Log in
HomeStudy Guides420,000CA160,000

ENSC 407- Final Exam Guide - Comprehensive Notes for the exam ( 23 pages long!)

49 views23 pages
salmonimpala220
29 Mar 2018
School
Queen's University
Department
Environmental Studies
Course
ENSC 407
Professor
Heather Jaimeson

For unlimited access to Study Guides, a Grade+ subscription is required.

Document Summary

1st assignment: done in class life of a dam & subsurface migration, done in groups, 2 parts. Individual: reading a journal article (each getting a different article, summarize the article and then group discussion, evaluated on summary and preparation of answering questions on the summary. Case study: 10 mins + 5 min discussion, extended abstract and list of sources, topics up on onq, the case studies will be on exam ! Global summit: opposite of a debate, summit try to come to a resolution. What kind of a crisis: themes = global issues vs regional issues vs national issues, questions of scale. Image shows artist"s (cid:272)o(cid:374)(cid:272)eptio(cid:374) of the earth"s surfa(cid:272)e (cid:1007). (cid:1012) (cid:271)illio(cid:374) (cid:455)ears ago (earth about 5 billion years ago: came from the lighter elements were part of degassing, water vapour and ice at the same time. If we lost all our liquid water we would have lost all life.

Get access

Grade+
$40 USD/m
Billed monthly
Grade+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
10 Verified Answers

Related Questions

FNEC 1600

Comprehensive Problem – Due Date: December 1, 2017

Fall 2017

Your score on the following problem will carry a weight of 13% in determining your overall course grade. A hard copy of your solution must be submitted by December 1st. Any submission after the beginning of class on that date is subject to a 10 point per day late point reduction.

Description:

You have been charged with preparing year-end adjusting entries along with a multiple-step income statement and a classified balance sheet for Fat Tire, Inc., a wholesaler of bicycles and bicycle parts. The financial statements will cover the year ended December 31, 2016. A December 31 bank reconciliation, an unadjusted trial balance, and other information to help with the adjusting entries follow.

Fat Tire, Inc.

Bank Reconciliation

31-Dec-16

Balance per Bank Statement

$297,000

Deposits in Transit

$4,500

Bank Error (See note 1 below)

1,200

Outstanding Checks

(2,000)

3,700

Adjusted Balance

$300,700

Balance per Fat Tire's Books

$300,000

Interest Earned per bank statement

$450

Book Error (See note 2 below)

1,170

NSF Check (See note 3 below)

(500)

December bank service charges

(420)

700

Adjusted Balance

$300,700

note 1: The bank incorrectly charged Fat Tire's account for a fee

that belonged to another client of the bank.

note 2: A check for $130 to pay a cash miscellaneous operating

expense was incorrectly recorded as $1,300 on Fat Tire's
books.

note 3: The bank returned a bad check deposited by Fat Tire

that represented a receipt of payment from one of Fat Tire's

customers.

Fat Tire, Inc.

Unadjusted Trial Balance

December 31, 2016

Debit

Credit

Accounts Payable

50,000

Accounts Receivable

425,700

Accumulated Depreciation (Equip)

4,305

Accumulated Depreciation (F & F)

23,600

Advertising Expense

18,000

Allowance for Doubtful Accounts

$1,500

Cash

$300,000

Common Stock

180,000

Cost of Goods Sold

2,613,000

Depreciation Expense

6,455

Equipment

10,000

Furniture & Fixtures

50,000

Income Tax Expense

228,323

Insurance Expense

7,500

Interest Revenue

5,200

Inventory

325,000

Miscellaneous Operating Expense

2,500

Note Payable

35,000

Payroll Tax Expense

23,680

Prepaid Insurance

10,500

Rent Expense

168,000

Rent Revenue

4,000

Retained Earnings

242,553

Salary Expense

264,500

Sales Discounts

42,000

Sales Returns

30,000

Sales Revenue

4,020,000

Supplies

2,000

Supplies Expense

17,000

Unearned Rent

2,000

Utilities Expense

24,000

Totals

4,568,158

4,568,158

Information related to adjusting entries:

No entries have been made for the December 31 bank reconciliation. Use the bank reconciliation provided to prepare the necessary entries.

Fat Tire pays employees and all payroll related liabilities semi-monthly. Each payment of payroll related liabilities is for the previous pay period. Thus, Fat Tire needs to accrue salaries and payroll related expenses for the December 16th-31st pay period. The following information was obtained for the last pay period of the year.

Gross Pay = $12,000
Federal Income Tax withholding rate = 20%
FICA rate for employees and employers = 8%
State unemployment taxes for the pay period = $250
Federal unemployment taxes for the pay period = $75

Fat Tire maintains a liability account for federal income tax withheld from employees and a separate liability account for its own corporate income taxes.

Based on a count taken on December 31st, the amount of supplies that remain on hand is $500.

Unbilled sales as of December 31 totaled $5,000. The cost of those bikes sold was $2,000.

The Allowance for Doubtful accounts is adjusted at the end of each year using the percentage of sales method. Fat Tires estimates that 1% of adjusted net sales will go uncollected.

The Prepaid Insurance balance represents an $18,000 one-year policy that began on July 1. The company adjusts any prepaid items on a monthly basis.

Fat Tire decided to sublease some of its rental space. On October 1, the company received $6,000 in advance from a neighboring business for 3 month’s rent. The lease period began on October 1. Fat Tire adjusts rent related accounts on a monthly basis.

Furniture and Fixtures were acquired on January 2, 2012 at a cost of $50,000. Management selected a 10 year life and a $2,000 residual value. Fat Tire depreciates Furniture and Fixtures on a monthly basis using the straight-line method of depreciation.

The Equipment was purchased on January 2, 2015 at a cost of $10,000. Management selected a productive life of 6,000 hours and a $1,000 residual value. Fat Tire depreciates Equipment on a monthly basis using the units-of-production method. The equipment was used 200 hours in December.

The Note Payable was issued on December 1, 2016. The terms of the note state that the principal and interest is to be paid two years from the issuance date. The interest rate stated on the note is 6 percent.

Accrued advertising expenses incurred but not yet paid totaled $1,000 on December 31.

Fat Tire makes quarterly payments for its income taxes. No entry has been made for the fourth quarter income taxes of 2016 which will be paid in 2017. To make this entry, you will have to determine the Income Before Tax for the year. One-fourth of that amount represents income earned in the fourth quarter. Fat Tire’s corporate tax rate is 40%.

Required:

Prepared the adjusting journal entries required on December 31, 2016.

Prepared a multiple-step income statement for the year ended December 31, 2016. Make sure your operating expenses are listed in descending order. Use the Income statement example that I provided as supplemental notes to chapter 6 as a guide.

Prepare a classified balance sheet as of December 31, 2016. List your current assets in order of liquidity.

Note: If it helps, prepare a supplemental schedule like we completed in problem 4.6A. It may help organize your data prior to preparing the financial statements.

Appropriate Use of Office Hours:

Office hours are held so that students can ask questions about assignments and/or concepts. For assignments that are to be submitted for a grade, it is unreasonable for you to ask ‘is my assignment correct’ or ‘can you find my mistakes’. That is why the assignments are graded. A reasonable request is to ask ‘how to’ questions if you are stuck on a step or ‘can you help me understand this data or this requirement’. We (I’m speaking for the TAs as well) want to help, but we are not there to complete your assignments for you.

Print Formats: Be sure to use the print preview feature in Excel and adjust your spreadsheets so that they can be easily read. Points will be deducted if I have to work just to read your printouts. Use normal size fonts and make sure that when reading left to right, you do not have sheets starting on one page and finishing on another. In other words, pretend I’m your client.

NIKE:

Need the following ratios to be calculated using the financial sheets copied at the bottom. Each ratio needs to be calculated using the information from 2016. Each ratio also needs to be broken down and illustrated by the step by step process. Finally, please include any and all observations for each ratio and analysis.

1) Common Size analysis

2) Common size vertical analysis & graph

3) Current Ratio

4) Quick Ratio

5) Cash Ratio

6) Inventory Turnover

7) Receivables Turnover

8) Total Asset Turnover

9) Fixed Asset Turnover

10) Gross profit margin

11) Operating Profit margin

12) Net profit margin

13) Return on total assets

14) return on equity

15) basic earning power

16) Deb/net worth ratio

17) debt ratio

18) DuPont System

19) Times-interest-earned

Balance Sheet:

Consolidated Balance Sheets - USD ($) $ in Millions May 31, 2017 May 31, 2016
Current assets:
Cash and equivalents $ 3,808 $ 3,138
Short-term investments 2,371 2,319
Accounts receivable, net 3,677 3,241
Inventories 5,055 4,838
Prepaid expenses and other current assets 1,150 1,489
Total current assets 16,061 15,025
Property, plant and equipment, net 3,989 3,520
Identifiable intangible assets, net 283 281
Goodwill 139 131
Deferred income taxes and other assets 2,787 2,422
TOTAL ASSETS 23,259 21,379
Current liabilities:
Current portion of long-term debt 6 44
Notes payable 325 1
Accounts payable 2,048 2,191
Accrued liabilities 3,011 3,037
Income taxes payable 84 85
Total current liabilities 5,474 5,358
Long-term debt 3,471 1,993
Deferred income taxes and other liabilities 1,907 1,770
Commitments and contingencies
Redeemable preferred stock 0 0
Shareholders’ equity:
Capital in excess of stated value 8,638 7,786
Accumulated other comprehensive (loss) income (213) 318
Retained earnings 3,979 4,151
Total shareholders’ equity 12,407 12,258
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY 23,259 21,379
Class A Convertible Common Stock
Shareholders’ equity:
Common stock at stated value 0 0
Class B Common Stock
Shareholders’ equity:
Common stock at stated value $ 3 $ 3

Income Statement:

Consolidated Statements of Income - USD ($) $ in Millions 12 Months Ended
May 31, 2017 May 31, 2016 May 31, 2015
Income Statement [Abstract]
Revenues $ 34,350 $ 32,376 $ 30,601
Cost of sales 19,038 17,405 16,534
Gross profit 15,312 14,971 14,067
Demand creation expense 3,341 3,278 3,213
Operating overhead expense 7,222 7,191 6,679
Total selling and administrative expense 10,563 10,469 9,892
Interest expense (income), net 59 19 28
Other (income) expense, net (196) (140) (58)
Income before income taxes 4,886 4,623 4,205
Income tax expense 646 863 932
NET INCOME $ 4,240 $ 3,760 $ 3,273
Earnings per common share:
Basic (in dollars per share) $ 2.56 $ 2.21 $ 1.90
Diluted (in dollars per share) 2.51 2.16 1.85
Dividends declared per common share (in dollars per share) $ 0.70 $ 0.62 $ 0.54

Cash Flow Sheet

Consolidated Statements of Cash Flows - USD ($) $ in Millions 12 Months Ended
May 31, 2017 May 31, 2016 May 31, 2015
Cash provided by operations:
Net income $ 4,240 $ 3,760 $ 3,273
Income charges (credits) not affecting cash:
Depreciation 706 649 606
Deferred income taxes (273) (80) (113)
Stock-based compensation 215 236 191
Amortization and other 10 13 43
Net foreign currency adjustments (117) 98 424
Changes in certain working capital components and other assets and liabilities:
(Increase) decrease in accounts receivable (426) 60 (216)
(Increase) in inventories (231) (590) (621)
(Increase) in prepaid expenses and other current assets (120) (161) (144)
(Decrease) increase in accounts payable, accrued liabilities and income taxes payable (364) (889) 1,237
Cash provided by operations 3,640 3,096 4,680
Cash used by investing activities:
Purchases of short-term investments (5,928) (5,367) (4,936)
Maturities of short-term investments 3,623 2,924 3,655
Sales of short-term investments 2,423 2,386 2,216
Investments in reverse repurchase agreements 0 150 (150)
Additions to property, plant and equipment (1,105) (1,143) (963)
Disposals of property, plant and equipment 13 10 3
Other investing activities (34) 6 0
Cash used by investing activities (1,008) (1,034) (175)
Cash used by financing activities:
Net proceeds from long-term debt issuance 1,482 981 0
Long-term debt payments, including current portion (44) (106) (7)
Increase (decrease) in notes payable 327 (67) (63)
Payments on capital lease and other financing obligations (17) (7) (19)
Proceeds from exercise of stock options and other stock issuances 489 507 514
Excess tax benefits from share-based payment arrangements 177 281 218
Repurchase of common stock (3,223) (3,238) (2,534)
Dividends — common and preferred (1,133) (1,022) (899)
Cash used by financing activities (1,942) (2,671) (2,790)
Effect of exchange rate changes on cash and equivalents (20) (105) (83)
Net increase (decrease) in cash and equivalents 670 (714) 1,632
Cash and equivalents, beginning of year 3,138 3,852 2,220
CASH AND EQUIVALENTS, END OF YEAR 3,808 3,138 3,852
Cash paid during the year for:
Interest, net of capitalized interest 98 70 53
Income taxes 703 748 1,262
Non-cash additions to property, plant and equipment 266 252 206
Dividends declared and not paid $ 300 $ 271 $ 240