Answered: Loss on sale of land Cost of goods sold…

Loss on sale of land Cost of goods sold $5,000 130,000 Sales (net) Operating expenses $198,000 45,000 Twelve thousand shares of common stock were outstanding the entire year.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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This Year Last Year Assets Current assets: Cash $360,000 $310,000 Marketable securities 220,000 80,000 Accounts receivable, net 775,000 700,000 Inventory 925,000 750,000 Other current assets 355,000 195,000 Total current assets 2,635,000 2,035,000 Plant and eqipment, net 1,975,000 1,800,000 Other assets 75,000 100,000 Total assets $4,685,000 $3,935,000 Liabilities and Stockholders' Equity Current Liabilities: Accounts payable $250,000 $225,000 Short-term bank loans 750,000 600,000 Accrued payables 550,000 395,000 Other current liabilities 275,000 223,400 Total current liabilities 1,825,000 1,443,400 Bonds payable, 10% 575,000 400,000 Total liabilities 2,400,000 1,843,400 Stockholders' equity: Common stock 1,150,000 1,150,000 Retained earnings 1,135,000 941,600 Total stockholders' equity 2,285,000 2,091,600 Total liabilities and stockholders' equity $4,685,000 $3,935,000…
The assets of Moreland Corporation are presented below. January 1 December 31 Cash Marketable securities $48,000 $62,000 42,000 35,000 Accounts receivable 68,000 47,000 Inventory 125,000 138,000 Plant & equipment (net of accumulated depreciation) 325,000 424,000 For the year just ended, Moreland had net income of $96,000 on $900,000 of sales. Moreland's total asset turnover ratio is: Oa. 1.27. Ob. 1.37. Oc. 1.48. Od. 1.50.
MARNI COMPANY Balance Sheet As of December 31 ASSETS Cash 50,000 100,000 200,000 Accounts receivable Inventory Net plant and equipment 650,000 $1,000,000 Total assets LIABILITIES AND STOCKHOLDERS’ EQUITY Accounts payable Accrued expenses $ 100,000 90,000 250,000 100,000 50,000 Long-term debt Common stock Paid-in capital Retained earnings 410,000 $1,000,000 Total liabilities and stockholders' equity MARNI COMPANY Income Statement For the year ended December 31 Sales (all on credit) Cost of goods sold Gross profit $2,000,000 1,750,000 24 250,000 Sales and adminictrative evnences 000 0E %24 %24
Norton Company Income Statement For Year Ended December 31 1 Common stock, $50 par $200,000.00 2 Cost of goods sold 342,000.00 3 Administrative expenses 48,250.00 4 Income tax (applicable to continuing operations) 142,000.00 5 Interest expense 3,750.00 6 Loss on discontinued operations, net of applicable tax of $2,700 5,400.00 7 Sales 865,000.00 8 Selling expenses 83,000.00 Required: Prepare a multiple-step income statement. Include the earnings per share presentation on the income statement. Be sure to complete the statement heading. Refer to the lists of Accounts in the information given, Labels, and Amount Descriptions for the exact wording of the answer choices for text entries. You will not need to enter colons (:) on the income statement. Enter all amounts as positive numbers. Round Earnings per share to two decimal places.
MARNI COMPANY Balance Sheet As of December 31 ASSETS 50,000 100,000 200,000 650,000 $1,000,000 Cash Accounts receivable Inventory Net plant and equipment Total assets LIABILITIES AND STOCKHOLDERS’ EQUITY Accounts payable Accrued expenses $ 100,000 90,000 250,000 100,000 50,000 410,000 $1,000,000 Long-term debt Common stock Paid-in capital Retained earnings Total liabilities and stockholders' equity MARNI COMPANY Income Statement For the year ended December 31 Sales (all on credit) Cost of goods sold Gross profit Sales and administrative expenses $2,000,000 1,750,000 $250,000 30,000 %24
PNG Company Comparative Balance Sheets For the year ended December 31 20X1 20X0 Current assets Cash $157,000 $105,000 Accounts receivable 49,000 62,000 Inventory 53,700 36,100 Prepaid rent 11,400 8,300 Total current assets $271,100 $211,400 Long-term assets Investment in bonds $30,000 $14,800 Land 216,300 184,200 Equipment (net) 114,500 137,900 Total long-term assets $360,800 $336,900 Total assets $631,900 $548,300 Current liabilities Accounts payable $61,300 $52,700 Interest payable 4,900 8,500 Income tax payable 15,400 12,600 Total current liabilities $81,600 $73,800 Long-term liabilities Bonds payable $173,800 $205,400 Stockholders' equity Common stock…
Cash $ 152,000 Liabilities Accounts receivable 1,308,720 Accounts payable $ 763,800 Raw materials inventory 374,300 Loan payable 12,000 Finished goods inventory 1,237,052 Long-term note payable 1,900,000 $ 2,675,800 Equipment $ 2,280,000 Equity Less: Accumulated depreciation 570,000 1,710,000 Common stock 1,273,000 Retained earnings 833,272 2,106,272 Total assets $ 4,782,072 Total liabilities and equity $ 4,782,072 To prepare a master budget for April, May, and June, management gathers the following information. Sales for March total 77,900 units. Budgeted sales in units follow: April, 77,900; May, 74,100; June, 76,000; and July, 77,900. The product’s selling price is $24.00 per unit and its total product cost is $19.85 per unit. Raw materials inventory consists solely of direct materials that cost $20 per pound. Company policy calls for a given month’s ending materials inventory to equal 50% of the next month’s direct materials…
PNG Company Comparative Balance Sheets For the year ended December 31 20X1 20X0 Current assets Cash $157,000 $105,000 Accounts receivable 49,000 62,000 Inventory 53,700 36,100 Prepaid rent 11,400 8,300 Total current assets $271,100 $211,400 Long-term assets Investment in bonds $30,000 $14,800 Land 216,300 184,200 Equipment (net) 114,500 137,900 Total long-term assets $360,800 $336,900 Total assets $631,900 $548,300 Current liabilities Accounts payable $61,300 $52,700 Interest payable 4,900 8,500 Income tax payable 15,400 12,600 Total current liabilities $81,600 $73,800 Long-term liabilities Bonds payable $173,800 $205,400 Stockholders' equity Common stock…
Current Yr 1 Yr Ago 2 Yrs Ago At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net $ 31,600 88,000 112,500 10,650 281,000 $ 36,250 $ 38,400 62,000 83,800 9,350 249,500 49,500 52,500 4,500 235,000 Total assets $523,750 $440,900 $ 379,900 Liabilities and Equity Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings $128,400 $ 74,750 $ 50,800 97,000 160,500 137,850 98,250 160,500 107,400 81,600 160,500 87,000 $523,750 $440,900 $ 379,900 Total liabilities and equity The company's income statements for the Current Year and 1 Year Ago, follow. 1 Yr Ago $ 620,000 Current Yr For Year Ended December 31 Sales Cost of goods sold other operating expenses Interest expense Income tax expense Total costs and expenses $755,000 $445,450 234,050 11,300 9,550 $390,600 148,800 12,700 8,925 561,025 700,350 $ 54,650 $ 58,975 Net income $4 3.40 $4 %24 3.67 Earnings per share For both…
Vertical Analysis of Balance Sheet Balance sheet data for Kwan Company on December 31, the end of two recent fiscal years, follow: Current Year Previous Year Current assets $355,300 $211,680 Property, plant, and equipment 543,400 509,600 Intangible assets 146,300 62,720 Current liabilities 188,100 94,080 Long-term liabilities 428,450 321,440 Common stock 104,500 109,760 Retained earnings 323,950 258,720 Prepare a comparative balance sheet for both years, stating each asset as a percent of total assets and each liability and stockholders' equity item as a percent of the total liabilities and stockholders' equity. If required, round percentages to one decimal place. Kwan Company Comparative Balance Sheet For the Years Ended December 31 Current Current year year Amount Percent Previous Previous year year Amount Percent Current assets $355,300 $211,680 % Property, plant, and equipment 543,400 509,600 % Intangible assets % 146,300 62,720 % % %
MARNI COMPANY Balance Sheet As of December 31 ASSETS 50,000 100,000 200,000 Cash Accounts receivable Inventory 650,000 $1,000,000 Net plant and equipment Total assets LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable Accrued expenses $ 100,000 90,000 250,000 100,000 50,000 410,000 Long-term debt Common stock Paid-in capital Retained earnings Total liabilities and stockholders' equity $1,000,000 MARNI COMPANY Income Statement For the year ended December 31 Sales (all on credit) Cost of goods sold Gross profit Sales and administrative expenses $2,000,000 1,750,000 250,000 30,000 Fixed lease expenses 10.000 %24 %24
Current assets $745,000 $820,000 Property, plant, and equipment 1,510,000 1,400,000 Current liabilities (non-interest-bearing) 160,000 140,000 Long-term liabilities, 12% 400,000 400,000 Preferred 10% stock 250,000 250,000 Common stock, $25 par 1,200,000 1,200,000 Retained earnings, beginning of year 230,000 160,000 Net income for year 110,000 155,000 Preferred dividends declared (25,000) (25,000) Common dividends declared (70,000) (60,000) Determine for the current year the (a) return on total assets, (b) return on stockholders' equity, (c) return on common stockholders' equity, (d) earnings per share on common stock, (e) price-earnings ratio on common stock, and (f) dividend yield. The current market price per share of common stock is $25. Round dollar values to two decimal places and other final answers to one decimal place. a. Return on total assets 7.1 b. Return on stockholders' equity 6.5 X % Return on common stockholders' equity X % d. Earnings per share on common stock 1.77 e.…