Accounting ACCT 2610 Study Guide - Final Guide: Accounts Receivable, Cash Flow Statement, Cash Cash

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oliveleopard31

22 Feb 2017

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Balance sheet investments: current assets, net purchase of plant and equipment (pp&e) long-term liabilities intangibles and other assets long-lived assets, current liabilities, common stock, additional paid in capital, treasury stock, retained earnings income statement, revenues, expenses. Retained earnings portion of the statement of shareholder"s equity: net income, dividends. Cash flow statement: cash flow from operating activities, cash flow from investing activities, cash flow from financing activities production) x actual production. Depreciation expense methods: straight line = (acquisition cost residual value)/useful life, units of production = (cost residual value/estimated total. Net book value = acquisition cost accumulated depreciation. Sales revenue cost of sales = gross margin total assets = total liabilities + equity (balance sheet equation) Weighted average cost = (total cost of goods available for sale/number of. Cost of goods available = previous year"s ending inventory + new inventory. Bond price = principal pvss factor payment (cid:523)market rate, n(cid:524) + principal coupon rate pvannuity factor payment (cid:523)market rate, n)

Related Questions

Silver ComputerCorporation

Use the financial statementsbelow to complete a financial ratio analysis.

The ratios should becalculated on the ratio worksheet. Make sure to reference

amounts from the statementsonto your ratios. Be sure that your answer

uses the correct format forthat ratio: times, percentage, days, dollar amount.

RatioFormat:

Show with your answer whetherthe ratio is times, perentage, or dollar amount.

For example:

Current ratio is times, so it would be shown as anumber compared to one.

(ie. 2.08 to 1 or 2.08:1 )

Working capital is a dollar amount, so it would beshown as currency.

(ie. $11, 190 )

Net margin is a percentage, so it would be shownwith a % sign.

(ie. 12.7% )

Take a look at the ratiodescriptions in the textbook to determine if the ratio is

times, percentage, or dollaramount.

Decimal Places onRatios

The following are typicallyaccepted rules for decimal places on ratios:

Ratios: two decimal places

Dollars: two decimal places (the book showed threedecimal places for

earnings per share but we don't need to do that forthis class)

Days: one decimal place

Percentages: one decimal place (the textbook showedpercentages to two

decimal places but I think that is overkill)

Price-Earnings ratio: two decimal places

Times: two decimal places

Silver ComputerCorporation

IncomeStatement

For the Year EndedDecember 31, 2016

Other revenue and expense

Income before incometaxes

Silver ComputerCorporation

Comparative BalanceSheets

As of December 31,2016 and 2015

Assets

Marketable securities

Merchandise inventory

Total plant and equipment

Liabilities

Total current liabilities

Long-term liabilities

Long-term notes payable

Stockholder's Equity

Total stockholder'sequity

Total liabilities &equity

Notes for preparationof financial ratios:

All of Silver Corporations sales were onaccount.

1,692 shares of common stock were outstanding atthe end of 2016.

$2.50 of dividends per share were paid in2016.

The market price per share of Silver stock was$34.00 for all of 2016.

Answer this question

SilverComputer Corporation
Liquidity and SolvencyFinancial Ratios

LiquidityRatios
Note - Working Capitalshown as an example to follow on the remainingratios.

Working Capital	16,540
	10,350	1.6:1

Current ratio


Quick ratio
* Quick assets are cash,marketable securities, and accounts receivable

Accounts receivableturnover


Average days to collectreceivables


Inventory turnover


Average days to sellinventory


Operating cycle


Solvency Ratios(Long-term credit risk)

Debt ratio


Interest coverage ratio

coppergnu114

IKIBAN INC. Comparative Balance Sheets June 30, 2015 and 2014
	2015			2014
Assets
Cash	$	96,500		$	56,200
Accounts receivable, net		69,300			51,400
Inventory		66,600			96,800
Prepaid expenses		5,100			6,400

Total current assets		237,500			210,800
Equipment		135,200			120,000
Accum. depreciationâEquipment		(28,900	)		(10,500	)

Total assets	$	343,800		$	320,300

Liabilities and Equity
Accounts payable	$	26,900		$	32,200
Wages payable		7,100			16,700
Income taxes payable		2,500			4,100

Total current liabilities		36,500			53,000
Notes payable (long term)		42,000			70,000

Total liabilities		78,500			123,000
Equity
Common stock, $5 par value		240,000			189,000
Retained earnings		25,300			8,300

Total liabilities and equity	$	343,800		$	320,300

IKIBAN INC. Income Statement For Year Ended June 30, 2015
Sales			$	673,000
Cost of goods sold				407,000

Gross profit				266,000
Operating expenses
Depreciation expense	$	53,000
Other expenses		66,900

Total operating expenses				119,900

				146,100
Other gains (losses)
Gain on sale of equipment				2,600

Income before taxes				148,700
Income taxes expense				59,480

Net income			$	89,220

a. A $28,000 note payable is retired at its $28,000 carrying (book) value in exchange for cash.

b. The only changes affecting retained earnings are net income and cash dividends paid.

c. New equipment is acquired for $63,800 cash.

d. Received cash for the sale of equipment that had cost $48,600, yielding a $2,600 gain.

e. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement.

f. All purchases and sales of inventory are on credit.

IKIBAN, INC.
Statement of Cash Flows (Indirect Method)
For Year Ended June 30, 2015
Cash flows from operating activities

Adjustments to reconcile net income to net cash provided by operating activities
Income statement items not affecting cash



Changes in current operating assets and liabilities







		$0
Cash flows from investing activities



		0
Cash flows from financing activities




		0
Net increase (decrease) in cash		$0
Cash balance at prior year-end
Cash balance at current year-end		$0

Cash Flow on Total Assets Ratio
Choose Numerator:	/	Choose Denominator:	=	Cash Flow on Total Assets Ratio
	/		=	Cash flow on total assets ratio
	/		=

(2) Compute the company's cash flow on total assets ratio for its fiscal year 2015.

copperwildebeest615

Dec. 31,2014		Dec. 31,2013
Assets
Cash		$130	$44
Accounts receivable(net)		75	55
Inventories		47	30
Land		107	125
Equipment		60	48
Accumulateddepreciation-equipment		(16)	(8)
	Total	$403	$294
Liabilities andStockholders' Equity
Accounts payable(merchandise creditors)		$51	$44
Dividends payable		8	-
Common stock, $10par		27	14
Paid-in capital inexcess of par-common stock		55	34
Retained earnings		262	202
	Total	$403	$294

The following additional information is taken from therecords:

Land was sold for $45.

Equipment was acquired for cash.

There were no disposals of equipment during the year.

The common stock was issued for cash.

There was a $87 credit to Retained Earnings for net income.

There was a $27 debit to Retained Earnings for cash dividendsdeclared.

a. Prepare a statement of cash flows, using theindirect method of presenting cash flows from operating activities.Use the minus sign to indicate cash out flows, cash payments,decreases in cash and for any adjustments, if required.

Tru-Built Construction Inc.

Statement of Cash Flows

For the Year Ended December 31, 2014

Cash flows from operating activities:

Adjustments to reconcile net income to net cash flow fromoperating activities:

Changes in current operating assets and liabilities:

Net cash flow from operating activities

Cash flows from investing activities:

Net cash flow provided by investing activities

Cash flows from financing activities:

Net cash flow provided by financing activities

Cash at the beginning of the year

Cash at the end of the year

Was Tru-Built Construction Inc.'s cash flow from operations moreor less than net income? LESS OR MORE

purplepug292

Accounting ACCT 2610 Study Guide - Final Guide: Accounts Receivable, Cash Flow Statement, Cash Cash

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