You have recently landed a job in the Accounting Department of a public company listed on the NASDAQ exchange. You have been asked to prepare year-end adjusting entries, including an appropriate adjustment to the Allowance for Doubtful Accounts. According to the Aged Accounts Receivable analysis, the Allowance should be $200,000
See attached files. Cash Flow Statements Practice Questions Question 1 Complete the Statement of Cash Flows. Show workings. Mickelson Ltd manufactures golf clubs for professional golfers. Mickelson Ltd's balance sheets for the years ended 30 June 2010 and 2011. Question 2) Hooker Corporation collapsed in Ju
Use the following information to prepare a multistep income statement and classified balance sheet for Usrey Equipment Co. for 2012 (Hint Some of the items will not appear on either statement, and ending retained earnings must be calculated) Â Salaries expense $130,000 Interest receivable (short term) $ 400 Common stock
Assume that after recording all adjusting entries (except income taxes), Elite's income before income taxes amounts to $7,500. Also assume Elite is a corporation subject to income taxes of 40% of income before income taxes. Which of the following statements is correct? 1. Elite need not accrue any more income taxes expense
See the attached file for proper format. The following information pertains to Jayne's Flowers Inc., a corporation owned by Ms. Jayne Raphael. The company opened for business in 2009. Jayne's uses the cash basis of accounting during the year. Each year, at year end, the company's CPA, Jeffrey Simmons, converts the cash basis
Balance sheet analysis Complete the balance sheet and sales information using the following financial data: debt to assets ratio= 50% Current ratio= 1.8x Total assets turnover=1.5x Days sales outstanding=36.5 days Gross profit margin on sales(sales-cost of goods sold)/sales=25% Inventory turnover ratio=5x Calcul
Classified Financial Statement Preparation and Analysis P.5 Jimenez Company sells outdoor sports equipment. At the December 31, 2009, year end, the following financial information was available from the income statement: administrative, $ expenses, 80,800; cost of goods sold, 350,420; interest expense, $22,640; interest inco
You have recently been hired as Q & R Manufacturing's chief financial officer (CFO) by the firm's chief executive officer (CEO). The CEO tells you that in the past, a lack of financial planning has frequently caused the firm to have to rush out and get outside funding by either borrowing money (selling bonds)
18. The relationship between the income statement and the balance sheet may be described as follows: a. The income statement explains part of the change in owners' equity between two balance sheet dates. b. The balance sheet summarizes the change in net income occurring between successive income statements c. The income s
What information is important to the readers of financial statements? What are the qualitative and quantitative limitations of financial statements? How might we overcome the limitations of financial statements?
1. External users want answers to all of the following questions except A. Is the company earning satisfactory income? B. Will the company be able to pay its debts as they come due? C. Did the company use a budget to plan its expenses? D. How does the company compare in profitability with competitor
Which financial statement helps you figure out: Is the firm generating enough cash to repay is debt to invest in new products? Does the firm generate enough internal funds to support investment, or does new stock need to be issued? Is the firm financed with too much debt? How profitable has the firm been? Can the
Chapter 3 Problem 16 a Using the information provided, construct a monthly cash budget for October through December 2008. Based on your analysis, will Noble enjoy a surfeit of cash, or require external financing? b Construct a pro forma income statement for the first fiscal quarter of 2009 and a pro f
1)Identify which financial statement would help answer the questions below - Bal. Sheet Income Stmt. Stmt. Of cash flows Statement of stockholders' equity Is the firm generating enough cash to repay is debt to invest in new products? Does the firm generate enough internal funds to support investment, or does new s
E12-20 On January 2, 2011, Sanborn Tobacco, Inc. bought 55 OF Jackson Industry's capital stock for $90 million as a temporary investment. Sanborn realized that these securities normally would be classified as available-for-sale but elected the fair value option to account for the investment. Jackson' Industry's net income for
Problem 1-30 Prepare Financial Statements for Two Complete Accounting Cycles Webster Consulting experienced the following transactions for 2012, its first year of operations and 2013. Assume that all transactions involve the receipt or payment of cash. Transactions for 2012 1. Acquired $20,000 by issuing common stock. 2.
Where an auditor's judgment and opinion can have a significant impact on the stakeholders' perception is when issues of going concern arise. Issues of going concern arise when the auditor determines that, due to certain circumstances, "the client may not be able to continue its operations or meet its obligations for a reasonable
I agree that transparency in an organization's financial statements has become an important issue in the auditing world since the fall of Enron. According to a documentary I watched on the scandal, The Smartest Guys in the Room, one of the many issues with Enron was that the business they were doing with buying and selling of e
Giada Foods reported $940 million in income before income taxes for 2011, its first year of operations. Tax depreciation exceeded depreciation for financial reporting purposes by $100 million. The company also had non-tax-deductible expenses of $80 million relating to permanent differences.The income tax rate for 2011 was 35%, b
Problem 13-1A Ratios, common-size statements, and trend percents Selected comparative financial statements of Bennington Company follow. Required 1. Compute each year's current ratio. (Round ratio amounts to one decimal.) 2. Express the income statement data in common-size percents. (Round percents to two decimals.) 3
See attached file. Compute the following ratios... Working Capital Current Ratio Quick Ratio (Acid-test Ratio) Cash Ratio Days Sales in Receivables Average Receivables Turnover Days Sales in inventory Inventory Turnover in days Operating Cycle Days Payable Outstanding
Doc Gibbs has prepared the following list of statements about process cost accounting. Identify each statement as true or false. 1. Process cost systems are used to apply costs to similar products that are mass-produced in a continuous fashion. 2. A process cost system is used when each finished unit is indistinguishabl
OCI is reported as part of equity on the balance sheet. It is important to remember that OCI should be shown as a separately stated item. Often I will see a report the net amount of R/E without showing the details. Please share your comments about this.
1. Go to the Financial Accounting Standards Board's web site. LIst by number and name all FASB statements that specifically provide accounting and reporting guidance for not-for profit organizations. Can you oftain a copy of the full text of these statements from this web site? Does the FASB charge for its statements, or are
What are the elements that should be included on the equity section of a balance sheet? Provide examples of these elements. (Ch. 15 of Intermediate Accounting in Kieso,D.E., Weygandt, JJ & Warfield 2007)
How would you describe financial accounting? Select two users, one internal and one external, who you think benefit the most from accounting. Explain why and how you think they benefit.
Imagine Widgets Airlines, Inc. operates 18-seat commercial flights between New York City and Washington, DC. After 10 seats have been sold on each aircraft, the company has reached the break-even point. Should Widgets consider offering a discounted fare for seats 11 through 18? What are the advantages and disadvantages of not of
Bulk purchases is usually related to real estate, Land and Building. The purchaser pays a price for both. It is important to breakdown the price since Land is not depreciable, but it needs to be reported on the Balance Sheet. I am certain that the calculation between land / building is of utmost importance. Are there other me
What does a external audit (financial statement) include for a company?
Bruno Manufacturing Inc. has sales of $2,200,000 for the first quarter of 2010. In making the sales, the company incurred the following costs and expenses: Variable Fixed Cost of goods sold 920000 440000 Selling expenses 70000 45000 Administrative expenses 86000 98000