FOR ORDER THIS AND ANY OTHER COURSE,ASSIGNMENTS,QUIZES,EXAM,TEST BANKS OR SOLUTION MANUAL
CONTACT US AT WHISPERHILLS@GMAIL.COM
Question
Question 1.1.(TCO D)
Please describe the purpose of the Income Statement and the interrelationship
between the income statement and the other major financial statements that we
covered in this class. In your answer, please also address which financial statements
should be created before the Income Statement, if any, and which financial
statements need to be completed after the Income Statement, if any. (Points :
25)
Question 2.2.(TCO E)
Your friend, Lisa, plans to open a nail salon. Lisa
states that she does not have time to develop and implement a system of
internal controls.
(b) Explain to Lisa at least 5 internal control procedures she
must establish to protect herself against fraud. You
should state specific internal control procedures from the textbook, and relate
your answer to her nail salon business. (15
points) (Points : 25)
Question 3.3.(TCO H)
Simpson Inc. purchased 5, $4,000, 11% bonds of Hillsdale Corporation when the
market rate of interest was 10%. Interest is paid semiannually on the bonds, and the bonds mature
in 4 years.
Instructions:
Compute the total price paid by Simpson Inc. for the
bonds showing your calculation for the present value of the principal and the
present value of the interest payments.
Present value tables (Exhibit 8-14 and Exhibit 8-15) are available
on pages 452 and 453 of your Harrison, Horngren, and Thomas textbook. NOTE: Be
sure you review the PV Tables completely to ensure you find the correct period
and interest rate for the calculation. (Points :
20)
Question 4.4.(TCO A)
The following items are taken from the financial statements of BCT Company for
2013:
Cash
$138,800
Accounts Payable
75,000
Supplies
15,000
Accounts Receivable
35,000
Inventory
45,000
Salaries Payable
30,000
Unearned Revenue
45,000
Property, plant, and equipment, net
318,000
Intangible assets
260,000
Common Stock
100,000
Additional Paid-in Capital
400,000
Retained Earnings, 12/31/2012
21,000
Long-term debt
90,000
Service revenue
746,000
Cost of Goods Sold
639,200
Rent expense
30,000
Supplies expense
5,000
Insurance expense
21,000
Instructions:
Question 5.5.(TCO B)
The Caldor Company gathered the following condensed data for the year ended
December 31, 2014:
Cost of Goods Sold
$500,000
Net Sales
975,000
Selling Expenses
150,000
Interest Expense
25,000
Administrative Expenses
175,000
Common Stock Dividends Paid
50,000
Income tax percentage
35%
Instructions:
(2) Compute the gross margin percentage and net profit margin
ratio. Caldor
Company’s assets at the beginning of the year were $900,000, and the assets
were $950,000 at the end of the year. To
qualify for full credit, you must state the formula you are using, show your
computations, and explain your findings. (6
points) (Points : 36)
Part 1) Indicate which section of the statement of cash flows
should contain each of the following items, and whether each item would result
in an inflow or outflow of cash. The sections are Operating, Investing, and Financing. (30
points)
(a) Amortization of a patent
(b) Increase in accounts payable
(c) Paid cash dividends to common stockholders
(d) Purchased equipment with cash
(e) Increase in inventory
Part 2) Please explain how to calculate free cash flow and the
importance of free cash flow to investors. (6
points) (Points : 36)
Part 1) Journalize the adjusting entries below at year-end
December 31, XXXX. Please share your supporting calculations for the adjusting
entries requiring computations.
(a) The unadjusted balance of the Supplies account is $2,200. The total
cost of supplies remaining is $1,000.
(c) Equipment was purchased at the beginning of the year for
$45,000. The
equipment’s useful life is 5 years, and the residual value is $5,000. Record
the depreciation for this year.
(30 points)
Part 2) Calculate the overall overstatement or understatement of
net income if the above adjusting entries were not made. Please
share your work. (6 points) (Points : 36)
Question 1.1.(TCO D)
Please describe the purpose of the Income Statement and the interrelationship
between the income statement and the other major financial statements that we
covered in this class. In your answer, please also address which financial statements
should be created before the Income Statement, if any, and which financial
statements need to be completed after the Income Statement, if any. (Points :
25)
Question 2.2.(TCO E)
Your friend, Lisa, plans to open a nail salon. Lisa
states that she does not have time to develop and implement a system of
internal controls.
(b) Explain to Lisa at least 5 internal control procedures she
must establish to protect herself against fraud. You
should state specific internal control procedures from the textbook, and relate
your answer to her nail salon business. (15
points) (Points : 25)
Question 3.3.(TCO H)
Simpson Inc. purchased 5, $4,000, 11% bonds of Hillsdale Corporation when the
market rate of interest was 10%. Interest is paid semiannually on the bonds, and the bonds mature
in 4 years.
Instructions:
Compute the total price paid by Simpson Inc. for the
bonds showing your calculation for the present value of the principal and the
present value of the interest payments.
Present value tables (Exhibit 8-14 and Exhibit 8-15) are available
on pages 452 and 453 of your Harrison, Horngren, and Thomas textbook. NOTE: Be
sure you review the PV Tables completely to ensure you find the correct period
and interest rate for the calculation. (Points :
20)
Question 4.4.(TCO A)
The following items are taken from the financial statements of BCT Company for
2013:
Cash
$138,800
Accounts Payable
75,000
Supplies
15,000
Accounts Receivable
35,000
Inventory
45,000
Salaries Payable
30,000
Unearned Revenue
45,000
Property, plant, and equipment, net
318,000
Intangible assets
260,000
Common Stock
100,000
Additional Paid-in Capital
400,000
Retained Earnings, 12/31/2012
21,000
Long-term debt
90,000
Service revenue
746,000
Cost of Goods Sold
639,200
Rent expense
30,000
Supplies expense
5,000
Insurance expense
21,000
Instructions:
Question 5.5.(TCO B)
The Caldor Company gathered the following condensed data for the year ended
December 31, 2014:
Cost of Goods Sold
$500,000
Net Sales
975,000
Selling Expenses
150,000
Interest Expense
25,000
Administrative Expenses
175,000
Common Stock Dividends Paid
50,000
Income tax percentage
35%
Instructions:
(2) Compute the gross margin percentage and net profit margin
ratio. Caldor
Company’s assets at the beginning of the year were $900,000, and the assets
were $950,000 at the end of the year. To
qualify for full credit, you must state the formula you are using, show your
computations, and explain your findings. (6
points) (Points : 36)
Part 1) Indicate which section of the statement of cash flows should
contain each of the following items, and whether each item would result in an
inflow or outflow of cash. The sections are Operating, Investing, and Financing. (30
points)
(a) Amortization of a patent
(b) Increase in accounts payable
(c) Paid cash dividends to common stockholders
(d) Purchased equipment with cash
(e) Increase in inventory
Part 2) Please explain how to calculate free cash flow and the
importance of free cash flow to investors. (6
points) (Points : 36)
Part 1) Journalize the adjusting entries below at year-end
December 31, XXXX. Please share your supporting calculations for the adjusting
entries requiring computations.
(a) The unadjusted balance of the Supplies account is $2,200. The total
cost of supplies remaining is $1,000.
(c) Equipment was purchased at the beginning of the year for
$45,000. The
equipment’s useful life is 5 years, and the residual value is $5,000. Record
the depreciation for this year.
(30 points)
Part 2) Calculate the overall overstatement or understatement of
net income if the above adjusting entries were not made. Please
share your work. (6 points) (Points : 36)
Question 8.8.(TCO G)
Please review the following 6 ratios for Johnson Company and Lee Enterprises
for the year ended 2014, and address the 2 questions below.
Ratio Name
Johnson Company
Lee Enterprises
(a) Accounts receivable turnover
(b) Days’ inventory outstanding
40
35
(c) Debt ratio
(d) Return on common stockholders’ equity
(e) Current ratio
(f) Price/Earnings ratio
10
12
No comments:
Post a Comment