QUESTION Nordstrom, Inc. operates department stores in numerous states. Selected financial statement data for the year ending February 2, 2008, are shown on the next page.For the year, net sales were $8,828, and cost of goods sold was $5,526 (in millions).Instructions(a) Compute the four liquidity ratios at the end of the year.(b) Using the data […]
QUESTION Listed here are certain accounts of the Jenkins Company at the end of 2007:Account Debit (Credit)Land .$12,000Prepaid insurance . 1,530Cash on hand 1,120Notes receivable (due 2010) . 4,300Cash in bank . 5,400Allowance for doubtful accounts .. (1,100)Marketable securities (short-term) 3,380Accumulated depreciation . (8,700)Accounts receivable .. 15,600Office supplies .. 970Buildings 27,200Inventory 19,700RequiredPrepare the current asset […]
QUESTION Journal entries for borrowing Sappi Limited, a South African paper company, reports non-current Interest-Bearing Borrowings of $1,634 million at September 30, 2006. Sappi Limited applies IFRS, and reports its results in millions of U.S. dollars. At September 30, 2007, this balance had increased to $1,828 million. Assume that on March 30, 2007, Suppi Limited […]
QUESTION Information indicates that a firm will earn a return on common equity above its cost of equity capital in all years in the future, but its shares trade below book value. Those shares must be mispriced. True or false? If each year the return on common equity rises it will mean that the profits […]
QUESTION Here are incomplete financial statements for Liam, Inc. InstructionsCalculate the missing amounts. So lution: a) Common Stock = Total liabilities and stockholders” equity Retained Earnings Liabilities = $62,000 $27,000 $5,000 =$30,000 b) Retained Earnings = Ending Retained Earnings = $27,000 c) COGS = Revenues Net Income Salaries and wages expense = $85,000 $32,000 $10,000 […]
QUESTION Hanson Construction has an operating cycle of nine months. On December 31, 2009, Hanson has the following assets and liabilities:a. A note receivable in the amount of $1,000 to be collected in six months.b. Cash totaling $600.c. Accounts payable totaling $1,800, all of which will be paid within two months.d. Accounts receivable totaling $12,000, […]
QUESTION For the year ended December 31, 2010, Ebanks, Inc., earned an ROI of 12%. Sales for the year were $96 million, and average asset turnover was 2.4. Average owners equity was $32 million.Required:a. Calculate Ebanks, Inc.s margin and net income.b. Calculate Ebanks, Inc.s return on equity. Answer A Average Asset Turnover = Sales/Average Assets […]
QUESTION Evaluating the Effect of Adjusting Unearned Subscriptions on Cash Flows and Performance as a ManagerYou are the regional sales manager for Miga News Company. Miga is making adjusting entries for the year ended March 31, 2013. On September 1, 2012, customers in your region paid $24,000 cash for three-year magazine subscriptions beginning on that […]
QUESTION Dual effects on balance sheet equation, Cement Plus, a firm specializing in building materials, engaged in the following four transactions during 2008: (1) Purchased and received inventory costing $14,300 million, of which $12,000 million was on account with the rest paid in cash: (2) Purchased a machine for $3,000 million with cash; (3) Issued […]
QUESTION Define the functional currency concept and briefly describe how a foreign entitys functional currency is determined. Why is this definition critical from a financial reporting perspective? 1. A functional currency concept of the company is the primary economic environments currency in which it functions. It is usually the currency in which the company accepts […]
