A recent balance sheet of Denver Tours is provided below: Other information provided by the company is
Question:
A recent balance sheet of Denver Tours is provided below:
Other information provided by the company is as follows:
Compute and discuss briefly the significance of the following measures as they relate to Denver
Tours:
a. Net income percentage in 2011.
b. Return on equity in 2011.
c. Working capital on December 31, 2011.
d. Current ratio on December 31, 2011.
DENVER TOURS BALANCE SHEET DECEMBER 31, 2011 Assets Cash Accounts receivable Office supplies. Prepaid rent Buses. Accumulated depreciation: buses Total assets . $ 75,100 14,000 1,500 3,400 . .. . $ 240,000 . (18,000) $222,000 S316,000 Liabilities Accounts payable Unearned revenue . Total liabilities $140,200 94,800 S235,000 Stockholders' Equity Capital stock.. Retained earnings Total stockholders' equity.···· $ 80,000 1,000 S 81,000 $316,000 Total revenue for the year ended December 31, 2011 Total expenses for the year ended December 31, 2011 Total stockholders' equity, January 1, 2011 $152,000 ....148,960 79,000
Step by Step Answer:
a Net Income 3040 Total Revenue 152000 2 Significance All companies must consume resources incur cos...View the full answer
Financial and Managerial Accounting the basis for business decisions
ISBN: 978-0078111044
16th edition
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello
Related Video
Unearned revenue is money received by an individual or company for a service or product that has yet to be provided or delivered. It can be thought of as a \"prepayment\" for goods or services that a person or company is expected to supply to the purchaser at a later date. As a result of this prepayment, the seller has a liability equal to the revenue earned until the good or service is delivered. This liability is noted under current liabilities, as it is expected to be settled within a year.
Students also viewed these Accounting questions
-
A recent balance sheet of Denver Tours is provided as follows. Other information provided by the company is as follows. Total revenue for the year ended December 31, current year...
-
A recent balance sheet of Denver Tours is provided below: DENVER TOURS BALANCE SHEET DECEMBER 31, 2011 Assets Cash $ 75,100 Accounts receivable 14,000 Office supplies 1,500 Prepaid rent 3,400 Buses $...
-
The following information came from a recent balance sheet of The Coca Cola, Co. a. Determine the amount of total liabilities reported in Coca-Colas balance sheet at the beginning of the year. b....
-
Jason is unhappy with the performance of his mutual fund. He sells his shares in the current fund and repurchases shares in a similar fund with the same firm. This transaction may not be a taxable...
-
Let F(x,y) = 5x - 4y + 12. Find all values of x such that F(x,0) = 0.
-
The nurse obtains a medical history from a patient before beginning drug therapy based on an understanding of which of the following? a. Medical conditions can alter a drugs pharmacokinetics and...
-
Consider the multiple linear regression model fit to the rental price data in Problem 3.42. Problem 3.42 Table B.24 contains data on median family home rental price and other data for 51 US cities....
-
For what purposes are departmental reports useful to management?
-
The weekly demand of fresh oranges, as measured by number of oranges, for a household depends on the price of orange (in dollars) and can be approximated by q(p) = 20-p. Suppose that the supply of...
-
1. By changing the way his group talks about IT investments, CIO Tim Schaefer is trying to change the way the rest of the company sees IT. Why do you think this is necessary? What would be the...
-
A recent balance sheet of Oregon Foods is provided below: Other information provided by the company is as follows: Compute and discuss briefly the significance of the following measures as they...
-
Ski Powder Resort ends its fiscal year on April 30. The business adjusts its accounts monthly, but closes them only at year-end (April 30). The resorts busy season is from December 1 through March...
-
According to Equation 6.29, power is related to force and velocity by P = Fv. Is it possible for P to be negative? Give an example and explain what it means for P to be negative.
-
Discuss the Certified in Planning and Inventory Management (CPIM) certification and include one publication to subscribe to and also explain the following below in respect to CPIM certification: 1....
-
Cynthia has been asked by her superior to calculate the total shareholder's equity. Which balance will she add to the opening equity to find the closing balance of the shareholder's equity?
-
Examine theoretical concepts of business globalization and culture. Determine ways culture influences global alliances and acquisition. Defend multicultural competency as a necessary skill for...
-
explain and give specific examples of external supply chain risks such as demand risks, supply risks, environment risks and business risks. explain internal risks like Manufacturing Risks, Business...
-
In matlab please. Array access and modification Perform all the following operations in a script using array operations! Make sure you document it properly and minimize the # of operations. Each of...
-
Indicate a good method for evaluating the integral (but do not evaluate). Your choices are algebraic manipulation, substitution (specify u and du), and Integration by Parts (specify u and dv). If it...
-
What is the shape of the exponential distribution?
-
The following UML sequence diagram models an interaction in an automated weather station. Analyze and circle all the errors in the diagram.
-
In each of the following situations, indicate whether you would expect the business to use a periodic inventory system or a perpetual inventory system. Explain the reasons for your answer. a. The...
-
In each of the following situations, indicate whether you would expect the business to use a periodic inventory system or a perpetual inventory system. Explain the reasons for your answer. a. The...
-
Village Hardware is a retail store selling hardware, small appliances, and sporting goods. The business follows a policy of selling all merchandise at exactly twice the amount of its cost to the...
-
PART A (Retained Earnings Statement) January 1, Retained Earnings Beginning Balance 2021 Income before income tax 1 $2,340,000 Prior period adjustment: understatement of 2020 depreciation expense...
-
There are 3 source and 4 destinations, For the data below, construct an initial feasible solution. Cost Destination 1 Destination 2 Destination 3 Destination 4 Supply Source 1 12 18 9 11 105 Source 2...
-
A company is using Dynamics 3 6 5 Project Operations. You acquire an independent software vendor ( ISV ) solution from AppSource that contains several project charts and install the solution in the...
Study smarter with the SolutionInn App