Preparing a classified balance sheet in report form, and using the current and debt ratios to...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Preparing a classified balance sheet in report form, and using the current and debt ratios to evaluate a company [30-40 min] Selected accounts of Blume Irrigation System at December 31, 2012, follow: $ 900 Accounts payable 2,800 Accounts receivable 2,200 Accumulated depreciation-building 55,800 Common stock 4,000 Accumulated depreciation-equipment 16,300 Cash 3,900 Interest payable 74,800 Retained earnings, December 31, 2011 3,300 Equipment 1,600 Depreciation expense Insurance expense $24,700 Note payable, long-term Other assets 43,100 24,000 Building Prepaid insurance Salary expense Salary payable 16,900 7,900 11,000 400 Service revenue 33,100 Supplies 23,000 Unearned service revenue 30,500 Requirements 1. Prepare the company's classified balance sheet in report form at December 31, 2012. 2. Compute the company's current ratio and debt ratio at December 31, 2012. At December 31, 2011, the current ratio was 1.81 and the debt ratio was 0.34. Did the company's ability to pay debts improve or deteriorate, or did it remain the same during 2012? Preparing a classified balance sheet in report form, and using the current and debt ratios to evaluate a company [30-40 min] Selected accounts of Blume Irrigation System at December 31, 2012, follow: $ 900 Accounts payable 2,800 Accounts receivable 2,200 Accumulated depreciation-building 55,800 Common stock 4,000 Accumulated depreciation-equipment 16,300 Cash 3,900 Interest payable 74,800 Retained earnings, December 31, 2011 3,300 Equipment 1,600 Depreciation expense Insurance expense $24,700 Note payable, long-term Other assets 43,100 24,000 Building Prepaid insurance Salary expense Salary payable 16,900 7,900 11,000 400 Service revenue 33,100 Supplies 23,000 Unearned service revenue 30,500 Requirements 1. Prepare the company's classified balance sheet in report form at December 31, 2012. 2. Compute the company's current ratio and debt ratio at December 31, 2012. At December 31, 2011, the current ratio was 1.81 and the debt ratio was 0.34. Did the company's ability to pay debts improve or deteriorate, or did it remain the same during 2012?
Expert Answer:
Related Book For
Financial and Managerial Accounting
ISBN: 978-0132497978
3rd Edition
Authors: Horngren, Harrison, Oliver
Posted Date:
Students also viewed these accounting questions
-
Selected accounts of Blume Irrigation System at December 31, 2012, follow: Requirements 1. Prepare the companys classified balance sheet in report form at December 31, 2012. 2. Compute the companys...
-
Selected accounts of Blume Irrigation System at December 31, 2012, follow: Requirements 1. Prepare the companys classified balance sheet in report form at December 31, 2012. 2. Compute the companys...
-
The adjusted trial balance of Blume Irrigation System at December 31, 2016, follows: Requirements 1. Prepare the companys income statement for the year ended December 31, 2016. 2. Prepare the...
-
Amato is preparing a resume to apply for a higher-level management position with Amato's current company. The position Amato is applying for is in a different location from Amato's current job. What...
-
Using the zero-coupon bond prices and natural gas swap prices in Table 8.9, what are gas forward prices for each of the 8 quarters? Quarter 6 Oil forward price Gas swap price Zero-coupon bond price...
-
Barbara Hampton is a minimum-wage worker in Ohio. She is contemplating moving to a state with a more favorable minimum wage. Which of the following states should she choose?
-
Derive the first integral of the Lotka-Volterra system, \(a \ln y+d \ln x-\) \(c x-b y=C\).
-
Andrew Thomas, a sandwich vendor at Hard Rock Cafes annual Rockfest, created a table of conditional values for the various alternatives (stocking decision) and states of nature (size of crowd): The...
-
ASSESSMENT 2 - Part 1 - DRAFT This part of the assessment requires you to use the Gibbs Reflective Cycle (available in the learning modules) as it's an excellent model to help you work your way...
-
Santana Rey created Business Solutions on October 1, 2020. The company has been successful, and its list of customers has grown. To accommodate the growth, the accounting system is modified to set up...
-
1. What is the semi-annually compounded interest rate if $200 accumulates to $318.77 in eight years? Answer in percentage with two decimal places. 2. What is the quarterly compounded interest rate if...
-
Affect The word affect means "emotion." Carroll Izard identified nine basic emotions that people can experience: (1) interest-excitement, (2) enjoyment-joy, (3) surprise-startle, (4)...
-
Discrimination is a term often discussed in real estate education. Lenders discriminate by lending to borrowers with good credit rating and adequate income vs. borrowers with poor credit ratings....
-
. Consider the following MRP tableaus. Holding costs is $1/unit/week and setup cost is $100/order. a. Develop an MRP tableau if lot sizing method is Silver-Meal heuristic. Find the total cost of this...
-
RGF Distributors sells fitness products to retailers. You are the accountant for RGF Distributors. RGF's fiscal year-end is December 31 and the company uses a perpetual inventory system, combined...
-
How is concentration of economic power dangerous in terms of security and democracy? How do "leakages" through international trade and finance reduce the government's ability to fight recessions?...
-
CloverSweet Inc. manufactures a product that goes through two departments prior to completion. The information shown in the table below is available about work in the first department, the Mixing...
-
The Heese Restaurant Group manufactures the bags of frozen French fries used at its franchised restaurants. Last week, Heeses purchased and used 101,000 pounds of potatoes at a price of $ 0.70 per...
-
Louis Welch is general manager of United Tanning Salons. During 2012, Welch worked for the company all year at a $6,200 monthly salary. He also earned a yearend bonus equal to 10% of his salary....
-
The accounting records of Rhyme Redwood Corporation provide income statement data for 2012. Total revenue . . . . . . $ 940,000 Total expenses . . . . . . . 750,000 Income before tax . . . $ 190,000...
-
Refer to P22-22A. Requirements 1. Prepare the schedule of budgeted cash collections from customers for April and May. 2. Prepare the schedule of budgeted cash payments for purchases for April and...
-
Marion Manufacturing, a steel company, announces that it will be taking a major restructuring charge that will lower earnings this year by $500 million. Assume that the charge is not tax deductible...
-
General Systems is a firm that manufactures personal computers. As a top manager in the firm, you are considering changes in the way the firm is run. Currently, the firm has after-tax operating...
-
Universal Health Care (UHC) is a company whose stock price has declined by 40% in the past year. In the current year, UHC earned \($300\) million in pretax operating income on revenues of \($10\)...
Study smarter with the SolutionInn App