Listed below are year-end account balances (in $millions) taken from the records of Symphony Stores.

	Debit	Credit
Accounts receivable-trade	699
Building and equipment	930
Cash-checking	40
Interest receivable	34
Inventory	25
Land	166
Notes receivable (long-term)	484
Petty cash fund	7
Prepaid rent	28
Supplies	8
Trademark	49
Accounts payable-trade		614
Accumulated depreciation		75
Additional paid-in capital		485
Allowance for uncollectible accounts		18
Cash dividends payable		29
Common stock, at par		11
Income tax payable		60
Notes payable (long-term)		826
Retained earnings		324
Deferred revenues		28
TOTALS	2,470	2,470

What would Symphony report as total assets?

a.) $1,551 millions.

b.) $2,395 millions.

c.) $2,470 millions.

d.) $2,377 millions.

5. Listed below are year-end account balances (in $millions) taken from the records of Symphony Stores.

	Debit	Credit
Accounts receivable-trade	697
Building and equipment	923
Cash-checking	50
Interest receivable	37
Inventory	34
Land	151
Notes receivable (long-term)	479
Petty cash fund	8
Prepaid rent	25
Supplies	9
Trademark	41
Accounts payable-trade		612
Accumulated depreciation		72
Additional paid-in capital		478
Allowance for uncollectible accounts		20
Cash dividends payable		24
Common stock, at par		11
Income tax payable		58
Notes payable (long-term)		815
Retained earnings		326
Deferred revenues		38
TOTALS	2,454	2,454

What would Symphony report as total shareholders' equity?

a. $1,630 millions.

b.) $839 millions.

c.) $815 millions.

d.) $791 millions.

6.

Listed below are year-end account balances (in $ millions) taken from the records of Symphony Stores. All of these are permanent accounts, except the last two that have yet to be closed. The installment receivables are current. Symphony uses a perpetual inventory system.

	Debit	Credit
Accounts receivable-trade	691
Building and equipment	924
Cash-checking	50
Installment receivables	59
Interest receivable	49
Inventory	29
Land	170
Notes receivable Long-term	472
Petty cash funds	7
Prepaid expenses (for coming year)	39
Supplies	10
Trademark	58
Accounts payable-trade		545
Accumulated depreciation		65
Additional paid-in capital, common		466
Allowance for uncollectible accounts		18
Cash dividends payable		25
Common stock, at par		12
Income tax payable		49
Notes payable (long-term)		591
Retained earnings		47
Deferred revenues		29
Cash dividends declared-common	127
Income summary		838
TOTALS	2,685	2,685

What is the amount of working capital for Symphony?

a.) $219 millions.

b.) $256 millions.

c.) $268 millions.

d.) $283 millions.

7.

Janson Corporation Co.'s trial balance included the following account balances at December 31, 2016:

Accounts payable	$26,500
Bond payable, due 2025	24,500
Salaries payable	17,700
Note payable, due 2017	20,100
Note payable, due 2021	41,400

What amount should be included in the current liability section of Janson's December 31, 2016, balance sheet?

a.) $44,200

b.) $68,700

c.) $64,300

d.) $105,700

8. The following partial balance sheet ($ in thousands) for Paisano Seafood Inc. is shown below.

Current assets:			Current liabilities:
Cash	$ 68		Accounts payable	$237
Accounts receivable (net)	180		Other liabilities	75
Notes receivable	64		Total current liabilities	312
Inventories	201		Long-term liabilities	96
Prepaid expenses	43		Total liabilities	408
Total current assets	556		Shareholders' equity:
Plant assets (net)	266		Capital stock	139
			Retained earnings	275
			Total shareholders' equity	414
Total assets	$822		Total liabilities and equity	$822

Working capital is:

a.) $556 thousand.

b.) $148 thousand.

c.) $319 thousand.

d.) $244 thousand.

9.

Recent financial statement data for Harmony Health Foods (HHF) Inc. is shown below.

Current liabilities	$ 190		Income before interest and taxes	$ 134
10% Bonds, long-term	390		Interest expense	39
Total liabilities	580		Income before tax	95
Shareholders' equity			Income tax	25
Capital stock	206		Net income	$ 70
Retained earnings	297
Total shareholders' equity	503
Total liabilities and equity	$1,083

HHF's debt to equity ratio is :

a) 1.87

b) 1.15

c) 0.78

d) 0.53

Answer rating: 100% (QA)

4 d 2377 millions Total assets current assets fixed assets Accounts receivable trade Allowance for u... View the full answer