Corporate Financial Accounting
14th Edition
ISBN: 9781305653535
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Textbook Question
Chapter 1, Problem 1.2BPR
Financial statements
The amounts of the assets and liabilities of Wilderness Travel Service at April 50, 2018, the end of the year, and its revenue and expenses for the year follow. The
| Accounts payable | $ 25,000 | Rent expense | $ 75,000 |
| Accounts receivable | 210,000 | Supplies | 9,000 |
| Cash | 146,000 | Supplies expense | 12,000 |
| Common stock | 35,000 | Taxes expense | 10,000 |
| Fees earned | 875,000 | Utilities expense | 38,000 |
| Miscellaneous expense | 15,000 | Wages expense | 525,000 |
Instructions
- 1. Prepare an income statement for the year ended April 30, 2018.
- 2. Prepare a retained earnings statement for the year ended April 30, 2018.
- 3. Prepare a balance sheet as of April 30, 2018
- 4. What item appears on both the income statement and retained earnings statement?
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The assets and liabilities of Snub Services as of March 31, 2020, the end of the current year,
and its revenues and expenses for the year ended March 31, 2020 are listed below. The
Retained Earnings balance was $10,030 at April 1, 2019, the beginning of the current year.
Accounts Payable: $1,620
Accounts Receivable: $8,360
Cash: $27,950
Dividends: $13,130
Equipment: $82,770
Fees Earned: $115,430
Net Income: $
Upon completion of its financial statements for the year ended (and as of) March 31, 2020,
Snub Services would report the following amounts:
Ending Retained Earnings: $
Land: $58,970
Miscellaneous Expense: $1,960
Office Expense: $6,260
Stock: $98,050
Ending Total Liabilities and Equity: $
Supplies: $3,430
Wage Expense: $22,300
Balance Sheet Jack and Jill Corporation's year-end 2018 balance sheet lists current assets of $246,000, fixed assets of $796,000, current liabilities of $193,000, and long-term debt of $296,000. What is Jack and Jill's total stockholders' equity?
Assets
Current assets
Net fixed assets
INCOME STATEMENT, 2022
(Figures in $ millions)
Revenue
Cost of goods sold
Depreciation
Interest expense
2021
$ 101
2022
$ 195
910 1,010
$ 2,005
1,085
405
251
Req A and B Req C and D
BALANCE SHEET AT END OF YEAR
(Figures in $ millions)
Liabilities and Shareholders' Equity
Current liabilities
Long-term debt
Req E
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a&b. What is shareholders' equity in 2021 and 2022?
c&d. What is net working capital in 2021 and 2022?
e. What are taxes paid in 2022? Assume the firm pays taxes equal to 21% of taxable income.
f. What is cash provided by operations during 2022?
g.Net fixed assets increased from $910 million to $1,010 million during 2022. What must have been South Sea's gross investment in
fixed assets during 2022?
Answer is complete but not entirely correct.
h. If South Sea reduced its outstanding accounts payable by $46 million during the year, what must have happened to its other current…
Chapter 1 Solutions
Corporate Financial Accounting
Ch. 1 - Name some users of accounting information.Ch. 1 - Prob. 2DQCh. 1 - Prob. 3DQCh. 1 - Josh Reilly is the owner of Dispatch Delivery...Ch. 1 - 5. On July 12, Reliable Repair Service extended an...Ch. 1 - Prob. 6DQCh. 1 - Describe the difference between an account...Ch. 1 - Prob. 8DQCh. 1 - Prob. 9DQCh. 1 - The financial statements are interrelated. (A)...
Ch. 1 - Cost principle On June 25, Ritts Roofing extended...Ch. 1 - Prob. 1.2BECh. 1 - Transactions Interstate Delivery Service is owned...Ch. 1 - Income statement The revenues and expenses of...Ch. 1 - Prob. 1.5BECh. 1 - Balance sheet Using the following data for...Ch. 1 - Statement of cash flows A summary of cash flows...Ch. 1 - Prob. 1.1EXCh. 1 - Prob. 1.2EXCh. 1 - Prob. 1.3EXCh. 1 - Prob. 1.4EXCh. 1 - Accounting equation The total assets and total...Ch. 1 - Accounting equation Determine the missing amount...Ch. 1 - Prob. 1.7EXCh. 1 - Asset, liability, and stockholders equity items...Ch. 1 - Effect of transactions on accounting equation What...Ch. 1 - Effect of transactions on accounting equation A. A...Ch. 1 - Prob. 1.11EXCh. 1 - Transactions The following selected transactions...Ch. 1 - Nature of transactions Teri West operates her own...Ch. 1 - Net income and dividends The income statement for...Ch. 1 - Net income and stockholders equity for four...Ch. 1 - Balance sheet items From the following list of...Ch. 1 - Income statement items From the following list of...Ch. 1 - Prob. 1.18EXCh. 1 - Prob. 1.19EXCh. 1 - Prob. 1.20EXCh. 1 - Balance sheets, net income Financial information...Ch. 1 - Financial statements Each of the following items...Ch. 1 - Prob. 1.23EXCh. 1 - Prob. 1.24EXCh. 1 - Financial statements We-Sell Realty, organized as...Ch. 1 - Transactions On September 1 of the current year,...Ch. 1 - Financial statements The amounts of the assets and...Ch. 1 - Financial statements Seth Feye established...Ch. 1 - Transactions; financial statements On August 1,...Ch. 1 - Transactions; financial statements DLite Dry...Ch. 1 - Missing amounts from financial statements The...Ch. 1 - Transactions Amy Austin established an insurance...Ch. 1 - Financial statements The amounts of the assets and...Ch. 1 - Financial statements Jose Loder established Bronco...Ch. 1 - Prob. 1.4BPRCh. 1 - Transactions; financial statements Bevs Dry...Ch. 1 - Missing amount from financial statements The...Ch. 1 - Peyton Smith enjoys listening to all types of...Ch. 1 - Prob. 1.1ADMCh. 1 - Home Depot: Ratio of liabilities to stockholders'...Ch. 1 - Lowes: Ratio of liabilities to stockholders equity...Ch. 1 - Prob. 1.4ADMCh. 1 - Prob. 1.1TIFCh. 1 - Prob. 1.3TIF
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