Question 1

Marshall F. Company reported the following year-end amounts:
 What is the company's Sales Returns for the year?

Accepted Answer

Total sales - Sales returns - Sales discounts - Cost of goods sold = Gross profit
$33,600 - X - $600 - $21,000 = $4,350
X = $33,600 - $600 - $21,000 - $4,350
X = $7,650

Question 2

Fabulous Mints Company reported the following year-end amounts:
 What is the company's Sales Returns for the year?

Accepted Answer

Total sales - Sales returns - Sales discounts - Cost of goods sold = Gross profit
$44,800 - X - $800 - $28,000 = $5,800
X = $44,800 - $800 - $28,000 - $5,800
X = $10,200

Question 3

Mountain Company has beginning retained earnings of $450,000, earns a net income of $75,000, and pays dividends of $9,000 during the period.
The balance in Mountain's ending retained earnings is:

Accepted Answer

Ending retained earnings = Beginning retained earnings + Net income (loss) - Dividends
X = $450,000 + $75,000 - $9,000
X = $516,000

Question 4

Rock Springs Company has beginning retained earnings of $600,000, earns a net income of $100,000, and pays dividends of $12,000 during the period.
The balance in Rock Springs' ending retained earnings is:

Accepted Answer

Ending retained earnings = Beginning retained earnings + Net income (loss) - Dividends
X = $600,000 + $100,000 - $12,000
X = $688,000

Question 5

Mountain Company has Beginning retained earnings of $450,000, earns a net income of $112,500, and has an Ending retained earnings balance of $552,000 during the period.
The amount which Mountain paid in dividends must have been:

Accepted Answer

Ending retained earnings = Beginning retained earnings + Net income (loss) - Dividends
$552,000 = $450,000 + $112,500 - X
X = $450,000 + $112,500 - $552,000
X = $10,500

Question 6

Rock Springs Company has Beginning retained earnings of $600,000, earns a net income of $150,000, and has an Ending retained earnings balance of $736,000 during the period.
The amount which Rock Springs paid in dividends must have been:

Accepted Answer

Ending retained earnings = Beginning retained earnings + Net income (loss) - Dividends
$736,000 = $600,000 + $150,000 - X
X = $600,000 + $150,000 - $736,000
X = $14,000

Question 7

Mountain Company earns a net income of $430,500 and pays dividends of $39,000 during the period. Mountain has ending retained earnings of $733,500.
The balance in Mountain's beginning retained earnings must have been:

Accepted Answer

Ending retained earnings = Beginning retained earnings + Net income (loss) - Dividends
$733,500 = X + $430,500 - $39,000
X = $733,500 - $430,500 + $39,000
X = $342,000

Question 8

Rock Springs Company earns a net income of $574,000 and pays dividends of $52,000 during the period. Rock Springs has ending retained earnings of $978,000.
The balance in Rock Springs' beginning retained earnings must have been:

Accepted Answer

Ending retained earnings = Beginning retained earnings + Net income (loss) - Dividends
$978,000 = X + $574,000 - $52,000
X = $978,000 - $574,000 + $52,000
X = $456,000

Question 9

Chopper Company reported total stockholders' equity of $652,500 on its Dec 31, 2018, balance sheet. The following information is available for the year ended Dec 31, 2019:
 What are the total liabilities of the company on December 31, 2019?

Accepted Answer

Stockholders' equity 12/31/19 = Stockholders' equity 12/31/18 + Revenue - Expenses
X = $652,500 + $945,000 - $742,500
X = $855,000
Assets = Stockholders' equity + Liabilities
$1,824,000 = $855,000 + X
X = $1,824,000 - $855,000
X = $969,000

Question 10

Henrietta Company reported total stockholders' equity of $870,000 on its Dec 31, 2018, balance sheet. The following information is available for the year ended Dec 31, 2019:
 What are the total liabilities of the company on December 31, 2019?

Accepted Answer

Stockholders' equity 12/31/19 = Stockholders' equity 12/31/18 + Revenue - Expenses
X = $870,000 + $1,260,000 - $990,000
X = $1,140,000
Assets = Stockholders' equity + Liabilities
$2,432,000 = $1,140,000 + X
X = $2,432,000 - $1,140,000
X = $1,292,000

Question 11

Determine Sales revenue for Barko Company with the following data:

Accepted Answer

Sales revenue - Sales returns and allowances - Sales discounts - Cost of goods sold -Operating expenses = Net income
X - $146,250 - $22,500 - $1,260,000 - $315,000 = $382,500
X = $382,500 + $146,250 + $22,500 + $1,260,000 + $315,000
X = $2,126,250

Question 12

Determine Sales revenue for Merema Company with the following data:

Accepted Answer

Sales revenue - Sales returns and allowances - Sales discounts - Cost of goods sold -Operating expenses = Net Income
X - $195,000 - $30,000 - $1,680,000 - $420,000 = $510,000
X = $510,000 + $195,000 + $30,000 + $1,680,000 + $420,000
X = $2,835,000

Question 13

Marshall Company reported the following year-end amounts:
 What is the company's Sales Returns for the year?

Accepted Answer

Total sales - Sales returns - Sales discounts - Cost of goods sold = Gross profit
$25,200 - X - $450 - $15,750 = $3,262
X = $25,200 - $450 - $15,750 - $3,262
X = $5,738

Question 14

Skokie Company reported the following year-end amounts:
 What is the company's Sales Returns for the year?

Accepted Answer

Total sales - Sales returns - Sales discounts - Cost of goods sold = Gross profit
$33,600 - X - $600 - $21,000 = $4,350
X = $33,600 - $600 - $21,000 - $4,350
X = $7,650

Question 15

Compute the missing amounts in the table below:

Accepted Answer

The answer of Compute the missing amounts in the table...

Question 16

For the two unrelated situations below, compute the unknown amounts indicated by the letters (a) and (b).

Accepted Answer

The answer of For the two unrelated situations below, compute...

Question 17

Elk, Inc. has a debt-to-total-assets ratio of 0.56 and a ROS of 13.4%. The median ROS for similar companies in the same industry as Elk is about 6.3%. The median debt-to-total-assets ratio for similar companies in the same industry is 0.31. 
Based on this industry information, how does Elk compare to similar companies and what are the causes of these differences?

Accepted Answer

The answer of Elk, Inc. has a debt-to-total-assets ratio of...

Question 18

Alvin's Audio reported the following amounts in its December 31, 2019, and 2018 financial statements.
  Calculate to the nearest hundredth:
(a) Return on sales for 2019
(b) Return on assets for 2019
(c) Debt-to-total-assets ratio as of December 31, 2019

Accepted Answer

The answer of Alvin's Audio reported the following amounts in...

Question 19

At the end of 2019, LoMo Manufacturing reported the following amounts on its balance sheet:
  Answer each of the following independent questions:
a. Assume that LoMo's stockholders' equity on January 1, 2019 was $396,000. LoMo did not issue common stock during the year, but it paid $54,000 cash in dividends. How much is LoMo's net income or loss for 2019?
b. Assume that LoMo's stockholders' equity on January 1, 2019 was $354,000, and that LoMo issued additional common stock of $105,000 and paid $90,000 in cash dividends before the end of 2019. What was LoMo's net income or net loss for 2019?

Accepted Answer

The answer of At the end of 2019, LoMo Manufacturing...

Question 20

Consider the following 2019 data for three manufacturing firms ($ in millions):
  Compute the free cash flow for each firm for 2019.

Accepted Answer

The answer of Consider the following 2019 data for three...

Quiz 4: Understanding Financial Statements

Marshall F. Company reported the following year-end amounts: What is the company's Sales Returns for the year?

Fabulous Mints Company reported the following year-end amounts: What is the company's Sales Returns for the year?

Mountain Company has beginning retained earnings of $450,000, earns a net income of $75,000, and pays dividends of $9,000 during the period. The balance in Mountain's ending retained earnings is:

Rock Springs Company has beginning retained earnings of $600,000, earns a net income of $100,000, and pays dividends of $12,000 during the period. The balance in Rock Springs' ending retained earnings is:

Mountain Company has Beginning retained earnings of $450,000, earns a net income of $112,500, and has an Ending retained earnings balance of $552,000 during the period. The amount which Mountain paid in dividends must have been:

Rock Springs Company has Beginning retained earnings of $600,000, earns a net income of $150,000, and has an Ending retained earnings balance of $736,000 during the period. The amount which Rock Springs paid in dividends must have been:

Mountain Company earns a net income of $430,500 and pays dividends of $39,000 during the period. Mountain has ending retained earnings of $733,500. The balance in Mountain's beginning retained earnings must have been:

Rock Springs Company earns a net income of $574,000 and pays dividends of $52,000 during the period. Rock Springs has ending retained earnings of $978,000. The balance in Rock Springs' beginning retained earnings must have been:

Chopper Company reported total stockholders' equity of $652,500 on its Dec 31, 2018, balance sheet. The following information is available for the year ended Dec 31, 2019: What are the total liabilities of the company on December 31, 2019?

Henrietta Company reported total stockholders' equity of $870,000 on its Dec 31, 2018, balance sheet. The following information is available for the year ended Dec 31, 2019: What are the total liabilities of the company on December 31, 2019?

Determine Sales revenue for Barko Company with the following data:

Determine Sales revenue for Merema Company with the following data:

Marshall Company reported the following year-end amounts: What is the company's Sales Returns for the year?

Skokie Company reported the following year-end amounts: What is the company's Sales Returns for the year?

Compute the missing amounts in the table below:

For the two unrelated situations below, compute the unknown amounts indicated by the letters (a) and (b).

Alvin's Audio reported the following amounts in its December 31, 2019, and 2018 financial statements. Calculate to the nearest hundredth: (a) Return on sales for 2019 (b) Return on assets for 2019 (c) Debt-to-total-assets ratio as of December 31, 2019

Consider the following 2019 data for three manufacturing firms ($ in millions): Compute the free cash flow for each firm for 2019.