Loose Leaf for Financial Accounting: Information for Decisions
9th Edition
ISBN: 9781260158762
Author: John J Wild
Publisher: McGraw-Hill Education
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Chapter 1, Problem 22E
Summary Introduction
Concept introduction:
Income statement is prepared to know the profitability of the business. Income statement shows the revenue generated, expenses incurred and net income earned by the business during a particular period.
To prepare: The income statement for the year.
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The following table shows income statement and balance sheet data for five U.S. industries in 2017.
INCOME STATEMENT AND BALANCE SHEET FOR 2017SELECTED U.S. INDUSTRIES FOR 2017(Figures in $ billions)
Food
Pharmaceuticals
Oiland Coal
Computers andPeripherals
FoodStores
Income Statement Data:
Sales
$
666.9
$
427.5
$
802.0
$
216.0
$
474.2
Cost of goods sold
596.1
352.4
757.8
189.7
451.0
Balance Sheet Data:
Inventory
$
67.8
$
56.8
$
44.2
$
11.3
$
27.9
Accounts receivable
56.6
68.1
52.8
23.7
7.4
Accounts payable
49.0
42.3
50.3
39.5
23.7
Note: Cost of goods sold includes selling, general, and administrative expenses.
Source: U.S. Department of Commerce, Quarterly Financial Report for Manufacturing, Mining, Trade Corporations, and Selected Service Industries,…
For this question, calculate all values to 2 decimal places of £M (e.g. £123.45M) unless
otherwise specified, and all ratios to 2 decimal places of percentage (e.g. 9.87%).
You are given the following income statements and balance sheets for Freddie M
Corporation for fiscal years 2045 and 2046 (all figures are in £ million),
Income Statement
Balance Sheet
Sales
Cost of goods sold
Gross margin
Wage & salaries expense
Depreciation expense
Earnings before interest and tax
Interest expenses
Taxes
Net income
Dividends
Change in shareholder's equity
Assets:
Cash & equivalents
Receivables
Inventories
Current Assets
Property, plant & equipment
Accumulated depreciation
Net property, plant & equip
Total Assets
2045
400.00
-200.00
200.00
-50.00
-25.00
125.00
-25.00
-60.00
40.00
-16.00
24.00
2045
2046
480.00
-240.00
240.00
-60.00
-25.00
155.00
-20.00
-70.00
65.00
-26.00
39.00
2046
Liabilities:
30.00
36.00 Payables
60.00 Short-term debt
50.00
50.00 60.00 Long-term debt
130.00 156.00 Total…
The following table shows income statement and balance sheet data for five U.S. industries in 2017.
INCOME STATEMENT AND BALANCE SHEET FOR 2017
SELECTED U.S. INDUSTRIES FOR 2017
(Figures in $ billions)
Oil
and Coal
Computers and
Peripherals
Food
Food
Pharmaceuticals
Stores
Income Statement Data:
$ 682.9
$ 443.5
$ 232.0
221.7
$ 490.2
467.0
Sales
$ 818.0
Cost of goods sold
Balance Sheet Data:
612.1
368.4
773.8
Inventory
Accounts receivable
Accounts payable
$ 83.8
72.6
$ 72.8
84.1
$ 27.3
39.7
87.5
$ 43.9
23.4
39.7
60.2
68.8
65.0
58.3
66.3
Note: Cost of goods sold includes selling, general, and administrative expenses.
Source: U.S. Department of Commerce, Quarterly Financial Report for Manufacturing, Mining, Trade Corporations, and Selected
Service Industries, Quarter 3, issued December 2017.
Calculate the cash cycle for each industry. (Negative amounts should be indicated by a minus sign. Use 365 days a year. Do not
round intermediate calculations. Round your answers to 1 decimal place.)…
Chapter 1 Solutions
Loose Leaf for Financial Accounting: Information for Decisions
Ch. 1 - Prob. 1DQCh. 1 - Technology is increasingly used to process...Ch. 1 - Identify four kinds of external users and describe...Ch. 1 - What are at least three questions business owners...Ch. 1 - Prob. 5DQCh. 1 - Describe the internal role of accounting for...Ch. 1 - Identify three types of services typically offered...Ch. 1 - Prob. 8DQCh. 1 - Why is accounting described as a service activity?Ch. 1 - What are some accounting-related professions?
Ch. 1 - Prob. 11DQCh. 1 - Prob. 12DQCh. 1 - What does the concept of objectivity imply for...Ch. 1 - Prob. 14DQCh. 1 - Prob. 15DQCh. 1 - Prob. 16DQCh. 1 - Define (a) assets, (b) liabilities, (c) equity,...Ch. 1 - Prob. 18DQCh. 1 - Prob. 19DQCh. 1 - What do accountants mean by the term revenue?Ch. 1 - Prob. 21DQCh. 1 - Prob. 22DQCh. 1 - Prob. 23DQCh. 1 - Prob. 24DQCh. 1 - Prob. 25DQCh. 1 - Prob. 26DQCh. 1 - Prob. 27DQCh. 1 - Define and explain return on assets.Ch. 1 - Define return and risk. Discuss the trade-off...Ch. 1 - Prob. 30DQCh. 1 - Prob. 31DQCh. 1 - Prob. 32DQCh. 1 - Choose from the following term or phrase a through...Ch. 1 - Prob. 2QSCh. 1 - Prob. 3QSCh. 1 - Identify each of the following terms or phrases as...Ch. 1 - Prob. 5QSCh. 1 - Prob. 6QSCh. 1 - Prob. 7QSCh. 1 - Prob. 8QSCh. 1 - Use Google's December 31. 2016, financial...Ch. 1 - Prob. 10QSCh. 1 - Prob. 11QSCh. 1 - Prob. 12QSCh. 1 - Prob. 13QSCh. 1 - Prob. 14QSCh. 1 - Prob. 15QSCh. 1 - Prob. 16QSCh. 1 - Prob. 17QSCh. 1 - Prob. 1ECh. 1 - Prob. 2ECh. 1 - Prob. 3ECh. 1 - Match each of the numbered descriptions I through...Ch. 1 - Prob. 5ECh. 1 - Enter the letter A through H for the principle or...Ch. 1 - Determine the missing amount from each of the...Ch. 1 - Prob. 10ECh. 1 - Prob. 11ECh. 1 - Prob. 12ECh. 1 - Prob. 13ECh. 1 - Prob. 14ECh. 1 - Prob. 15ECh. 1 - Use the information in Exercise 1-15 to prepare an...Ch. 1 - Prob. 17ECh. 1 - Prob. 18ECh. 1 - Prob. 19ECh. 1 - Prob. 20ECh. 1 - Prob. 21ECh. 1 - Prob. 22ECh. 1 - Prob. 23ECh. 1 - Identify how each of the following separate...Ch. 1 - Prob. 2PSACh. 1 - Prob. 3PSACh. 1 - Prob. 4PSACh. 1 - Prob. 5PSACh. 1 - Prob. 6PSACh. 1 - Gabi Gram started The Gram Co., a new business...Ch. 1 - Prob. 8PSACh. 1 - Sanyu Sony started a new business and completed...Ch. 1 - Prob. 10PSACh. 1 - Prob. 11PSACh. 1 - Prob. 12PSACh. 1 - Prob. 13PSACh. 1 - Prob. 14PSACh. 1 - Prob. 1PSBCh. 1 - Prob. 2PSBCh. 1 - Prob. 3PSBCh. 1 - Prob. 4PSBCh. 1 - Prob. 5PSBCh. 1 - Prob. 6PSBCh. 1 - Prob. 7PSBCh. 1 - Prob. 8PSBCh. 1 - Prob. 9PSBCh. 1 - Prob. 10PSBCh. 1 - Prob. 11PSBCh. 1 - Prob. 12PSBCh. 1 - Prob. 13PSBCh. 1 - Prob. 14PSBCh. 1 - On October 1, 2018, Santana Rey launched a...Ch. 1 - Prob. 1FSACh. 1 - comparative figures ($ millions) for both Apple...Ch. 1 - Prob. 3FSACh. 1 - Prob. 1BTNCh. 1 - Prob. 2BTNCh. 1 - Prob. 4BTNCh. 1 - Prob. 5BTNCh. 1 - Prob. 6BTN
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