Year 2007 2008 2009 Net income $40,000 125,000 160,000 Dividends declared so 50,000 50,000 The following information relates to 2010: Income before income taxes Prior period adjustment: Understatement of 2008 depreciation expense. (Before taxes) Cumulative decrease in income from change in inventory methods (before taxes) Dividends declared (of this amount, $25,000 will be paid on Jan. 15, 2011) Effective tax rate Instructions: (a) Prepare a 2010 retained earnings statement for McEntire Corporation. $220,000 $25,000 $45,000 $100,000 20%
Q: Wright Company's cash account shows a $30,100 debit balance and its bank statement shows $28,400 on…
A: Bank reconciliation statement :— It is the statement that shows the reconciliation of balance as per…
Q: Kiddie World uses a periodic inventory system and the retail inventory method to estimate ending…
A: Inventory means the material in which the business deals. inventory can be raw material , work in…
Q: Sheridan Company receives a three-year, $9,200, zero-interest-bearing note, and the related present…
A: When a bond is issued or purchased below its face, the bond is said to be issued or purchased at a…
Q: Cullumber Company manufactures products ranging from simple automated machinery to complex systems…
A: Revenue recognition is the process of entering an entity's revenues into its accounting records. The…
Q: Journalize the following transactions for Becah's Bakery: Becah's Bakery a. Incurred and paid…
A: Direct material cost is the cost of raw material produced or purchased to produce the final…
Q: Morganton Company makes one product and it provided the following information to help prepare the…
A: Here 70% of the sales made in a given month to be collected as accounts receivable in the following…
Q: Taylor's tractor-trailer rigs sell for $150,000. A customer wishes to buy a rig on a dease purchase…
A: Annual Lease Payment: The annual lease payment is the fixed amount paid by the lessee each year to…
Q: Selected data from the comparative statements of financial position of Granger Ltd. are shown below:…
A: HORIZONTAL ANALYSISHorizontal Analysis is one of the important analysis techniques for financial…
Q: A savings plan requires deposits of $487 per month for 22 months commencing in 1 month from today.…
A: Formula where:PMT = the monthly deposit amountr = the monthly interest rate (14.9% p.a. compounded…
Q: Garden Depot is a retailer that provided the following budgeted cash flows for next year: Total cash…
A: Cash Budget is a detailed budget of cash income and cash expenditure incorporating both revenue and…
Q: On April 1, Cyclone's Co. purchases a trencher for $298,000. The machine is expected to last five…
A: Depreciation Expense is an expenses charged on the fixed assets of the company. It is charged due to…
Q: Kirnon Catering uses two measures of activity, jobs and meals, in the cost formulas in its budgets…
A: Activity variance represents the difference between the actual cost incurred in a business activity…
Q: A company has two production cost centres, M and L M absorbs overheads on the basis of machine…
A: Predetermined Overhead Rate :— It is the rate used to allocate manufacturing overhead cost to cost…
Q: Tremendous Company is involved in the exploration for mineral resource. The accounting policy to…
A: EXPLORATION ASSETS ARE EXPENDITURE INCURRED BY AN ENTITY AFTER IT HAS OBTAINED LEGAL RIGHTS FOR THE…
Q: Given the following April data per bank: 3/31 balance $100 April receipts $40 April disbursements…
A: Bank reconciliation statement :— It is the statement that shows the reconciliation of balance as per…
Q: Kingbird Corporation has outstanding 21,000 shares of $5 par value common stock. On August 1, 2025,…
A: Treasury Stock is an own share purchased by the organization from the open market. They can either…
Q: Compute the amounts of any liability for compensated absences that should be reported on the balance…
A: 1. December 31, 202510 employees * $11.80/hr. * 8 hrs./day * 11 days =$10,384
Q: Pricing: meteor model retails for 840€, Moonlight Model retails 1485€ The company incurs overheads…
A: The objective of the question is to calculate the full cost for each bicycle model (Meteor and…
Q: sing amounts. your answers in thousands (i.e., 5,500 should be entered as 5.5). Enter credit amounts…
A: ($ in 000)PBOPlan AssetsPrior ServiceNet Loss-PensionCashNet…
Q: Novak Inc shows on its statement of financial position its investments accounted for as FV-OCI…
A: Cash flow from investing activities is a section of the Cash flow statement under which net cash…
Q: The Garware Paints Ltd presents to you the following income statement in a condensed form for the…
A: Break even point is the level of sales at which the total cost of the firm is equal to the total…
Q: mobile 70% for his business that he operates as a sole proprietorship. He drove a total of 15,000…
A: The actual method, both individuals and companies keep thorough records of all allowable costs…
Q: un mo [The following information applies to the questions displayed below] Sweeten Company had no…
A: Variable costs are costs that vary with the change in the level of output whereas fixed costs are…
Q: July 1 1 3 5 12 18 20 Owner invested $12,000 cash in the company. Purchased used truck for $8,000,…
A: Statement which involves listing of all accounts with their respective balances in one statement…
Q: What are the reserves in Bank A before the money is borrowed from the bank?
A: Please refer solution tab for detailed answer
Q: How can fraud be prevented in the making use of accounting information systems? How do ethics and…
A: The objective of this question is to understand the measures that can be taken to prevent fraud in…
Q: Required information Use the following information for the Exercises below. (Algo) [The following…
A: DEPRECIATION EXPENSEDepreciation means gradual decrease in value of assets due to normal wear and…
Q: 1. Prepare a schedule, for the remaining 3 years, reflecting whether CH should upgrade its…
A: Relevant cost is the cost which can affect the decision of the firm regarding a line of business.…
Q: The following data relate to product number 33 of Volusia Corporation: Direct labor standard: 4…
A: Direct labor efficiency variance = Standard rate * ( Standard hours - Actual Hours )
Q: Michael Smith, a dealer in securities b
A: A “realized gain” occurs when the sales price is greater than the cost basis. A “recognized gain” is…
Q: The following data is given for the Walker Company: Budgeted…
A: Analyzing the labor hour efficiency variance helps management identify areas for improvement in…
Q: Current Attempt in Progress Lily Company uses a flexible budget for manufacturing overhead based on…
A: Management prepares a budget to estimate future profit and loss from the business. Management…
Q: Stake Technology Inc. has 33 employees who are paid bi-weekly. The Payroll Register showed the…
A: The payroll expenses are the costs of the employers paid to employees for the work. The employees…
Q: Carbex, Inc., produces cutlery sets out of high-quality wood and steel. The company makes a Standard…
A: As per the Honor code of Bartleby we are bound to give the answer of first three sub part only,…
Q: Mango Place has forecast its sales for the coming months as follows: Standard Units 189 April May…
A: A Sales budget is an estimate of an entity Sales Revenue over a specified period. It helps in sales…
Q: Max began manufacturing operations for Ocean Bath Oils in 20x2. His biggest customer is a national…
A: Sales budget is a budget which is prepared to estimate the revenue generated from sale of goods…
Q: Eastern and Western Universities offer executive training courses to corporate clients. Eastern pays…
A: An income statement stands for the statement that shows profits and loss of the firm, its revenue…
Q: On January 1, 2023, Bona Vista Co purchased land, a building, equipment, and tools for a total price…
A: As per real account rule we should debit what comes in and credit what goes out. Amount borrowed…
Q: Explain the purpose and importance of accounting. Identify users and uses of, and opportunities in,…
A: The purpose of accounting is to record financial transactions of a business in order to provide a…
Q: Given an asset with a net book value (NBV) of $47,000. a. What are the after-tax proceeds for a firm…
A: GAIN OR LOSS ON SALE OF ASSETS Gain or Loss on Sale of Assets is the difference between sales value…
Q: On September 30, 2024, Truckee Garbage leased equipment from a supplier and agreed to pay $125,000…
A: Introduction:Lease is an arrangement wherein, owner of the asset (lessor) allows the use of the…
Q: The Oriole Co. knows that students want new backpack and jacket styles before school begins each…
A: In this question, we need to recognize the revenue for both Backpack and Jackets separately using…
Q: Alfarsi Industries uses the net present value method to make investment decisions and requires a 15%…
A: Net Present Value Net present value of the investment means difference between present values of…
Q: Walton Company had 400 units of product in work in process inventory at the beginning of the period.…
A: Inventory means the detailed list or stock of items, goods, or materials held by a business or…
Q: A company reported the following information: Accounts receivable, December 31, 2023: $122,000…
A: Cash collected from customers represents the amount collected by the company from the accounts…
Q: Required information The Foundational 15 (Algo) [LO6-1, LO6-3, LO6-4, LO6-5, LO6-6, LO6-7, LO6-8]…
A: The break-even point in units sales is a critical concept in business and finance. It represents the…
Q: On January 1, 2021, the Taylor Company adopted the dollar-value LIFO method. The inventory value for…
A: The inventory can be valued using various methods. The various methods for inventory valuation are…
Q: a) Complete the table b) Record the above transactions in the appropriate ledger accounts. (You are…
A: Lets understand the basics.Journal entries are required to make to record event and transaction in…
Q: The maturity value for a loan is $58301. The loan earned interest at a rate of 6.2% compounded…
A: As for one year it is compounding 4 Times, Now we need to find for 5 years.No of Times Compounded…
Q: Required information [The following information applies to the questions displayed below.] Grandpa…
A: Journal Entry :— It is an act of recording transactions in books of account when transaction…
Step by step
Solved in 3 steps with 3 images
- Sohar Co. had the following information in 2020: Sales 180000 COGS 80000 ast ... Operating expenses (including depreciation) Depreciation expense Interest expense ber... 32000 4200 en... 9000 ... ... Taxes 4000 Increase in Accounts receivable 7000 [p Decrease in inventory Increase in Accounts payable Decrease in other payables Increase in interest payable Decrease in tax payable 4000 5000 4500 2300 2000 Prepare operating cash flows using direct method.The comparative temporary investments and inventory balances of a company follow. Current Year Previous Year Accounts payable $78,132 $76,600 Long-term debt 41,085 49,500 Based on this information, what is the amount and percentage of increase or decrease that would be shown on a balance sheet with horizontal analysis? Amount of Change Increase/Decrease Percentage Accounts payable $ % Long-term debt $ %Balance, January 1, as reported Correction for Depreciation Error Net of Income Tax Retroactive Adjustment for Change in inventory Method Net of Income Tax Balance, January 1, as adjusted Add Less Net Income /(Loss) Coronado Corporation Statement of Retained Earnings For the Year Ended December 31, 2023 Dividends Declared Balance, December 31 Y 249000 24600 30600 193800 210000 403800 100000 i 303800
- View Policies Current Attempt in Progress Presented below is information related to Novak Corp. for the year 2020. Net sales Cost of goods sold Selling expenses Administrative expenses Dividend revenue Interest revenue (a) $1,664,000 998,400 83,200 61,440 25,600 8,960 Write-off of inventory due to obsolescence Depreciation expense omitted by accident in 2019 Casualty loss Cash dividends declared Retained earnings at December 31, 2019 Effective tax rate of 20% on all items $102,400 70,400 NOVAK CORP. Income Statement 64,000 57,600 1,254,400 Prepare a multiple-step income statement for 2020. Assume that 97,280 shares of common stock are outstanding for the entire year. (Round earnings per share to 2 decimal places, e.g. 1.49.)During 2019, DGP Company decided to change from the FIFO inventory valuation to the weighted average method. The income tax rate is 30%. FIFO Weighted Average January 1, inventory P7,100,000 P7,700,000 December 31, inventory 7,900,000 8,200,000 What amount should be reported in the cumulative effect of the change in accounting policy for 2019? A P600,000 decrease in retained earnings B P420,000 decrease in retained earnings P420,000 increase in retained earnings (D) P600,000 increase in retained earningsThis year Last year 1050 Assets Cash 1530 Marketable securities Accounts receivable Inventories Total current assets 1810 1220 2050 1770 2900 2790 8290 6830 Gross fixed assets 29480 28090 Less: Accumulated depreciation 14680 13140 Net fixed assets 14800 14950 Total assets Liabilities and Stockholders' Equity 23090 21780 Accounts payable Notes payable Accruals 1560 1540 2760 2160 190 350 Total current liabilities 4510 4050 Long-term debt Common stock Retained earnings Total stockholders' equity 5220 4970 9950 9950 3410 2810 13360 12760 Total liabilities and stockholders' equity 23090 21780
- A firm has been experiencing low profitability in recent years. Perform an analysis of the firm's financial position using the DuPont equation. The firm has no lease payments but has a $3 million sinking fund payment on its debt. The most recent industry average ratios and the firm's financial statements are as follows: Industry Average Ratios Current ratio Debt-to-capital ratio Times interest earned EBITDA coverage Inventory turnover Cash and equivalents Accounts receivables Inventories Total current assets 2x 17% 3 x 6 x 11 x Days sales outstandinga Calculation is based on a 365-day year. Balance Sheet as of December 31, 2021 (millions of dollars) $78 Accounts payable Other current liabilities 51 125 Notes payable $ 254 Total current liabilities Long-term debt Total liabilities Common stock Retained earnings Total stockholders' equity Total liabilities and equity Gross fixed assets Less depreciation Net fixed assets Total assets 15 days Fixed assets turnover Total assets turnover…The comparative temporary investments and inventory balances of a company follow: Current Year Previous Year Accounts payable $102,144 $79,800 Long-term debt 48,692 51,800 Based on this information, what is the amount and percentage of increase or decrease that would be shown on a balance sheet with horizontal analysis? Amount of Change Increase/Decrease Percentage Accounts payable $fill in the blank 1 fill in the blank 3% Long-term debt $fill in the blank 4 fill in the blank 6%Analyzing Inventory Disclosure Comparing LIFO & FIFOThe current asset section of the 2014 and 103 fiscal year end balance sheet of The Kroger Co are presented in the accompany tables: a. At what dollar amount does Kroger report its inventory in its Jan. 31, 205 balance sheet? b. What is the cumulative effect (through Jan. 31, 2015) of the use of LIFO on Kroger’s pretax earning? c. Assuming a 35% tax rate, what is the cumulative (through Jan. 31, 2015) tax effect of the use of LIFO to determine inventory costs?d. Kroger reported net earnings of $1,728 million in its fiscal year 2014 income statement. Assuming a 35% tax rate, what amount of net earnings would Kroger report if the company is using FIFO inventory costing methods?e. Kroger reported merchandise cost of $85,512 M in fiscal year 2014. Compute the inventory turnover for the year.f. How would the inventory turnover ratio differ if the FIFO costing method had been used? Current asset (in millions) Jan.…
- During 2022, Bamboo Inc. decided to change from FIFO method of inventory valuation to the weighted average method. January 1 inventory under FIFO 7,100,000 January 1 inventory under weighted average 7,700,000 December 31 inventory under FIFO 7,900,000 December 31inventory under weighted average 8,300,000 In the statement of retained earnings for 2022, what amount should be reported as the pretax cumulative effect of this accounting change?A. 1,000,000 additionB. 1,000,000 deductionC. 600,000 additionD. 600,000 deductionPresented below is X Corporation's selected data for 2020: Retained earnings January 1 ,2020 Pretax Income Stock dividends declared During the year, the company changed its inventory method from FIFO to LIFO which had resulted in a pretax increase in income by: Cash dividends declared During 2020, the company discovered that the 2019 depreciation expense were overstated by a net of tax amount of Tax rate $6,000,000 2,000,000 330,000 40,000 225.000 70.000 30% Based on the data above, the changes in the accounting principles (from FIFO to LIFO) had O Decreased retained earnings by $40.000 Increased retained earnings by $40000 O Increased retained earnings by $28,000 O None of the aboveUse the below information to answer the following question. Sales Cost of goods sold Depreciation Income Statement For the Year Taxable income Taxes Earnings before interest $4,500 and taxes Interest paid Net income Dividends $900 Balance Sheet End-of-Year Cash Accounts receivable Inventory Total current assets Net fixed assets Total assets Accounts payable Long-term debt Common stock ($1 par value) Retained earnings O O O O Total Liab. & Equity 33 percent 40 percent 50 percent $28,400 60 percent 21,200 2,700 67 percent 850 $3,650 1,400 $2,250 $550 2,450 4,700 $7,700 What was the retention ratio? 16,900 $24,600 $ 2,700 9,800 8,000 4,100 $24,600