Financial Accounting Information For Decisions 4th Edition John J. Wild - Solutions

Discover comprehensive solutions and answers key for the "Financial Accounting Information For Decisions 4th Edition" by John J. Wild. Benefit from our expertly crafted solution manual and solutions PDF, providing you with solved problems and step-by-step answers to enhance your understanding. Explore questions and answers crafted to align with your textbook, supported by our detailed instructor manual and test bank. Whether you're seeking chapter solutions or looking for free downloads, our resources are designed to support your learning journey and provide clarity to complex accounting concepts.

The following information is available from the financial statements of Regae Industries. Compute Regae’s return on total assets for 2008 and 2009. (Round returns to one-tenth of a percent.) Comment on the company’s efficiency in using its assets in 2008 and 2009.AppendixLO1 File Edit View
The following information is available for Morgan Company and Parker Company, similar firms operating in the same industry. Write a half-page report comparing Morgan and Parker using the available information.Your discussion should include their ability to meet current obligations and to use
The following summarized Cash T-account reflects the total debits and total credits to the Cash account of Thomas Corporation for calendar year 2008.(1) Use this information to prepare a complete statement of cash flows for year 2008. The cash provided(used) by operating activities should be
Financial data from three competitors in the same industry follow. 1. Which of the three competitors is in the strongest position as shown by its statement of cash flows? 2. Analyze and discuss the strength of Peña’s cash flow on total assets ratio to that of Garcia.AppendixLO1 Edit Wew Insert
Hampton Company reports the following Exercise 12-14 information.Sales . . . . . . . . . . . . . . . . . . . . . . . . . $160,000 Expenses Cost of goods sold . . . . . . . . . . . . . 100,000 Salaries expense . . . . . . . . . . . . . . . 24,000 Depreciation expense . . . . . . . . . . . 12,000 Net
Use the following information about the cash flows of Ferron Company to prepare a complete statement of cash flows (direct method) for the year ended December 31, 2008. Use a note disclosure for any noncash investing and financing activities.Cash and cash equivalents balance, December 31, 2007 . .
Refer to the data in Exercise 12-10.Using the direct method, prepare the statement of cash flows for the year ended June 30, 2008.AppendixLO1
Use the following financial statements and additional information to (1) prepare a statement of cash flows for the year ended June 30, 2008, using the indirect method, and (2) compute the cash flow on total assets ratio for Ikiban for its fiscal year 2008.IKIBAN INC.Comparative Balance Sheets June
Use the following information to determine a company’s cash flows from financing activities.a. Net income was $35,000.b. Issued common stock for $64,000 cash.c. Paid cash dividend of $14,600.d. Paid $50,000 cash to settle a bond payable at its $50,000 maturity value.e. Paid $12,000 cash to
Use the following information to determine a company’s cash flows from investing activities.a. Equipment with a book value of $65,300 and an original cost of $133,000 was sold at a loss of $14,000.b. Paid $89,000 cash for a new truck.c. Sold land costing $154,000 for $198,000 cash, yielding a
Refer to the information about Abbeck Company in Exercise 12-6.Use the direct method to prepare only the cash provided (used) by operating activities section of the statement of cash flows.AppendixLO1
Use the following income statement and information about changes in noncash current assets and current liabilities to prepare only the cash flows from operating activities section of the statement of cash flows using the indirect method.Exercise 12-6 Cash flows from operating activities
For each of the following three separate cases, use the information provided about the calendar-year 2008 operations of Alberto Company to compute the required cash flow information.Case A: Compute cash received from customers:Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Olhstead Company’s calendar-year 2008 income statement shows the following: Net Income, $374,000;Depreciation Expense, $44,000; Amortization Expense, $7,200; Gain on Sale of Plant Assets, $6,000.An examination of the company’s current assets and current liabilities reveals the following changes
The following transactions and events occurred during the year. Assuming that this company uses the direct method to report cash provided by operating activities, indicate where each item would appear on the statement of cash flows by placing an x in the appropriate column.Statement of Cash Flows
The following transactions and events occurred during the year. Assuming that this company uses the indirect method to report cash provided by operating activities, indicate where each item would appear on its statement of cash flows by placing an x in the appropriate column.Statement of Cash Flows
Salud Company reports net income of $400,000 for the year ended December 31, 2008. It also reports$80,000 depreciation expense and a $20,000 gain on the sale of machinery. Its comparative balance sheets reveal a $40,000 increase in accounts receivable, $6,000 increase in accounts payable, $12,000
Compute cash flows from financing activities using the following information.Additional short-term borrowings . . . . . . . . . $20,000 Purchase of short-term investments . . . . . . . 5,000 Cash dividends paid . . . . . . . . . . . . . . . . . . . 16,000 Interest paid . . . . . . . . . . . . . . .
Compute cash flows from investing activities using the following QS 12-15 information.Sale of short-term investments . . . . . . . . . $ 6,000 Cash collections from customers . . . . . . . 16,000 Purchase of used equipment . . . . . . . . . . . 5,000 Depreciation expense . . . . . . . . . . . . . .
Case A Case B Case C Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,000 $100,000 $72,000 Depreciation expense . . . . . . . . . . . . . . . . . . . . . 30,000 8,000 24,000 Accounts receivable increase (decrease) . . . . . . . 40,000 20,000 (4,000)Inventory increase
For each of the following separate cases, compute cash flows from operations. The list includes all balance sheet accounts related to operating activities.AppendixLO1
When a spreadsheet for a statement of cash flows is prepared, all changes in noncash balance sheet accounts are fully explained on the spreadsheet. Explain how these noncash balance sheet accounts are used to fully account for cash flows on a spreadsheet.AppendixLO1
Refer to the data in QS 12-6.Use the direct method to prepare the cash provided (used) from operating activities section only of the statement of cash flows.CRUZ, INC.Comparative Balance Sheets December 31, 2008 2008 2007 Assets Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 94,800 $
Refer to the data in QS 12-6.1 How much cash is paid to acquire merchandise inventory during year 2008?2 How much cash is paid for operating expenses during year 2008?CRUZ, INC.Comparative Balance Sheets December 31, 2008 2008 2007 Assets Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Refer to the data in QS 12-6.1 How much cash is received from sales to customers for year 2008?2 What is the net increase or decrease in cash for year 2008?CRUZ, INC.Comparative Balance Sheets December 31, 2008 2008 2007 Assets Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 94,800 $
Refer to the data in QS 12-6.1 Assume that all common stock is issued for cash. What amount of cash dividends is paid during 2008?2 Assume that no additional notes payable are issued in 2008. What cash amount is paid to reduce the notes payable balance in 2008?CRUZ, INC.Comparative Balance Sheets
Refer to the data in QS 12-6.Furniture costing $55,000 is sold at its book value in 2008. Acquisitions of furniture total $45,000 cash, on which no depreciation is necessary because it is acquired at year-end. What is the cash inflow related to the sale of furniture?CRUZ, INC.Comparative Balance
Use the indirect method to prepare the cash provided (used) from operating activities section only of the statement of cash flows.AppendixLO1
The following selected information is from the Princeton Company’s comparative QS 12-5 balance sheets.At December 31 2008 2007 Common stock, $10 par value . . . . . . . $105,000 $100,000 Paid-in capital in excess of par . . . . . . . 567,000 342,000 Retained earnings . . . . . . . . . . . . . . .
The following selected information is from Ellerby Company’s comparative balance sheets.At December 31 2008 2007 Furniture . . . . . . . . . . . . . . . . . . . . . . . . . . . . $132,000 $ 184,500 Accumulated depreciation—Furniture . . . . . . . (88,700) (110,700 The income statement reports
Use the following information to determine this company’s cash flows from operating activities using the indirect method.KATAHN COMPANY Selected Balance Sheet Information December 31, 2008 and 2007 2008 2007 Current assets Cash . . . . . . . . . . . . . . . . . . . $84,650 $26,800 Accounts
Classify the following cash flows as operating, investing, or financing activities.1 Sold long-term investments for cash. 6. Issued common stock for cash.2 Received cash payments from customers. 7. Received cash interest on a note.3 Paid cash for wages and salaries. 8. Paid cash interest on
The statement of cash flows is one of the four primary financial statements.1 Describe the content and layout of a statement of cash flows, including its three sections.2 List at least three transactions classified as investing activities in a statement of cash flows.3 List at least three
Refer to Apple’s statement of cash flows in Appendix A.What investing activities result in cash outflows for the year ended September 25, 2004? List items and amounts.AppendixLO1
Refer to Circuit City’s statement of cash flows in Appendix A. What are its cash flows from financing activities for the year ended February 28, 2005? List items and amounts.AppendixLO1
Refer to Best Buy’s statement of cash flows in Appendix A. (a) Which method is used to compute its net cash provided by operating activities? (b) While its balance sheet shows an increase in receivables from fiscal years 2004 to 2005, why is this increase in receivables subtracted when computing
Is depreciation a source of cash flow?AppendixLO1
If a company reports positive net income for the year, can it also show a net cash outflow from operating activities? Explain.AppendixLO1
On June 3, a company borrows $50,000 cash by giving its bank a 160-day, interest-bearing note. On the statement of cash flows, where should this be reported?AppendixLO1
Assume that a company purchases land for $100,000, paying$20,000 cash and borrowing the remainder with a long-term note payable. How should this transaction be reported on a statement of cash flows?AppendixLO1
Where on the statement of cash flows is the payment of cash dividends reported?AppendixLO1
What are some financing activities reported on the statement of cash flows?AppendixLO1
What are some investing activities reported on the statement of cash flows?AppendixLO1
Describe the indirect method of reporting cash flows from operating activities.AppendixLO1
When a statement of cash flows is prepared using the direct method, what are some of the operating cash flows?AppendixLO1
Describe the direct method of reporting cash flows from operating activities.AppendixLO1
What is the reporting purpose of the statement of cash flows? Identify at least two questions that this statement can answer.AppendixLO1
The following information is available for a company. What amount of cash is paid for merchandise for the current year?Cost of goods sold . . . . . . . . . . . . . . . . . . . . . . $545,000 Merchandise inventory, prior year-end . . . . . . . . . 105,000 Merchandise inventory, current year-end . .
The following information is available regarding a company’s annual salaries and wages. What amount of cash is paid for salaries and wages?Salaries and wages expense . . . . . . . . . . . . . . . . . $255,000 Salaries and wages payable, prior year-end . . . . . . . 8,200 Salaries and wages
A company settles a long-term note payable plus interest by paying $68,000 cash toward the principal amount and $5,440 cash for interest. The amount reported as a use of cash under cash flows from financing activities is:a. Zero; this is an investing activity.b. Zero; this is an operating
A machine with a cost of $175,000 and accumulated depreciation of $94,000 is sold for $87,000 cash. The amount reported as a source of cash under cash flows from investing activities is:a. $81,000.b. $6,000.c. $87,000.d. Zero; this is a financing activity.e. Zero; this is an operating
A company uses the indirect method to determine its cash flows from operating activities. Use the following information to determine its net cash provided or used by operating activities.Net income . . . . . . . . . . . . . . . . . . . . . $15,200 Depreciation expense . . . . . . . . . . . . . .
Wages and other operating expenses total $112,000. Beginning-of-period prepaid expenses totaled $1,200, and its ending balance is $4,200. The end-of-period wages payable equal $5,600, whereas there were no accrued liabilities at period-end. How much cash is paid for wages and other operating
The Merchandise Inventory account balance decreases in the period from a beginning balance of$32,000 to an ending balance of $28,000. Cost of goods sold for the period is $168,000. If the Accounts Payable balance increases $2,400 in the period, what is the cash amount paid for merchandise
Net sales in a period are $590,000, beginning accounts receivable are $120,000, and ending accounts receivable are $90,000.What cash amount is collected from customers in the period?AppendixLO1
Equipment costing $80,000 with accumulated depreciation of $30,000 is sold at a loss of$10,000.What is the cash receipt from this sale? In what section of the statement of cash flows is this transaction reported?AppendixLO1
A company reports net income of $15,000 that includes a $3,000 gain on the sale of plant assets.Why is this gain subtracted from net income in computing cash flow from operating activities using the indirect method?AppendixLO1
Why are expenses such as depreciation and amortization added to net income when cash flow from operating activities is computed by the indirect method?AppendixLO1
Determine net cash provided (used) by operating activities using the following data: net income, $74,900; decrease in accounts receivable, $4,600; increase in inventory, $11,700;decrease in accounts payable, $1,000; loss on sale of equipment, $3,400; payment of cash dividends, $21,500.AppendixLO1
Identify the cash activity category for each transaction: (a) purchase equipment for cash, (b) cash payment of wages, (c) sale of common stock for cash, (d ) receipt of cash dividends from stock investment, (e) cash collection from customers, (f ) bonds issuance for cash.AppendixLO1
Identify the categories of cash flows reported separately on the statement of cash flows.AppendixLO1
Does a statement of cash flows report the cash payments to purchase cash equivalents? Does it report the cash receipts from selling cash equivalents?AppendixLO1
Appendix 12B—Compute cash flows from operating activities using the direct method.AppendixLO1
Appendix 12A—Illustrate use of a spreadsheet to prepare a statement of cash flows. (p. 507)AppendixLO1
Determine cash flows from both investing and financing activities. (p. 499)AppendixLO1
Compute cash flows from operating activities using the indirect method. (p. 493)AppendixLO1
Prepare a statement of cash flows. (p. 490)AppendixLO1
Compute and apply the cash flow on total assets ratio.AppendixLO1
Analyze the statement of cash flows. (p. 503)AppendixLO1
Describe the format of the statement of cash flows.AppendixLO1
Identify and disclose noncash investing and financing activities. (p. 489)AppendixLO1
Distinguish between operating, investing, and financing activities. (p. 487)AppendixLO1
Explain the purpose and importance of cash flow information. (p. 486)AppendixLO1
Summary information from the financial statements of two companies competing in the same industry follows.Barco Kyan Barco Kyan Company Company Company Company Data from the current year-end balance sheets Data from the current year’s income statement Assets Sales . . . . . . . . . . . . . . . .
Selected year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31, 2007, were inventory, $48,900; total assets, $189,400; common stock, $90,000; and retained earnings, $22,748.)CABOT CORPORATION Income Statement For Year
Plum Corporation began the month of May with $700,000 of current assets, a current ratio of 2.50:1, and an acid-test ratio of 1.10:1. During the month, it completed the following transactions (the company uses a perpetual inventory system).May 2 Purchased $50,000 of merchandise inventory on
Selected comparative financial statements of Haroun Company follow.HAROUN COMPANY Comparative Income Statements ($000)For Years Ended December 31, 2009–2003 2009 2008 2007 2006 2005 2004 2003 Sales . . . . . . . . . . . . . . . . . . $1,694 $1,496 $1,370 $1,264 $1,186 $1,110 $928 Cost of goods
Selected comparative financial statements of Korbin Company follow.KORBIN COMPANY Comparative Income Statements For Years Ended December 31, 2009, 2008, and 2007 2009 2008 2007 Sales . . . . . . . . . . . . . . . . . . . . . . $555,000 $340,000 $278,000 Cost of goods sold . . . . . . . . . . .
Use the financial data for Randa Merchandising, Inc., in Exercise 13-12 to prepare its income statement for calendar year 2008. (Ignore the earnings per share section.)AppendixLO1
In 2008, 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 listing of the major sections of an income statement follows:A. Income (loss) from continuing
Refer to Simeon 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 the following ratios for 2009 and 2008: (1) return on common stockholders’ equity, (2)
Refer to Simeon Company’s financial information in Exercises 13-6 and 13-8. Evaluate the company’s efficiency and profitability by computing the following for 2009 and 2008: (1) profit margin ratio, (2) total asset turnover, and (3) return on total assets. Comment on these ratio
Refer to the Simeon Company information in Exercises 13-6 and 13-8. Compare the company’s longterm risk and capital structure positions at the end of 2009 and 2008 by computing these ratios:(1) debt and equity ratios, (2) debt-to-equity ratio, and (3) times interest earned. Comment on these ratio
Refer to the Simeon Company information in Exercise 13-6. The company’s income statements for the years ended December 31, 2009 and 2008, follow. Assume that all sales are on credit and then compute:(1) days’ sales uncollected, (2) accounts receivable turnover, (3) inventory turnover, and (4)
Refer to Simeon Company’s balance sheets in Exercise 13-6. Analyze its year-end short-term liquidity position at the end of 2009, 2008, and 2007 by computing (1) the current ratio and (2) the acid-test ratio.Comment on the ratio results.AppendixLO1
Simeon 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.At December 31 2009 2008 2007 Assets Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Roak Company and Clay Company are similar firms that operate in the same industry. Clay began operations in 2008 and Roak in 2005. In 2010, both companies pay 7% interest on their debt to creditors.The following additional information is available.Roak Company Clay Company 2010 2009 2008 2010 2009
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.MACHIKO CORPORATION P2 Comparative Income Statements For Years Ended December 31, 2008 and 2007 2008 2007 Sales . . . . . . . . . . .
Common-size and trend percents for Skelton Company’s sales, cost of goods sold, and expenses follow.Determine whether net income increased, decreased, or remained unchanged in this three-year period.Common-Size Percents Trend Percents 2009 2008 2007 2009 2008 2007 Sales . . . . . . . . . . . . .
Compute trend percents for the following financial items, using 2006 as the base year. State whether the situation as revealed by the trends appears to be favorable or unfavorable for each item.2010 2009 2008 2007 2006 Sales . . . . . . . . . . . . . . . . . . $282,880 $270,800 $252,600 $234,560
A review of the notes payable files discovers that three years ago the company reported the entire amount of a payment (principal and interest) on an installment note payable as interest expense. This mistake had a material effect on the amount of income in that year. How should the correction be
For each ratio listed, identify whether the change in ratio value from 2007 to 2008 is usually regarded as favorable or unfavorable.QS 13-7 Ratio interpretation P3 Ratio 2008 2007 Ratio 2008 2007 1. Profit margin 9% 8% 5. Accounts receivable turnover 5.5 6.7 2. Debt ratio 47% 42% 6. Basic earnings
1 Which two short-term liquidity ratios measure how frequently a company collects its accounts?2 What measure reflects the difference between current assets and current liabilities?3 Which two ratios are key components in measuring a company’s operating efficiency? Which ratio summarizes these
Match the ratio to the building block of financial statement analysis to which it best relates.A. Liquidity and efficiency C. Profitability B. Solvency D. Market prospects 1 _______ Book value per common share 6 _______ Gross margin ratio 2 _______ Days’ sales in inventory 7 _______ Acid-test
Compute the annual dollar changes and percent changes for each of the QS 13-4 following accounts.2008 2007 Short-term investments . . . . . . . $220,000 $160,000 Accounts receivable . . . . . . . . . . 38,000 44,000 Notes payable . . . . . . . . . . . . . . 60,000 0.AppendixLO1
Use the following information for Ciolino Corporation to determine (1) the 2007 and 2008 common-size percents for cost of goods sold using net sales as the base and (2) the 2007 and 2008 trend percents for net sales using 2007 as the base year.($ thousands) 2008 2007 Net sales . . . . . . . . . . .
What are four possible standards of comparison used to analyze financial statement ratios? Which of these is generally considered to be the most useful? Which one is least likely to provide a good basis for comparison?AppendixLO1
Which of the following items (1) through (9) are part of financial reporting but are not included as part of general-purpose financial statements? (1) stock price information and analysis, (2) statement of cash flows,(3) management discussion and analysis of financial performance, (4) income
Refer to Apple’s financial statements in Appendix A.Compute its profit margin for the fiscal year ended September 25, 2004.AppendixLO1
Refer to Circuit City’s financial statements in Appendix A to compute its equity ratio as of February 28, 2005 and February 29, 2004.AppendixLO1

Showing 1 - 100 of 4736

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Last

Financial Accounting Information For Decisions 4th Edition John J. Wild - Solutions

Step by Step Answers