Questions from Financial Accounting

Q: Crunchies, Inc., dominates the snack-food industry with its

Crunchies, Inc., dominates the snack-food industry with its Salty Chip brand. Assume that Crunchies, Inc., purchased Healthy Snacks, Inc., for $5.8 million cash. The market value of Healthy Snacks’ as...

Q: For each of the following scenarios, indicate whether a long-

For each of the following scenarios, indicate whether a long-term asset has been impaired (Y for yes and N for no) and, if so, the amount of the loss that should be recorded.

Q: In 2016, Amici, Inc., reported $800 million in

In 2016, Amici, Inc., reported $800 million in sales, $33 million in net income, and average total assets of $300 million. What is Amici’s return on assets in 2016?

Q: Oswald Optical, Inc., provides a full line of designer eyewear

Oswald Optical, Inc., provides a full line of designer eyewear to optical dispensaries. Oswald reported the following information for 2016 and 2015: Compute return on assets (ROA) for 2016 and 2015....

Q: Pittsfield Sound Center pays $330,000 for a group purchase

Pittsfield Sound Center pays $330,000 for a group purchase of land, building, and equipment. At the time of acquisition, the land has a current market value of $54,000, the building’s current market v...

Q: During 2016, Northwest Satellite Systems, Inc., purchased two other

During 2016, Northwest Satellite Systems, Inc., purchased two other companies for $13 million in cash. Also during 2016, Northwest made capital expenditures of $11.3 million in cash to expand its mark...

Q: Identify each of the following items as either a capital expenditure (

Identify each of the following items as either a capital expenditure (C), expense on the income statement (E), or neither (N):

Q: Assume that at the beginning of 2015 QuickAir purchased a used Jumbo

Assume that at the beginning of 2015 QuickAir purchased a used Jumbo 747 aircraft at a cost of $56,700,000. QuickAir expects the plane to remain useful for five years (5,000,000 miles) and to have a r...

Q: This exercise uses the QuickAir data from S7-4. Assume

This exercise uses the QuickAir data from S7-4. Assume QuickAir is trying to decide which depreciation method to use for income tax purposes. The company can choose from among the following methods:...

Q: Dazzle, Inc., purchased a new car for use in its

Dazzle, Inc., purchased a new car for use in its business on January 1, 2015. It paid $25,000 for the car. Dazzle expects the car to have a useful life of four years with an estimated residual value o...