Financial Accounting: Information for Decisions
8th Edition
ISBN: 9781259533006
Author: John J Wild
Publisher: McGraw-Hill Education
expand_more
expand_more
format_list_bulleted
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Directions: Include the answers to the following questions in the Answers box below.
1. Apple has $365,725 in total assets and $100,147 in total stockholder’s equity. What is the total liabiliites amount?
2. At end-of-year 2017, The Coca-Cola Company reported $87,896 total assets on its balance sheet. These assets decreased by $4,680 for end-of-year 2018. End-of-year liabilities for 2017 were $68,919 and decreased by $4,761 for end-of-year 2018.
a. From 2017-2018, did stockholders’ equity increase or decrease for The Coca-Cola Company?
b. What was end-of-year stockholders’ equity for 2018?
3. Which balance sheet account links the balance sheet and income statement together?
Answers:
1
2a
2b
3
The December 31, 2015, balance sheet of Schism, Inc., showed long-term debt of $1,730,000, and the December 31, 2016, balance sheet showed long-term debt of $1,420,000. The 2016 income statement showed an interest expense of $97,000.
What was the firm's cash flow to creditors during 2016? (A negative answer should be indicated by a minus sign. Enter your answer in dollars, not millions of dollars, e.g., 1,234,567. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
During the year ended December 31, 2012, Francisco Company paid interest totaling P100,000. The prepaid interest expense is P23,500 and P18,000, respectively, on December 31, 2011 and 2012. The interest payable is P45,000 and P53,500, respectively on December 31, 2011 and 2012. What interest expense should be reported for 2012?
Chapter 9 Solutions
Financial Accounting: Information for Decisions
Ch. 9 - Prob. 1DQCh. 9 - Prob. 2DQCh. 9 - Prob. 3DQCh. 9 - Prob. 4DQCh. 9 - What is the combined amount (in percent) of the...Ch. 9 - What is the current Medicare tax rate? This rate...Ch. 9 - Prob. 7DQCh. 9 - Prob. 8DQCh. 9 - Prob. 9DQCh. 9 - Why are warranty liabilities usually recognized on...
Ch. 9 - Prob. 11DQCh. 9 - Prob. 12DQCh. 9 - Prob. 13DQCh. 9 - Prob. 14DQCh. 9 - Prob. 15DQCh. 9 - Prob. 16DQCh. 9 - Prob. 17DQCh. 9 - Prob. 1QSCh. 9 - Prob. 2QSCh. 9 - Ticketsales, Inc., receives $5,000,000 cash in...Ch. 9 - Prob. 4QSCh. 9 - Prob. 5QSCh. 9 - Prob. 6QSCh. 9 - Prob. 7QSCh. 9 - Prob. 8QSCh. 9 - Prob. 9QSCh. 9 - Prob. 10QSCh. 9 - Prob. 11QSCh. 9 - Prob. 12QSCh. 9 - Sera Corporation has made and recorded its...Ch. 9 - Prob. 1ECh. 9 - Prob. 2ECh. 9 - Prob. 3ECh. 9 - Interest-bearing notes payable with year-end...Ch. 9 - Prob. 5ECh. 9 - Prob. 6ECh. 9 - Prob. 7ECh. 9 - Prob. 8ECh. 9 - Prob. 9ECh. 9 - Hitzu Co. sold a copier costing $4,800 with a...Ch. 9 - Prob. 11ECh. 9 - Prob. 12ECh. 9 - Accounting for contingent liabilities C3 Prepare...Ch. 9 - Prob. 14ECh. 9 - Prob. 15ECh. 9 - Prob. 16ECh. 9 - Prob. 18ECh. 9 - Prob. 1PSACh. 9 - Prob. 2PSACh. 9 - Prob. 3PSACh. 9 - Prob. 4PSACh. 9 - Prob. 5PSACh. 9 - Entries for payroll transactions P2 P3 P5...Ch. 9 - Prob. 1PSBCh. 9 - Prob. 2PSBCh. 9 - Fishing Guides Co. has four employees. FICA Social...Ch. 9 - Prob. 4PSBCh. 9 - Shown here are condensed income statements for two...Ch. 9 - Prob. 6PSBCh. 9 - Prob. 9SPCh. 9 - Refer to the financial statements of Apple in...Ch. 9 - Key figures for Apple and Google follow. *Apple...Ch. 9 - Prob. 3BTNCh. 9 - Prob. 5BTNCh. 9 - Assume that your team is in business and you must...Ch. 9 - Prob. 7BTNCh. 9 - Prob. 8BTNCh. 9 - Prob. 9BTN
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
- The formula for determining the number of times interest charges earned is Income before Income Tax + Interest Expense/Interest expense. Assume that the Interest Expense for Shine, Inc. for the Year Ended December 31, 2011, is $25,000. Assume further that Income before Income Taxes is $395,000, Income Taxes is $150,000 and Net Income is $245,000. What is the number of times interest charges are earned for Shine, Inc. for the Year Ended December 31, 2011? Group of answer choices 9.8 10.8 16.8 $25,000arrow_forwardOriole Corporation recently filed the following financial statements with the SEC. Look at the image for the balance sheet and more! Oriole CorporationIncome Statement for the FiscalYear Ended July 31, 2017 Net sales $77,630 Cost of products sold 55,218 Gross profit $22,412 Selling, general, and administrative expenses 9,893 Depreciation 1,124 Operating income (loss) $11,395 Interest expense 688 Earnings (loss) before income taxes $10,707 Income taxes 3,748 Net earnings (loss) $6,959 Use the DuPont identity to calculate the return on equity (ROE). In the process, calculate the following ratios: net profit margin, total asset turnover, equity multiplier, EBIT return on assets (EROA), and return on assets. (Do not round intermediate calculations. Round answers to 2 decimal places, e.g. 52.75 or 52.75%.) Net profit margin % Total asset turnover Equity multiplier EBIT return on assets % Return on assets %…arrow_forwardThe financial statements for Tyler Toys, Inc. are shown in the popup window: LOADING... . Calculate the debt ratio, times interest earned ratio, and cash coverage ratio for 2013 and 2014 for Tyler Toys. Should any of these ratios or the change in a ratio warrant concern for the managers of Tyler Toys or the shareholders? Tyler Toys, Inc. Income Statement for Years Ending December 31, 2013 and 2014 2014 2013 Revenue $14,146,575 $13,566,748 Cost of goods sold $-8,448,000 $-8,132,335 Selling, general, andadministrative expenses $-998,406 $-980,458 Depreciation $-1,497,529 $-1,471,013 EBIT $3,202,640 $2,982,942 Interest expense $-376,217 $-354,594 Taxes $-1,074,041 $-998,772 Net income $1,752,382 $1,629,576 Right-click on the table and select Copy to Clipboard and then right-click the highlighted texts in the popup dialogue box and select Copy in order to paste its…arrow_forward
- Intel Corporation reported the following in its 2016 financial statements (in millions): December 31, 2016 2015 Total assets $113,327 $101,459 Revenues 59,387 55,355 Research and development expenses 12,740 12,128 Net income 10,316 11,420 What is the common-size amount for Intel Corporation’s research and development expense for 2016? A. 17.4% B. 21.5% C. 11.2% D. 78.5% E. None of the abovearrow_forwardThe trial balance for Lindor Corporation, a manufacturing company, for the year ended December 31, 2018,included the following income accounts:Account Title Debits CreditsSales revenue 2,300,000Cost of goods sold 1,400,000Selling and administrative expenses 420,000Interest expense 40,000Unrealized holding gains on investment securities 80,000The trial balance does not include the accrual for income taxes. Lindor’s income tax rate is 30%. One millionshares of common stock were outstanding throughout 2018.Required:Prepare a single, continuous multiple-step statement of comprehensive income for 2018, including appropriateEPS disclosures.arrow_forwardThe following is an income statement from the financial records of Peace, Love and Joy Company for the year ended December 31, 2015: Income Statement Sales (net) $ 245,675 Cost of Goods Sold (67,500) Gross Profit $ 178,175 Operating expenses (125,000) Operating Income $ 53,175 Interest revenue 5,600 Interest expense (8,750) Income before taxes $ 50,025 Income tax expense (15,008) Net Income $ 35,017 Refer to Exhibit 5-2. Compute earnings-based interest coverage for Peace, Love, and Joy Company. 6.72 times 5.72 times 16.88 times 6.08 timesarrow_forward
- The following information was available for the year ended December 31, 2013: Earnings before interest and taxes (operating income) $ 75,000 Net income $ 40,000 Interest expense 15,000 Total assets at year-end 250,000 Income tax expense 20,000 Total liabilities at year-end 140,000 Required: a. Calculate the debt ratio at December 31, 2013. (Round your answer to 1 decimal place.) b. Calculate the debt/equity ratio at December 31, 2013. (Round your answer to 2 decimal places.) c. Calculate the times interest earned for the year ended December 31, 2013. (Round your answer to 2 decimal places.)arrow_forwardThe 2017 balance sheet of Kerber’s Tennis Shop, Inc., showed long-term debt of $6.5 million, and the 2018 balance sheet showed long-term debt of $6.4 million. The 2018 income statement showed an interest expense of $175,000. What was the firm’s cash flow to creditors during 2018? (A negative answer should be indicated by a minus sign. Enter your answer in dollars, not millions of dollars, e.g., 1,234,567.)arrow_forwardThe adjusted trial balance of Pacific Scientific Corporation on December 31, 2016, the end of the company’s fiscal year, contained the following income statement items ($ in millions): sales revenue, $2,106; cost of goods sold, $1,240; selling expenses, $126; general and administrative expenses, $105; interest expense, $35; and gain on sale of investments, $45. Income tax expense has not yet been recorded. The income tax rate is 40%. If the company’s accountant prepared a multiple-step income statement, what amount would appear in that statement for (a) operating income and (b) nonoperating income?arrow_forward
- Adobe Systems Incorporated reported the following accounts and amounts (in millions) in its financial statements for the year ended December 2, 2016. Accounts Payable $ 820 Accounts Receivable 840 Accumulated Amortization 480 Accumulated Depreciation 1,110 Allowance for Doubtful Accounts 10 Cash and Cash Equivalents 1,010 Common Stock 450 Deferred Revenue 1,950 Equipment 7,330 Income Taxes Payable 40 Notes Payable (long-term) 2,470 Notes Receivable (long-term) 230 Prepaid Rent 250 Retained Earnings 6,970 Service Revenue 470 Short-Term Investments 3,750 Software 890 Prepare a classified balance sheet. The Allowance for Doubtful Accounts relates entirely to Accounts Receivable.arrow_forwardThe adjusted trial balance of Pacific Scientific Corporation on December 31, 2016, the end of the company’s fiscal year, contained the following income statement items ($ in millions): sales revenue, $2,106; cost of goods sold, $1,240; selling expenses, $126; general and administrative expenses, $105; interest expense, $35; and gain on sale of investments, $45. Income tax expense has not yet been recorded. The income tax rate is 40%.Prepare a multiple-step income statement for 2016. Ignore EPS disclosures.arrow_forwardUse the following information to answer this question. Windswept, Inc.2017 Income Statement($ in millions) Net sales $ 9,000 Cost of goods sold 7,350 Depreciation 360 Earnings before interest and taxes $ 1,290 Interest paid 87 Taxable income $ 1,203 Taxes 421 Net income $ 782 Windswept, Inc.2016 and 2017 Balance Sheets($ in millions) 2016 2017 2016 2017 Cash $ 160 $ 190 Accounts payable $ 1,150 $ 1,332 Accounts rec. 840 740 Long-term debt 1,000 1,233 Inventory 1,570 1,565 Common stock 3,190 2,910 Total $ 2,570 $ 2,495 Retained earnings 470 720 Net fixed assets 3,240 3,700 Total assets $ 5,810 $ 6,195 Total liab. & equity $ 5,810 $ 6,195 What is the equity multiplier for 2017?arrow_forward
arrow_back_ios
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
How To Analyze an Income Statement; Author: Daniel Pronk;https://www.youtube.com/watch?v=uVHGgSXtQmE;License: Standard Youtube License