Questions and Answers of Financial Accounting Tool

g enthusiasts. During the last part of 2022, Ehler had the following transactions related to notes payable. Sept. 1 Issued a $12,000 note to Pippen to purchase inventory. The 3-month note
The condensed financial statements of Ness Company for the years 2021 and 2022 are presented below. Compute the following ratios for 2022 and 2021. a. Current ratio. b. Inventory
Panza Corporation experienced a fire on December 31, 2022, in which its financial records were partially destroyed. It has been able to salvage some of the records and has ascertained the following
Here is the income statement for Myers, Inc. Additional information: 1. Common stock outstanding January 1, 2022, was 32,000 shares, and 40,000 shares were outstanding at December 31,
Selected hypothetical comparative statement data for the giant bookseller Barnes & Noble are presented here. All balance sheet data are as of the end of the fiscal year (in
Lendell Company has these comparative balance sheet data: Additional information for 2022: 1. Net income was $25,000. 2. Sales on account were $375,000. Sales returns and allowances
Gwynn Incorporated had the following transactions involving current assets and current liabilities during February 2022. Feb. 3 Collected accounts receivable of $15,000. 7 Purchased
Nordstrom, Inc. operates department stores in numerous states. Selected hypothetical financial statement data (in millions) for 2022 are presented below. For the year, net credit sales were
Here are the comparative income statements of Delaney Corporation. Instructions a. Prepare a horizontal analysis of the income statement data for Delaney Corporation, using 2021 as a
Hypothetical balance sheets of Nike, Inc. are presented here. Instructions a. Prepare a horizontal analysis of the balance sheet data for Nike, using 2021 as a base. b. Prepare a
Operating data for Joshua Corporation are presented below. Instructions Prepare a schedule showing a vertical analysis for 2022 and 2021. 2022 2021 Sales revenue Cost of goods sold Selling
Here is financial information for Glitter Inc.Instructions Prepare a schedule showing a horizontal analysis for 2022, using 2021 as the base year. December 31, 2022 December 31, 2021 Current
Trayer Corporation has income from continuing operations of $290,000 for the year ended December 31, 2022. It also has the following items (before considering income taxes). 1. An unrealized
For its fiscal year ending October 31, 2022, Haas Corporation reports the following partial data shown below. The loss on discontinued operations was comprised of a $50,000 loss from operations
The condensed financial statements of Murawski Company for the years 2021 and 2022 are presented as follows. (Amounts in thousands.)Compute the following ratios for 2022 and 2021. a. Current
Summary financial information for Gandaulf Company is as follows. Compute the amount and percentage changes in 2022 using horizontal analysis, assuming 2021 is the base year Dec. 31, 2022 Dec.
In its proposed 2022 income statement, Hrabik Corporation reports income before income taxes $500,000, income taxes $100,000 (not including unusual items), loss on operation of discontinued music
The following data were taken from the income statements of Mydorf Company. Compute for each year (a) the inventory turnover and (b) days in inventory. What conclusions concerning the management
The following data are taken from the financial statements of Colby Company.Compute for each year (a) the accounts receivable turnover and (b) the average collection period. What conclusions about
Suppose these selected condensed data are taken from recent balance sheets of Bob Evans Farms (in thousands). Compute the current ratio for each year and comment on your results. 2022 2021 $
Horizontal analysis (trend analysis) percentages for Phoenix Company’s sales revenue, cost of goods sold, and expenses are listed here. Explain whether Phoenix’s net income increased,
Vertical analysis (common-size) percentages for Palau Company’s sales revenue, cost of goods sold, and expenses are listed here. Did Palau’s net income as a percent of sales increase,
The November 23, 2011, edition of the Wall Street Journal Online contains an article by John Jannarone entitled “Backlash from Netflix Buybacks.” Instructions Read the article and then
The April 30, 2017, edition of the Wall Street Journal contains an article by Tripp Mickle entitled “Apple’s Cash Hoard Set to Top $250 Billion.” Instructions Read the article and
You are provided with the following transactions that took place during the year. Instructions For each transaction listed, indicate whether it will increase (I), decrease (D), or have no
he comparative balance sheets for Spicer Company as of December 31 are presented below. Additional information: 1. Operating expenses include depreciation expense of $42,000 ($20,000 of
Data for Granger Inc. are presented in P12.9A. Further analysis reveals that accounts payable pertain to merchandise creditors. Instructions Prepare a statement of cash flows for Granger
Condensed financial data of Granger Inc. follow.Additional information: 1. New plant assets costing $100,000 were purchased for cash during the year. 2. Old plant assets having an original
Data for Warner Company are presented in P12.7A. Further analysis reveals the following. 1. Accounts payable pertain to merchandise suppliers. 2. All operating expenses except for
Presented below are the financial statements of Warner Company.Additional data: 1. Depreciation expense was $17,500. 2. Dividends declared and paid were $20,000. 3. During the year
Data for Rewe Company are presented in P12.5A. Instructions Prepare the operating activities section of the statement of cash flows using the direct method. Data From P12.5A.Rewe
Rewe Company’s income statement contained the condensed information below. Accounts payable pertain to operating expenses. Instructions Prepare the operating activities section of
Data for Munsun Company are presented in P12.3A. Instructions Prepare the operating activities section of the statement of cash flows using the direct method. Data From P12.3AThe
The income statement of Munsun Company is presented here. Additional information: 1. Accounts receivable decreased $380,000 during the year, and inventory decreased $300,000. 2.
The following account balances relate to the stockholders’ equity accounts of Molder Corp. at year-end. A small stock dividend was declared and issued in 2022. The market price of the shares
You are provided with the following information regarding events that occurred at Moore Corporation during 2022 or changes in account balances as of December 31, 2022.Instructions Moore prepares
The following information is taken from the 2022 general ledger of Preminger Company. Instructions In each case, compute the amount that should be reported in the operating activities
The following information is available for Balboa Corp. for 2022. Cash used to purchase treasury stock..............$ 48,100 Cash dividends paid..............21,800 Cash paid for
The 2022 accounting records of Megan Transport reveal these transactions and events.Instructions Prepare the cash flows from operating activities section using the direct method. Payment of
Suppose the 2022 income statement for McDonald’s Corporation shows cost of goods sold $5,178.0 million and operating expenses (including depreciation expense of $1,216.2 million) $10,725.7 million.
Zimmer Company completed its first year of operations on December 31, 2022. Its initial income statement showed that Zimmer had sales revenue of $198,000 and operating expenses of $83,000. Accounts
Information for two companies in the same industry, Merrill Corporation and Wingate Corporation, is presented here. Instructions Compute free cash flow for both companies and compare.
Suppose the following is 2022 information for PepsiCo, Inc. and The Coca-Cola Company. Instructions Compute free cash flow for both companies and compare. (S in millions) Net cash
The following are comparative balance sheets for Mitch Company.Additional information: 1. Net income for 2022 was $93,000. 2. Depreciation expense was $34,000. 3. Cash dividends of
The following three accounts appear in the general ledger of Beiber Corp. during 2022. Instructions From the postings in the accounts, indicate how the information is reported on a
The following information is available for Moab Corporation for the year ended December 31, 2022. Beginning cash balance..................$ 24,000 Accounts payable
The following information is available for Stamos Corporation for the year ended December 31, 2022. Beginning cash balance....................$ 45,000 Accounts payable
The current sections of Ray Inc.’s balance sheets at December 31, 2021 and 2022, are presented here. Ray’s net income for 2022 was $254,000. Depreciation expense was
The current sections of Sunn Inc.’s balance sheets at December 31, 2021 and 2022, are presented here. Sunn’s net income for 2022 was $153,000. Depreciation expense was
Sosa Company reported net income of $190,000 for 2022. Sosa also reported depreciation expense of $35,000 and a loss of $5,000 on the disposal of plant assets. The comparative balance sheets show an
An analysis of comparative balance sheets, the current year’s income statement, and the general ledger accounts of Hailey Corp. uncovered the following items. Assume all items involve cash unless
Kiley Corporation had these transactions during 2022. a. Purchased a machine for $30,000, giving a long-term note in exchange. b. Issued $50,000 par value common stock for cash. c.
Moskow Corporation issued the following statement of cash flows for 2022.a. Compute free cash flow for Moskow Corporation. b. Explain why free cash fl ow often provides better information than
a. PK Photography reported net income of $100,000 for 2022. Included in the income statement were depreciation expense of $6,300, patent amortization expense of $4,000, and a gain on disposal of
Pietr Corporation reports operating expenses of $90,000, excluding depreciation expense of $15,000, for 2022. During the year, prepaid expenses decreased $7,200 and accrued expenses payable increased
Hoff man Corporation reported income taxes of $370,000,000 on its 2022 income statement and income taxes payable of $277,000,000 at December 31, 2021, and $528,000,000 at December 31, 2022. What
Suppose Columbia Sportswear Company had accounts receivable of $299,585,000 at January 1, 2022, and $226,548,000 at December 31, 2022. Assume sales revenue was $1,244,023,000 for the year 2022. What
Suppose Canwest Global Communications Corp. reported net cash used by operating activities of $104,539,000 and sales revenue of $2,867,459,000 during 2022. Cash spent on plant asset additions during
The stockholders’ equity section of Apple Inc.’s balance sheet is shown in the Consolidated Statement of Financial Position in Appendix A. The complete annual report, including the notes to its
The stockholders’ equity section of Mabry Corporation’s balance sheet consists of common stock ($8 par) $1,000,000 and retained earnings $300,000. A 10% stock dividend (12,500 shares) is
M. Bot Corporation has 10,000 shares of 8%, $100 par value, cumulative preferred stock outstanding at December 31, 2022. No dividends were declared in 2020 or 2021. If M. Bot wants to pay $375,000 of
For most U.S. families, medical costs are substantial and rising. But will medical costs be your most substantial expense over your lifetime? Not likely. Will it be housing or food? Again, not
The financial statements of Louis Vuitton are presented in Appendix F. The complete annual report, including the notes to its financial statements, is available at the company’s
If your school has a subscription to the FASB Codification, log in and prepare responses to the following. Use the Master Glossary for determining the proper definitions. a. Discontinued
You are a loan officer for White Sands Bank of Taos. Paul Jason, president of P. Jason Corporation, has just left your office. He is interested in an 8-year loan to expand the company’s operations.
The Coca-Cola Company and PepsiCo, Inc. provide refreshments to every corner of the world. Selected data from hypothetical consolidated financial statements for The Coca-Cola Company and for
Selected hypothetical financial data of Target and Wal-Mart for 2022 are presented here (in millions). Instructions a. For each company, compute the following ratios. 1. Current
The following financial information is for Priscoll Company Additional information: 1. Inventory at the beginning of 2021 was $115,000. 2. Accounts receivable (net) at the beginning of 2021
Condensed balance sheet and income statement data for Jergan Corporation are presented here. Additional information: 1. The market price of Jergan’s common stock was $7.00, $7.50, and
The comparative statements of Wahlberg Company are presented here.All sales were on account. Net cash provided by operating activities for 2022 was $220,000. Capital expenditures were $136,000, and
Here are comparative statement data for Duke Company and Lord Company, two competitors. All balance sheet data are as of December 31, 2022, and December 31, 2021. Instructions a. Prepare a
Net income was $500,000 in 2020, $485,000 in 2021, and $518,400 in 2022. What is the percentage of change from (a) 2020 to 2021, and (b) from 2021 to 2022? Is the change an increase or a decrease?
Using the data presented in BE13.4 for Rollaird Company, perform vertical analysis.Data From BE 13.4Using these data from the comparative balance sheet of Rollaird Company, perform horizontal
Using these data from the comparative balance sheet of Rollaird Company, perform horizontal analysis. December 31, 2022 $ 460,000 December 31, 2021 Accounts receivable $ 400,000 Inventory
On January 1, 2022, Bryce Inc. changed from the LIFO method of inventory pricing to the FIFO method. Explain how this change in accounting principle should be treated in the company’s financial
Vern Thoms is puzzled. His company had a profit margin of 10% in 2022. He feels that this is an indication that the company is doing well. Tina Amos, his accountant, says that more information is
a. If Erin Company had net income of $300,000 in 2021 and it experienced a 24.5% increase in net income for 2022, what is its net income for 2022? b. If 6 cents of every dollar of Erin’s
What amount did Apple report as “Other comprehensive earnings” in its consolidated statement of comprehensive income ending September 30, 2017? By what percentage did Apple’s “Comprehensive
Hogan Inc. reported 2021 earnings per share of $3.26 and had no discontinued operations. In 2022, earnings per share on income from continuing operations was $2.99, and earnings per share on net
Explain sustainable income. What relationship does this concept have to the treatment of discontinued operations on the income statement?
The financial statements of Louis Vuitton are presented in Appendix F. The complete annual report, including the notes to its financial statements, is available at the company's
Pendleton Automotive Corp. is a medium-sized wholesaler of automotive parts. It has 10 stockholders who have been paid a total of $1 million in cash dividends for 8 consecutive years. The board’s
Walt Jax, the owner-president of Computer Services Company, is unfamiliar with the statement of cash flows that you, as his accountant, prepared. He asks for further
Pete Kent and Maria Robles are examining the following statement of cash flows for Sullivan Company for the year ended January 31, 2022. Pete claims that Sullivan’s statement of cash flows is
Jenseng Inc. issues a $800,000, 10%, 10-year mortgage note on December 31, 2022, to obtain financing for a new building. The terms provide for annual installment payments of $130,196. Prepare the
The October 31, 2017, issue of the Wall Street Journal includes an article by Suzanne Kapner entitled “Inside the Decline of Sears, the Amazon of the 20th Century.” Instructions Read
Suppose the information below is from the 2022 financial statements and accompanying notes of The Scotts Company, a major manufacturer of lawn-care products. Instructions Answer each of the
At the end of 2021, Safer Co. has accounts receivable of $700,000 and an allowance for doubtful accounts of $25,000. On January 24, 2022, it is learned that the company’s receivable from Madonna
Assume The Coca-Cola Company’s accounts receivable turnover was 9.05, and its average amount of net receivables during the period was $3,424 million. What is the amount of its net credit sales for
Compute the missing amounts for each of the following notes. Total Interest Annual Principal Interest Rate 6% Time (a) 60 days $ 270 (b) 11% 5 months (c) $60,000 $50,000 $2,500 $2,750 3 years
Calico Corners decides to sell $400,000 of its accounts receivable to Fast Cash Factors Inc. Fast Cash Factors assesses a service charge of 3% of the amount of receivables sold. Prepare the journal
If your school has a subscription to the FASB Codification, log in and prepare responses to the following. a. How is cash defined in the Codification? b. How are cash equivalents defined in
As a new auditor for the CPA firm of Blacke and Whyte, you have been assigned to review the internal controls over mail cash receipts of Simon Company. Your review reveals that checks are promptly
The financial statements of Amazon.com, Inc. are presented in Appendix D. Financial statements of Wal-Mart Stores, Inc. are presented in Appendix E. Instructions Answer the following
Bastille Corporation prepares monthly cash budgets. Here are relevant data from operating budgets for 2022. All sales and purchases are on account. Budgeted collections and disbursement data are
Timmins Company of Emporia, Kansas, spreads herbicides and applies liquid fertilizer for local farmers. On May 31, 2022, the company’s Cash account per its general ledger showed a balance of
Rigley Company expects to have a cash balance of $46,000 on January 1, 2022. These are the relevant monthly budget data for the first two months of 2022. 1. Collections from customers: January
A new accountant at Wyne Inc. is trying to identify which of the amounts shown below should be reported as the current asset “Cash and cash equivalents” in the year-end balance sheet, as of April
Perth Inc.’s bank statement from Main Street Bank at August 31, 2022, gives the following information. A summary of the Cash account in the ledger for August shows the following: balance,
This information relates to the Cash account in the ledger of Howard Company. Balance September 1—$16,400; Cash deposited—$64,000 Balance September 30—$17,600; Checks

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