ACCT207 Lecture Notes - Lecture 2: Deferral, Current Liability, Retained Earnings

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blushchimpanzee719

11 Sep 2018

School

University of Delaware

Department

Accounting

Course

ACCT207

Professor

Somerville Scott

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Document Summary

Identify the sections of a classified balance sheet. To improve understanding, companies group similar assets and liabilities together. Assets: current assets, long-term investments, property plant and equipment, intangible assets. Liabilities and stockholders" equity: current liabilities, long-term liabilities, stockholders" equity. Assets a company expects to convert to cash or use up within one year or the operating cycle, whichever is longer. Operating cycle: average time it takes from the purchase of inventory sale of goods cash from customers. Examples: current assets are cash, investment, receivables, inventories, and prepaid expenses. Companies list current assets in the order they expect to convert them into cash. (example) cash accounts receivable inventory prepaid insurance total current assets property plant equipment. Equipment less accumulated depreciation equipment total assets. Investments in stocks or bonds of other corporations that are held for over one year. Long term assets (land, buildings) that a company is not currently using in it"s operating activities.

Related Questions

Below you will find selected information (in millions) fromCoca-Cola Co.âs 2012 Annual Report.

Income Taxes Payable	$471
Short-term Investments and Marketable Securities	8,109
Cash	8,442
Other non-current Liabilities	10,449
Common Stock	1,760
Receivables	4,812
Other Current Assets	2,973
Long-term Investments	10,448
Other Non-current Assets	3,585
Property, Plant and Equipment	23,486
Trademarks	6,527
Other Intangible Assets	20,810
Allowance for Doubtful Accounts	53
Accumulated Depreciation	9,010
Accounts Payable	8,680
Short Term Notes Payable	17,874
Prepaid Expenses	2,781
Other Current Liabilities	796
Long-Term Liabilities	14,736
Paid-in-Capital in Excess of Par Value	11,379
Retained Earnings	55,038
Inventories	3,264
Treasury Stock	35,009

Other information taken from the Annual Report.

Sales Revenue for 2012	$48,017
Cost of Goods Sold for 2012	19,053
Net Income for 2012	9,019
Inventory Balance on 12/31/11	3,092
Net Accounts Receivable Balance on 12/31/11	4,920
Total Assets on 12/31/11	79,974
Equity Balance on 12/31/11	31,921

Required: 1: Using the information provided prepare a BalanceSheet. Separate the current assets from non-current assets andprovide a total for each. Also, separate the current liabilitiesfrom the non-current liabilities and provide a total foreach.
2: Using the Balance Sheet from your answer above, calculate theCurrent Ratio and Return on common stockholdersâ equity.

scarlettermite353

The correct answer is 57.14 please show work.

Based on the information in the table, and using a 365-day year,calculate operating cycle.

Round the answers to two decimal places

Balance Sheet December 31, 2012

Cash and marketable securities	$198,000	Accounts payable	$288,000
Accounts receivable	$469,000	Notes payable	$65,000
Inventories	$577,000	Accrued expenses	$84,000
Prepaid expenses	$15,700	*Total current liabilities*	*$437,000*
*Total current assets*	*$1,259,700*	*Long-term debt*	*$237,000*
Gross fixed assets	$1,954,000	Par value and paid-in-capital	$199,000
Less: accumulated depreciation	$476,000	Retained Earnings	$1,864,700
Net fixed assets	$1,478,000	*Common Equity*	*2,063,700*
*Total assets*	*$2,737,700*	*Total liabilities and owner*

coppersea-lion262

Below you will find selected information (in millions) fromCoca-Cola Co.âs 2012 Annual Report.

Income Taxes Payable	$471
Short-term Investments and Marketable Securities	8,109
Cash	8,442
Other non-current Liabilities	10,449
Common Stock	1,760
Receivables	4,812
Other Current Assets	2,973
Long-term Investments	10,448
Other Non-current Assets	3,585
Property, Plant and Equipment	23,486
Trademarks	6,527
Other Intangible Assets	20,810
Allowance for Doubtful Accounts	53
Accumulated Depreciation	9,010
Accounts Payable	8,680
Short Term Notes Payable	17,874
Prepaid Expenses	2,781
Other Current Liabilities	796
Long-Term Liabilities	14,736
Paid-in-Capital in Excess of Par Value	11,379
Retained Earnings	55,038
Inventories	3,264
Treasury Stock	35,009

Other information taken from the Annual Report.

Sales Revenue for 2012	$48,017
Cost of Goods Sold for 2012	19,053
Net Income for 2012	9,019
Inventory Balance on 12/31/11	3,092
Net Accounts Receivable Balance on 12/31/11	4,920
Total Assets on 12/31/11	79,974
Equity Balance on 12/31/11	31,921

lavendergrasshopper535

ACCT207 Lecture Notes - Lecture 2: Deferral, Current Liability, Retained Earnings

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