ACCT 2000 Lecture Notes - Lecture 2: Public Company Accounting Oversight Board, International Accounting Standards Board, Accounting

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turquoisewoodchuck900

10 Oct 2017

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Chapter 2 class notes: identify the sections of a classified balance sheet, use ratios to evaluate a company"s profitability, liquidity and solvency, discuss financial reporting concepts. The classified balance sheet: reports the assets, liabilities, and equity at a. __specific point in time__________________: groups together similar assets and similar liabilities, using standard classifications. Accounting equation : assets = liabilities + stockholder"s equity. Example: tiger company has the following assets at 12/31/17. Investments: investments in stocks and bonds of other companies that are held for more than one year, investments in long-term assets such as land or buildings not currently being used in operating activities. ,000: property, plant and equipment assets are assets with a long useful life (more than one year)that are currently used in operating the business, examples, land, building, equipment, vehicles, they are also called plant assets, fixed assets, or.

Related Questions

In the blank next to each account, write the letter indicatingto which category of the Classified Balance Sheet it wouldbelong.

A. Current Assets E. Current Liabilities

B. Long-Term Investments F. Long-Term Liabilities

C. Property, Plant, and Equipment G. Stockholdersâ Equity

D. Intangible Assets H. Not on the Balance Sheet

Accumulated Depreciation
Common Stock
Building (used in operations)
Salaries Payable
Land (not used in operations)
Inventory
Unearned Revenue
Depreciation Expense
Dividends
Patents
Prepaid Rent
Mortgage Payable (due 2020)
Salaries Expense
Short-Term Debt investment
Income Tax Payable
Goodwill

erinturtle874

Six Measures of Solvency or Profitability

The following data were taken from the financial statements of Olvideo Enterprises Inc. for the current fiscal year.

Property, plant, and equipment (net)				$1,526,000
Liabilities:
	Current liabilities		$152,000
	Mortgage note payable, 8%, issued 2003, due 2019		763,000
	Total liabilities			$915,000
Stockholders' equity:
	Preferred $4 stock, $100 par (no change during year)			$915,000
	Common stock, $10 par (no change during year)			915,000
Retained earnings:
	Balance, beginning of year	$976,000
	Net income	319,000	$1,295,000
	Preferred dividends	$36,600
	Common dividends	38,400	75,000
	Balance, end of year			1,220,000
Total stockholders' equity				$3,050,000
Net sales				$8,850,100
Interest expense				$61,040

Assuming that long-term investments totaled $1,983,000 throughout the year and that total assets were $3,767,000 at the beginning of the current fiscal year, determine the following. When required, round to one decimal place.

a. Ratio of fixed assets to long-term liabilities
b. Ratio of liabilities to stockholders' equity
c. Ratio of net sales to assets
d. Rate earned on total assets	%
e. Rate earned on stockholders' equity	%
f. Rate earned on common stockholders' equity	%

limeantelope842

Oceanview MarineCompany 1-1
Balance Sheet
31-Dec-15


Assets	2015	2014	2013
Current Assts
Cash	$ 1,320,096	$ 1,089,978	$ 1,200,347
AccountsReceivable: Notes 2 and 5	$ 1,646,046	$ 1,285,593	$ 1,180,982
Inventories *Notes 1a, 3, and 5	$ 13,524,349	$ 12,356,400	$ 11,461,231
PrepaidExpenses	$ 17,720	$ 15,826	$ 15,275
Deposits	$ 7,916	$ 5,484	$ 4,329
Total CurrentAssets	$ 16,516,127	$ 14,753,281	$ 13,862,164

Property, Plant, Equipment *Notes 1b and 4
at cost, less accumulated depreciation	$ 596,517	$ 612,480	$ 627,771
TOTAL ASSETS	$ 17,112,644	$ 15,365,761	$ 14,489,935

LIABILITIES
CurrentLiabilites
Note Payable -Bank * Note 5	$ 5,100,000	$ 4,250,000	$ 4,000,000
Accountspayable	$ 1,750,831	$ 1,403,247	$ 1,106,574
AccruedLiabilities	$ 257,800	$ 217,003	$ 211,250
Federal IncomeTax Payable	$ 35,284	$ 45,990	$ 39,725
Current portionof long-term debt	$ 5,642	$ 5,642	$ 5,642
TotalCurrent Liabilities	$ 7,149,557	$ 5,921,882	$ 5,363,191
Long-Term Liabilities
Long-TermDebt	$ 409,824	$ 415,466	$ 421,108
TOTAL LIABILITIES	$ 7,559,381	$ 6,337,348	$ 5,784,299

STOCKHOLDERS EQUITY
Common Stock - * Note 7	$ 10,000	$ 10,000	$ 10,000
Additional paid in capital	$ 2,500,000	$ 2,500,000	$ 2,500,000
Retaind Earnings	$ 7,043,263	$ 6,518,413	$ 6,195,636
Total Stockholder Equity	$ 9,553,263	$ 9,028,413	$ 8,705,636

TOTAL LIABILITIES AND STOCKHOLDEREQUITY	$ 17,112,644	$ 15,365,761	$ 14,489,935


Liquidity ratios:	unadjusted 12/31/2015	unadjusted 12/31/2014	CHANGE	Percent Change	Industry Average
CurrentRation	2.31	2.49	-0.18	-7.23%	1.53
Quick Ratio	0.42	0.4	0.02	5.00%	0.43
Sales/ReceivableRatio	16.05	17.78	-1.73	-9.73%	20.29
Number of dayssales in A/R	?	?	?	?	17.99
InventoryTurnover	?	?	?	?	1.41

PROFITABILITY/PERFORMANCE RATIOS:
Gross Profit Margin (%)	?	?	?	?	39.83%
Income before taxes / owners' equity	?	?	?	?	0.06
Income before taxes / total assets	0.06	0.04	0.02	50.00%	0.04
Sales / Long - term assets	44.29	37.33	6.96	18.64%	19.07
Sales / Total Assets	1.54	1.49	0.05	3.36%	1.32
Sales / Working Capital	2.82	2.59	0.23	8.88%	2.18

SOLVENCY RATIOS
Owners Equity / Total Assets	0.56	0.59	-0.03	-5.08%	0.31
Long - Term Assets / owners' Equity	0.06	0.07	-0.01	-14.29%	0.47
Current Liabilities / Owners Equity	?	?	?	?	1.13
Total Liabilities / Owners Equity	?	?	?	?	2.03

Please answer the questionmarks and show computation

scarletllama498

ACCT 2000 Lecture Notes - Lecture 2: Public Company Accounting Oversight Board, International Accounting Standards Board, Accounting

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