Homework Answers
Q.1
Answer = The net income at the end of the year will become part of retained earnings.
Reasons:-
Gross income do not form part of retained earnings as operating and other expenses incurred are to be deducted to arrive at the income finally earned.
Owners contribution account is for capital introduced by owners into the business and which is not for repayment to the owner.Net income is income self generated by business and do not form part of owners contribution.
Net income is the profit generated by business and is neither brought into business from loan providers nor it is to to repaid.Net income is not a liability to be repaid and will not form part of loan from owner/shareholder.
Q.2
Answer = Gross revenue less COGS
Reasons:-
Gross income less expenses = Net income
COGS divided by sales express cost as a percentge of sales.Gross margin is the revenue earned over and above the COGS.
Gross margin is not only used by retailers but also manufacturers, wholesellers etc.
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ection 1 mestion 1 of 6. Thich of the following statements best describes the relationship between...
Use the following tinancial statements: Dynamic Mattress Year-End Balance Sheet for 2014 (figures in $ millions)...
Use the following tinancial statements: Dynamic Mattress Year-End Balance Sheet for 2014 (figures in $ millions) Current Liabilities: Bank loans Current Assets Cash Marketable securities Accounts receivable Inventory 49 134 183 188 Accounts payable 137 142 467 Long-term debt Total current liabilities Total current assets 84 428 Net worth (equity and retained earnings) Fixed assets Gross investment Less depreciation Net fixed assets 332 104 228 695 Total assets Total liabilities and net worth 695 Dynamic Mattress Year-End Balance Sheet for...
Hi need help with this question please. Which of the following statements best describes accounting? a)...
Hi need help with this question please.
Which of the following statements best describes accounting? a) An information system in which transactions with the company are accurately reported. b) An information system in which the underlying economic conditions of the organization are recorded, summarized, and reported. c) The reports management prepare for use in making decisions related to the financing, investing, and operating activities of a company. d) The reports that management prepares for the owners of the company summarizing...
Q: According to these statements in Table 6-1, What is the (ROI) Return on Investment? Table...
Q: According to these statements in Table 6-1, What is the
(ROI) Return on Investment?
Table 6-1 ALPHA MANUFACTURING COMPANY, Balance Sheet Cash and Marketable Securities $225,000 Accounts Receivable 890,000 Inventories (lower of cost or market) 930,000 Prepaid Expenses 10,150 Accumulated Tax Prepayments 12.000 Current Assets 2,067,150 Fixed Assets at Cost 2,500,000 less: Accumulated Depreciation 700.000 Net Fixed Asset 1,800,000 Investments, Long-Term 35,000 Goodwill 100.000 Total Assets $4,002.150 Bank Loans and Notes Payable $448,500 Accounts Payable 148,000 Accrued Taxes 36,000...
only the final answers plz 1. Which definition below best describes financial accounting? A. Process of...
only the final answers plz
1. Which definition below best describes financial accounting? A. Process of measuring income taxes owed to the government. B. System of maintaining communication with a company's customers and suppliers. C. Procedures designed to enhance the company's image to potential investors. D. Measuring business activities and communicating them to external parties. 2. Liabilities can be best described as: A. The amount of expenses over the past year. B. The amount expected to be distributed to stockholders....
15. The condensed, audited financial statements for the June 30, 2003, fiscal year for McNeil Corporation...
15. The condensed, audited financial statements for the June 30, 2003, fiscal year for McNeil Corporation are as follows: BALANCE SHEET, JUNE 30, 2003 ($000) $16,400 25,590 36,930 16,110 95,030 48,580 $143,610 Assets Cash Accounts receivable, net Inventory, net Other current assets Total current assets Fixed assets, net Total assets Liabilities and Owners' Equity Accounts payable Bank loan payable (8% interest rate) Other current liabilities Total current liabilities Long-term debt (10% interest rate) Capital stock Retained earnings Total liabilities &...
Check my work 9 statements LO 1-2, 1-3, 1-5, 1-6, 1-7 [The following information applies to...
Check my work 9 statements LO 1-2, 1-3, 1-5, 1-6, 1-7 [The following information applies to the questions displayed below.) Part 2 of 2 11.12 points Pratt Corp. started the Year 2 accounting period with total assets of $30,000 cash, $12,000 of liabilities, and $5,000 of retained earnings. During the Year 2 accounting period, the Retained Earnings account increased by $7,550. The bookkeeper reported that Pratt paid cash expenses of $26,000 and paid a $2,000 cash dividend to stockholders, but...
please answer all Pitino acquired 90 percent of Brey's outstanding shares on January 1, 2016, in...
please answer all
Pitino acquired 90 percent of Brey's outstanding shares on January 1, 2016, in exchange for $405,000 in cash. The subsidiarys stockholders' equity accounts totaled $389,000 and the noncontrolling interest had a fair value of $45,000 on that day. However a building (with a nine-year remaining life) in Brey's accounting records was undervalued by $27,000. Pitino assigned the rest of the excess fair value over book value to Brey's patented technology (four year remaining life) Brey reported net...
Prepare a statement of cash flows for the Crosby Corporation
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e following ratios are computed from the financial statements of the Wattawa Company. Compute the missing...
e following ratios are computed from the financial statements of the Wattawa Company. Compute the missing amounts on the firm's financial statements. Quick Ratio 1.0 Current Ratio 1.5 Accounts Receivable Turnover 5 Debt Ratio 30% Times Interest Earned 3 Inventory Turnover 4 Note: 1) For ratios that call for an average balance, use the year-end value only. 2) All sales were on credit. Wattawa Company Income Statement For the year ended December 31, 2018 Sales ? Less: Cost of Goods...
first four parts done, need rest please. Pitino acquired 90 percent of Brey's outstanding shares on...
first four parts done, need rest please.
Pitino acquired 90 percent of Brey's outstanding shares on January 1, 2016, in exchange for $405,000 in cash. The subsidiarys stockholders' equity accounts totaled $389,000 and the noncontrolling interest had a fair value of $45,000 on that day. However a building (with a nine-year remaining life) in Brey's accounting records was undervalued by $27,000. Pitino assigned the rest of the excess fair value over book value to Brey's patented technology (four year remaining...
Use the following tinancial statements: Dynamic Mattress Year-End Balance Sheet for 2014 (figures in $ millions) Current Liabilities: Bank loans Current Assets Cash Marketable securities Accounts receivable Inventory 49 134 183 188 Accounts payable 137 142 467 Long-term debt Total current liabilities Total current assets 84 428 Net worth (equity and retained earnings) Fixed assets Gross investment Less depreciation Net fixed assets 332 104 228 695 Total assets Total liabilities and net worth 695 Dynamic Mattress Year-End Balance Sheet for...
Hi need help with this question please.
Which of the following statements best describes accounting? a) An information system in which transactions with the company are accurately reported. b) An information system in which the underlying economic conditions of the organization are recorded, summarized, and reported. c) The reports management prepare for use in making decisions related to the financing, investing, and operating activities of a company. d) The reports that management prepares for the owners of the company summarizing...
Q: According to these statements in Table 6-1, What is the
(ROI) Return on Investment?
Table 6-1 ALPHA MANUFACTURING COMPANY, Balance Sheet Cash and Marketable Securities $225,000 Accounts Receivable 890,000 Inventories (lower of cost or market) 930,000 Prepaid Expenses 10,150 Accumulated Tax Prepayments 12.000 Current Assets 2,067,150 Fixed Assets at Cost 2,500,000 less: Accumulated Depreciation 700.000 Net Fixed Asset 1,800,000 Investments, Long-Term 35,000 Goodwill 100.000 Total Assets $4,002.150 Bank Loans and Notes Payable $448,500 Accounts Payable 148,000 Accrued Taxes 36,000...
only the final answers plz
1. Which definition below best describes financial accounting? A. Process of measuring income taxes owed to the government. B. System of maintaining communication with a company's customers and suppliers. C. Procedures designed to enhance the company's image to potential investors. D. Measuring business activities and communicating them to external parties. 2. Liabilities can be best described as: A. The amount of expenses over the past year. B. The amount expected to be distributed to stockholders....
15. The condensed, audited financial statements for the June 30, 2003, fiscal year for McNeil Corporation are as follows: BALANCE SHEET, JUNE 30, 2003 ($000) $16,400 25,590 36,930 16,110 95,030 48,580 $143,610 Assets Cash Accounts receivable, net Inventory, net Other current assets Total current assets Fixed assets, net Total assets Liabilities and Owners' Equity Accounts payable Bank loan payable (8% interest rate) Other current liabilities Total current liabilities Long-term debt (10% interest rate) Capital stock Retained earnings Total liabilities &...
Check my work 9 statements LO 1-2, 1-3, 1-5, 1-6, 1-7 [The following information applies to the questions displayed below.) Part 2 of 2 11.12 points Pratt Corp. started the Year 2 accounting period with total assets of $30,000 cash, $12,000 of liabilities, and $5,000 of retained earnings. During the Year 2 accounting period, the Retained Earnings account increased by $7,550. The bookkeeper reported that Pratt paid cash expenses of $26,000 and paid a $2,000 cash dividend to stockholders, but...
please answer all
Pitino acquired 90 percent of Brey's outstanding shares on January 1, 2016, in exchange for $405,000 in cash. The subsidiarys stockholders' equity accounts totaled $389,000 and the noncontrolling interest had a fair value of $45,000 on that day. However a building (with a nine-year remaining life) in Brey's accounting records was undervalued by $27,000. Pitino assigned the rest of the excess fair value over book value to Brey's patented technology (four year remaining life) Brey reported net...
first four parts done, need rest please.
Pitino acquired 90 percent of Brey's outstanding shares on January 1, 2016, in exchange for $405,000 in cash. The subsidiarys stockholders' equity accounts totaled $389,000 and the noncontrolling interest had a fair value of $45,000 on that day. However a building (with a nine-year remaining life) in Brey's accounting records was undervalued by $27,000. Pitino assigned the rest of the excess fair value over book value to Brey's patented technology (four year remaining...
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