Using the 10-k filing for Netflix, Break-even is the point where fixed costs equal the total contribution margin. Another way of saying the same thing is that break-even is the point where net income equals zero. The task for this fourth SLP is to further assess Netflix's financial position. Assume that 70% of the company'
XY Company: Segmented Income Statement It is important to consider the financial impact of changing the product mix (i.e., adding or dropping products). Preparing a segmented income statement for various scenarios assists management in determining the estimated financial impact of making one choice over another. The case belo
Describe management assertions embodied in financial statements. Explain why auditors use them as a focal point of the audit.
Use T-accounts to summarize activities and prepare a classified income statement for April and a classified balance sheet at the end of April. > Pre-opening (March) You decide to go into the bicycle business and invest $100,000 of your own money. You rent a building in a shopping center for $3,000 per month, beginning
The Used Books Company is a small online retailer operating out of a garage apartment. The owner buys books at garage sales, thrift shops, library sales, and whenever an opportunity arises. The company classified all books into five categories based on cost of acquisition and estimated sales price. See below for details about bo
The 1999 Balance Sheet for ABC Corporation is shown below: Assets 1999 Liabilities 1999 Cash $10,000 Accounts Payable $ 8,000 Accounts Receivable 20,000
Use the example of a new restaurant to illustrate the differences between a vision and a mission statement. Please discuss different pricing strategies available to a new business and the methods available to target a market.
Corn Company December 31, 1999 Cash $98,000 Gross account receivable $151,000 Allowance for doubtful accounts(tax,insurance) $12,000 Pre-paid expense $30,000 Inventory $689,000 Land $195,000 Plant/property/equipment (ppe) $912,000 Accumulated depreciation on ppe $613,000
Please help in preparing a bank reconciliation statement for the month. On Aug 14th, Compuville's cash book showed a debit balance of $4,000.00. The bank statement showed a balance of $4,270.00. In the comparison, the following was found: * check issued amounting to $2,500.00 has not been cashed * The bank rejected check
Joey Cuono started his own consulting firm, Cuono Company, on June 1, 2014. The trial balance at June 30 is shown below. CUONO COMPANY Trial Balance June 30, 2014 Account Number Debit Credit 101 Cash $6,200 110 Accounts Receivable 6,000
Write a memo to your superior analyzing the performance of SAC for 2010 and 2011. This analysis should be based on the information found in the consolidated financial statements. Your memo should include the following financial ratios and a comparison of the ratios over the two-year period: •current ratio •debt-to-equi
Armada Company has these comparative balance sheet data: ARMADA COMPANY Balance Sheets December 31 2010 2009 Cash $25,000 $30,000 Receivables (net) 65,000 60,000 Inventories 60,000 50,000 Plant assets (net) 200,000 180,000 $350,000 $320,000 Accounts payable $50,000 $60,000 Mortgage payable (15%) 100,00
Copies Express was incorporated on November 20, 2009, and began operating on January 2, 2010. The balance sheet as of the beginning of operations is shown in Exhibit 1. In preparing financial statements for the first year of operations, the accountant reviewed the record of cash receipts and cash disbursements for Copies Exp
1. Crimson manufactures decorative iron railings. In preparing for next year's operations, management has developed the following estimates: Total Per Unit Sales (20,000 units) $1,000,000 $50.00 Direct materials $200,000
Create an income statement and a balance sheet for years Y1 through Y5. You must use the accrual basis of accounting and apply GAAP accounting principles. Include the following five items on a separate sheet in the same EXCEL worksheet file: balance sheet; income statement; calculation of cost of goods sold, purchases, and endi
Using the Balance sheet dated 12/31/2012, record the transactions that happened during 2013 and complete a Balance sheet dated 12/31/2013. You must list any new assets and liabilities, but can keep the same amounts from the balance sheet dated 12/31/2012. Assume that the net income number includes all necessary revenues and expe
Question: Loretta Smith, president and owner of Custom Enterprises, applied for a $250,000 loan from City National Bank. The bank requested financial statements from Custom Enterprises as a basis for granting the loan. Loretta has told her accountant to provide the bank with a balance sheet. Loretta has decided to omit the other
Need to: - Create pro-forma financial statements for the first five years of operations. - Document all assumptions - Support use of the assumptions. *****Company is seeking growth capital in the amount of $50,000 for the purpose of purchasing new and more modern equipment and for training existing personnel in the use
Assets ...................................................Dec 31, 2013.......... Dec 31, 2012 Cash..............................................................$294....................... $96 Accounts receivable........................................168.........................120 Inventories.................................
4. Tall Company buys all of the outstanding stock of Small Company on November 1, Year One for $500,000 and is now preparing consolidated financial statements at the end of Year One. Small earned revenues of $10,000 per month during Year One along with expenses of $8,000 per month. On November 1, Year One, Small had only one as
Textbook: Financial Accounting - Libby, Libby, and Short Cougar Plastics company has been operating for 3 years. At December 31, 2011, the accounting records reflected the following: Cash $19,000 Investments (short-term) $2,000 Accounts receivable $3
You are an accountant for The Flower Shoppe. Your supervisor has asked you to help her prepare the year-end financial statements. Before you do, she wants to ensure that you understand some main points. Please see Excel attachment. A. Explain the following: 1. The elements of the balance sheet, their purposes, and how to me
The partially completed 2012 balance sheet and income statement for Challenge Industries are given below. Also provided are selected ratio values for the firm based on its completed 2012 Financial statements. Use the ratios along with the partially completed statements to create completed financial statements for the organizatio
Bears, Inc. has a book value of equity is $25.9 million dollars. Below is information about Bears and a peer group of companies. Market Cap (millions) PB(current) 5 year Historical Growth Rate ROE Debt-to-Equity ratio Bears, Inc.
Kohl's Corp. lists the following table in its 2011 Annual Report: In millions 2011 2010 2009 Net sales $18,804 $18,391 $17,178 Number of stores open at end of period 1,127 1,089 1,058 Sales growth: All stores 2.2% 7.1% 4.8% Comparable stores 0.5% 4.4% 0.4% Net sales per selling square foot $220 $222 $217 Requ
To prepare a comprehensive balance sheet and Single-Step Income Statement presented in good form and derived from a list of various accounts. The amounts relative to each account will be given and the student will learn to determine whether an account is a balance sheet account or a temporary account that belongs to the income s
The balance sheet and income statement shown below are for Kryloc Inc. You will find that the firm has no amortization charges. It also does not lease any assets and none of its debt must be retired during the next 5 years. The notes payable will be rolled over. Balance Sheet (Millions of $) Assets 2010 Cash and securi
Scenario: The following events took place for Salsa Inc. during October 2012, the first month of operations as a producer of road bikes: • Purchased $400,300 of materials. • Used $344,300 of direct materials in production. • Incurred $296,000 of direct labor wages. • Applied factory overhead at a rate of 75% of d
Explain how the concepts of liquidity, depreciability, marketability, and controllability apply to the following collateral: - A dentist's accounts receivable - A candy manufacturer's inventory - A publisher's printing press
Provide some pointers on the following: 1. On Feb 15, 2011, this company (attached) filed bankruptcy. I need to find 3 things on the December 31, 2011 financial statements that indicate the company financial problems. 2. Company is currently reorganizing under bankruptcy court protection. Is there anything on the financial