FUNDAMENTALS OF FINANCIAL ACCOUNTING
5th Edition
ISBN: 9781260195293
Author: PHILLIPS
Publisher: MCG
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Textbook Question
Chapter 3, Problem 3.1SDC
SKIL_S DEVELOPMENT CASES
Finding Financial Information
Refer to the financial statements of The Home Depot in Appendix A at the end of this book, or download the annual report from the Cases section in the Connect library.
Required:
- 1. How much did The Home Depot’s sales revenue increase or decrease in the year ended February 2, 2014?
- a. Decreased $4,058 (million)
- b. Decreased $850 (million)
- c. Increased $4,058 (million)
- d. Increased $850 (million)
- 2. What is the largest expense on the income statement for the year ended February 2, 2014, and how much did it change from the previous year?
- a. Cost of Sales, which decreased $2,779 (million)
- b. Cost of Sales, which increased $2,510 (million)
- c. Selling, General and Administrative Expenses, which decreased $1,400 (million)
- d. Selling, General and Administrative Expenses, which increased $89 (million)
- 3. Which of the following was The Home Depot’s net profit margin in the year ended February 2, 2014?
- a. $5,385
- b. $3.78
- c. 6.8%
- d. 0.07%
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EXHIBIT 1: YALLA MOMOS INCOME STATEMENT FOR THE YEAR ENDING 2015 (IN AED)
Net Revenue
504,000
Expenses
Cost of food sales
151,200
Rent
68,000
Salaries
54,000
Administrative costs
23,000
Depreciation
30,200
Utilities
13,000
Miscellaneous expenses
15,800
Advertising costs
0
Interest
13,000
Net Profit
135,800
EXHIBIT 2: YALLA MOMOS PROJECTIONS FOR THE YEAR 2016 (IN AED)
Without expansion
With expansion
Rent
75,000
88,000
Salaries
61,400
75,000
Administrative costs
26,000
34,000
Depreciation
34,720
38,360
Utilities
14,000
19,000
Miscellaneous expenses
17,060
19,180
Advertising costs
8,000
12,000…
EXHIBIT 1: YALLA MOMOS INCOME STATEMENT FOR THE YEAR ENDING 2015 (IN AED)
Net Revenue
504,000
Expenses
Cost of food sales
151,200
Rent
68,000
Salaries
54,000
Administrative costs
23,000
Depreciation
30,200
Utilities
13,000
Miscellaneous expenses
15,800
Advertising costs
0
Interest
13,000
Net Profit
135,800
EXHIBIT 2: YALLA MOMOS PROJECTIONS FOR THE YEAR 2016 (IN AED)
Without expansion
With expansion
Rent
75,000
88,000
Salaries
61,400
75,000
Administrative costs
26,000
34,000
Depreciation
34,720
38,360
Utilities
14,000
19,000
Miscellaneous expenses
17,060
19,180
Advertising costs
8,000
12,000…
EXHIBIT 1: YALLA MOMOS INCOME STATEMENT FOR THE YEAR ENDING 2015 (IN AED)
Net Revenue
504,000
Expenses
Cost of food sales
151,200
Rent
68,000
Salaries
54,000
Administrative costs
23,000
Depreciation
30,200
Utilities
13,000
Miscellaneous expenses
15,800
Advertising costs
0
Interest
13,000
Net Profit
135,800
EXHIBIT 2: YALLA MOMOS PROJECTIONS FOR THE YEAR 2016 (IN AED)
Without expansion
With expansion
Rent
75,000
88,000
Salaries
61,400
75,000
Administrative costs
26,000
34,000
Depreciation
34,720
38,360
Utilities
14,000
19,000
Miscellaneous expenses
17,060
19,180
Advertising costs
8,000
12,000
Interest
13,000
16,000
Source: Company documents, Ivey publications
Required:
Calculate the 2015 BEP and Margin of safety (MOS) in quantity and monetary terms.
Chapter 3 Solutions
FUNDAMENTALS OF FINANCIAL ACCOUNTING
Ch. 3 - Prob. 1QCh. 3 - When accounting was developed in the 14th and 15th...Ch. 3 - Define accrual basis accounting and contrast it...Ch. 3 - Prob. 4QCh. 3 - Prob. 5QCh. 3 - Prob. 6QCh. 3 - Explain the expense recognition principle...Ch. 3 - Explain why stockholders equity is increased by...Ch. 3 - Explain why revenues are recorded as credits and...Ch. 3 - Complete the following table by entering either...
Ch. 3 - Complete the following table by entering either...Ch. 3 - Prob. 12QCh. 3 - Prob. 13QCh. 3 - What is the difference between Accounts Receivable...Ch. 3 - What is the difference between Accounts Payable...Ch. 3 - For each of the following situations, indicate...Ch. 3 - Prob. 17QCh. 3 - Which of the following items is not a specific...Ch. 3 - Prob. 2MCCh. 3 - Prob. 3MCCh. 3 - Prob. 4MCCh. 3 - If a company incorrectly records a payment as an...Ch. 3 - Prob. 6MCCh. 3 - Prob. 7MCCh. 3 - Prob. 8MCCh. 3 - Webby Corporation reported the following amounts...Ch. 3 - Prob. 10MCCh. 3 - Prob. 3.1MECh. 3 - Identifying Accrual Basis Revenues The following...Ch. 3 - Identifying Accrual Basis Expenses The following...Ch. 3 - Recording Accrual Basis Revenues For each of the...Ch. 3 - Recording Accrual Basis Expenses For each of the...Ch. 3 - Prob. 3.6MECh. 3 - Prob. 3.7MECh. 3 - Prob. 3.8MECh. 3 - Prob. 3.9MECh. 3 - Identifying Accrual Basis Expenses The following...Ch. 3 - Prob. 3.11MECh. 3 - Recording Accrual Basis Expenses For each of the...Ch. 3 - Prob. 3.13MECh. 3 - Preparing Accrual Basis Journal Entries for...Ch. 3 - Preparing Accrual Basis Journal Entries for...Ch. 3 - Prob. 3.16MECh. 3 - Determining the Accounting Equation Effects of...Ch. 3 - Prob. 3.18MECh. 3 - Preparing an Income Statement and Calculating Net...Ch. 3 - Preparing Financial Statements from a Trial...Ch. 3 - Preparing an Income Statement and Calculating Net...Ch. 3 - Prob. 3.22MECh. 3 - Calculating and Interpreting Net Profit Margin...Ch. 3 - Prob. 3.1ECh. 3 - Matching Definitions with Terms Match each...Ch. 3 - Identifying Accrual Basis Revenues According to...Ch. 3 - Identifying Accrual Basis Revenues According to...Ch. 3 - Identifying Accrual Basis Expenses Under accrual...Ch. 3 - Identifying Accrual Basis Expenses Under accrual...Ch. 3 - Determining Accounting Equation Effects and Net...Ch. 3 - Determining Accounting Equation Effects and Net...Ch. 3 - Recording Journal Entries and Determining Net...Ch. 3 - Prob. 3.10ECh. 3 - Recording Journal Entries and Determining Net...Ch. 3 - Recording and Posting Accrual Basis Journal...Ch. 3 - Prob. 3.13ECh. 3 - Analyzing Transactions from the Perspectives of...Ch. 3 - Prob. 3.15ECh. 3 - Determining Accounting Equation Effects of Several...Ch. 3 - Preparing Journal Entries For each of the...Ch. 3 - Prob. 3.18ECh. 3 - Creating an Unadjusted Trial Balance Based on the...Ch. 3 - Inferring Transactions, Creating Financial...Ch. 3 - Determining the Effects of Various Transactions EZ...Ch. 3 - COACHED PROBLEMS Recording Nonquantitative Journal...Ch. 3 - Prob. 3.2CPCh. 3 - Prob. 3.3CPCh. 3 - Prob. 3.4CPCh. 3 - Prob. 3.1PACh. 3 - Recording Journal Entries Diana Mark is the...Ch. 3 - Analyzing the Effects of Transactions Using...Ch. 3 - Prob. 3.4PACh. 3 - Prob. 3.1PBCh. 3 - Prob. 3.2PBCh. 3 - Analyzing the Effects of Transactions Using...Ch. 3 - Analyzing, Journalizing, and Interpreting Business...Ch. 3 - Prob. 3.1COPCh. 3 - SKIL_S DEVELOPMENT CASES Finding Financial...Ch. 3 - Prob. 3.2SDCCh. 3 - Prob. 3.4SDCCh. 3 - Ethical Decision Making: A Mini-Case Mike Lynch is...Ch. 3 - Accounting for Business Operations Starting in...
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