GB 112/212 MANAGERIAL ACC. W/ACCESS >C<
17th Edition
ISBN: 9781260218831
Author: Libby
Publisher: MCG CUSTOM
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Question
Chapter 3, Problem 6MCQ
To determine
Ascertain the impact of the transaction analysis of operating expense for 2016.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Cece Company has provided the following data (ignore income taxes):
2016 revenues were $77,500.2016 net income was $33,900.Dividends declared and paid during 2016 totaled $5,700.Total assets at December 31, 2016 were $217,000.Total stockholders' equity at December 31, 2016 was $123,000. Retained earnings at December 31, 2016 were $83,000.
Which of the following is correct?
2016 expenses were $37,900
Total liabilities at December 31, 2016 were $11,000.
Retained earnings increased $28,200 during 2016.
Common stock at December 31, 2016 was $206,000.
Black Bulls Company reported a Retained Earnings balance of P150,000 on December 31, 2014. The following occurred during 2015:
Net income was P85,000
Dividends declared and paid was P60,000
An error on the 2013 depreciation expense revealed understatement of P25,000. Tax rate is 25%.
How much should be presented as the correct beginning balance of the Retained Earnings account for 2015?
How much should be presented as the ending balance of the Retained Earnings account for 2015?
Black Bulls Company reported a Retained Earnings balance of P150,000 on December 31, 2014. The following occurred during 2015:
Net income was P85,000
Dividends declared and paid was P60,000
An error on the 2013 depreciation expense revealed understatement of P25,000. Tax rate is 25%.
How much should be presented as the correct beginning balance of the Retained Earnings account for 2022?
Chapter 3 Solutions
GB 112/212 MANAGERIAL ACC. W/ACCESS >C<
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...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Presented below are selected ledger accounts of Oriole Corporation as of December 31, 2017. Cash  $68,000 Administrative expenses  106,700 Selling expenses  83,090 Net sales  544,700 Cost of goods sold  265,900 Cash dividends declared (2017)  22,650 Cash dividends paid (2017)  22,000 Discontinued operations (loss before income taxes)  41,200 Depreciation expense, not recorded in 2016  36,000 Retained earnings, December 31, 2016  96,390 Effective tax rate 30%   (a) Net income  $ 33,467  (b) Prepare a partial income statement beginning with income from continuing operations before income tax, and including appropriate earnings per share information. Assume 19,480 shares of common stock were outstanding during 2017. (Round earnings per share to 2 decimal places, e.g. 1.58.) ORIOLE CORPORATIONIncome Statement…arrow_forwardBlack Bulls Company reported a Retained Earnings balance of P150,000 on December 31, 2014. The following occurred during 2015: Net income was P85,000 Dividends declared and paid was P60,000 An error on the 2013 depreciation expense revealed understatement of P25,000. Tax rate is 25%. How much should be presented as the ending balance of the Retained Earnings account for 2022?arrow_forwardAt the end of 2022, Shah Corp. underestimated its annual bad debts expense by $50,000. What is the effect of this error, if any, on total assets and total stockholders’ equity on 12/31/22? Total assets and total stockholders’ equity are both overstated by $50,000. Total assets and total stockholders’ equity are both understated by $50,000. Total assets and total stockholders’ equity are both correctly stated.arrow_forward
- All sales were on account. Net cash provided by operating activities for 2017 was $234,000. Capital expenditures were $136,000, and cash dividends were $61,000.Compute the following ratios for 2017. (a)  Earnings per share  $   (b)  Return on common stockholders’ equity    % (c)  Return on assets    % (d)  Current ratio    :1 (e)  Accounts receivable turnover    times (f)  Average collection period    days (g)  Inventory turnover    times (h)  Days in inventory    days (i)  Times interest earned    times (j)  Asset turnover    times (k)  Debt to assets ratio    % (l)  Free cash flowarrow_forwardMadrid Company has provided the following data (ignore income taxes):  2014 revenues were $80,500. 2014 net income was $34,500. Dividends declared and paid during 2014 totaled $6,300. Total assets at December 31, 2014 were $223,000. Total stockholders' equity at December 31, 2014 was $130,000. Retained earnings at December 31, 2014 were $85,000.  Which of the following is not correct?arrow_forwardTowson Company’s Assets and Liabilities on January 1, 2016 were $85,600 and $62,400 respectively. During the year 2016, the stockholders invested an additional $5,500, while the company generated $14,300 of revenues, and incurred $7,900 of expenses. If the company’s assets and liabilities on December 31, 2016 were $101,300 and $67,500 respectively, determine the dividends paid by the company during 2016.arrow_forward
- Selected information about income statement accounts for the Reed Company is presented below (the company's fiscal year ends on December 31):   2018  2017 Sales $ 4,550,000 $ 3,650,000 Cost of goods sold  2,890,000  2,030,000 Administrative expenses  830,000  705,000 Selling expenses  390,000  342,000 Interest revenue  153,000  143,000 Interest expense  206,000  206,000 Loss on sale of assets of discontinued component  62,000  —   On July 1, 2018, the company adopted a plan to discontinue a division that qualifies as a component of an entity as defined by GAAP. The assets of the component were sold on September 30, 2018, for $62,000 less than their book value. Results of operations for the component (included in the above account balances) were as follows:  1/1/18-9/30/18  2017  Sales  $ 430,000    $ 530,000  Cost of goods sold   (305,000 )    (338,000 ) Administrative expenses   (53,000 )    (43,000 ) Selling…arrow_forward(Compute Income Measures) Presented below is information related to Viel Company at December 31, 2017, the end of its first year of operations. Sales revenue $310,000 Cost of goods sold 140,000 Selling and administrative expenses 50,000 Gain on sale of plant assets 30,000 Unrealized gain on available-for-sale investments 10,000 Interest expense 6,000 Loss on discontinued operations 12,000 Dividends declared and paid 5,000 InstructionsCompute the following: (a) income from operations, (b) net income, (c) comprehensive income, and (d) retained earnings balance at December 31, 2017. (Ignore income tax effects.)arrow_forwardThe balance sheet for the company at December 31, 2015, indicated that total assets were $173,000, total liabilities were $61,000, and Common Stock had a balance of $72,000. At December 31, 2016, assets had increased by $40,000 and there had been no change in the amount of Common Stock. Additional information for 2016 included the following:  Revenues $143,000 Expenses 88,000 Dividends 9,000 What were the total liabilities on December 31, 2016?  Answer pleaserarrow_forward
- Strong construction company earned $439,000 during the year ended June 30, 2017. After paying out $225,794 in dividends, the balance went into retained earnings. If the firm’s total earnings were $842,180 at the end of fiscal year 2017, what were the retained earnings on its balance sheet on July 1 ,2016?arrow_forwardUse the following tables to answer the question:  LOGIC COMPANY Income Statement For years ended December 31, 2016 and 2017 (values in $) 2016 2017 Gross sales 19,800 15,600 Sales returns and allowances 900 100 Net sales 18,900 15,500 COGS 11,800 8,800 Gross profit 7,100 6,700 Depreciation 780 640 Selling and administrative expenses 2,800 2,400 Research 630 540 Miscellaneous 440 340 Total operating expenses 4,650 3,920 Income before interest and taxes 2,450 2,780 Interest expense 640 540 Income before taxes 1,810 2,240 Provision for taxes 724 896 LOGIC COMPANY Balance Sheet For years ended December 31, 2016 and 2017 (values in $) 2016 2017 Current assets 12,300 9,400 Accounts receivable 16,900 12,900 Merchandise inventory 8,900 14,400 Prepaid expenses 24,400 10,400 Total current assets 62,500 47,100 Building (net) 14,900 11,400 Land 13,900 9,400 Total plant and equipment 28,800 20,800 Total assets 91,300 67,900 Accounts payable 13,400 7,400 Salaries payable 7,500 5,400 Total current…arrow_forwardDoors Inc.’s condensed income statement and balance sheet for the years 2022 and 2021 follow. Accounts Receivable increased 50 percent from 2021 to 2022. There were no new purchases of land, property, or equipment in 2022. Accounts Payable decreased 40 percent from 2021 to 2022. No new shares of common stock were issued in 2022. The company paid out cash dividends of $85,670 in 2022. The inventory turnover ratio for 2022 was 6 times. The asset turnover ratio in 2022 was 2.5 times and in 2021 was 2.9 times. The earnings per share in 2022 was $68.21 and in 2021 was $75.18. The effective income tax rate in both years was 20 percent.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Financial AccountingAccountingISBN:9781305088436Author:Carl Warren, Jim Reeve, Jonathan DuchacPublisher:Cengage Learning
Financial Accounting
Accounting
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Cengage Learning
The KEY to Understanding Financial Statements; Author: Accounting Stuff;https://www.youtube.com/watch?v=_F6a0ddbjtI;License: Standard Youtube License