Financial Accounting (12th Edition) (What's New in Accounting)
12th Edition
ISBN: 9780134725987
Author: C. William Thomas, Wendy M. Tietz, Walter T. Harrison Jr.
Publisher: PEARSON
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Textbook Question
Chapter 12, Problem 12.11S
(Learning Objective 4: Use ratio data to reconstruct an income statement) A skeleton of Canton Auto Corporation’s income statement appears as follows (amounts in thousands):
| A | B | |
| 1 | Income Statement | |
| 2 | Net sales | $ 7.100 |
| 3 | Cost of goods sold | (a) |
| 4 | Selling expenses | 1,513 |
| 5 | Administrative expenses | 1,334 |
| 6 | Interest expense | (b) |
| 7 | Other expenses | 151 |
| 8 | Income before taxes | 1,046 |
| 9 | Income tax expense | (c) |
| 10 | Net income | $ (d) |
| 11 |
Use the following ratio data to complete Canton Auto’s income statement:
- a. The inventory turnover was 3 (beginning inventory was $790; ending inventory was $770).
- b. The
rate of return on sales (after income taxes) was 0.09.
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Use the following information to answer this question:
Bayside, Incorporated
2021 Income Statement
($ in thousands)
Net sales
Cost of goods sold
Depreciation
Earnings before interest and taxes
Interest paid
Taxable income
Taxes
Net income
Cash
Accounts received
Inventory
Total
Net fixed assets
Total assets
2020
$ 150
1,150
1,825
$ 3,125
3,860
$ 6,985
$ 6,270
4,640
400
$ 1,230
46
$ 1,184
249
$935
Bayside, Incorporated
2020 and 2021 Balance Sheets
($ in thousands)
2021
$ 255
990
2,140
$ 3,385
3,680
$ 7,065 Total liabilities & equity
Accounts payable
Long-term debt
Common stock
Retained earnings
BOLSA-
How many dollars of sales were generated from every dollar of fixed assets during 2021?
دا
2020
$1,735
890
3,400
960
$ 6,985
2021
$ 1,805
690
3,360
1,210
$ 7,065
Use the following information to answer this question:
Bayside, Incorporated
2021 Income Statement
($ in thousands)
Net sales
Cost of goods sold
Depreciation
Earnings before interest and taxes
Interest paid
Taxable income
Taxes
Net income
Cash
Accounts received
Inventory
Total
Net fixed assets
Total assets
2020
$150
1,150
1,825
$ 3,125
3,860
$ 6,985
$ 6,270
4,640
400
$ 1,230
46
$ 1,184
249
$935
Bayside, Incorporated
2020 and 2021 Balance Sheets
($ in thousands)
2021
$255
990
2,140
$ 3,385
3,680
$7,065
Accounts payable
Long-term debt.
Common stock.
Retained earnings
Total liabilities & equity.
How many dollars of sales were generated from every dollar of fixed assets during 2021?
2028
$ 1,735
899
3,400
960
$ 6,985
2021
$ 1,805
690
3,360
1,210
$ 7,965
*
ces
Use the following information to answer this question.
Windswept, Incorporated.
2022 Income Statement.
(in millions)
Net sales
Cost of goods sold.
Depreciation
Earnings before interest and taxes.
Interest paid
Taxable income
Taxes
Net income
Cash
Accounts receivable
Inventory
Total
Net fixed assets
Total assets
What is the quick ratio for 20227
$ 9,950
8,060
495
$ 1,395
116
$ 1,279
448
$ 831
Windswept, Incorporated
2021 and 2022 Balance Sheets
(in millions)
2021
$290
1,120
1,990
1,785
$3,400 $3,125
3,530
4,150
$ 6,930 $ 7,275
2022
$320 Accounts payable
1,020 Long-term debt
Common stock.
Retained earnings
Total liabilities & equity
2021
$ 1,610
1,160
3,460
700
2022
$1,535
1,360
3,430
950
$ 6,930 $ 7,275
Chapter 12 Solutions
Financial Accounting (12th Edition) (What's New in Accounting)
Ch. 12 - Prob. 1QCCh. 12 - Prob. 2QCCh. 12 - Prob. 3QCCh. 12 - Prob. 4QCCh. 12 - Expressing accounts receivable as a percentage of...Ch. 12 - Kincaid Company reported the following data (in...Ch. 12 - Prob. 7QCCh. 12 - Ratios that measure liquidity include all of the...Ch. 12 - Verba Corporation has an inventory turnover of 15...Ch. 12 - The measure of a companys ability to collect cash...
Ch. 12 - A ratio that measures a companys profitability is...Ch. 12 - Prob. 12QCCh. 12 - Prob. 13QCCh. 12 - Prob. 14QCCh. 12 - Prob. 12.1ECCh. 12 - Prob. 12.1SCh. 12 - Prob. 12.2SCh. 12 - Prob. 12.3SCh. 12 - Prob. 12.4SCh. 12 - Prob. 12.5SCh. 12 - (Learning Objective 4: Evaluate a companys quick...Ch. 12 - Prob. 12.7SCh. 12 - (Learning Objective 4: Measure ability to pay...Ch. 12 - (Learning Objective 4: Measure profitability using...Ch. 12 - Prob. 12.10SCh. 12 - (Learning Objective 4: Use ratio data to...Ch. 12 - Prob. 12.12SCh. 12 - (Learning Objective 4: Analyze a company based on...Ch. 12 - Prob. 12.14SCh. 12 - Prob. 12.15SCh. 12 - Prob. 12.16AECh. 12 - Prob. 12.17AECh. 12 - Prob. 12.18AECh. 12 - Prob. 12.19AECh. 12 - Prob. 12.20AECh. 12 - Prob. 12.21AECh. 12 - Prob. 12.22AECh. 12 - Prob. 12.23AECh. 12 - Prob. 12.24AECh. 12 - Prob. 12.25AECh. 12 - Prob. 12.26AECh. 12 - Prob. 12.27BECh. 12 - Prob. 12.28BECh. 12 - Prob. 12.29BECh. 12 - Prob. 12.30BECh. 12 - Prob. 12.31BECh. 12 - LO 4 (Learning Objective 4: Calculate ratios;...Ch. 12 - Prob. 12.33BECh. 12 - Prob. 12.34BECh. 12 - Prob. 12.35BECh. 12 - Prob. 12.36BECh. 12 - Prob. 12.37BECh. 12 - Prob. 12.38QCh. 12 - Prob. 12.39QCh. 12 - Prob. 12.40QCh. 12 - Prob. 12.41QCh. 12 - Prob. 12.42QCh. 12 - Prob. 12.43QCh. 12 - Prob. 12.44QCh. 12 - Use the Orlando Medical Corporation financial...Ch. 12 - Prob. 12.46QCh. 12 - Use the Orlando Medical Corporation financial...Ch. 12 - Prob. 12.48QCh. 12 - Prob. 12.49QCh. 12 - Prob. 12.50QCh. 12 - Prob. 12.51QCh. 12 - Prob. 12.52QCh. 12 - Prob. 12.53QCh. 12 - Prob. 12.54QCh. 12 - Prob. 12.55QCh. 12 - LO 1, 2, 4 (Learning Objectives 1, 2, 4: Calculate...Ch. 12 - Prob. 12.57APCh. 12 - Prob. 12.58APCh. 12 - LO 4 (Learning Objective 4: Use ratios to evaluate...Ch. 12 - Prob. 12.60APCh. 12 - LO 2, 4, 5 (Learning Objectives 2, 4, 5: Analyze...Ch. 12 - Group B LO 1, 2, 4 (Learning Objectives 1, 2, 4:...Ch. 12 - Prob. 12.63BPCh. 12 - Prob. 12.64BPCh. 12 - LO 4 (Learning Objective 4: Use ratios to evaluate...Ch. 12 - Prob. 12.66BPCh. 12 - LO 2, 4, 5 (Learning Objectives 2, 4, 5: Analyze...Ch. 12 - Prob. 12.68CEPCh. 12 - Prob. 12.69CEPCh. 12 - (Learning Objectives 2, 3.4: Use trend...Ch. 12 - (Learning Objectives 4, 5: Calculate and analyze...Ch. 12 - Prob. 12.72DCCh. 12 - Prob. 12.73DCCh. 12 - Prob. 12.74EICCh. 12 - Focus on Financials Apple Inc. LO 1, 2, 3, 4, 5...Ch. 12 - Comprehensive Financial Statement Analysis Project...
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