INTERMEDIATE ACCT VOL.2>CUSTOM<
9th Edition
ISBN: 9781307165067
Author: SPICELAND
Publisher: MCG/CREATE
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Textbook Question
Chapter 3, Problem 3.1E
Balance sheet; missing elements
• LO3–2, LO3–3, LO3–8
Cash and cash equivalents | $ 5,000 |
Accounts receivable (net) | 20,000 |
Inventories | 60,000 |
Property, plant, and equipment (net) | 120,000 |
Accounts payable | 44,000 |
Wages payable | 15,000 |
Paid-in-capital | 100,000 |
The only asset not listed is short-term investments. The only liabilities not listed are a $30,000 note payable due in two years and related accrued interest of $1,000 due in four months. The
Required:
Determine the following at December 31, 2018:
1. Total current assets
2. Short-term investments
3.
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Q 23.21:
Last year, Alpha Corporation spent $250,000 to repurchase 15,000 shares of its own outstanding common stock. The company also paid $40,000 in interest on a construction loan that it had obtained from its bank. How should these transactions be reflected on Alpha’s annual statement of cash flows, and why?
A :
The two transactions should be reported in separate sections of the statement because one involves long-term assets while the other involves long-term liability. Specifically, Alpha should record a $250,000 cash outflow in the investing section and a $40,000 cash outflow in the financing section.
B :
The two transactions should be reported in separate sections of the statement because one involves a change in equity while the other involves a change in income. Specifically, Alpha should record a $250,000 cash outflow in the financing section and a $40,000 cash outflow in the operating section.
C :
Both transactions should be reported in the…
Particulars
31st Mar' 19 Amt (Rs)
31st Mar' 20 Amt (Rs)
Land and Building
3600000
3600000
Cash
400000
320,000
Sundry Debtors
640000
800,000
Temporary Investments
400000
640,000
Stock
3680000
4320000
Prepaid Expenses
560000
24000
Plant and Machinery
1920000
3096000
Total Assets
11200000
12800000
Current Liabilities
1280000
1600000
Loans
3200000
3200000
Capital
4000000
4000000
Retained Earnings
936000
1624000
Statement of Profit for the Current Year 1st Apr to 31st Mar' 20 :
Amt (Rs)
Sales
8000000
Less: Cost of Goods Sold
-5600000
Less: Interest
-320000
Net Profit
2080000
Less: Taxes @ 50%
-1040000
Profit after Tax
1040000
Profit Distributed
440000
Calculate
Gross Profit Ratio
Return on Equity
Particulars
31st Mar' 19 Amt (Rs)
31st Mar' 20 Amt (Rs)
Land and Building
3600000
3600000
Cash
400000
320,000
Sundry Debtors
640000
800,000
Temporary Investments
400000
640,000
Stock
3680000
4320000
Prepaid Expenses
560000
24000
Plant and Machinery
1920000
3096000
Total Assets
11200000
12800000
Current Liabilities
1280000
1600000
Loans
3200000
3200000
Capital
4000000
4000000
Retained Earnings
936000
1624000
Statement of Profit for the Current Year 1st Apr to 31st Mar' 20 :
Amt (Rs)
Sales
8000000
Less: Cost of Goods Sold
-5600000
Less: Interest
-320000
Net Profit
2080000
Less: Taxes @ 50%
-1040000
Profit after Tax
1040000
Profit Distributed
440000
Calculate
Current Ratio
Debtors Turnover Ratio
Stock Turnover Ratio
Return on Total Assets
Chapter 3 Solutions
INTERMEDIATE ACCT VOL.2>CUSTOM<
Ch. 3 - Prob. 3.1QCh. 3 - Prob. 3.2QCh. 3 - Define current assets and list the typical asset...Ch. 3 - Prob. 3.4QCh. 3 - Prob. 3.5QCh. 3 - Prob. 3.6QCh. 3 - Describe the common characteristics of assets...Ch. 3 - Prob. 3.8QCh. 3 - Prob. 3.9QCh. 3 - Define the terms paid-in-capital and retained...
Ch. 3 - Disclosure notes are an integral part of the...Ch. 3 - A summary of the companys significant accounting...Ch. 3 - Define a subsequent event.Ch. 3 - Prob. 3.14QCh. 3 - Prob. 3.15QCh. 3 - Prob. 3.16QCh. 3 - Prob. 3.17QCh. 3 - Show the calculation of the following solvency...Ch. 3 - Prob. 3.19QCh. 3 - Prob. 3.20QCh. 3 - (Based on Appendix 3) Segment reporting...Ch. 3 - Prob. 3.22QCh. 3 - Prob. 3.23QCh. 3 - Current versus long-term classification LO32,...Ch. 3 - Balance sheet classification LO32, LO33 The trial...Ch. 3 - Prob. 3.3BECh. 3 - Balance sheet classification LO32, LO33 Refer to...Ch. 3 - Balance sheet classification LO32, LO33 The...Ch. 3 - Balance sheet classification LO32, LO33 You have...Ch. 3 - Balance sheet preparation; missing elements LO32,...Ch. 3 - Financial statement disclosures LO34 For each of...Ch. 3 - Calculating ratios LO38 Refer to the trial...Ch. 3 - Prob. 3.10BECh. 3 - Calculating ratios; solving for unknowns LO38 The...Ch. 3 - Balance sheet; missing elements LO32, LO33, LO38...Ch. 3 - Balance sheet classification LO32, LO33 The...Ch. 3 - Balance sheet classification LO32, LO33 The...Ch. 3 - Balance sheet preparation LO32, LO33 The...Ch. 3 - Balance sheet preparation LO32, LO33 The...Ch. 3 - Balance sheet; Current versus long-term...Ch. 3 - Prob. 3.7ECh. 3 - Prob. 3.8ECh. 3 - Balance sheet preparation LO32, LO33 The...Ch. 3 - Financial statement disclosures LO34 The...Ch. 3 - Prob. 3.11ECh. 3 - Prob. 3.12ECh. 3 - Prob. 3.13ECh. 3 - FASB codification research LO32, LO34 Access the...Ch. 3 - Prob. 3.15ECh. 3 - Prob. 3.16ECh. 3 - Prob. 3.17ECh. 3 - Calculating ratios; solve for unknowns LO38 The...Ch. 3 - Prob. 3.19ECh. 3 - Effect of management decisions on ratios LO38...Ch. 3 - Prob. 3.21ECh. 3 - Prob. 3.22ECh. 3 - Balance sheet preparation LO32, LO33 Presented...Ch. 3 - Balance sheet preparation; missing elements LO32,...Ch. 3 - Balance sheet preparation LO32, LO33 The...Ch. 3 - Balance sheet preparation LO32, LO33 The...Ch. 3 - Balance sheet preparation LO32, LO33 The...Ch. 3 - Prob. 3.6PCh. 3 - Balance sheet preparation; errors LO32, LO33 The...Ch. 3 - Balance sheet; errors; missing amounts LO32, LO33...Ch. 3 - Balance sheet preparation LO32 , LO33 Presented...Ch. 3 - Prob. 3.10PCh. 3 - Communication Case 31 Current versus long-term...Ch. 3 - Analysis Case 32 Current versus long- term...Ch. 3 - Prob. 3.4BYPCh. 3 - Judgment Case 35 Balance sheet; errors LO32...Ch. 3 - Prob. 3.6BYPCh. 3 - Real World Case 37 Balance sheet and significant...Ch. 3 - Judgment Case 38 Post fiscal year-end e vents ...Ch. 3 - Prob. 3.9BYPCh. 3 - Prob. 3.10BYPCh. 3 - Prob. 3.11BYPCh. 3 - Analysis Case 314 Balance sheet information LO32...Ch. 3 - Prob. 3.15BYPCh. 3 - Ethics Case 316 Segment reporting Appendix 3 You...Ch. 3 - Prob. 1CCTC
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