Homework Answers
| 1. | Basic Accounting Equation 2018 year end | = | Assets | = | Liabilities | + | Shareholders Equity | |||
| (Total Assets- Total outsiders Liabilities) | ||||||||||
| (633,574 - 232,477) | ||||||||||
| = | $ 633,574 | = | $ 232,477 | + | $ 401,097 | |||||
2. Current Assets are the assets expected to be converted to cash, sold or consumed during the next 12 months.
Soo answer is Total Current Assets of 2017 year end i.e $ 482,471
3. Revenue comes from Sales
Soo Increase in Total Sales = 2018 revenue - 2017 revenue
= $1,079,425 - $1,019,845
= $ 59,580
Percentage Increase = $59,580 / $1,019,845
= 6%
4.
% of company's assets financed by debt 2017 year end = Total Liabilities / Total Assets
= $236,758 / $ 609,602
= 38.84 %
5. % of company's assets financed by Shareholders (owners) as at 2018 year end
= Shareholders equity / Total Assets
= $ 401,097 / $ 609,602
= 65.80%
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QUESTION #5 - Financial Statement Analysis - 5 marks (suggested time: 9 minutes) Indigo Books &...
1) Using the Company’s financial statements and related notes, compute the return on assets ratio for...
1) Using the Company’s financial statements and related notes,
compute the return on assets ratio for both 2018 and 2017
2) Compute the times interest earned ratio for 2018 and 2017.
Round your answer to the second decimal.
3) a) What is the percentage of the largest non-current
liabilities account to total liabilities for 2018? Record your
answer in percentage format and round your answer to two decimal
places
b) Using only the statement of financial position, calculate the
percentage...
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Question 4 Indigo Inc. is a book distributor that had been operating in its original facility sin...
Question 4 Indigo Inc. is a book distributor that had been operating in its original facility since 1987. The increase in certification programs and continuing education requirements in several professions has contributed to an annual growth rate of 15% for Indigo since 2012 Indigo' original facility became obsolete by early 2017 because of the Increased sales volume and the fact that Indigo now carries CDs in addition to books. On June 1,2017, Indigo contracted with Black Construction to have a...
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Santana Rey has consulted with her local banker and is considering financing an expansion of her...
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Required information The following information applies to the questions displayed below.) Selected comparative financial statements of...
Required information The following information applies to the questions displayed below.) Selected comparative financial statements of Korbin Company follow. KORBIN COMPANY Comparative Income Statements For Years Ended December 31, 2019, 2018, and 2017 2019 2018 2017 Sales $ 557,905 $ 427,401 $ 296,600 Cost of goods sold 335,859 267,980 189,824 Gross profit 222,046 159,421 106,776 Selling expenses 79,223 58,981 39, 151 Administrative expenses 50, 211 24,618 Total expenses 129,434 96,592 63,769 Income before taxes 92,612 62,829 43, 007 Income tax...
1) Using the Company’s financial statements and related notes,
compute the return on assets ratio for both 2018 and 2017
2) Compute the times interest earned ratio for 2018 and 2017.
Round your answer to the second decimal.
3) a) What is the percentage of the largest non-current
liabilities account to total liabilities for 2018? Record your
answer in percentage format and round your answer to two decimal
places
b) Using only the statement of financial position, calculate the
percentage...
cial Statement Preparation - 20 marks (suggested time: 36 minutes) QUESTION #6 - Financial Statement Preparation - 20 marks (suges The adjusted trial balance of White Enamel Dental Inc. follows: White Enamel Dental Inc. Adjusted Trial Balance December 31, 2018 $14,000 11,000 4,000 171,000 100,000 Cash Accounts receivable Prepaid expenses Equipment Building Accounts payable Note payable Share capital Retained earnings Dividends Service revenue Rent expense Advertising expense Wage expense Supplies expense Total $30,000 120,000 102,000 40,000 22,000 86,000 14,000 3,000...
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Problem 14-7 Your answer is partially correct. Try again. On April 1, 2017, Indigo Company sold 29,700 of its 11%, 15-year, $1,000 face value bonds at 97, Interest payment dates are April 1 and October 1, and the company uses the straight-line method of bond discount amortization. On March 1, 2018, Indigo took advantage of favorable prices of its stock to extinguish 5,700 of the bonds by issuing 188,100 shares of its $10 par value common stock. At this time,...
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Santana Rey has consulted with her local banker and is considering financing an expansion of her business by obtaining a long-term bank loan. Selected account balances at March 31, 2018, for Business Solutions follow. Total assets $122,168 Total liabilities $856 Total equity $121,312 Required: 1. The bank has offered a long-term secured note to Business Solutions. The bank's loan procedures require that a client's debt-to- equity ratio not exceed 0.71. As of March 31, 2018, what is the maximum amount...
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Required information The following information applies to the questions displayed below.) Selected comparative financial statements of Korbin Company follow. KORBIN COMPANY Comparative Income Statements For Years Ended December 31, 2019, 2018, and 2017 2019 2018 2017 Sales $ 557,905 $ 427,401 $ 296,600 Cost of goods sold 335,859 267,980 189,824 Gross profit 222,046 159,421 106,776 Selling expenses 79,223 58,981 39, 151 Administrative expenses 50, 211 24,618 Total expenses 129,434 96,592 63,769 Income before taxes 92,612 62,829 43, 007 Income tax...
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