Questions and Answers of Financial Accounting Information

Refer to the 2016 balance sheet for Google in Appendix A. What is the par value per share of its preferred stock? Suggest a rationale for the amount of par value it assigned.
Refer to Google’s recent balance sheet in Appendix A. What is the book value of its total net property, plant, and equipment assets at December 31, 2016?
Refer to the December 31, 2016, balance sheet of Samsung in Appendix A. What long-term assets discussed in this chapter are reported by the company?
Which of the following items are normally classified as current liabilities for a company that has a one-year operating cycle?1. Portion of long-term note due in 10 months2. Note payable maturing in
Refer to Apple’s balance sheet in Appendix A. What is the amount of Apple’s accounts payable as of September 24, 2016?
Refer to Apple’s fiscal 2016 balance sheet in Appendix A. How many shares of common stock are authorized? How many shares of common stock are issued?
Refer to the statements for Samsung in Appendix A. By what amount did Samsung’s long-term borrowings increase or decrease in 2016?
Refer to the financial statements for Samsung in Appendix A. How much were its cash payments for treasury stock acquisitions for the year ended December 31, 2016?
Refer to Samsung’s 2016 statement of cash flows in Appendix A. List its cash flows from operating activities, investing activities, and financing activities.
Refer to Apple’s statement of comprehensive income in Appendix A. What is the amount of change in foreign currency translation, net of tax effects, for the year ended September 24, 2016? Is this
Refer to Google’s statement of comprehensive income in Appendix A. What was the amount of its 2016 change in net unrealized gains (losses) for its AFS investments?
In 2018, Randa Merchandising, Inc., sold its interest in a chain of wholesale outlets, taking the company completely out of the wholesaling business. The company still operates its retail outlets. A
Refer to the data in QS 12-11.1. Assume that all common stock is issued for cash. What amount of cash dividends is paid during 2018?2. Assume that no additional notes payable are issued in 2018. What
Roak Company and Clay Company are similar firms that operate in the same industry. Clay began operations in 2016 and Roak in 2013. In 2018, both companies pay 7% interest on their debt to creditors.
Refer to Simon Company’s financial information in Exercises 13-6 and 13-8. Additional information about the company follows. To help evaluate the company’s profitability, compute and interpret
Refer to the data in QS 12-11.Furniture costing $55,000 is sold at its book value in 2018. Acquisitions of furniture total $45,000 cash, on which no depreciation is necessary because it is acquired
Use the indirect method to prepare the cash provided or used from operating activities section only of the statement of cash flows for this company. CRUZ, INC. Comparative Balance Sheets December
Refer to Simon Company’s financial information in Exercises 13-6 and 13-8. Evaluate the company’s efficiency and profitability by computing the following for 2018 and 2017:(1) Profit margin
The following selected information is from Princeton Company?s comparative balance sheets. The company?s net income for the year ended December 31, 2018, was $48,000. 1. Compute the cash received
Refer to the Simon Company information in Exercises 13-6 and 13-8. Compare the company’s long-term risk and capital structure positions at the end of 2018 and 2017 by computing these ratios:(1)
Refer to the Simon Company information in Exercise 13-6. The company?s income statements for the years ended December 31, 2018 and 2017, follow. Assume that all sales are on credit and then
The following selected information is from Ellerby Company?s comparative balance sheets. The income statement reports depreciation expense for the year of $18,000. Also, furniture costing $52,500
Selected account balances from the adjusted trial balance for Harbor Corp. as of its calendar year-end December 31, 2018, follow. Required Answer each of the following questions by providing
Selected account balances from the adjusted trial balance for Olinda Corporation as of its calendar year-end December 31, 2018, follow. Required Answer each of the following questions by providing
Refer to the balance sheet data in QS 12-5 from Anders Company. During 2018, a building with a book value of $70,000 and an original cost of $300,000 was sold at a gain of $60,000.1. How much cash
Key figures for Samsung follow (in KRW millions). Required 1. Compute common-size percents for Samsung using the data provided. (Round percents to one decimal.)? 2. What is Samsung?s gross margin
Selected year-end financial statements of Overton Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31, 2017, were inventory, $17,400; total assets, $94,900;
Key figures for Apple and Google follow. Required 1. Compute common-size percents for each of the companies using the data provided. (Round percents to one decimal.) 2. If Google decided to pay a
Selected comparative financial statement information of Bluegrass Corporation follows. Required 1. Compute each year?s current ratio. (Round ratio amounts to one decimal.) 2. Express the income
As Beacon Company controller, you are responsible for informing the board of directors about its financial activities. At the board meeting, you present the following information. After the
Use Apple’s financial statements in Appendix A to answer the following.1. Using fiscal 2014 as the base year, compute trend percents for fiscal years 2014, 2015, and 2016 for net sales, cost of
Use the following selected data from Business Solutions’s income statement for the three months ended March 31, 2019, and from its March 31, 2019, balance sheet to complete the
Selected comparative financial statements of Tripoly Company follow. Required 1. Compute trend percents for all components of both statements using 2012 as the base year. (Round percents to one
Use the financial data for Randa Merchandising, Inc., in Exercise 13-13 to prepare its income statement for calendar-year 2018. (Ignore the earnings per share section.) Section Item Debit Credit 1.
Refer to the data in QS 12-11.1. How much cash is received from sales to customers for year 2018?2. What is the net increase or decrease in cash for year 2018? CRUZ, INC. Comparative Balance Sheets
Refer to the data in QS 12-11.1. How much cash is paid to acquire inventory during year 2018?2. How much cash is paid for “other expenses” during year 2018? CRUZ, INC. Comparative Balance Sheets
Refer to the transactions in Problem C-4B. Assume that although Brinkley owns 25% of Bloch’s outstanding stock, circumstances indicate that it does not have a significant influence over the
Troy?s long-term available-for-sale portfolio at the start of this year consists of the following. Troy enters into the following transactions involving its available-for-sale debt securities this
Paris Inc. began operations in Year 1. Following is a series of transactions and events involving its long-term debt investments in available-for-sale securities.Year 1Mar. 10 Purchased bonds of
Refer to Simon Company?s balance sheets in Exercise 13-6. Analyze its year-end short-term liquidity position at the end of 2018, 2017, and 2016 by computing (1) The current ratio (2) The acid-test
Brinkley Company, which began operations on January 3, 2018, had the following transactions and events in its long-term investments.2018Jan. 5 Brinkley purchased 20,000 shares (25% of total) of
While reviewing the March 31, 2019, balance sheet of Business Solutions, Santana Rey notes that the business has built a large cash balance of $68,057. Its most recent bank money market statement
Use Apple’s financial statements in Appendix A to answer the following.1. Compute Apple’s return on total assets for the years ended September 24, 2016, and September 26, 2015.2. Is Apple’s
Key figures for Apple and Google follow. Required 1. Compute return on total assets for Apple and Google for the two most recent years. 2. Which of these two companies has the better return on
Following are selected data from Samsung, Apple, and Google. Required 1. Compute Samsung?s return on total assets for the two most recent years. 2. Is Samsung?s return on total assets on a
Access the July 28, 2016, 10-K filing (for year-end June 30, 2016) of Microsoft (ticker: MSFT) at SEC.gov. Review its note 4, “Investments.”Required1. How does the “cost-basis” total amount
Assume that you are Jolee Company’s accountant. Company owner Mary Jolee has reviewed the 2018 financial statements you prepared and questions the $6,000 loss reported on the sale of its
Refer to the transactions in Problem C-4A. Assume that although Selk owns 20% of Kildaire’s outstanding stock, circumstances indicate that it does not have a significant influence over the
Selk Steel Co., which began operations on January 4, 2018, had the following transactions and events in its long-term investments.2018Jan. 5 Selk purchased 60,000 shares (20% of total) of
Mead Inc. began operations in Year 1. Following is a series of transactions and events involving its long-term debt investments in available-for-sale securities.Year 1Jan. 20 Purchased bonds of
On December 31, Mars Co. had the following portfolio of stock investments with insignificant influence. Mars had no stock investments in prior periods. Prepare the December 31 adjusting entry to
Prepare Tiker Company’s journal entries to record the following transactions for the current year, including any adjusting entry to record the fair value of the stock investments portfolio. This is
Compute the amount that can be borrowed under each of the following circumstances:1. A promise to repay $90,000 seven years from now at an interest rate of 6%.2. An agreement made on February 1,
Spiller Corp. plans to issue 10%, 15-year, $500,000 par value bonds payable that pay interest semiannually on June 30 and December 31. The bonds are dated December 31, 2016, and are issued on that
Simon Company?s year-end balance sheets follow. Express the balance sheets in common-size percents. Round amounts to the nearest one-tenth of a percent. Analyze and comment on the results. 2016 At
Selected year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31, 2017, were inventory, $48,900; total assets, $189,400;
Common-size and trend percents for Rustynail Company?s sales, cost of goods sold, and expenses follow. Determine whether net income increased, decreased, or remained unchanged in this three-year
The plant assets section of the comparative balance sheets of Anders Company is reported below. Refer to the balance sheet data above from Anders Company. During 2018, equipment with a book value
Express the following comparative income statements in common-size percents and assess whether or not this company?s situation has improved in the most recent year (round the percents to
Prepare Riley Company’s journal entries to record the following transactions for the current year.Apr. 18 Purchases 300 common shares of XLT Co. as a shortterm investment at a cost of $42 per
Prepare Hertog Company’s journal entries to record the following transactions for the current year.May 7 Purchases Kraft bonds as a short-term investment in trading securities at a cost of
Datamix, a U.S. corporation with customers in several foreign countries, had the following selected transactions for 2019 and 2020. 2019 May 26 Sold merchandise for 6.5 million yen to Fuji Company of
Compute trend percents for the following accounts, using 2014 as the base year (round the percents to whole numbers). State whether the situation as revealed by the trends appears to be favorable or
Use the following information to determine this company?s cash flows from operating activities using the indirect method. MOSS COMPANY Selected Balance Sheet Information December 31, 2018 and 2017
Selected comparative financial statements of Korbin Company follow. Required 1. Compute each year?s current ratio. (Round ratio amounts to one decimal.) 2. Express the income statement data in
Selected comparative financial statements of Haroun Company follow. Required 1. Compute trend percents for all components of both statements using 2012 as the base year. (Round percents to one
Doering Company, a U.S. corporation with customers in several foreign countries, had the following selected transactions for 2019 and 2020. 2019 Apr. 8 Sold merchandise to Salinas & Sons of
On May 8, 2019, Jett Company (a U.S. company) made a credit sale to Lopez (a Mexican company). The terms of the sale required Lopez to pay 800,000 pesos on February 10, 2020. Jett prepares quarterly
For each of the two separate cases, use the information provided about the calendar-year 2019 operations of BioClean Company to compute the required cash flow information. Case B: Compute cash paid
Use the following financial statements and additional information to? (1) Prepare a statement of cash flows for the year ended December 31, 2019, using the indirect method? (2) Analyze and briefly
Refer to Samsung’s statement of cash flows in Appendix A. What investing activities result in cash outflows for the year ended December 31, 2016? List items and amounts.
Nintendo Company, Ltd., reports the following financial information as of, or for the year ended, March 31, 2016. Nintendo reports its financial statements in both Japanese yen and U.S. dollars as
Refer to Google’s statement of cash flows in Appendix A. What are its cash flows from financing activities for the year ended December 31, 2016? List the items and amounts.
Refer to Apple’s statement of cash flows in Appendix A.(a) Which method is used to compute its net cash provided by operating activities?(b) Its balance sheet shows a decrease in accounts
The equity sections from Atticus Group?s 2017 and 2018 year-end balance sheets follow. The following transactions and events affected its equity during year 2018. Jan. 5 Declared a $0.50 per
The following information is available for Amos Company for the year ended December 31, 2018.a. Balance of retained earnings, December 31, 2017, prior to discovery of error, $1,375,000.b. Cash
Use the data in Exercise 11-8 to determine the amount of dividends paid each year to each of the two classes of stockholders assuming that the preferred stock is cumulative. Also determine the total
York’s outstanding stock consists of 80,000 shares of noncumulative 7.5% preferred stock with a $5 par value and also 200,000 shares of common stock with a $1 par value. During its first four years
Review 30 to 60 minutes of financial news programming on television. Take notes on companies that are catching analysts’ attention. You might hear reference to over- and undervaluation of firms and
Use the following financial information for Samsung.Required1. Compute book value per share for Samsung.2. Compute earnings per share (EPS) for Samsung.3. If Samsung buys back outstanding shares from
Unilever Group reports the following equity information for the years ended December 31, 2016 and 2015 (euros in millions). 1. Match each of the three account titles?Share capital, Share premium,
Alexander Corporation reports the following components of stockholders’ equity on December 31, 2017.In year 2018, the following transactions affected its stockholders’ equity accounts.Jan. 2
Santana Rey has consulted with her local banker and is considering financing an expansion of her business by obtaining a long-term bank loan. Selected account balances at March 31, 2019, for Business
Refer to the bond details in Problem 10-5A. Legacy issues $325,000 of 5%, four-year bonds dated January 1, 2018, that pay interest semiannually on June 30 and December 31. They are issued at
Quatro Co. issues bonds dated January 1, 2018, with a par value of $400,000. The bonds’ annual contract rate is 13%, and interest is paid semiannually on June 30 and December 31. The bonds mature
Sylvestor Company issues 10%, five-year bonds, on December 31, 2017, with a par value of $100,000 and semiannual interest payments. Use the following bond amortization table and prepare journal
On November 1, 2018, Norwood borrows $200,000 cash from a bank by signing a five-year installment note bearing 8% interest. The note requires equal payments of $50,091 each year on October
Woodwick Company issues 10%, five-year bonds, on December 31, 2017, with a par value of $200,000 and semiannual interest payments. Use the following bond amortization table and prepare journal
Joey Shamah and Scott Borba are the founders of e.l.f. Cosmetics. Assume that the company currently has $250,000 in equity and is considering a $100,000 expansion to meet increased demand. The
Legacy issues $325,000 of 5%, four-year bonds dated January 1, 2018, that pay interest semiannually on June 30 and December 31. They are issued at $292,181, and their market rate is 8% at the issue
Break into teams and complete the following requirements related to effective interest amortization for a premium bond.1. Each team member is to independently prepare a blank table with proper
Ellis Company issues 6.5%, five-year bonds dated January 1, 2018, with a $250,000 par value. The bonds pay interest on June 30 and December 31 and are issued at a price of $255,333. The annual market
Selected results from Samsung, Apple, and Google follow. Required 1. Compute Samsung?s debt-to-equity ratio for the current year and the prior year. 2. Is Samsung?s financing structure more risky
Refer to the bond details in Problem 10-2A, except assume that the bonds are issued at a price of $4,895,980. Hillside issues $4,000,000 of 6%, 15-year bonds dated January 1, 2018, that pay interest
Key figures for Apple and Google follow. Required 1. Compute the debt-to-equity ratios for Apple and Google for both the current year and the prior year. 2. Use the ratios from part 1 to determine
Hillside issues $4,000,000 of 6%, 15-year bonds dated January 1, 2018, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $3,456,448. Required 1. Prepare
Use Apple’s financial statements in Appendix A to answer the following.1. Identify Apple’s long-term debt as reported on its balance sheet at (a) September 24, 2016, and (b) September 26,
Tyrell Co. entered into the following transactions involving short-term liabilities in 2017 and 2018.2017Apr. 20 Purchased $40,250 of merchandise on credit from Locust, terms n/30. Tyrell uses the
Use the table below and the financial statements of Apple in Appendix A to answer the following. 1. Compute times interest earned for each of the three years shown. 2. Is Apple in a good or bad
Key figures for Apple and Google follow. Required 1. Compute times interest earned for the three years? data shown for each company. 2. In the current year, and using times interest earned, which

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