FINANCIAL ACCOUNTING: TOOLS WP ACCESS
8th Edition
ISBN: 9781119230069
Author: Kimmel
Publisher: WILEY
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Chapter 2, Problem 2.1AP
To determine
Classified balance sheet: The main elements of balance sheet assets, liabilities, and stockholders’ equity are categorized or classified further into sections in a classified balance sheet. Assets are further classified as current assets, long-term investments, property, plant, and equipment (PPE), and intangible assets. Liabilities are classified into two sections current and long-term. Stockholders’ equity comprises of common stock and
To prepare: Classified balance sheet for Incorporation Y as at December 31, 2017
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The data shown below were taken from the financial records of Shahid Limited at the end of 2018.
1. Account Payable 50,000
2. Accrued Liabilities 33,000
3. Cash 32,000
4. Inventories (Jan 1,2018) 42,000
5. Inventories (Dec.31 2018) 38,000
6. Marketable Securities 10,000
7. Operating Expenses 120,000
8. Prepaid Expenses 25,000
9. Purchases (Net) 360,000
10. Accounts Receivable( Jan 1,2018) 61,000
11. Account Receivable (Dec.31,2018) 61,000
12. Long Term Loan 150,000
13. Plant Assets 400,000
14. Sales (All on Credit) 604,000
15. Sales Return 20,000
16. Retained Earnings 133,000
17. Share Capital (Rs. 10) ?
18. Market Price Per Share Rs. 18
Required: On the basis of above information computes the following.
a) Current Ratio
b) Quick Ratio
c) Equity Ratio
d) Debt Ratio
e) Inventory Turnover
f) Receivable Turnover
g) Rate of Net Income on Sales
h) Book value per share
i) Days of operating cycle
Sage Hill Inc. had the following balance sheet at December 31, 2016.
SAGE HILL INC.BALANCE SHEETDECEMBER 31, 2016
Cash
$9,600
Accounts payable
$14,500
Accounts receivable
14,000
Bonds payable
8,800
Investments
15,500
Common stock
36,900
Plant assets (net)
35,500
Retained earnings
32,300
Land
17,900
$92,500
$92,500
During 2017, the following occurred.
1.
Net income was $23,700.
2.
Depreciation expense was $8,100.
3.
Sage Hill liquidated its investment portfolio (comprised of available-for-sale investments), realizing a $3,200 loss.
4.
Sage Hill issued $20,800 of common stock at par.
5.
Dividends of $8,200 were declared and paid to stockholders.
6.
Accounts receivable and accounts payable at December 31, 2017 were $15,800 and $13,900, respectively.
7.
Sage Hill obtained $8,200in plant assets in exchange for issuing bonds.
8.
Sage Hill purchased additional plant assets for $17,900.
9.…
The following items were taken from the financial statements of P. Cullumber Company. (All amounts are in thousands.)
Long-term debt
$1,000
Accumulated depreciation—equipment
$5,900
Prepaid insurance
880
Accounts payable
1,100
Equipment
11,300
Notes payable (due after 2023)
500
Stock investments (long-term)
200
Owner’s capital
11,580
Debt investments (short-term)
3,400
Accounts receivable
1,600
Notes payable (due in 2023)
600
Inventory
1,200
Cash
2,100
Prepare a classified balance sheet in good form as of December 31, 2022. (List Current Assets in order of liquidity. Enter amounts in thousands.)
Chapter 2 Solutions
FINANCIAL ACCOUNTING: TOOLS WP ACCESS
Ch. 2 - What is meant by the term operating cycle?Ch. 2 - Define current assets. What basis is used for...Ch. 2 - Prob. 3QCh. 2 - Prob. 4QCh. 2 - Prob. 5QCh. 2 - Prob. 6QCh. 2 - Prob. 7QCh. 2 - Prob. 8QCh. 2 - What do these classes of ratios measure? (a)...Ch. 2 - Prob. 10Q
Ch. 2 - Prob. 11QCh. 2 - Prob. 12QCh. 2 - (a) What is the primary objective of financial...Ch. 2 - Merle Hawkins, the president of Pathway Company,...Ch. 2 - Prob. 15QCh. 2 - Prob. 16QCh. 2 - Prob. 17QCh. 2 - Prob. 18QCh. 2 - What is the economic entity assumption? Give an...Ch. 2 - Prob. 20QCh. 2 - The following are the major balance sheet...Ch. 2 - Prob. 2.2BECh. 2 - Prob. 2.3BECh. 2 - Prob. 2.4BECh. 2 - Prob. 2.5BECh. 2 - Prob. 2.6BECh. 2 - Prob. 2.7BECh. 2 - Prob. 2.8BECh. 2 - Here are some qualitative characteristics of...Ch. 2 - Prob. 2.10BECh. 2 - Prob. 2.1ADIECh. 2 - Prob. 2.1BDIECh. 2 - Prob. 2.2DIECh. 2 - The following characteristics, assumptions,...Ch. 2 - Prob. 2.1ECh. 2 - The major balance sheet classifications are listed...Ch. 2 - Prob. 2.3ECh. 2 - Prob. 2.4ECh. 2 - Prob. 2.5ECh. 2 - Prob. 2.6ECh. 2 - Prob. 2.7ECh. 2 - Prob. 2.8ECh. 2 - Nordstrom, Inc. operates department stores in...Ch. 2 - Prob. 2.10ECh. 2 - Prob. 2.11ECh. 2 - Prob. 2.12ECh. 2 - Prob. 2.13ECh. 2 - Prob. 2.1APCh. 2 - Prob. 2.2APCh. 2 - Prob. 2.3APCh. 2 - Prob. 2.4APCh. 2 - Prob. 2.5APCh. 2 - Prob. 2.6APCh. 2 - Prob. 2.7APCh. 2 - Prob. 2.8APCh. 2 - Prob. 2.1EYCTCh. 2 - Prob. 2.2EYCTCh. 2 - Prob. 2.3EYCTCh. 2 - Prob. 2.4EYCTCh. 2 - Prob. 2.7EYCTCh. 2 - Prob. 2.8EYCTCh. 2 - Prob. 2.9EYCTCh. 2 - ETHICS CASE At one time, Boeing closed a giant...Ch. 2 - In what ways does the format of a statement of...Ch. 2 - Prob. 2.2IFRSCh. 2 - Prob. 2.3IFRSCh. 2 - Prob. 2.4IFRSCh. 2 - Prob. 2.5IFRS
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