182.The following information is available for the Savvy Company for the month of June. a. On June 30, after all transactions have been recorded, the balance in the company’s Cash account has a balance of $17,202. b. The company’s bank statement shows a balance on June 30 of $19,279. c. Outstanding checks at June 30 total $2,984. d. A credit memo included with the […]

  144. Financial statement analysis often assess the profitability and risk of an organization. Specific ratios target each of these areas to answer questions such as “How profitable is this company?” or “How risky (liquid) is an investment in this company?”Required:  a. Discuss three ratios that address how profitable a company might be. b. Discuss three ratios that address how risky (liquid) a company might be. […]

    101. The following financial information was summarized from the accounting records of Train Corporation for the current year ended December 31:    RailsDivision LocomotiveDivision CorporateTotal Cost of goods sold $47,200 $30,720   Direct operating expenses 27,200 20,040   Net sales 108,000 78,000   Interest expense     $  2,040 General overhead     18,160 Income tax     4,700         The gross […]

  Answer the following questions using the information below:   Christine Corporation manufactures baseball uniforms and uses budgeted machine-hours to allocate variable manufacturing overhead. The following information pertains to the company’s manufacturing overhead data:   Budgeted output units10,000 units Budgeted machine-hours15,000 hours Budgeted variable manufacturing overhead costs for 20,000 units$180,000   Actual output units produced9,000 units Actual machine-hours used14,000 hours Actual variable manufacturing overhead costs$171,000 […]

    131. Which of the following is/are true? A. Firms sometimes issue bonds with stock warrants attached and allocate the amount received between the bonds and the warrants based on their respective fair values. B. When firms issue convertible bonds U.S. GAAP requires firms to allocate the full issue price to the bonds and none to the conversion feature. C. IFRS requires firms to allocate the issue price between […]

  11) The ratio that uses weighted-average number of shares of common stock outstanding in the denominator is the: A) earnings per share. B) gross profit percentage. C) price-earnings ratio. D) current ratio. 12) Earnings per share (EPS) is calculated as: A) the number of shares of common stock outstanding at the end of the year divided by net income. B) net income divided by […]

  21) What is the change in operating profits if the one-time-only special order for 1,000 units is accepted for $180 a unit by Welch? A) $70,000 increase in operating profits B) $10,000 increase in operating profits C) $10,000 decrease in operating profits D) $75,000 decrease in operating profits E) $40,000 increase in operating profits Answer the following question(s) using the information below.   Grant’s […]

    56. If a company has advance ticket sales totaling $2,000,000 for the upcoming football season, the receipt of cash would be journalized as:  A. Debit Sales, credit Unearned Revenue. B. Debit Unearned Revenue, credit Sales. C. Debit Cash, credit Unearned Revenue. D. Debit Unearned Revenue, credit Cash. E. Debit Cash, credit Revenue. 57. A contingent liability is:  A. Always of a specific amount. B. A potential obligation that depends on a future […]

64.Royer Corporation engaged in this transaction:   Declared and issued a stock dividend.   Indicate which section, if any, each transaction would appear in, or relate to, on a statement of cash flows.   a. Financing activities section b. Investing activities section c. Does not represent a cash flow d. Operating activities section       65.Royer Corporation engaged in this transaction:   Collected accounts […]

    21.QRC Company is trying to decide which one of two alternatives it will accept. The costs and revenues associated with each alternative are listed below:  What is the differential revenue for this decision?    A. $25,000   B. $12,500   C. $62,500   D. $75,000     22.Ethan paid $3 for a bottle of ThirstAid. Later while on a hiking trip, she was offered $8 for the ThirstAid. Select […]