Indicate the effect that each transaction/event listed here will have on the financial ratio listed opposite it. Use + for increase, - for decrease, and (NE) for no effect. Assume that current assets exceed current liabilities in all cases, both before and after the transaction/event.
Q: Can you have a negative gross profit and if yes, explain why.
A: The gross profit margin measures how successfully a corporation produces money from direct manufactu...
Q: Sunland-on Ltd. sells rock-climbing products and operates an indoor climbing facility for climbing e...
A: T-accounts for the Interest expense, Interest payable, Bank loans payable and notes payable accounts...
Q: On 1/1/21, Ehrlich Co. issued 4 year bonds with a face value of $700,000. The stated (bond) rate is ...
A:
Q: Multiple Cholce $415,000. $56,814. $204,636. $210,364. $153,550.
A: Solution.. Fixed cost = $153,550 Contribution margin ratio = 37% Break even sales revenue = ?
Q: Rasheed works for Company A, earning $350,000 in salary during 2021. Assuming he is single and has n...
A: The Federal Insurance Contributions Act (FICA) is a United States law that requires employers to con...
Q: During 2021, WMC Corporation discovered that its ending inventories reported in its financial statem...
A: Journal entry shows the recording of transactions during an accounting year and every transaction ha...
Q: Ann's average income tax rate is 30%, and her marginal income tax rate is 37%. Her property tax bill...
A: Solution:- Given, Average tax rate = 30% Marginal tax rate = 37% Tax bill = 12,000 Interest payment ...
Q: Complete the general ledger accounts to calculate cash received from the sale of furniture. Furnitur...
A: Depreciation is an Gradual decrease in the value of assets over the period of time due to its usage ...
Q: Cash payments to suppliers of merchandise
A: Cost of goods sold: it is the cost of the goods that are sold by the company Cost of goods purchased...
Q: A loan was to be amortized by a group of four end-of- year payments forming an ascending arithmetic ...
A: Loan is been paid in the ascending arithmetic progression Year Loan Repayment 1 5000 2 5400 ...
Q: A company has established 6 pounds of Materlal J at $3 per pound as the standard for the material in...
A: Solution: Direct materials price variance is the variance in standard cost of materials and actual c...
Q: A broadcasting corporation purchased equi pment worth P57, 000 and paid P1, 500 for freight and deli...
A: Answer a) Calculation of Annual Depreciation Cost Annual Depreciation Cost = (Purchase price + Freig...
Q: Given below are the transactions related to Abdullah Enterprises for the month of March 2019. Date M...
A: The question is related to Journal entry, Ledgers amd Trial Balance of Abdullah Enterprises for the...
Q: Exercise 13-10 Part 1 (1-a) Profit margin ratio. (1-b) Did profit margin improve or worsen in the Cu...
A: Solution... (1-a). Profit margin ratio
Q: 4. Using your present and future value tables, calculate the following: a. Compute the amount that a...
A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a...
Q: Which of the following is not a common difference between net business income on the books (followin...
A: * As per Bartleby policy, if question are unrelated then answer first only. As per IRS , business me...
Q: An entity recognized the following transactions during 2019: The entity estimated its annual warrant...
A: 8.Warrany expenses for the year ended December 31, 2019 is b. 1080000 Provision for liability. ...
Q: 0010 40 2 $15 $645 $57.00 $43.61 $15 $5 0011 40 8 $15 $780 $78.00 $59.67 $15 $0 1101 $48,000 $923 $1...
A: Overtime: Overtime alludes to any hours worked by a representative that surpass their ordinarily boo...
Q: 3) What are the different perspectives on how to measure income?
A: There are a number of ways through which the income can be measured but in this question, as this is...
Q: Due to erratic sales of its sole product-a high-capacity battery for laptop computers-PEM, Incorpora...
A: The question is related to Marginal Costing and Cost Volume Profit Analysis. The Contribution Margin...
Q: How much are the deductible expenses for temporary business travel away from home?
A: If you travel away from home overnight on business, you can deduct these travel expenses: Airline, ...
Q: The Machining Department of Hock Company has a total capacity of 2,400 machine hours per month. The ...
A: Total machine hours available = 2400 machine hours Contribution per machine hour = Contribution per ...
Q: A company's accounting year ends on 31st December 2021. During the year the company paid a salary of...
A: Accounting is the process of recording financial transactions that are material to the business. It ...
Q: Question Content Area Cost of Production Report Mochaccino Express Coffee Company roasts and pac...
A: The total cost of producing a product, including raw materials and operating costs, is detailed in a...
Q: You have been engaged to review the financial statements of Flint Corporation. In the course of your...
A: Solution:- Preparation of the necessary correcting entries, assuming that Flint uses a calendar-year...
Q: Product X is produced in department A and transferred to the finished goods warehouse when completed...
A: Equivalent unit of production means converting the uncompleted production into its equivalent comple...
Q: Parts manager's salary and benefits $29,920 Office employee's salary and benefits 33,000 13,200 Othe...
A: The question is based on the concept of Cost Accounting.
Q: What are your thoughts on the misappropriation of funds? Government budgets prevent public official...
A: Government budget shows the expenditure and total income that government has.it can be either capita...
Q: Arlen with 70 shares and Marcy with 30 shares. Colter has E&P of $100,000 and capital stock and paid...
A: Long term gain means investment provide return over a longer period of time.
Q: Accrued salaries payable of $98000 were not recorded at December 31, 2020. Office supplies on hand o...
A: Solution: Accounting errors are mistake that affects the results reported by financial reporting. It...
Q: Tyler Company has the following information related to purchases and sales of one of its inventory i...
A: Average cost per unit = Total cost of purchaseNumber of units purchased ...
Q: The Kwok Company's inventory balance on December 31, 2021, was $200,000 (based on a 12/31/2021 physi...
A: Inventory contains both raw materials utilized in manufacturing and completed commodities ready for ...
Q: Dollarama Inc. is a Canada-based company, which offers various assortment of general merchandise, co...
A: The following steps shows the calculation of ratios for 2018-2021 along with comments.
Q: Itzy Corporation provides the following information for the month of February based on the productio...
A: Variable Costing: Product Cost under Variable costing includes direct material cost, direct labo...
Q: Cost of Production and Journal Entries Lighthouse Paper Company manufactures newsprint. The product...
A: The equivalent units are calculated on the basis of percentage of the work completed during the peri...
Q: Food Delivery Services (FDS) share price is worth $18 today. In a year, the market for meal prep del...
A: In case of probabilistic data, returns are calculated using the various expected returns with corres...
Q: Which of the following should not be considered when determining the production budget for an accoun...
A: A budget is prepared by the management to estimate the future event. The production budget is used t...
Q: Hoyt Corp's current balance sheet reports the following stockholders' equity: 5% culmulative prefere...
A: We need to calculate Preferred stock interest = Par value of Preferred stock P250,000 Premi...
Q: 1Mapiewod can sell all the units it can produce of either Product A or Product B but not hoth Produc...
A: In Marginal Costing we calculate contribution margin from deducting variable ...
Q: A certain machine has book value of P173,205.08 after 5 years and P82,187.59 after 8 years. The book...
A: Suppose Depreciation Rate = r Value after 8 years = Value after 5 years x (1 - r)^3 Then, Initial Va...
Q: When planning to perform an audit, an accountant must have a clear understanding of audit risk and i...
A: Audit risk It is the risk that financial statements are materially incorrect, even though financial ...
Q: Convers Corporation (calendar year-end) acquired the following assets during the current tax year: (...
A: Depreciation is an accounting technique for distributing a tangible or fixed asset's cost over its u...
Q: Yin-Yang Corporation is composed of three operating divisions. Overall, the Yin-Yang Corporation has...
A: It is stated that Yin-Yang Corporation evaluates its managers on the basis of return on investment. ...
Q: An analysis of the Marketable Securities control account of Fancher Products, Inc., shows the follow...
A: The cash flow statement is prepared to record the cash flow from various activities during the perio...
Q: $ 71,600 30,900 64,700 4,000 $ 18,000 38, 200 71,700 3,300 Cash Accounts receivable, net Inventory P...
A: Cash Dividend - Cash Dividend is the amount paid to the shareholders of company. It is calculated by...
Q: ABC Company (ABC), a manufacturer of hybrid engine vehicles, had pretax financial income of P30 bill...
A: Solution Taxable income refers to any individual's or business compensation that is used to determi...
Q: 7) In On December 31, 2020, an adjusting entry was made to accrue interest for a P60,000, 120-day, 8...
A: Formula for interest calculation : Interest amount = Principal X Rate of interest X Number of days o...
Q: he municipal permit. or the month P10,000. pying supplies consisting of bond papers, staple wires, s...
A: In the accounting equation, the asset side equals liabilities and shareholders equity The shareholde...
Q: Question 1 You have extracted the following Trial Balance from the books of Asempa Ye Tia at 31st ...
A: Income Statement The purpose of preparing the income statement is to know the net income which are d...
Q: On December 31, 2020, the bookkeeper of ABC Company provided the following information: PARTICULARS ...
A: Current liabilities are the liabilities that are payable or settled in the next 12 months from the r...
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- Effect of transactions on various financial ratios Indicate the effect that each transaction/event listed here will have on the financial ratio listed opposite it, and provide an explanation for your answer. Use + for increase, - for decrease, and (NE) for no effect. Assume that current assets exceed current liabilities in all cases, both before and after the transaction/event. Transaction/Event Financial Ratio a. Purchased inventory on account. b. Sold inventory for cash, at a profit. C. Issued a 10% stock dividend. Number of days' sales in inventory Inventory turnover Earnings per share Debt ratio d. Issued common stock for cash. Return on investment e. Sold land at a gain. f. Purchased treasury stock for cash. g. Accrued interest on a note payable. h. Accrued wages that have been earned by employees. i. Purchased equipment for cash. J. Issued bonds at an interest rate that is less than the company's ROI. Debt/equity ratio Times interest earned Current ratio Plant and equipment…Exercise 11-7 (Static) Effect of transactions on various financial ratios Indicate the effect that each transaction/event listed here will have on the financial ratio listed opposite it. Use + for increase, – for decrease, and (NE) for no effect. Assume that current assets exceed current liabilities in all cases, both before and after the transaction/event. Transaction/Event Financial Ratio Effect a. Split the common stock 2 for 1. b. Collected accounts receivable. c. Issued common stock for cash. d. Sold treasury stock. e. Accrued interest on a note receivable. f. Sold inventory on account. g. Wrote off an uncollectible account. h. Declared a cash dividend. i. Incurred operating expenses. j. Sold equipment at a loss. Book value per share of common stock Number of days' sales in accounts receivable Total asset turnover Return on equity Current ratio Acid-test ratio Accounts receivable turnover Dividend yield Margin NE Earnings per sharea. Current ratiob. Inventory Turnover ratioc. Accounts receivable ratiod. Fixed asset turnover ratioe. Net profit marginf. Return of assets (ROA)g. Return of equity (ROE)
- I: Common-size analysis all accounts are presented as percentage of total liabilities in Balance sheet II: Vertical analysis all accounts are presented as percentage of net sales in Income statement. A Both I and II are false В Only Il is true C) Only I is true Both I and II are trueIndicate the effect of the transactions listed in the following table on total current assets, current ration, and net income. Use (+) to indicate an increase, (-) to indicate a decrease, and (0) to indicate either no effect or an indeterminate effect. Be prepared to state any necessary assumptions and assume an initial current ratio of more than 1.0. Payment is made to trade creditors for previous purchasesc. Return on assetsd. Current ratioe. Receivables turnover Please answer questions C,D and E and please provide an explanation of the result, this part is crucial to the question
- | Owner's equity Select one: O a. The resulting amount when total revenue are subtracted from total cost of sales O b. When total liabilities are added to total assets c. None of Them d. The resulting amount when total liabilities are subtracted from total assetsOwner's equity Select one: a. The resulting amount when total liabilities are subtracted from total assets b. When total liabilities are added to total assets c. None of Them d. The resulting amount when total revenue are subtracted from total cost of salesMark for Review Question 26 of 30 The ratio quantifies the degree of available liquid assets is Liquidity coverage ration Temporay assets to total assets O Temporary assets to volatile liabilities Veiatie liabilities to total assets
- I: Vertical analysis all accounts are presented as percentage of total assets in Balance sheet II: Vertical analysis all accounts are presented as percentage of net sales in Income statement A) Only Il is true B Only I is true Both I and Il are false D) Both I and II are true16 - Which of the following is the account where the increases are recorded to the receivable side and the decreases to the debit side?A) Asset AccountsB) Passive AccountsC) Accounts ReceivableD) Expense AccountsE) Passive regulating accountsEffect of transactions on various financial ratios Indicate the effect that eachtransaction/event listed here will have on the financial ratio listed opposite it, and provide an explanation for your answer. Use 1 for increase, − for decrease, and (NE) for no effect. Assume that current assets exceed current liabilities in all cases, bothbefore and after the transaction/event.Transaction/Event Financial Ratioa. Split the common stock 2 for 1.b. Collected accounts receivable.c. Issued common stock for cash.d. Sold treasury stock.e. Accrued interest on a note receivable.f. Sold inventory on account.g. Wrote off an uncollectible account.h. Declared a cash dividend.i. Incurred operating expenses.j. Sold equipment at a loss.Book value per share of common stockNumber of days’ sales in accounts receivableTotal asset turnoverReturn on equityCurrent ratioAcid-test ratioAccounts receivable turnoverDividend yieldMarginEarnings per share