Indicate whether the following independent transactions increase (+), decrease (), or do not affect (NE) the current
Question:
Indicate whether the following independent transactions increase (+), decrease (–), or do not affect (NE) the current ratio, the amount of working capital, and cash from operations.
Also indicate the amounts of any effects. The company presently has a current ratio of 2 to 1 along with current liabilities of$160,000.
Transcribed Image Text:
Working Capital Cash from Operations Effect $ Current Ratio Effect Effect$_ a. b. c. Paid accrued wages of $1,000 Purchased $20,000 worth of material on account. d. e. f. g. Received judgment notice from the court that the company must pay $70,000 damages for patent infringement within six months. Collected $8,000 of accounts receivable Purchased land for factory for $100,000 cash Repaid currently due bank note payable of $10,000 Received currently due note receivable of $15,000 from customer as consideration for sale of and h. Received cash of $90,000 from stockholders as donated capital . Purchased machine costing $50,000; $15,000 down and the balance to be paid in seven equal annual installments j. Retired bonds maturing five years hence at par of $50,000. Bonds have unamortized premium of $2,000 k. Declared dividends of $10,000 payable after year-end . Paid the dividends in k in cash. m. Declared a 5% stock dividend. n. Paid the stock dividend in m. o. Signed a long-term purchase contract of $100,000 p. q. r. s. to commence a year from now Borrowed $40,000 cash for one year Paid accounts payable of $20,000 Purchase a patent for $20,000 wrote off $15,000 of current marketable securities that became worthless. t. $8,500 of organization expenses were written off u. Recorded depreciation expense of $70,000 v. Sold $28,000 of merchandise on account. w. Sold a building for $90,000 that had a book value of $45,000 x. Sold a machine at cost for $5,000; received $2,500 down and the balance receivable in six months. Recorded income tax expense of $80,000, half of which
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 53% (13 reviews)
a b C d e f 6 h i j k 1 m n 0 P 9 r S t u V W Current Working Capital Cash from Operations Analytica...View the full answer
Answered By
Utsab mitra
I have the expertise to deliver these subjects to college and higher-level students. The services would involve only solving assignments, homework help, and others.
I have experience in delivering these subjects for the last 6 years on a freelancing basis in different companies around the globe. I am CMA certified and CGMA UK. I have professional experience of 18 years in the industry involved in the manufacturing company and IT implementation experience of over 12 years.
I have delivered this help to students effortlessly, which is essential to give the students a good grade in their studies.
3.50+
2+ Reviews
10+ Question Solved
Related Book For
Financial Statement Analysis
ISBN: 978-0078110962
11th edition
Authors: K. R. Subramanyam, John Wild
Question Posted:
Students also viewed these Managerial Accounting questions
-
Indicate whether the following statements are true or false. If the statement is false, explain why. a. If a firm repurchases its stock in the open market, the shareholders who tender the stock are...
-
Indicate whether the following statements are true or false. If the statement is false, explain why. a. If a firm repurchases its stock in the open market, the shareholders who tender the stock are...
-
Indicate whether the following items are includible in regular taxable income, preadjustment AMTI, and/or ACE. Also indicate whether a corporation must make a positive, negative, or zero adjustment...
-
Find the indicated quantities for the appropriate arithmetic sequence. The sum of the angles inside a triangle, quadrilateral, and pentagon are 180, 360, and 540, respectively. Assuming this pattern...
-
The methoxide ion (CH3O) acts as a Brnsted-Lowry base in water. Write the hydrolysis reaction for the methoxide ion and identify the Brnsted-Lowry acid and Brnsted-Lowry base.
-
Multiple Choice Questions 1. McKinley, Inc., owns 100 percent of Jackson Companys 45,000 voting shares. On June 30, McKinleys internal accounting records show a $192,000 equity method adjusted...
-
Exercise 3.58 describes a study in which college students found it unpleasant to sit alone and think. The same article describes a second study in which college students appear to prefer receiving an...
-
This problem takes you through the accounting for sales, receivables, and uncollectibles for Dependable Delivery Corp, the overnight shipper. By selling on credit, the company cannot expect to...
-
1) Use the following post-closing (i.e. beginning) trial balance to specify the beginning balances in the T-accounts on pages 3 and 4. The beginning balance for Cash is specified in the T-account...
-
Write a minimized Boolean equation for the function performed by the circuit in Figure 2.88. C, D A, B 00 01 10 11 00 01 10 11 Figure 2.88 Multiplexer circuit
-
While on assignment you discover that you have misplaced the balance sheet of Bird Corporation as of January 1, Year 1. However, you do have the following data on Bird Corporation: BIRD CORPORATION...
-
Your banker confides to you after looking at a number of financial statements that she is confused about the difference between two operating measures, net income and cash from operations. Required:...
-
A recent study challenges the media narrative that foreclosures are dangerously widespread (New York Times, March 2, 2009). According to this study, 62% of all foreclosures were centered in only four...
-
Which variables are a part of the maximum inventorylevel expression? a. number of pieces per order b. setup cost c. holding or carrying cost per unit per year d. all of the above
-
The minimum EOL criterion will always result in the same decision as a. the maximax criterion. b. the minimax regret criterion. c. the maximum EMV criterion. d. the equally likely criterion.
-
When comparing several forecasting models to determine which one best fits a particular set of data, the model that should be selected is the one a. with the highest MSE. b. with the MAD closest to...
-
In a transportation problem with an equal number of 4 sources and destinations, the resulting LP will have a. 4 variables/4 constraints. b. 8 variables/8 constraints. c. 16 variables/8 constraints....
-
Data envelopment analysis (DEA) is a. an application of LP. b. a way to measure efficiency in similar operating units. c. used to assess performance of nonprofit entities. d. all of the above.
-
One in five adults is obese in wealthy countries around the world. Unfortunately, in the United States, the rate is about two in five (Organisation for Economic Cooperation and Development [OECD]...
-
Suppose that a business sells 6-month subscriptions to its monthly magazine. On January 1, the company receives a total of $600 for 10 subscriptions. To record this transaction, the company debits...
-
Disk 1 (of inertia \(m\) ) slides with speed \(1.0 \mathrm{~m} / \mathrm{s}\) across a low-friction surface and collides with disk 2 (of inertia \(2 \mathrm{~m}\) ) originally at rest. Disk 1 is...
-
The companys effective tax rate was highest in: A. 2005. B. 2006. C. 2007. Note I Income Taxes The components of earnings before income taxes are as follows ($ thousands): Earnings before income...
-
A company receives advance payments from customers that are immediately taxable but will not be recognized for accounting purposes until the company fulfills its obligation. The company will most...
-
In 2007, the companys US GAAP income statement recorded a provision for income taxes closest to: A. $30,632. B. $54,144. C. $58,772. Note I Income Taxes The components of earnings before income taxes...
-
Draw by hand the structural formula and include the lone pairs on any oxygen and nitrogen atoms.
-
Andrew volunteered for the American Red Cross after a recent hurricane. He traveled 200 miles and helped the victims of the disaster in the clean up for five days. He also donated $1,500 to the...
-
Calculate the carbon footprint of a household, i.e. the total annual CO emissions of the household, assuming the household annually consumes (1) 1220 (1+12) kWh electricity 8 (the CO emission factor...
Study smarter with the SolutionInn App