred taxes; change in tax rates LO161, LO165...Ch. 16 - Multiple temporary differences; record income...Ch. 16 - Multiple temporary differences; record income...Ch. 16 - Net operating loss carryforward LO167 During...Ch. 16 - Net operating loss carryback LO167 Wynn Sheet...Ch. 16 - Net operating loss carryback and carryforward ...Ch. 16 - Identifying income tax deferrals LO161, LO162,...Ch. 16 - Multiple temporary differences; balance sheet...Ch. 16 - Multiple tax rates LO161, LO164, LO165 Case...Ch. 16 - Prob. 16.26ECh. 16 - Balance sheet classification LO168 As of December...Ch. 16 - Concepts; terminology LO161 through LO168 Listed...Ch. 16 - Tax credit; uncertainty regarding sustainability ...Ch. 16 - Intraperiod tax allocation LO1610 The following...Ch. 16 - FASB codification research LO165, LO168, LO1610...Ch. 16 - Prob. 16.1PCh. 16 - Prob. 16.2PCh. 16 - Prob. 16.3PCh. 16 - Prob. 16.4PCh. 16 - Change in tax rate; record taxes for four years ...Ch. 16 - Multiple differences; temporary difference yet to...Ch. 16 - Multiple differences; calculate taxable income;...Ch. 16 - Multiple differences; taxable income given; two...Ch. 16 - Determine deferred tax assets and liabilities ...Ch. 16 - Prob. 16.10PCh. 16 - Prob. 16.11PCh. 16 - Prob. 16.12PCh. 16 - Prob. 16.13PCh. 16 - Prob. 16.1BYPCh. 16 - Prob. 16.2BYPCh. 16 - Integrating Case 163 Tax effects of accounting...Ch. 16 - Communication Case 164 Deferred taxes; changing...Ch. 16 - Prob. 16.5BYPCh. 16 - Research Case 166 Researching the way tax...Ch. 16 - Analysis Case 167 Reporting deferred taxes; Ford...Ch. 16 - Prob. 16.8BYPCh. 16 - Judgment Case 169 Analyzing the effect of deferred...Ch. 16 - Prob. 16.12BYPCh. 16 - Target Case LO16-1, LO16-2, LO16-4, LO16-8,...Ch. 16 - Prob. 1CCIFRS
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