Questions from Financial Accounting

Q: Mensa Company has stockholders’ equity accounts as follows. /

Mensa Company has stockholders’ equity accounts as follows. Calculate the amount of book value per share for common stock and briefly describe what that figure means in relation to...

Q: A store using the retail inventory method takes its physical inventory by

A store using the retail inventory method takes its physical inventory by applying current retail prices as marked on the merchandise to the quantities counted. Does this procedure mean that the inven...

Q: Pathways Appliance Company is planning to introduce a built-in blender

Pathways Appliance Company is planning to introduce a built-in blender to its line of small home appliances. Annual sales of the blender are estimated at 12,000 units at a price of $35 per unit. Varia...

Q: Franks, Inc., has preferred and common stock outstanding as follows

Franks, Inc., has preferred and common stock outstanding as follows. Calculate the book value on common stock, assuming preferred dividends are cumulative and are currently one year in arrears.

Q: Smelling Company declared a 2-for-1 stock split on

Smelling Company declared a 2-for-1 stock split on its common stock in order to intentionally reduce the market value of its stock so that it would be an attractive investment for a larger set of inve...

Q: Melcher, Inc., originally sold 100,000 shares of its

Melcher, Inc., originally sold 100,000 shares of its $10 par value common stock at $25 per share. Several years later the company repurchased 10,000 of these shares at $45 per share. Melcher currently...

Q: Galaxy Company had net sales of $150,000 in its

Galaxy Company had net sales of $150,000 in its first year and $189,500 in its second year. Calculate the amount of change in terms of both dollars and percentage.

Q: Prince Company had net income of $45,500 in a

Prince Company had net income of $45,500 in a year when its stockholders’ equity averaged $450,000 and its total assets averaged $2,500,000. Calculate the company’s return on equity for the period.

Q: Wallace Company’s statement of cash flows for the current year is summarized

Wallace Company’s statement of cash flows for the current year is summarized as follows. a. Briefly explain what is included in each of the first three categories listed (i.e., the...

Q: Star, Inc., had depreciation expenses on its plant assets as

Star, Inc., had depreciation expenses on its plant assets as follows for 2019, 2020, and 2021, respectively: $267,000, $289,000, and $368,000. Compute the trend percentages for these years, assuming 2...