New Semester Started Get 50% OFF Study Help! --h --m --s Claim Now

Question Answers

Textbooks

Find textbooks, questions and answers

Oops, something went wrong!

Change your search query and then try again

Result Not Found

Books FREE
Study Help
Tutors
AI Study Planner NEW
Sell Books

Search
Sign In
Register

study help
business
financial accounting tool

Financial Accounting Tools For Business Decision Making 2nd Edition Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso - Solutions

The financial statements of Louis Vuitton are presented in Appendix F. Instructions for accessing and using the company’s complete annual report, including the notes to its financial statements, are also provided in Appendix F.Instructions Use the company’s annual report to answer the following
Why is it necessary to convert accrual-basis net income to cash-basis net income when preparing a statement of cash flows?
Why and how is depreciation expense reported in a statement of cash flows prepared using the indirect method?
During 2017, Slivowitz Company exchanged \(\$ 1,700,000\) of its common stock for land. Indicate how the transaction would be reported on a statement of cash flows, if at all.
(a) What are the phases of the corporate life cycle?(b) What effect does each phase have on the amounts reported in a statement of cash flows?
Which of the following will not be reported in the statement of cash flows?(a) The net change in stockholders' equity during the year.(b) Cash payments for plant assets during the year.(c) Cash receipts from sales of plant assets during the year.(d) Sources of financing during the period.
Which of the following is incorrect about the statement of cash flows?(a) The direct method may be used to report net cash provided by operating activities.(b) The statement shows the net cash provided (used) for three categories of activity.(c) The operating activities section is the last section
Net income is \(\$ 132,000\), accounts payable increased \(\$ 10,000\) during the year, inventory decreased \(\$ 6,000\) during the year, and accounts receivable increased \(\$ 12,000\) during the year. Under the indirect method, what is net cash provided by operating activities?(a) \(\$
Items that are added back to net income in determining net cash provided by operating activities under the indirect method do not include:(a) depreciation expense.(b) an increase in inventory. (c) amortization expense.(d) loss on disposal of equipment.
The following data are available for Bill Mack ( 1.0 2) Corporation Net income\(\$ 200,000\)Depreciation expense \(\quad 40,000\)Dividends paid 60,000 Gain on sale of land 10,000 Decrease in accounts receivable \(\quad 20,000\)Decrease in accounts payable \(\quad 30,000\)Net cash provided by
The following data are available for Retique!Increase in accounts payable \(\$ 40,000\)Increase in bonds payable 100,000 Sale of investment 50,000 Issuance of common stock \(\quad 60,000\)Payment of cash dividends \(\quad 30,000\)Net cash provided by financing activities is:(a) \(\$ 90,000\).(c)
Oraring the introductory phase of a com-pany's life cycle, one would normally expect to see:(a) negative cash from operations, negative cash from investing, and positive cash from financing(b) negative cash from operations, positive cash from investing, and positive cash from financing.(c) positive
Which of the following items is reported on a statement of cash flows prepared by the direct method?(a) Loss on disposal of building(b) Increase in accounts receivable.(c) Depreciation expense.(d) Cash payments to suppliers.
Each of these items must be considered in preparing a statement of cash flows for Irvin Co. for the year ended December 31, 2017. For each item, state how it should be shown in the statement of cash flows for 2017.(a) Issued bonds for \(\$ 200,000\) cash.(b) Purchased equipment for \(\$ 180,000\)
Classify each item as an operating, investing, or financing activity. Assume all items involve cash unless there is information to the contrary.(a) Purchase of equipment.(d) Cash received from sale of goods.(b) Sale of building.(e) Payment of dividends.(c) Redemption of bonds.(f) Issuance of
(a) Why is net cash provided by operating activities likely to be lower than reported net income during the growth phase?(b) Why is net cash from investing activities often positive during the late maturity phase and during the decline phase?
Suppose Columbia Sportswear Company had accounts receivable of $299,585,000 at January 1, 2017, and $226,548,000 at December 31, 2017. Assume sales revenue was$1,244,023,000 for the year 2017. What is the amount of cash receipts from customers in 2017?
Moss Corporation had the following transactions.Issued $160,000 of bonds payable.Paid utilities expense.Issued 500 shares of preferred stock for $45,000.Sold land and a building for $250,000.reWst iLoaened $30,000 to Dead End Corporation, receiving Dead End’s 1-year, 12% note.Classify each of
PK Photography reported net income of $100,000 for 2017. Included in the income statement were depreciation expense of $6,300, patent amortization expense of$4,000, and a gain on disposal of plant assets of $3,600. PK’s comparative balance sheets show the following balances.Calculate net cash
The financial statements for Tootsie Roll Industries are presented in Appendix A at the end of this book.Instructions Answer these questions using the Consolidated Income Statement:(a) What was the percentage change in sales and in net income from 1997 to 1998?(b) What was the profit margin ratio
The financial statements of Hershey Foods are presented in Appendix B, following the financial statements for Tootsie Roll in Appendix A.Instructions a (a) Based on the information contained in these financial statements, determine the following values for each company:(1) Profit margin ratio for
The May 1998 issue of the Journal of Accountancy includes an article by Randall W. Luecke and David T. Meeting entitled “How Companies Report Income.”Instructions Read the article and answer the following questions:(a) What two major income reporting concepts have been used by business
Bob Evans Farms, Inc., operates 315 restaurants in 19 states and produces fresh and fully cooked sausage products, fresh salads, and related products distributed to grocery stores in the Midwest, Southwest, and Southeast. For a recent 3-year period Bob Evans Farms reported the following selected
In August 1999 it was announced that two giant French retailers, Carrefour SA and Promodes SA, would merge. A headline in The Wall Street Journal blared, “French Retailers Create New Wal-Mart Rival.” While Wal-Mart's total sales would still exceed those of the combined company, Wal-Mart's
Purpose: No financial decision maker should ever rely solely on the finan- cial information reported in the annual report to make decisions. It is important to keep abreast of financial news. This activity demonstrates how to search for financial news on the Web.Address: http://biz-yahoo.com/i (or
Three years ago Kathy Webb and her brother-in-law John Utley opened FedCo Department Store. For the first 2 years, business was good, but the following condensed income results for 2001 were disappointing:Kathy believes the problem lies“in the relatively low gross profit rate (gross profit
The following situation is presented in chronological order:. Dexter decides to buy a surfboard.. He calls Surfing USA Co. to inquire about their surfboards.Two days later he requests Surfing USA Co. to make him a surfboard.. Three days later Surfing USA Co. sends him a purchase order to fill
Explain the recording of purchases and sales of inventory under a periodic inventory system.
Explain how to determine cost of goods sold under a periodic inventory system.
Describe the steps in determining inventory quantities.
Identify the unique features of the income statement for a merchandising company under a periodic inventory system.
Explain the basis of accounting for inventories and apply the inventory cost flow methods under a periodic inventory system.
Explain the financial statement and tax effects of each of the inventory cost flow assumptions.
Explain the lower of cost or market basis of accounting for. inventories.
Compute and interpret the inventory turnover ratio.
Describe the LIFO reserve and explain its importance for comparing results of different companies.
At December 31, 1998, the following information (in thousands) was available for sunglasses manufacturer Oakley, Inc.: ending inventory $35,548; beginning inventory$26,200; cost of goods sold $86,134; and sales revenue $231,934. Calculate the inventory turnover ratio and days in inventory for
Winnebago Industries, Inc. is a leading manufacturer of motor homes.Winnebago reported ending inventory at December 31, 1998, of $55,433,000 under the LIFO inventory method. In the notes to its financial statements, Winnebago reported a LIFO reserve of $17,742,000 at January 1, 1998, and
Spain Department Store uses a perpetual inventory system. Data for product E2-D2 include the following purchases:On June 1 Spain sold 30 units, and on August 27, 33 more units. Compute the cost of goods sold using (1) FIFO, (2) LIFO, and (3) average cost. Date Number of Units Unit Price May 7 50
Creole Company reports net income of $90,000 in 2001. However, ending inventory was understated by $7,000. What is the correct net income for 2001? What effect, if any, will this error have on total assets as reported in the balance sheet at December 31, 2001?
The trial balance of G. Garbo Company at the end of its fiscal year, August 31, 2001, includes these accounts: Merchandise Inventory $17,200; Purchases $142,400; Sales$190,000; Freight-in $4,000; Sales Returns and Allowances $3,000; Freight-out $1,000;and Purchase Returns and Allowances $2,000. The
Presented here is information related to Baja Co. for the month of January 2001:Beginning merchandise inventory was $42,000, and ending inventory was $63,000.Instructions Prepare an income statement using the format presented on page 253. Operating expenses should not be divided into selling and
Powder! sells a snowboard, Xpert, that is popular with snowboard enthusiasts.Below is information relating to Powder!’s purchases of Xpert snowboards during SepProve the amount allocated to cost of goods sold under each method. and LIFO. tember. During the same month, 124 Xpert snowboards were
In June, Dakota Company reports the following for the month of June:Instructions (a) Compute cost of the ending inventory and the cost of goods sold under (1) FIFO, (2) LIFO, and (3) average cost.(b) Which costing method gives the highest ending inventory and the highest cost of goods sold? Why?(c)
This information is available for PepsiCo, Inc. for 1996, 1997, and 1998:Instructions Calculate the inventory turnover ratio, days in inventory, and gross profit rate (from Chapter 5) for PepsiCo., Inc. for 1996, 1997, and 1998. Comment on any trends. (in millions) Beginning inventory Ending
Deere & Company is a global manufacturer and distributor of agricultural, con- Determine the effect of the struction, and forestry equipment. It reported the following information in its 1998 an- LIFO reserve on current nual report:Instructions (a) Compute Deere’s current ratio using the 1998
Information about Powder! is presented in E6-6. Additional data regarding Pow- Apply cost flow methods to der!’s sales of Xpert snowboards are provided below. Assume that Powder! uses a per- perpetual records.petual inventory system.Instructions (a) Compute ending inventory at September 30 using
Seles Hardware reported cost of goods sold as follows:Seles made two errors:1. 2001 ending inventory was overstated by $4,000.2. 2002 ending inventory was understated by $3,000.Instructions e Compute the correct cost of goods sold for each year. Beginning inventory Cost of goods purchased Cost of
Aruba Company reported these income statement data for a 2-year period:Aruba Company uses a periodic inventory system. The inventories at January 1, 2001, and December 31, 2002, are correct. However, the ending inventory at December 31, 2001, is overstated by $6,000.Instructions (a) Prepare correct
At the beginning of the current season on April 1, the ledger of Murdoch’s Pro trial balance and partial in- Shop showed Cash $2,500; Merchandise Inventory $3,500; and Common Stock $6,000.eae statement. These transactions occurred during April 2001:1, 2, 4)a) Apr. 5 Purchased golf bags, clubs,
Parking Lot City Department Store is located in midtown Metropolis. At the end Prepare a multiple-step of the company’s fiscal year on November 30, 2001, the following accounts appeared in ‘come statement. its adjusted trial balance:Additional facts:1. Merchandise inventory at November 30,
Apocalypse Distribution markets CDs of the performing artist Harrilyn Hann- Determine cost of goods sold son. At the beginning of March, Apocalypse had in beginning inventory 1,500 Hannson and ending inventory using CDs with a unit cost of $7. During March Apocalypse made the following purchases of
The management of Zucchini Inc. asks your help in determining the comparative effects of the FIFO and LIFO inventory cost flow methods. For 2001 the accounting records show these data:Units purchased consisted of 40,000 units at $4.00 on May 10; 60,000 units at $4.20 on August 15; and 20,000 units
This information is available for the Automotive and Electronics Divisions of General Motors Corporation for 1998. General Motors uses the LIFO inventory method.Instructions Calculate the inventory turnover ratio, days in inventory, and current ratio for General Motors Corporation for 1998 as
Save-Mart Center began operations on July 1. It uses a perpetual inventory system. During July the company had the following purchases and sales:Instructions (a) Determine the ending inventory under a perpetual inventory system using (1) FIFO, (2) average cost, and (3) LIFO.(b) Which costing method
At the beginning of the current season, the ledger of Kicked-Back Tennis Shop Journalize, post, and prepare showed Cash $2,500; Merchandise Inventory $1,700; and Common Stock $4,200. These trial balance and partial transactions were completed during April 2001: income statement.(SO 1, 2, 4)Apr. 4
High-Point Department Store is located near the Village Shopping Mall. At the Prepare a multiple-step end of the company’s fiscal year on December 31, 2001, these accounts appeared in its income statement.adjusted trial balance:Additional facts:1. Merchandise inventory on December 31, 2001, is
Heartland Distribution markets CDs of the performing artist Brooks Straight. At the beginning of October, Heartland had in beginning inventory 1,000 Straight CDs with a unit cost of $5. During October Heartland made the following purchases of Straight CDs:During October 11,000 units were sold.
The management of Real Novelty Inc. is reevaluating the appropriateness of using its present inventory cost flow method, which is average cost. The company requests your help in determining the results of operations for 2001 if either the FIFO or the LIFO method had been used. For 2001 the
Ag-Chem Equipment Co. Inc., headquartered in Minnetonka, Minnesota, manufactures a full line of equipment that is used to apply fertilizer. Many of these systems are computer controlled. This information is available for Ag-Chem for 1998. Ag-Chem uses the LIFO inventory method.Instructions ne
The notes that accompany a company’s financial statements provide informative details that would clutter the amounts and descriptions presented in the statements.Refer to the financial statements of Tootsie Roll and the accompanying Notes to Consolidated Financial Statements in Appendix
The financial statements of Hershey Foods are presented in Appendix B, following the financial statements for Tootsie Roll in Appendix A.Instructions .(a) Based on the information in the financial statements, compute these 1998 values for each company. (Do not adjust for the LIFO reserve.)1.
The March 5, 1999, issue of aes Week contains, an Bradle by Doug Bartholomew entitled “What's oad pine Apple's Recovery.”Instructions Read the article and answer the following inventory-related questions:(a) What were Timothy D. Cook’s twin goals upon being hired as senior vice prides at
Snowboarding is a rapidly growing sport in the United Stnies, In 1995 Morrow Snowboards announced it would sell shares of stock to the public. In its prospectus (an information-filled document that must be provided by every publicly traded U.S.company the first time it issues shares to the public),
Nike and Reebok compete head-to-head in the sport shoe and sport apparel business. For both companies, inventory is a significant portion of total assets. The following information was taken from each company’s financial statements and notes to those financial statements.Instructions Address each
Fuji Photo Film Company isa Japanese manufacturer of photographic products. Its U.S. counterpart, and arch rival, is Eastman Kodak. Together the two dominate the global market for film. The following information was extracted from the financial statements of the two companies.Instructions Answer
Purpose: Use a company’s annual report to identify the inventory method used and analyze the effects on the income statement and balance sheet.Address: http://www.cisco.com (or go to www.wiley.com/college/kimmel)Steps:1. From Cisco System’s homepage, choose Investor information.2. Choose View
Morton International, Inc., headquartered in Chicago, Illinois, manufactures specialty chemicals, automobile airbags, and salt. Recently, its specialty chemicals business was reorganized, and three manufacturing plants were closed. Profits were generally high, however, mostly because of an improved
You are the controller of Small Toys Inc. Joy Small, the president, recently mentioned to you that she found an error in the 2000 financial statements which she believes has corrected itself. She determined, in discussions with the purchasing department, that 2000 ending inventory was overstated by
Tony Galego, a lawyer, accepts a legal engagement in March, performs the work in April, and is paid in May. If Galego’s law firm prepares monthly financial statements, when should it recognize revenue from this engagement? Why?
On January 9 a company pays $5,000 for salaries, of which $1,700 was reported as Salaries Payable on December
Give the entry to record the payment.
Transactions that affect earnings do not necessarily affect cash.Identify the effect, if any, that each of the following transactions would have upon cash and retained earnings. The first transaction has been completed as an example. (a) Purchased supplies for cash. (b) Recorded an adjusting entry
Riko Company accumulates the following adjustment data at December 31. Indicate (1) the type of adjustment (prepaid expense, accrued revenues, and so on) and(2) the status of the accounts before adjustment (overstated or understated).(a) Supplies of $600 are on hand. Supplies account shows $1,900
On July 1, 2001, Bere Co. pays $15,000 to Marla Insurance Co. for a 3-year insurance contract. Both companies have fiscal years ending December 31. For Bere Co.journalize and post the entry on July 1 and the adjusting entry on December 31.
The bookkeeper for DeVoe Company asks you to prepare the following accrued adjusting entries at December 31:(a) Interest on notes payable of $400 is accrued.(b) Service revenue earned but unbilled totals $1,400.(c) Salaries of $700 earned by employees have not been recorded.Use these account
The trial balance of Hoi Company includes the following balance sheet accounts.Identify the accounts that might require adjustment. For each account that requires adjustment, indicate (1) the type of adjusting entry (prepaid expenses, unearned revenues, accrued revenues, and accrued expenses) and
The adjusted trial balance of Lumas Corporation at December 31, 2001, includes the following accounts: Retained Earnings $15,600; Dividends $6,000; Service Revenue $35,400; Salaries Expense $13,000; Insurance Expense $2,000; Rent Expense $4,000;Supplies Expense $1,500; and Depreciation Expense
The following selected accounts appear in the adjusted trial balance for Khanna Company. Indicate the financial statement on which each balance would be reported.(a) Accumulated Depreciation. (e) Service Revenue.(b) Depreciation Expense. (f) Supplies.(c) Retained Earnings. (g) Accounts Payable.(d)
These are the assumptions, principles, and constraints discussed in this and previous chapters:1. Economic entity assumption.. Matching principle.. Monetary unit assumption.. Time period assumption.. Cost principle.. Materiality.. Full disclosure principle.. Going concern assumption.. Revenue
Here are some accounting reporting situations:(a) Tercek Company recognizes revenue at the end of the production cycle but before sale. The price of the product, as well as the amount that can be sold, is not certain. (b) Bonilla Company is in its fifth year of operation and has yet to issue
In its first year of operations, Brisson Company earned $26,000 in services revenue, $4,000 of which was on account and still outstanding at year-end. The remaining Determine cash basis and$22,000 was received in cash from customers. accrual basis earnings.The company incurred operating expenses of
Rafael Company accumulates the following adjustment data at December 31: an(a) Service Revenue earned but unbilled totals $600. Identify types of adjustments(b) Store supplies of $300 are on hand. Supplies account shows $2,300 balance. and accounts before(c) Utility expenses of $225 are unpaid.
The ledger of Convenient Rental Agency on March 31 of the current year includes Prepare adjusting entries these selected accounts before adjusting entries have been prepared:An analysis of the accounts shows the following:1. The equipment depreciates $250 per month.2. One-third of the unearned rent
Brian Brunn, D.D.S., opened an incorporated dental practice on January 1, 2001.During the first month of operations the following transactions occurred:1. Performed services for patients who had dental plan insurance. At January 31, $750 of such services was earned but not yet billed to the
The trial balance for Sierra Corporation is shown in Illustration 4-4. In lieu of the adjusting entries shown in the text at October 31, assume the following adjustment data:1. Advertising supplies on hand at October 31 total $1,400.. Expired insurance for the month is $100.. Depreciation for the
The income statement of Garstka Co. for the month of July shows net income of$1,400 based on Service Revenue $5,500; Wages Expense $2,300; Supplies Expense $1,200;and Utilities Expense $600. In reviewing the statement, you discover the following:1. Insurance expired during July of $300 was
This is a partial adjusted trial balance of Kaffen Company:Instructions Answer these questions, assuming the year begins January 1: (a) If the amount in Supplies Expense is the January 31 adjusting entry, and $850 of sup- plies was purchased in January, what was the balance in Supplies on January
Selected accounts of Snowmass Company are shown here:Instructions After analyzing the accounts, journalize (a) the July transactions and (b) the adjusting entries that were made on July 31. [Hint: July transactions were for cash.] July 31 500 Salaries Payable Supplies Expense Supplies July 1 Bal.
The trial balances shown below are before and after adjustment for Digital Company at the end of its fiscal year:Instructions Prepare the adjusting entries that were made. DIGITAL COMPANY Trial Balance August 31, 2001 Before Adjustment After Adjustment Dr. Cr. Dr. Cr. Office Supplies Accounts
The adjusted trial balance for Digital Company is given in E4-11.from adjusted trial balance. : (SO 6) Instructions ‘Prepare the income and retained earnings statements for the year and the balance sheet at August 31.
The adjusted trial balance for Digital Company is given in E4-11. (SO 7) Instructions Prepare the closing entries for the temporary accounts at December 31.
Presented below are the assumptions, principles, and constraints used in this Identify accounting and previous chapters.assumptions, principles, and 1. Economic entity assumption. 6. Revenue recognition principle.constraints. 2. Going concern assumption. 7. Matching principle.(SO 1) 3. Monetary
Han Solo started his own consulting firm, Solo Company, on June 1, 2001. The post to ledger accounts, and trial balance at June 30 is as follows:In addition to those accounts listed on the trial balance, the chart of accounts for Solo Company also contains the following accounts: Accumulated
The Palpatine Hotel opened for business on May 1, 2001. Here is its trial balance before adjustment on May 31:Other data:1. Insurance expires at the rate of $200 per month.2. An inventory of supplies shows $1,200 of unused supplies on May 31.3. Annual depreciation is $3,600 on the lodge and $3,000
Yoda Inc. was organized on July 1, 2001. Quarterly financial statements are prepared. The trial balance and adjusted trial balance on September 30 are shown here:Instructions (a) Journalize the adjusting entries that were made.(b) Prepare an income statement and a retained earnings statement for
A review of the ledger of Ewoks Company at December 31, 2001, produces these data pertaining to the preparation of annual adjusting entries:1. Prepaid Insurance $12,300: The company has separate insurance policies on its buildings and its motor vehicles. Policy B4564 on the building was purchased
On November 1, 2001, the following were the account balances of Naboo Equipment Repair:During November the following summary transactions were completed:Nov. 8 _ Paid $1,100 for salaries due employees, of which $600 is for November and $500 is for October.10 Received $1,200 cash from-customers on
Brett Farve opened Corellian Window Washing Inc. on July 1, 2001. During July the following transactions were completed.July 1 Issued $9,000 of common stock for $9,000 cash.1 Purchased used truck for $6,000, paying $3,000 cash and the balance on account.3 Purchased cleaning supplies for $900 on
Presented here are the assumptions, principles, and constraints used in this and previous chapters:1. Economic entity assumption. 6. Revenue recognition principle.2. Materiality. 7. Full disclosure principle.3. Monetary unit assumption. 8. Cost principle.4. Time period assumption. 9. Going concern

Showing 2100 - 2200 of 3236

First
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
Last

Step by Step Answers

Services

Sitemap
Fun
Definitions
Become Tutor
Used Textbooks
Study Help Categories
Recent Questions
Expert Questions
Campus Wear
Sell Your Books

Company Info

Security
Copyrights
Privacy Policy
Terms & Conditions
SolutionInn Fee
Scholarship
Online Quiz
Give Feedback, Get Rewards

Get In Touch

About Us
Contact Us
Career
Jobs
FAQ
Student Discount
Campus Ambassador

Secure Payment

Download Our App

© 2026 SolutionInn. All Rights Reserved