FUND OF FIN ACCT(LL) W/CONNECT ACCESS
6th Edition
ISBN: 9781260522945
Author: PHILLIPS
Publisher: MCG
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Question
Chapter 9, Problem 1E
1.
To determine
Prepare the asset section of a classified
2.
To determine
Calculate the fixed asset turnover ratio of Incorporation H for the year 2015 and state whether Incorporation H has generated more or less revenue from each dollar of fixed asset than in 2014.
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The following is a list of account titles and amounts (in millions) reported at December 27, 2015, by Hasbro, Inc., a leading manufacturer of games, toys, and interactive entertainment software for children and families:
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Accounts Receivable
$
1,235
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Equipment
$
415
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Accumulated Amortization
Â
840
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Goodwill
Â
595
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Accumulated Depreciation
Â
360
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Inventories
Â
380
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Allowance for Doubtful Accounts
Â
15
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Land
Â
5
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Buildings
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180
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Licensing Rights
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1,860
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Cash and Cash Equivalents
Â
980
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Prepaid Rent
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290
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Required:
Prepare the asset section of a classified balance sheet for Hasbro, Inc.
Using Hasbro’s 2015 Net Sales Revenue of $4,450 (million), its Net Fixed Assets of $240 (million) at December 28, 2014, and its Net Fixed Assets computed at December 27, 2015, calculate the fixed asset turnover ratio for 2015.
Required information
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[The following information applies to the questions displayed below.] Simon Company’s year-end balance sheets follow.Â
At December 31
2017
2016
2015
Assets
Â
Â
Â
Â
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Â
Â
Â
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Cash
$
31,800
Â
$
35,625
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$
37,800
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Accounts receivable, net
Â
89,500
Â
Â
62,500
Â
Â
50,200
Â
Merchandise inventory
Â
112,500
Â
Â
82,500
Â
Â
54,000
Â
Prepaid expenses
Â
10,700
Â
Â
9,375
Â
Â
5,000
Â
Plant assets, net
Â
278,500
Â
Â
255,000
Â
Â
230,500
Â
Total assets
$
523,000
Â
$
445,000
Â
$
377,500
Â
Liabilities and Equity
Â
Â
Â
Â
Â
Â
Â
Â
Â
Accounts payable
$
129,900
Â
$
75,250
Â
$
51,250
Â
Long-term notes payable secured bymortgages on plant assets
Â
98,500
Â
Â
101,500
Â
Â
83,500
Â
Common stock, $10 par value
Â
163,500
Â
Â
163,500
Â
Â
163,500
Â
Retained earnings
Â
131,100
Â
Â
104,750
Â
Â
79,250
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Total liabilities and equity
$
523,000
Â
$
445,000
Â
$
377,500
Â
Â
 The company’s income statements for the years ended December 31, 2017 and 2016, follow. Assume…
Required information
Â
[The following information applies to the questions displayed below.] Simon Company’s year-end balance sheets follow.Â
At December 31
2017
2016
2015
Assets
Â
Â
Â
Â
Â
Â
Â
Â
Â
Cash
$
31,800
Â
$
35,625
Â
$
37,800
Â
Accounts receivable, net
Â
89,500
Â
Â
62,500
Â
Â
50,200
Â
Merchandise inventory
Â
112,500
Â
Â
82,500
Â
Â
54,000
Â
Prepaid expenses
Â
10,700
Â
Â
9,375
Â
Â
5,000
Â
Plant assets, net
Â
278,500
Â
Â
255,000
Â
Â
230,500
Â
Total assets
$
523,000
Â
$
445,000
Â
$
377,500
Â
Liabilities and Equity
Â
Â
Â
Â
Â
Â
Â
Â
Â
Accounts payable
$
129,900
Â
$
75,250
Â
$
51,250
Â
Long-term notes payable secured bymortgages on plant assets
Â
98,500
Â
Â
101,500
Â
Â
83,500
Â
Common stock, $10 par value
Â
163,500
Â
Â
163,500
Â
Â
163,500
Â
Retained earnings
Â
131,100
Â
Â
104,750
Â
Â
79,250
Â
Total liabilities and equity
$
523,000
Â
$
445,000
Â
$
377,500
Â
Â
 The company’s income statements for the years ended December 31, 2017 and 2016, follow. Assume…
Chapter 9 Solutions
FUND OF FIN ACCT(LL) W/CONNECT ACCESS
Ch. 9 - Define long-lived assets. What are the two common...Ch. 9 - Under the cost principle, what amounts should be...Ch. 9 - What is the term for recording costs as assets...Ch. 9 - 4. Waste Management, Inc., regularly incurs costs...Ch. 9 - Distinguish between ordinary repairs and...Ch. 9 - Describe the relationship between the expense...Ch. 9 - Why are different depreciation methods allowed?Ch. 9 - In computing depreciation, three values must be...Ch. 9 - Prob. 9QCh. 9 - After merging with Northwest Airlines, Delta...
Ch. 9 - A local politician claimed, to reduce the...Ch. 9 - What is an asset impairment? How is it accounted...Ch. 9 - What is book value? When equipment is sold for...Ch. 9 - Prob. 14QCh. 9 - Prob. 15QCh. 9 - FedEx Corporation reports the cost of its aircraft...Ch. 9 - Prob. 17QCh. 9 - Prob. 18QCh. 9 - (Supplement 9A) How does depletion affect the...Ch. 9 - (Supplement 9B) Over what period should an...Ch. 9 - Prob. 1MCCh. 9 - Prob. 2MCCh. 9 - Prob. 3MCCh. 9 - A company wishes to report the highest earnings...Ch. 9 - Barber, Inc., depreciates its building on a...Ch. 9 - Thornton Industries purchased a machine on July 1...Ch. 9 - ACME. Inc., uses straight-line depreciation for...Ch. 9 - What assets should be amortized using the...Ch. 9 - Prob. 9MCCh. 9 - The Simon Company and the Allen Company each...Ch. 9 - Classifying Long-Lived Assets and Related Cost...Ch. 9 - Prob. 2MECh. 9 - Prob. 3MECh. 9 - Computing Book Value (Straight-Line Depreciation)...Ch. 9 - Computing Book Value (Units-of-Production...Ch. 9 - Computing Book Value (Double-Declining-Balance...Ch. 9 - Calculating Partial-Year Depreciation Calculate...Ch. 9 - Recording Asset Impairment Losses After recording...Ch. 9 - Recording the Disposal of a Long-Lived Asset...Ch. 9 - Reporting and Recording the Disposal of a...Ch. 9 - Prob. 11MECh. 9 - Prob. 12MECh. 9 - Computing and Evaluating the Fixed Asset Turnover...Ch. 9 - (Supplement 9A) Recording Depletion for a Natural...Ch. 9 - Prob. 15MECh. 9 - Prob. 1ECh. 9 - Prob. 2ECh. 9 - Determining Financial Statement Effects of an...Ch. 9 - Prob. 4ECh. 9 - Determining Financial Statement Effects of...Ch. 9 - Computing Depreciation under Alternative Methods...Ch. 9 - Computing Depreciation under Alternative Methods...Ch. 9 - Prob. 8ECh. 9 - Demonstrating the Effect of Book Value on...Ch. 9 - Evaluating the Impact of Estimated Useful Lives of...Ch. 9 - Calculating the Impact of Estimated Useful Lives...Ch. 9 - Prob. 12ECh. 9 - Prob. 13ECh. 9 - Computing and Interpreting the Fixed Asset...Ch. 9 - Computing Depreciation and Book Value for Two...Ch. 9 - Prob. 16ECh. 9 - Prob. 17ECh. 9 - Computing Acquisition Cost and Recording...Ch. 9 - Prob. 2CPCh. 9 - Analyzing and Recording Long-Lived Asset...Ch. 9 - Computing Acquisition Cost and Recording...Ch. 9 - Recording and Interpreting the Disposal of...Ch. 9 - Prob. 3PACh. 9 - Prob. 4PACh. 9 - Computing Acquisition Cost and Recording...Ch. 9 - Recording and Interpreting the Disposal of...Ch. 9 - Analyzing and Recording Long-Lived Asset...Ch. 9 - Prob. 4PBCh. 9 - Accounting for Operating Activities (Including...Ch. 9 - Prob. 1SDCCh. 9 - Prob. 2SDCCh. 9 - Ethical Decision Making: A Mini-Case Assume you...Ch. 9 - Critical Thinking: Analyzing the Effects of...Ch. 9 - Prob. 7SDCCh. 9 - Accounting for the Use and Disposal of Long-Lived...
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