SURVEY OF ACCOUNTING W/CODE
5th Edition
ISBN: 9781260716252
Author: Edmonds
Publisher: MCG
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Textbook Question
Chapter 9, Problem 15E
LO 13-2, 13-3, 13-4, 13-5 Exercise 13-15A Comprehensive analysis
Required
Indicate the effect of each of the following transactions on (1) the
- a. Collected account receivable.
- b. Wrote off account receivable.
- c. Converted a short-term note payable to a long-term note payable.
- d. Purchased inventory on account.
- e. Declared cash dividend.
- f. Sold merchandise on account at a profit.
- g. Issued stock dividend.
- h. Paid account payable.
- i. Sold building at a loss.
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Students have asked these similar questions
PE.17-03B Current Position Analysis
The following items are reported on a company's balance sheet:
Cash
Marketable securities
Accounts receivable (net)
Inventory
Accounts payable
Determine (a) the current ratio and (b) the quick ratio. Round your answers to one
decimal place.
a. Current ratio
$210,000
120,000
110,000
160,000
200,000
b. Quick ratio
Exercise 11-7 (Static) Effect of transactions on various financial ratios
Indicate the effect that each transaction/event listed here will have on the financial ratio listed opposite it. Use + for increase, –
for decrease, and (NE) for no effect. Assume that current assets exceed current liabilities in all cases, both before and after the
transaction/event.
Transaction/Event
Financial Ratio
Effect
a. Split the common stock 2 for 1.
b. Collected accounts receivable.
c. Issued common stock for cash.
d. Sold treasury stock.
e. Accrued interest on a note receivable.
f. Sold inventory on account.
g. Wrote off an uncollectible account.
h. Declared a cash dividend.
i. Incurred operating expenses.
j. Sold equipment at a loss.
Book value per share of common stock
Number of days' sales in accounts receivable
Total asset turnover
Return on equity
Current ratio
Acid-test ratio
Accounts receivable turnover
Dividend yield
Margin
NE
Earnings per share
Current Position Analysis
The following items are reported on a company's balance sheet:
Cash
$570,800
Marketable securities
445,900
Accounts receivable (net)
448,400
Inventory
318,500
Accounts payable
637,000
Determine (a) the current ratio and (b) the quick ratio. Round to one decimal place.
a. Current ratio
b. Quick ratio
Chapter 9 Solutions
SURVEY OF ACCOUNTING W/CODE
Ch. 9 - 1. Why are ratios and trends used in financial...Ch. 9 - Prob. 2QCh. 9 - Prob. 3QCh. 9 - 4. What is the significance of inventory turnover,...Ch. 9 - 5. What is the difference between the current...Ch. 9 - Prob. 6QCh. 9 - Prob. 7QCh. 9 - Prob. 8QCh. 9 - 9. What are some limitations of the earnings per...Ch. 9 - Prob. 10Q
Ch. 9 - Prob. 11QCh. 9 - Prob. 12QCh. 9 - Prob. 13QCh. 9 - Prob. 14QCh. 9 - Exercise 9-1 Horizontal analysis Winthrop...Ch. 9 - Prob. 2ECh. 9 - Prob. 3ECh. 9 - Prob. 4ECh. 9 - Prob. 5ECh. 9 - Prob. 6ECh. 9 - Prob. 7ECh. 9 - Prob. 8ECh. 9 - Comprehensive analysis The December 31, 2019,...Ch. 9 - Prob. 10ECh. 9 - Prob. 11ECh. 9 - Prob. 12ECh. 9 - Ratio analysis Compute the specified ratios using...Ch. 9 - Prob. 14ECh. 9 - LO 13-2, 13-3, 13-4, 13-5 Exercise 13-15A...Ch. 9 - Prob. 16PCh. 9 - Prob. 17PCh. 9 - Prob. 18PCh. 9 - Prob. 19PCh. 9 - Prob. 20PCh. 9 - Problem 9-21 Ratio analysis Selected data for...Ch. 9 - Prob. 22PCh. 9 - Problem 9-23 Ratio analysis The following...Ch. 9 - Prob. 24PCh. 9 - Prob. 1ATCCh. 9 - Prob. 3ATCCh. 9 - ATC 9-5 Ethical Dilemma Making the ratios look...
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