Survey of Accounting (Accounting I)
8th Edition
ISBN: 9781305961883
Author: Carl Warren
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 5, Problem 5.4.1MBA
To determine
Concept Introduction:
Cash Flow statement:
The Cash flow statement shows the movement of cash during a particular period. The Cash flows are categorized into three categories as follows:
- Cash flows from operating activities
- Cash Flows from investing activities
- Cash flows from financing activities
(Note: Cash flows from operating activities can be prepared using direct or indirect method)
To Indicate:
The Comparison of results
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
Alex is currently considering to invest his money in one of the companies betweenCompany A and Company B. The summarized final accounts of the companies for theirlast completed financial year are as follows: (refer to the images)
Required:a. Calculate the following ratios for Company A and Company B. State clearly theformulae used for each ratio:i. Gross Profit Marginii. Net Profit Marginiii. Inventory Turnover Period (days)iv. Receivables Collection Period (days)v. Payables Payment Period (days)vi. Current Ratiovii. Quick Ratiob. Comment on each of the ratios calculated in part (a) above.
Refer to the 10-K for Abercrombie & Fitch.
Required:
1. What does the company report for the following accounts for the most current fiscal year:
Enter your answer in thousands.
a. Cash
b. Short-term investments (or marketable securities)
c. Accounts receivable
d. Inventory
e. Other current assets
f. Accounts payable
g. Other current liabilities
h. Cash flow from operations
A
A
AA
A
A
好
2. The company projects the following to occur in the next fiscal year:
• Accounts payable will decrease by 25%.
• Other current liabilities are expected to increase by 33%.
• Cash flow from operations is expected to decrease by 32%.
Assume all other items remain unchanged from the prior year.
Provide the next year's forecasted balances for the following accounts and cash flow from operations.
According to the information available in Income and Financial position statements (Image), calculate the following ratios for the business Competitors Average:
- Net profit margin 31%- Gross profit margin 54%- Current ratio 2.87x- Acid test ratio 1.35x- Accounts receivable collection period 50 days- Accounts payable payment period 72 days
Chapter 5 Solutions
Survey of Accounting (Accounting I)
Ch. 5 - Prob. 1SEQCh. 5 - Prob. 2SEQCh. 5 - Prob. 3SEQCh. 5 - Adjustments to the company’s records based on the...Ch. 5 - Prob. 5SEQCh. 5 - Prob. 1CDQCh. 5 - Prob. 2CDQCh. 5 - Prob. 3CDQCh. 5 - Prob. 4CDQCh. 5 - Prob. 5CDQ
Ch. 5 - Prob. 6CDQCh. 5 - Prob. 7CDQCh. 5 - Prob. 8CDQCh. 5 - Prob. 9CDQCh. 5 - Assume that Leslie Hunter, accounts payable clerk...Ch. 5 - Prob. 11CDQCh. 5 - The accounting clerk pays all obligations by...Ch. 5 - Prob. 13CDQCh. 5 - Prob. 14CDQCh. 5 - Do items reported as a credit memorandum on the...Ch. 5 - Prob. 16CDQCh. 5 - Prob. 17CDQCh. 5 - Prob. 5.1ECh. 5 - Prob. 5.2ECh. 5 - Prob. 5.3ECh. 5 - Prob. 5.4ECh. 5 - Prob. 5.5ECh. 5 - Prob. 5.6ECh. 5 - Prob. 5.7ECh. 5 - Prob. 5.8ECh. 5 - Prob. 5.9ECh. 5 - Prob. 5.10ECh. 5 - Prob. 5.11ECh. 5 - Prob. 5.12ECh. 5 - Prob. 5.13ECh. 5 - Prob. 5.14ECh. 5 - Prob. 5.15ECh. 5 - Prob. 5.16ECh. 5 - Prob. 5.17ECh. 5 - Prob. 5.18ECh. 5 - Prob. 5.19ECh. 5 - Entries for note collected by bank Accompanying a...Ch. 5 - Prob. 5.21ECh. 5 - Prob. 5.22ECh. 5 - Prob. 5.23ECh. 5 - Prob. 5.24ECh. 5 - Prob. 5.25ECh. 5 - Prob. 5.1PCh. 5 - Prob. 5.2.1PCh. 5 - Prob. 5.2.2PCh. 5 - Prob. 5.3.1PCh. 5 - Prob. 5.3.2PCh. 5 - Prob. 5.4.1PCh. 5 - Prob. 5.4.2PCh. 5 - Prob. 5.4.3PCh. 5 - Prob. 5.4.4PCh. 5 - Prob. 5.1.1MBACh. 5 - Prob. 5.1.2MBACh. 5 - Prob. 5.1.3MBACh. 5 - Prob. 5.1.4MBACh. 5 - Ratio of cash to monthly cash expenses AcelRx...Ch. 5 - Prob. 5.2.1MBACh. 5 - Prob. 5.2.2MBACh. 5 - Ratio of cash to monthly cash expenses Pacira...Ch. 5 - Ratio of cash to monthly cash expenses Pacira...Ch. 5 - Prob. 5.2.5MBACh. 5 - Prob. 5.3.1MBACh. 5 - Prob. 5.3.2MBACh. 5 - Prob. 5.3.3MBACh. 5 - Prob. 5.3.4MBACh. 5 - Prob. 5.3.5MBACh. 5 - Prob. 5.4.1MBACh. 5 - Prob. 5.4.2MBACh. 5 - Prob. 5.1CCh. 5 - Prob. 5.2CCh. 5 - Prob. 5.3CCh. 5 - Prob. 5.4CCh. 5 - Prob. 5.5.1CCh. 5 - Prob. 5.5.2CCh. 5 - Prob. 5.5.3CCh. 5 - Prob. 5.6C
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Financial condition Tidewater Inc., a retailer, provided the following financial information for its most recent fiscal year: The companys Cash flows from operating activities section is as follows: An examination of the financial statements revealed the following additional information: Revenues increased during the year as a result of an aggressive marketing campaign aimed at increasing the number of new Tidewater Card credit card customers. This is the companys branded credit card, which can only be used at Tidewater stores. The credit card balances are accounts receivable on Tidewaters balance sheet. Some suppliers have made their merchandise available at a deep discount. As a result, the company purchased large quantities of these goods in an attempt to improve the companys profitability. In recent years, the company has struggled to pay its accounts payable on time. The company has improved on this during the past year and is nearly caught up on overdue payables balances. The company reported net losses in each of the two prior years. Write a brief memo to your instructor evaluating the financial condition of Tidewater Inc.arrow_forwardUse the following selected financial data for Happy Valley Co. to answer questions. Net sales Rs.200,000 Cost of goods sold 90,000 Operating expenses 80,000 Net income 10,000 Total assets 180,000 Total liabilities 120,000 Calculate (1)debt ratio (2) operating profit margin (3) return on equity (4) net profit margin (5) Gross Profit ratio (6) Operating expense ratio (7) Assets turnoverarrow_forwardUse the information in the table below to calculate the following ratios for Windswept Woodworks for year 1 and year 2. (Round your answers to 2 decimal places.) Windswept Woodworks, Inc. Input Data (millions of dollars) Year 2 Year 1 Accounts payable 496 434 Accounts receivable 1,340 880 Accumulated depreciation 6,806 6,682 Cash & equivalents 284 178 Common stock 1,244 1,170 Cost of goods sold 1,500 n.a. Depreciation expense ? n.a. Common stock dividends paid ? n.a. Interest expense 140 n.a. Inventory 1,074 1,076 Addition to retained earnings 602 n.a. Long-term debt 872 786 Notes payable 230 380 Gross plant & equipment 10,260 10,000 Retained earnings 3,122 2,526 Sales 3,018 n.a. Other current liabilities 116 96 Tax rate 34 % n.a. Market price per share – year end $ 19.80 $…arrow_forward
- Modern Movables Corporation is a Virginia-based manufacturer of furniture. In a recent quarter, it reported the following activities: Net income $ 4,635 Purchase of equipment Borrowings under line of credit (bank) Proceeds from issuance of common stock 921 1,467 16 Cash received from customers 29,664 Payments to reduce notes payable (long-term) Sale of investments 51 139 Proceeds from sale of equipment Dividends paid Interest paid 7,094 282 95arrow_forwardModern Movables Corporation is a Virginia-based manufacturer of furniture. In a recent quarter, it reported the following activities: $ 4,235 881 Net income Purchase of equipment Borrowings under line of credit (bank) Proceeds from issuance of common stock 1,427 12 Cash received from customers 29,264 Payments to reduce notes payable (long-term) Sale of investments 47 135 Proceeds from sale of equipment Dividends paid Interest paid 6,694 278 91 Required: Based on this information, present the cash flows from investing and financing activities sections of the cash flow statement. (Amounts to be deducted should be indicated with a minus sign.) MODERN MOVABLES CORPORATION Statement of Cash Flows (Partial) Cash Flows from Investing Activities: Cash Flows from Financing Activities:arrow_forwardRefer to the following selected financial information from Texas Electronics. Compute the company's current ratio for Year 2. Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets Accounts payable Net sales Cost of goods sold Year 2 $ 38,700 102,000 91,500 127,000 13,300 394,000 107,400 717,000 396,000 Year 1 $ 33,450 66,000 85,500 131,000 10,900 344,000 113,800 682,000 381,000arrow_forward
- The accounting information collected from the MCM company is detailed in the attached tables. Prepare the following: Calculate the following financial ratios: Current ratio, acid test ratio, participation ratio, profit margin. Financial information was collected for the month of September 210 for the company MCM. Balance Bills to pay $35000 receivable accounts $29000 bonds payable $110000 buildings (net value) $605000 cash on hand $17000 dividends payable $8000 inventary $31000 terrain $450000 long-term mortgage payable $450000 retained earnings $154000 stock values $375000 transaction in september 2010 category Amount workforce $50000 bills insurance $20000 sales $62000 rent and maintenance $40000 salary $110000 others $62000 total $294000 income taxes $20000 finished goods inventory as of September 1, 2010 $25000 finished goods inventory as of September 30, 2010 $50000 materials inventory…arrow_forwardc. Compute the quick ratio for each company. Round your answers to one decimal place. Abercrombie: The Gap: Current assets: Analyze and compare Abercrombie & Fitch and The Gap Abercrombie & Fitch Co. (ANF) and The Gap, Inc. (GPS) are two U.S. apparel retailers. The current assets and current liabilities for each company from recent balance sheets are as follows (in thousands): Cash Accounts receivable Inventories X Other current assets Total current assets Current liabilities: Accounts payable Other current liabilities Total current liabilities X Abercrombie & Fitch The Gap $723,135 $1,364,000 73,112 290,000 437,879 2,156,000 101,824 706,000 $1,335,950 $4,516,000 $226,878 332,039 $558,917 $1,174,000 2,035,000 $3,209,000arrow_forwardThe financial statements of Dandy Distributors Ltd. are shown on the "Fcl. Stmts." page. 1 Based on Dandy's financial statements, calculate ratios for the year ended December 31, 2020. Assume all sales are on credit. Show your work. 2 From these ratios, analyze the financial performance of Dandy.arrow_forward
- Amjad Trading LLC : Gross Sales are RO 82,000, Sales Returns RO 2,000, Cost of goods sold is RO 30,000, Total Operating expenses are RO 30,000. Bank interest received RO 500. The value of total revenue under simple step income statement is:arrow_forwardIs the organization profitable? Why or why not? Use the Hillside, Inc. Balance Sheet information in cells A2 through D18 and cells A21 through B38 to complete the Financial Performance Calculations in cells A40 through C60. Table 1: Hillside, Inc. Balance Sheet ($ in Millions) ASSETS LIABILITIES Cash & Marketable Securities 449.90 Accounts Payable 1,611.20 Accounts Receivable 954.80 Salaries Payable 225.20 Inventories 3,645.20 Other Current Liabilities 1,118.80 Other Current Assets 116.60 Total Current Liabilities 2,955.20 Total Current Assets 5,165.27 Other Liabilities 693.40 Machinery & Equipment 1,688.90 Land 1,129.70 Total Liabilities 3,648.60 Buildings 2,348.40 Depreciation (575.60) SHAREHOLDER'S EQUITY…arrow_forwardThe following information pertains to Diane Company. Assume that all balance sheet amounts represent both average and ending balance figures and that all sales were on credit. Use this information to answer the questions that follow. Assets Cash and short-term investments $ 30,000Accounts receivable (net) 20,000Inventory 15,000Property, plant, and equipment 185,000Total assets $250,000 Liabilities and Stockholders’ Equity Current liabilities $ 45,000Long-term liabilities 70,000Stockholders’ equity—Common 135,000Total liabilities and stockholders’ equity $250,000 Income Statement Sales $ 85,000 Cost of goods sold 45,000 Gross margin $ 40,000 Operating expenses (15,000)Interest expense (5,000)Net income $ 20,000 Number of shares of common stock outstanding 6,000Market price of common stock $20Total dividends paid $9,000Cash provided by operations $30,000 What would be Asset turnover, turn on total assets, the dividen yield, return on common stockholders equity and the price-earning per…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Survey of Accounting (Accounting I)AccountingISBN:9781305961883Author:Carl WarrenPublisher:Cengage LearningManagerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College Pub
Survey of Accounting (Accounting I)
Accounting
ISBN:9781305961883
Author:Carl Warren
Publisher:Cengage Learning
Managerial Accounting
Accounting
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:South-Western College Pub
Financial instruments products; Author: fi-compass;https://www.youtube.com/watch?v=gvxozM3TUIg;License: Standard Youtube License