Financial Accounting
9th Edition
ISBN: 9781259222139
Author: Robert Libby, Patricia Libby, Frank Hodge Ch
Publisher: McGraw-Hill Education
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Textbook Question
Chapter 3, Problem 3.2CP
Finding Financial Information
Refer to the financial statements of Urban Outfitters in Appendix C at the end of the book.
Required:
- 1. What is the company's revenue recognition policy? (Hint: Look in the notes to the financial statements.)
- 2. Assuming that $50 million of cost of sales was due to noninventory purchase expenses (distribution and occupancy costs), how much inventory did the company buy during the year? (Hint: Use a T-account of inventory to infer how much was purchased.)
- 3. Calculate selling, general, and administrative expenses as a percent of sales for each year presented. By what percent did these expenses increase or decrease from fiscal years ended 2014 and 2015 and between 2013 and 2014? (Hint: Percentage Changes [Current Year Amount - Prior Year Amount] + Prior Year Amount.)
- 4. Compute the company’s net profit margin for each year presented and explain its meaning.
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Could anyone help me understand this problem? How would you put these statements in a purchase journal?
Dec 6: Bought inventory from a new supplier, Bailey Corp (Vendor# 210-25), on credit for the gross amount of $70,000 (invoice #CC1206). Bailey’s terms for repayment are 3/10, n/30.
Dec 11: Bought inventory items from Nelson Industries on account for the gross amount of $25,000 (invoice #NI1211). Terms 2/30, n/60.
Dec 13: Bought inventory items from Centennial, Inc. on account for the gross amount of $50,000 (invoice #TH1213). Terms 3/15, n/30
Dec 18: Purchased inventory items on account from Bailey Corp. for a gross amount of $25,000 (invoice #CC1218). Terms 3/10, n/30.
Date
Vendor Name (AP Subsidiary #)
Purchases (debit)
Accounts Payable (credit)
Total
Luxe Mobile Homes reported the following in its financial statements for the year ended December 31, 2024:
(Click the icon to view the financial statements)
Read the requirements.
Requirement 1. Compute the collections from customers.
Collections from customers are $ 24.444
Requirement 2. Compute payments for merchandise inventory.
Payments for merchandise inventory are $ 18,560
Requirement 3. Compute payments of other operating expenses.
Payments of other operating expenses are S 4.324
Requirement 4. Compute acquisitions of property, plant, and equipment (no sales of property during 2024).
Acquisitions of property, plant, and equipment are
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Demodocs example Get more help -
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Data table
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Income Statement
Net Sales Revenue
Cost of Goods Sold
Depreciation Expense
Other Operating Expenses
Income Tax Expense
Net Income
Balance Sheet
Cash
Accounts Receivable
Merchandise Inventory
Property, Plant, and Equipment, net
Accounts Payable
Accrued…
Inventory at the beginning of the year cost $13,900. During the year, the
company purchased (on account) inventory costing $86,500. Inventory that had cost $82,500 was
sold on account for $97,000.
Required:
a. Calculate the amount of ending inventory.
b. What was the amount of gross profit?
c. Prepare journal entry to record sale of inventory assuming a perpetual system is used.
Debit
Credit
Account
Chapter 3 Solutions
Financial Accounting
Ch. 3 - Prob. 1QCh. 3 - Prob. 2QCh. 3 - Write the income statement equation and define...Ch. 3 - Explain the difference between a. Revenues and...Ch. 3 - Define accrual accounting and contrast it with...Ch. 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 matrix by entering either...
Ch. 3 - Complete the following matrix by entering either...Ch. 3 - Prob. 12QCh. 3 - State the equation for the net profit margin ratio...Ch. 3 - Which of the following is not a specific account...Ch. 3 - Which of the following is not one of the criteria...Ch. 3 - The expense recognition principle controls a....Ch. 3 - Prob. 4MCQCh. 3 - Prob. 5MCQCh. 3 - Prob. 6MCQCh. 3 - Prob. 7MCQCh. 3 - Prob. 8MCQCh. 3 - Prob. 9MCQCh. 3 - Prob. 10MCQCh. 3 - Prob. 3.1MECh. 3 - Reporting Cash Basis versus Accrual Basis Income...Ch. 3 - Identifying Revenues The following transactions...Ch. 3 - Identifying Expenses The following transactions...Ch. 3 - Prob. 3.5MECh. 3 - Prob. 3.6MECh. 3 - Determining the Financial Statement Effects of...Ch. 3 - Prob. 3.8MECh. 3 - Prob. 3.9MECh. 3 - Identifying the Operating Activities in a...Ch. 3 - Prob. 3.11MECh. 3 - Prob. 3.1ECh. 3 - Reporting Cash Basis versus Accrual Basis Income...Ch. 3 - Identifying Revenues Revenues are normally...Ch. 3 - Identifying Expenses Revenues are normally...Ch. 3 - Prob. 3.5ECh. 3 - Determining Financial Statement Effects of Various...Ch. 3 - Recording Journal Entries Sysco, formed in 1969,...Ch. 3 - Prob. 3.8ECh. 3 - Prob. 3.9ECh. 3 - Analyzing the Effects of Transactions in...Ch. 3 - Preparing an Income Statement Refer to E3-10....Ch. 3 - Prob. 3.12ECh. 3 - Analyzing the Effects of Transactions in...Ch. 3 - Prob. 3.14ECh. 3 - Prob. 3.15ECh. 3 - Prob. 3.16ECh. 3 - Prob. 3.17ECh. 3 - Prob. 3.18ECh. 3 - Prob. 3.19ECh. 3 - Prob. 3.20ECh. 3 - Prob. 3.1PCh. 3 - Recording Journal Entries (AP3-2) Ryan Terlecki...Ch. 3 - Prob. 3.3PCh. 3 - Prob. 3.4PCh. 3 - Prob. 3.5PCh. 3 - Prob. 3.6PCh. 3 - Prob. 3.7PCh. 3 - Recording Nonquantitative Journal Entries (P3-1)...Ch. 3 - Prob. 3.2APCh. 3 - Prob. 3.3APCh. 3 - Prob. 3.4APCh. 3 - Prob. 3.5APCh. 3 - Prob. 3.6APCh. 3 - Accounting for Operating Activities in a New...Ch. 3 - Finding Financial Information Refer to the...Ch. 3 - Finding Financial Information Refer to the...Ch. 3 - Comparing Companies within an Industry Refer to...Ch. 3 - Analyzing a Company over Time Refer to the annual...Ch. 3 - Prob. 3.6CPCh. 3 - Evaluating an Ethical Dilemma Mike Lynch is the...
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