Chapter 4, Problem 28P

Analyze and compare Kroger and Tiffany The Kroger Company (KR), a national supermarket chain, reported the following data (in millions) in its financial statements for a recent year: a.Compute the asset turnover ratio. Round to two decimal places. b.Tiffany Co. (TIF) is a large North American retailer of jewelry. Tiffanys asset turnover ratio is 0.78. Why would Tiffanys asset turnover ratio be lower than that of Kroger?

The trial balance of Scan House, Inc. included the following selected accounts as of December 31, 2020:   Debits Credits Sales Revenue   16,755,000 Interest Revenue   75,000 Gain on sale of investments   150,000 Unrealized gains on investments   200,000 Other Income *   1,200,000 Foreign currency translation losses 125,000   Cost of Goods Sold 11,635,000   Selling expenses 975,000   Goodwill impairment loss 550,000   Interest Expense 60,000   Administrative Expense** 780,000   Loss on sale of land 225,000   Dividends declared 175,000   Additional information:* Other Income consists of income from discontinued operations. This includes $900,000 of income from operations and a $300,000 gain on the sale of investments. ** Administrative expense includes a $150,000 expense that was a correction of an error made in the 2018 Income Statement, but discovered during 2020. Retained Earnings balance: January 1, 2020 = $725,000. ScanHouse had 600,000 shares…

A company’s draft financial statements for 2021 showed a profit of $630,000. However, the trial balance did not agree, and a suspense account appeared in the company’s financial statements.Subsequent checking revealed the following errors:1 The cost of an item of plant $48,000 had been entered in the cash book and in the plant account as $4,800.2 Bank charges of $440 appeared in the bank statement in December 2021 but had not been entered in the company’s records.3 One of the directors paid $800 due to a supplier in the company’s payables ledger by a personal cheque. The bookkeeper recorded a debit in the supplier’s ledger account but did not complete the double entry for the transaction.4 The payments side of the cash book had been understated by $10,000.  Which of the above items would require an entry to the suspense account in correcting them?   What would the company’s profit become after the correction of the above errors?

Los Altos, Inc. uses the allowance method of handling its credit losses. It estimates credit losses at 2% of credit sales,which were $900,000 during the year.On December 31, the Accounts Receivable balance was $150,000, and the Allowance for Doubtful Accounts had acredit balance of $10,200 before adjustment.a. Determine the amount and financial statement effect of the adjustment to record the credit losses for the year.Note: Use negative signs with answers, when appropriate. Balance Sheet               Income Statement                 Stockholders'                 Assets = Liabilities + Equity       Revenues - Expenses = Net Income                           b. Show how Accounts Receivable and the Allowance for Doubtful Accounts would appear in the December 31 balance sheet.Note: Do not use negative signs with any of your answers.

Norse Manufacturing Inc. prepares an annual single, continuous statement of income and comprehensive income.The following situations occurred during the company’s 2018 fiscal year:1. Restructuring costs were incurred due to the closing of a factory.2. Investments were sold, and a loss was recognized.3. A positive foreign currency translation adjustment was recognized.4. Interest expense was incurred.5. A division was sold that qualifies as a separate component of the entity according to GAAP.6. Obsolete inventory was written off.7. The controller discovered an error in the calculation of 2017’s patent amortization expense.Required:1. For each situation, identify the appropriate reporting treatment from the list below (consider each event to bematerial):a. As a component of operating incomeb. As a nonoperating income item (other income or expense)c. As a discontinued operationd. As an other comprehensive income iteme. As an adjustment to retained earnings2. Identify the situations that…

Your answer is partially correct.  Try again.     Included in the December 31 trial balance of Sheridan Company are the following assets. Cash   $  266,000   Work in process   $280,000 Equipment (net)   1,540,000   Accounts Receivables (net)   560,000 Prepaid insurance   57,400   Patents   154,000 Raw materials   469,000   Finished goods   238,000 Prepare the current assets section of the December 31 balance sheet. (List Current Assets in order of liquidity.) SHERIDAN COMPANYBalance Sheet (Partial)  December 31For the Year Ended December 31For the Quarter Ended December 31  Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders'…