ACCT 2001 Study Guide - Midterm Guide: Accounts Payable, Retained Earnings, Net Income

75 views2 pages

turquoisegnu128

15 Oct 2018

School

Department

Course

Professor

For unlimited access to Study Guides, a Grade+ subscription is required.

marooncat340 and 37157 others unlocked

ACCT 2001 Full Course Notes

Verified Note

67 documents

Document Summary

Exam 1 acct 2001 practice quiz chapter 3. Use the following information for questions about richard services co. Total assets: as shown in exhibit 1-2, if all of the cash was used to pay part of accounts payable, then the total liabilities and owners" equity would: ,000: missouri magazine publishing company sells magazine subscriptions on an annual basis covering 12 issues. Subscriptions totaling ,000 were sold in november, and the first magazines are delivered in december. The total amount collected was recorded in unearned magazine revenues. The adjusting entry required at december 31 would include: a 120-day, 12% note receivable for ,500 was received from a customer on november 1. Ford company retained earnings increased ,000 during the year and the company paid dividends of ,000. What was the net income (loss) for the year: uconn company had beginning retained earnings of ,000. During the year, total assets increased by ,000 and total liabilities increased by.

Related Questions

Test Your Knowledge

ComparativeBalance Sheet

For the Year Ended 2017 and 2016

2017 2016

Assets

Cash $156,500 $115,000

Marketable Securities 34,000 22,000

Accounts Receivable 8,000 10,000

Inventory 27,000 15,000

Prepaid expenses 1,500 2,000

Plant assets 80,000 100,000

Accumul deprec (29,000) (30,000)

Total Assets $278,000 $234,000

Liabilities & Owner's Equity

Accounts payable $7,000 $4,000

Note payable short-term 26,000 12,000

Interest payable 4,000 3,000

Income tax payable 9,000 6,000

Bonds payable 42,000 50,000

Common stock 145,000 135,000

Retained earnings 45,000 24,000

Total liabilities & OE $278,000 $234,000

1. Sold plant assets for $ 60,000. Their book was $ 53,000.

2. Marketable securities sold for $ 15,000

3. Purchased plant assets by paying 22,000 down and financing the remainder using a short-term note.

Sales $100,000

Cost of goods sold 40,000

Gross Profit $60,000

Operating expenses

Depreciation exp $8,000

General exp 10,000 $18,000

Operating income 42,000

Other revenue and expenses

Gain on sale of plant assets $7,000

Loss on sale of marketable securities (2,000)

Interest exp (3,000) 2,000

Income from continuing operations 44,000

Income tax 17,600

Net income $26,400

Prepare cash flow analysis using indirect method. Prepare cash flow analysis for operations using indirect method.

(Direct method is extra credit only)

taupereindeer397

Test Your Knowledge

ComparativeBalance Sheet

For the Year Ended 2017 and 2016

2017 2016

Assets

Cash $156,500 $115,000

Marketable Securities 34,000 22,000

Accounts Receivable 8,000 10,000

Inventory 27,000 15,000

Prepaid expenses 1,500 2,000

Plant assets 80,000 100,000

Accumul deprec (29,000) (30,000)

Total Assets $278,000 $234,000

Liabilities & Owner's Equity

Accounts payable $7,000 $4,000

Note payable short-term 26,000 12,000

Interest payable 4,000 3,000

Income tax payable 9,000 6,000

Bonds payable 42,000 50,000

Common stock 145,000 135,000

Retained earnings 45,000 24,000

Total liabilities & OE $278,000 $234,000

1. Sold plant assets for $ 60,000. Their book was $ 53,000.

2. Marketable securities sold for $ 15,000

3. Purchased plant assets by paying 22,000 down and financing the remainder using a short-term note.

Sales $100,000

Cost of goods sold 40,000

Gross Profit $60,000

Operating expenses

Depreciation exp $8,000

General exp 10,000 $18,000

Operating income 42,000

Other revenue and expenses

Gain on sale of plant assets $7,000

Loss on sale of marketable securities (2,000)

Interest exp (3,000) 2,000

Income from continuing operations 44,000

Income tax 17,600

Net income $26,400

Prepare cash flow analysis using direct method. Prepare cash flow analysis for operations using direct method.

pucewallaby221

Write an assessment of the company's financial performance,using ratios to support your conclusion. What can you concludeabout the company's liquidity, solvency, and profitability? Be sureto include the ratios calculation to support your conclusion.

Use the financial statements provided below to calculate thefollowing financial ratios:

	2012	2011
1. Current Ratio	10.915	6.715
2. Quick Ratio	11.307	7.524
3. Long-Term Debt-to-Equity Ratio	2.785	3.834
4. Debt-to-Equity Ratio	2.785	3.834
5. Long-Term Debt Ratio	2.866	3.988
6. Accounts Receivable Turnover Ratio (Assume that60% of Sales are Credit	25.491	8.908
7. Inventory Turnover Ratio (Assume 2011 beginninginventory was -0-.)	-0.715	-0.450
8. Asset Turnover Ratio	0.163	0.076
9. Gross Profit Percentage	0.731	0.806
10. Net Profit Margin Percentage	0.375	0.311
11. Return on Assets	0.061	0.024
12. Return on Equity	0.237	0.118

Get Your Motor Runnin'

Compartive Balance Sheets

	2012	2011
Assets
Current Assets
Cash	$198,456	$147,333
Accounts Receivable	4,000	5,000
Allowance for Uncollectible Accounts	(250)	80
Supplies	200	250
Inventory	35,000	32,000
Total current assets	237,406	184,663
Property, Plant, and Equipment
Equipment	60,000	15,000
Accumulated Depreciation - Equipment	(14,000)	(1,000)
Vehicles	35,000	35,000
Accumulated Depreciation - Vehicles	(4,800)	(2,400)
Building	684,375	684,375
Accumulated Depreciation - Building	(25,000)	(12,500)
Land	46,875	46,875
Land Improvements	23,750	23,750
Accumulated Depreciation - Land Improvements	(2,539)	(663)
Total PP&E	803,661	788,437
Total Assets	$1,041,067	$973,100

Liabilities and Stockholders' Equity
Current Liabilities
Accounts Payable	$20,000	$24,000
Wages Payable	1,000	500
Warranties Payable	750	500
Notes Payable	0	2,500
Total current liabilities	21,750	27,500
Long-term Liabilities
Bonds Payable	750,000	450,000
Mortgage Payable	0	300,000
Total long-term liabilities	750,00	750,000
Total liabilities	771,750	777,500
Stockholder's Equity
Common Stock	125,000	125,000
Paid-in capital in excess of par - common	25,000	25,000
Preferred Stock	40,000	20,000
Paid-in capital in excess of par - preferred	25,000	15,000
Less: Treasury Stock	(3,000)	(3,000)
Paid-in capital - treasury stock	500	500
Retained Earnings	56,817	13,100
Total stockholders' equity	269,317	195,600
Total liabilities and stockholders' equity	$1,041,067	$973,100

Get Your Motor Runnin'

Comparative Income Statements

	2012	2011
Service Revenue	$93,693	$50,230
Sales	76,250	24,000
Cost of Goods Sold	(45,750)	(14,400)
Gross Margin	$124,193	$59,830

Operating Expenses:
Advertising Expense	$7,500	$5,000
Bad Debt Expense	330	0
Depreciation Expense - Equipment	13,000	5,667
Depreciation Expense - Vehicles	2,400	2,400
Depreciation Expense - Building	12,500	12,500
Depreciation Expense - Land Improvements	1,876	663
Wages Expense	22,870	10,500
Total Expenses	60,476	36,730
Net Income	$63,717	$23,100

aquamarinecod596

ACCT 2001 Study Guide - Midterm Guide: Accounts Payable, Retained Earnings, Net Income

ACCT 2001 Full Course Notes

Document Summary

Get access

Related Documents

ACCT 2001 Study Guide - Final Guide: Bank Reconciliation, Accounts Payable, Treasury Stock

ACCT 2001 Study Guide - Midterm Guide: Issued Shares, Gross Margin, Preferred Stock

ACCT 2001 Study Guide - Midterm Guide: Accounts Payable, Accounts Receivable

Related Questions