Questions from Financial Accounting

Q: Saltwater Trade Mart has recently had lackluster sales. The rate of

Saltwater Trade Mart has recently had lackluster sales. The rate of inventory turnover has dropped, and the merchandise is gathering dust. At the same time, competition has forced Saltwater’s supplier...

Q: Cinnamon Roll, Inc., and Dunking Coffee Corporation are both specialty

Cinnamon Roll, Inc., and Dunking Coffee Corporation are both specialty food chains. The two companies reported these figures, in millions: Requirements 1. Compute the gross profit percentage and the...

Q: Assume Young Company, a music store, lost some inventory in

Assume Young Company, a music store, lost some inventory in a fi re on March 15. To fi le an insurance claim, Young Company must estimate its March 15 inventory by the gross profit method. Assume that...

Q: During 2012, Vanguard, Inc., changed to the LIFO method

During 2012, Vanguard, Inc., changed to the LIFO method of accounting for inventory. Suppose that during 2013, Vanguard changes back to the FIFO method and the following year Vanguard switches back to...

Q: Eddie’s Convenience Stores’ income statement for the year ended December 31,

Eddie’s Convenience Stores’ income statement for the year ended December 31, 2011 and its balance sheet as of December 31, 2011 reported the following. The business...

Q: The accounting records of Columbia Furniture show these data (in millions

The accounting records of Columbia Furniture show these data (in millions). The shareholders are very happy with Columbia’s steady increase in net income. Auditors discovered that...

Q: For each of the following situations, identify the inventory method that

For each of the following situations, identify the inventory method that you would use; or, given the use of a particular method, state the strategy that you would follow to accomplish your goal: a. I...

Q: It is December 31, end of the year, and the

It is December 31, end of the year, and the controller of Cornell Corporation is applying the lower-of-cost-or-market (LCM) rule to inventories. Before any year-end adjustments, Cornell reports the fo...

Q: The unadjusted trial balance of Good Times, Inc., at January

The unadjusted trial balance of Good Times, Inc., at January 31, 2012, does not balance. The list of accounts and their balances is given below. The trial balance needs to be prepared and adjusted bef...

Q: Cross Timbers Energy Co. is in its third year of operations

Cross Timbers Energy Co. is in its third year of operations, and the company has grown. To expand the business, Cross Timbers borrowed $15 million from Bank of Fort Worth. As a condition for making th...