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Please Explain Proper Step by Step and Do Not Give Solution In Image Format And Fast Answering Please Thanks In Advance ?

Please Explain Proper Step by Step and Do Not Give Solution In Image Format And Fast Answering Please Thanks In Advance ?

College Accounting (Book Only): A Career Approach
College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
Chapter12: Financial Statements, Closing Entries, And Reversing Entries
Section: Chapter Questions
Problem 3E: Identify each of the following items relating to sections of an income statement as Revenue from...
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Please Explain Proper Step by Step and Do Not Give Solution In Image Format And Fast Answering Please Thanks In Advance ?

Preferred shares Retained earnings Operating activities Net income: Adjustments for: Depreciation Change in Current Assets,excluding Cash: Accounts receivable and other receivables Inventories Cash outflow from operating activities Investing activities Prepaid and other assets Accounts payable and accrued liabilities Deferred revenue Purchase of equipment Cash outflow from investing activities Financing activities 95,000 389,455 641,695 2,747,012 Repayment of long-term debt Cash outflow from financing activities Cash decrease: Cash, beginning Cash, end of the year Select one or more: O a. O b. Oc. O d. Oe. 157,2ND 95,000 58,125 110,365 2,845,460 2018 331,330 111,453 34,500 12,195 15,000 1,680 (18,095) 88,06 (95,375) (95,375) (413,363) (413,363) (20,675) 62,725 42,050 2017 443,618 118,552 (18,500) (9,874) (4,237) (14,014) (23,000) 492,545 f. If the target debt ratio is 0.50, Arnett's solvency is very healthy O g. (275,286) (275,286) (345,650) (345,650) (128,391) 191,116 62,725 The amount of gross profit made per dollar of sales is increasing. Arnett Ltd. purchased long-term assets in both 2017 and 2018 If industry standard for inventory turnover is 36 days, Arnett's turnover is healthy in 2018 Arnett's cash flow from operating activities is very healthy Cash flow from financing activities indicates the company may be in financial trouble Arnett is spending much less on occupancy costs to generate a dollar in sales revenue in 2018, than it did in 2017 h. Arnett appears to be struggling to repay long-term debt
Transcribed Image Text:Preferred shares Retained earnings Operating activities Net income: Adjustments for: Depreciation Change in Current Assets,excluding Cash: Accounts receivable and other receivables Inventories Cash outflow from operating activities Investing activities Prepaid and other assets Accounts payable and accrued liabilities Deferred revenue Purchase of equipment Cash outflow from investing activities Financing activities 95,000 389,455 641,695 2,747,012 Repayment of long-term debt Cash outflow from financing activities Cash decrease: Cash, beginning Cash, end of the year Select one or more: O a. O b. Oc. O d. Oe. 157,2ND 95,000 58,125 110,365 2,845,460 2018 331,330 111,453 34,500 12,195 15,000 1,680 (18,095) 88,06 (95,375) (95,375) (413,363) (413,363) (20,675) 62,725 42,050 2017 443,618 118,552 (18,500) (9,874) (4,237) (14,014) (23,000) 492,545 f. If the target debt ratio is 0.50, Arnett's solvency is very healthy O g. (275,286) (275,286) (345,650) (345,650) (128,391) 191,116 62,725 The amount of gross profit made per dollar of sales is increasing. Arnett Ltd. purchased long-term assets in both 2017 and 2018 If industry standard for inventory turnover is 36 days, Arnett's turnover is healthy in 2018 Arnett's cash flow from operating activities is very healthy Cash flow from financing activities indicates the company may be in financial trouble Arnett is spending much less on occupancy costs to generate a dollar in sales revenue in 2018, than it did in 2017 h. Arnett appears to be struggling to repay long-term debt
Revenues Cost of sales Gross profit Expenses Salaries and wages Occupancy costs Interest expenses Credit card and bank fees Office and general Professional fees Consulting Travel Misc Depreciation Total expenses Income Before Income Tax Income tax Net income Assets Current Cash Accounts receivable (net) Inventory Loans receivable Prepaid and other assets Property, plant and equipment (net) Liabilities Current Accounts payable Accrued liabilities Deferred revenue Current portion of loan Current portion of mortgage Long term loan Long term mortgage Total liabilities Shareholder's equity 2018 5,415,226 2,813,600 2,601,626 1,333,640 182,400 8,150 81,228 145,610 84,500 86,500 201,300 13,515 111,453 2,248,296 353,330 22,000 331,330 2018 42,050 122,500 218,540 105,000 75,000 563,090 2,183,922 2,747,012 112,500 42,125 165,630 200,265 33,110 553,630 1,021,562 530,125 2,105,317 2017 5,526,205 2,916,555 2,609,650 1,215,125 182,115 9,712 82,893 157,125 82,725 112,150 225,000 8,525 118,552 2,193,922 415,728 27,890 443,618 2017 62,725 157,000 230,735 110,000 85,000 645,460 2,200,000 2,845,460 68,750 84,195 183,725 210,500 35.175 582,345 1,414,525 538.225 2,535,095
Transcribed Image Text:Revenues Cost of sales Gross profit Expenses Salaries and wages Occupancy costs Interest expenses Credit card and bank fees Office and general Professional fees Consulting Travel Misc Depreciation Total expenses Income Before Income Tax Income tax Net income Assets Current Cash Accounts receivable (net) Inventory Loans receivable Prepaid and other assets Property, plant and equipment (net) Liabilities Current Accounts payable Accrued liabilities Deferred revenue Current portion of loan Current portion of mortgage Long term loan Long term mortgage Total liabilities Shareholder's equity 2018 5,415,226 2,813,600 2,601,626 1,333,640 182,400 8,150 81,228 145,610 84,500 86,500 201,300 13,515 111,453 2,248,296 353,330 22,000 331,330 2018 42,050 122,500 218,540 105,000 75,000 563,090 2,183,922 2,747,012 112,500 42,125 165,630 200,265 33,110 553,630 1,021,562 530,125 2,105,317 2017 5,526,205 2,916,555 2,609,650 1,215,125 182,115 9,712 82,893 157,125 82,725 112,150 225,000 8,525 118,552 2,193,922 415,728 27,890 443,618 2017 62,725 157,000 230,735 110,000 85,000 645,460 2,200,000 2,845,460 68,750 84,195 183,725 210,500 35.175 582,345 1,414,525 538.225 2,535,095
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