Questions from Financial Accounting

Q: The following table shows the revenues and average net fixed assets for

The following table shows the revenues and average net fixed assets for a recent fiscal year for three different companies from three different industries: retailing, manufacturing, and communications...

Q: The general merchandise retail industry has a number of segments represented by

The general merchandise retail industry has a number of segments represented by the following companies: For a recent year, the following cost of merchandise sold and beginning and ending inventorie...

Q: Anstead Co. is experiencing a decrease in sales and operating income

Anstead Co. is experiencing a decrease in sales and operating income for the fiscal year ending October 31, 2016. Ryan Frazier, controller of Anstead Co., has suggested that all orders received before...

Q: For several years, Xtreme Co.’s sales have been on

For several years, Xtreme Co.’s sales have been on a “cash only” basis. On January 1, 2013, however, Xtreme Co. began offering credit on terms of...

Q: Motion Designs Inc. has paid quarterly cash dividends since 2005.

Motion Designs Inc. has paid quarterly cash dividends since 2005. These dividends have steadily increased from $0.05 per share to the latest dividend declaration of $0.50 per share. The board of direc...

Q: General Electric Capital, a division of General Electric, uses long

General Electric Capital, a division of General Electric, uses long-term debt extensively. In a recent year, GE Capital issued $11 billion in long-term debt to investors, then within days filed legal...

Q: Rodgers Corporation produces and sells football equipment. On July 1,

Rodgers Corporation produces and sells football equipment. On July 1, 2016, Rodgers Corporation issued $65,000,000 of 10-year, 12% bonds at a market (effective) interest rate of 10%, receiving cash of...

Q: Epstein Engineering Inc. began operations on January 5, 2016,

Epstein Engineering Inc. began operations on January 5, 2016, with the issuance of 500,000 shares of $80 par common stock. The sole stockholders of Epstein Engineering Inc. are Barb Abrams and Dr. Amb...

Q: The following stock exchange data for Microsoft Corporation were taken from the

The following stock exchange data for Microsoft Corporation were taken from the Yahoo! Finance Web site on November 29, 2013: a. If you owned 500 shares of Mircosoft, what amount would you receive a...

Q: On July 16, 1998, Wyatt Corp. purchased 40 acres

On July 16, 1998, Wyatt Corp. purchased 40 acres of land for $350,000. The land has been held for a future plant site until the current date, December 31, 2016. On December 18, 2016, TexoPete Inc. pur...