Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN: 9781305654174
Author: Gary A. Porter, Curtis L. Norton
Publisher: Cengage Learning
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Textbook Question
Chapter 1, Problem 1.2DC
Reading and Interpreting Chipotle’s Financial Statements
Refer to the financial statements for Chipotle reproduced in the chapter and answer the following questions.
- What was the company’s net income for 2014?
- State Chipotle’s financial position on December 31, 2014, in terms of the
accounting equation. - By what amount did Leasehold improvements, property and equipment, net, increase during 2014? Explain what would cause an increase in this item.
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Presented below are condensed data from the financial statements of Gallo Factory for 2017 and
2016. The figures are expressed in thousands. Use this information to answer the questions that
follow.
Accounts/Years
Total current assets
Property, plant & equipment
(net of accumulated depreciation)
Total assets
Total current liabilities
Long-term debt
Deferred income taxes
Total liabilities
Total owner's equity
2020
$ 82,309
67,192
$149.501
$ 33,928
20,491
4.174
$ 58.593
90.908
$149.501
2019
$ 80,080
66,724
$146.471
$28,668
25,676
5,208
$59.552
86.919
$146.471
Total liabilities & owner's equity
How much of Gallo Factory is financed by creditors at the end of December of 2020? Evaluate the
change from 2019 to 2020.
Calculate the following ratios from the income statement and balance sheet all are required
1-Payables Turnover
2-Debt-Equity Ratio
3-Debt Ratio
4-Total Asset Turnover
5-Fixed Asset Turnover
Statement of financial positionas at 31 December 2018
2018
2017
Note
RO
RO
ASSETS
Non-current assets
Property, plant and equipment
14
8,407,572
9,300,442
Deferred tax assets
12
40,977
18,550
8,448,549
9,318,992
Current assets
Inventories
15
430,885
422,421
Trade and other receivables
16
1,129,440
1,235,724
Due from related parties
24
70,300
73,050
Cash and bank balances
17
6,856,734
6,439,709
Total current assets
8,487,359
8,170,904
Total assets
16,935,908
17,489,896
EQUITY…
(a) Draw up a profit or loss appropriation account for Lekan, Chuks & Hassan for the year ending
31 March 2015 and prepare current account as at that date from the following information:
1. Drawings: Lekan N3,500, Chuks N11,500 and Hassan N8,500
2. Capital account: Lekan N30,000, Chuks N22,500 and Hassan N17,500
3. Current account: Lekan N9,000, Chuks N4,000 and Hassan N3,000
4. Profits to be shared: Lekan 50%, Chuks 30% and Hassan 20%
5. Salaries to be credited: Chuks N11,000 and Hassan N14,000
6. Interest to be charged on drawings: Lekan N600, Chuks N450 and Hassan N250
7. Net profits N92,400
8. Interest to be charged on Capital: Lekan N1,800, Chuks N1,350 and Hassan N1,050
Chapter 1 Solutions
Financial Accounting: The Impact on Decision Makers
Ch. 1 - Prob. 1.1KTQCh. 1 - Prob. 1.1ECh. 1 - Prob. 1.2ECh. 1 - The Accounting Equation For each of the following...Ch. 1 - The Accounting Equation Ginger Enterprises began...Ch. 1 - The Accounting Equation Using the accounting...Ch. 1 - Changes in Owners Equity The following amounts are...Ch. 1 - The Accounting Equation For each of the following...Ch. 1 - Classification of Financial Statement Items...Ch. 1 - Classification of Financial Statement Items Regal...
Ch. 1 - Net Income (or Loss) and Retained Earnings The...Ch. 1 - Statement of Retained Earnings Ace Corporation has...Ch. 1 - Accounting Principles and Assumptions The...Ch. 1 - Prob. 1.13ECh. 1 - Prob. 1.14ECh. 1 - Prob. 1.15MCECh. 1 - Prob. 1.16MCECh. 1 - Prob. 1.1PCh. 1 - Users of Accounting Information and Their Needs...Ch. 1 - Prob. 1.3PCh. 1 - Prob. 1.4PCh. 1 - Income Statement, Statement of Retained Earnings,...Ch. 1 - Income Statement and Balance Sheet Green Bay...Ch. 1 - Prob. 1.7PCh. 1 - Statement of Retained Earnings for The Coca-Cola...Ch. 1 - Prob. 1.9PCh. 1 - Prob. 1.10MCPCh. 1 - Prob. 1.1APCh. 1 - Users of Accounting Information and Their Needs...Ch. 1 - Prob. 1.3APCh. 1 - Prob. 1.4APCh. 1 - Income Statement, Statement of Retained Earnings,...Ch. 1 - Income Statement and Balance Sheet Fort Worth...Ch. 1 - Corrected Financial Statements Heidis Bakery Inc....Ch. 1 - Statement of Retained Earnings for Brunswick...Ch. 1 - Prob. 1.9APCh. 1 - Prob. 1.10AMCPCh. 1 - Prob. 1.1DCCh. 1 - Reading and Interpreting Chipotles Financial...Ch. 1 - Comparing Two Companies in the Same Industry:...Ch. 1 - Prob. 1.5DCCh. 1 - Prob. 1.6DCCh. 1 - Prob. 1.7DC
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