Fundamentals of Financial Accounting
5th Edition
ISBN: 9780078025914
Author: Fred Phillips Associate Professor, Robert Libby, Patricia Libby
Publisher: McGraw-Hill Education
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Textbook Question
Chapter 1, Problem 1.15ME
Relationships among Financial Statements
Items from the 2013 income statement, statement of
TIP: Use Exhibit 1.7 to identify relations among the items, then work backward to solve for amounts. Note that the beginning Retained Earnings in this mini-exercise is negative.
| Electronic Arts, Inc. | |
| Common Stock | $2,280 |
| Dividends | 0 |
| Net Income (Loss) | (a) |
| Retained Earnings, Beginning of Year | (80) |
| Retained Earnings, End of Year | (b) |
| Total Assets | 5,100 |
| Total Expenses | (c) |
| Total Liabilities | 2,800 |
| Total Revenues | 3,800 |
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Comparative financial statement data for Sunland Corporation and Carla Vista Corporation, two competitors, appear below. All
balance sheet data are as of December 31, 2025.
Net sales
Cost of goods sold
Operating expenses
Interest expense
Income tax expense
Current assets
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Current liabilities
Long-term liabilities
Additional Information:
Cash from operating activities
Capital expenditures
Dividends paid on common stock
Average number of common shares outstanding
(a1)
Your answer is incorrect.
Net income
Earnings per share
$
$
Sunland
Corporation
Sunland Corporation
2025
$1,805,000
1,238,000
309,000
8,000
89,000
427,600
542,400
71,490
148,700
152,400
83,400
36,800
100,000
$
Carla Vista
Corporation
$
2025
$610,000
365,000
99,000
4,100
37,900
131,000
141,000
Compute the net income and earnings per share for each company for 2025. (Round earnings per share to 2 decimal places, e.g.
15.55.)
35,822
29,730
43,500
22,200
15,100
50,000
Carla Vista Corporation
I
Long-term debt ratio
Times interest earned
Current ratio
Quick ratio
Cash ratio
Inventory turnover
Average collection period
Income
Statement
0.3
10.0
Jse the above information from the tables to work out the following missing entries, and then calculate the company's return on
equity. Note: Inventory turnover, average collection period, and return on equity are calculated using start-of-year, not average, values.
Balance Sheet
1.6
1.0
0.3
3.0
Complete this question by entering your answers in the tabs below.
73 days
Use the above information from the tables to work out the following missing entries, and then calculate the company's return
on equity. Note: Inventory turnover, average collection period, and return on equity are calculated using start-of-year, not
average, values.
Note: Enter your answers in millions. Round intermediate calculations and final answers to 2 decimal places.
Income before tax
Tax (35% of income before tax)
Net income
INCOME STATEMENT
(Figures in $ millions)…
Required:
Items from the income statement, statement of retained earnings, and balance sheet are listed below in alphabetical order. For the
companies shown in each column, solve for the missing amounts.
Common Stock
Dividends
Net Income
Retained Earnings, Beginning of Year
Retained Earnings, End of Year
Total Assets
Total Expenses
Total Liabilities
Total Revenues
X Answer is not complete.
Best Tech,
Incorporated
Amazin'
Corporation
$
8
10
110
45
145
85
45
195
$
32
6
45
0
39
131
60
60
105
Colossal
Corporation
$
185
60
185
285
410
1,030
285
435
470
Chapter 1 Solutions
Fundamentals of Financial Accounting
Ch. 1 - Define accounting.Ch. 1 - Prob. 2QCh. 1 - Briefly distinguish financial accounting from...Ch. 1 - The accounting process generates financial reports...Ch. 1 - Explain what the separate entity assumption means...Ch. 1 - List the three main types of business activities...Ch. 1 - What information should be included in the heading...Ch. 1 - What are the purposes of (a) the balance sheet,...Ch. 1 - Prob. 9QCh. 1 - Briefly explain the difference between net income...
Ch. 1 - Describe the basic accounting equation that...Ch. 1 - Describe the equation that provides the structure...Ch. 1 - Describe the equation that provides the structure...Ch. 1 - Prob. 14QCh. 1 - Prob. 15QCh. 1 - Prob. 16QCh. 1 - Briefly define what an ethical dilemma is and...Ch. 1 - Prob. 18QCh. 1 - Prob. 1MCCh. 1 - Which of the following is true regarding the...Ch. 1 - Which of the following is false regarding the...Ch. 1 - Which of the following regarding retained earnings...Ch. 1 - Prob. 5MCCh. 1 - Which of the following statements regarding the...Ch. 1 - Prob. 7MCCh. 1 - Which of the following is true? a. FASB creates...Ch. 1 - Which of the following would not be a goal of...Ch. 1 - Prob. 10MCCh. 1 - Prob. 1.1MECh. 1 - Prob. 1.2MECh. 1 - Matching Definitions with Terms Match each...Ch. 1 - Matching Financial Statement Items to Balance...Ch. 1 - Matching Financial Statement Items to Balance...Ch. 1 - Matching Financial Statement Items to Balance...Ch. 1 - Matching Financial Statement Items to Balance...Ch. 1 - Matching Financial Statement Items to the Basic...Ch. 1 - Matching Financial Statement Items to the Four...Ch. 1 - Reporting Amounts on the Statement of Cash Flows...Ch. 1 - Prob. 1.11MECh. 1 - Prob. 1.12MECh. 1 - Prob. 1.13MECh. 1 - Prob. 1.14MECh. 1 - Relationships among Financial Statements Items...Ch. 1 - Prob. 1.16MECh. 1 - Reporting Amounts on the Four Basic Financial...Ch. 1 - Reporting Amounts on the Four Basic Financial...Ch. 1 - Preparing a Balance Sheet DSW, Inc. is a designer...Ch. 1 - Completing a Balance Sheet and Inferring Net...Ch. 1 - Prob. 1.5ECh. 1 - Prob. 1.6ECh. 1 - Preparing an Income Statement Home Realty,...Ch. 1 - Prob. 1.8ECh. 1 - Preparing an Income Statement and Balance Sheet...Ch. 1 - Analyzing and Interpreting an Income Statement...Ch. 1 - Prob. 1.11ECh. 1 - Matching Cash Flow Statement Items to Business...Ch. 1 - Preparing an Income Statement. Statement of...Ch. 1 - Prob. 1.2CPCh. 1 - Prob. 1.3CPCh. 1 - Prob. 1.4CPCh. 1 - Preparing an Income Statement, Statement of...Ch. 1 - Prob. 1.2PACh. 1 - Prob. 1.3PACh. 1 - Prob. 1.4PACh. 1 - Preparing an Income Statement and Balance Sheet...Ch. 1 - Preparing an Income Statement and Balance Sheet...Ch. 1 - Prob. 1.3PBCh. 1 - Prob. 1.4PBCh. 1 - Prob. 1.1SDCCh. 1 - Prob. 1.2SDCCh. 1 - Prob. 1.5SDCCh. 1 - Prob. 1.6SDCCh. 1 - Financial Statements for a Business Plan Nicole...
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