Questions from Financial Accounting

Q: During the current year, Taconic, Inc., made cash sales

During the current year, Taconic, Inc., made cash sales of $289,000 and credit sales of $472,000. During the year, accounts receivable decreased by $32,000. a. Compute for the current year the amounts...

Q: Old South Company purchased investments for $55,000 and plant

Old South Company purchased investments for $55,000 and plant assets for $147,000 during the current year, during which it also sold plant assets for $66,000, at a gain of $6,000. The company also pur...

Q: New Mexico, Inc., sold common stock for $560,

New Mexico, Inc., sold common stock for $560,000 and preferred stock for $56,000 during the current year. In addition, the company purchased treasury stock for $47,000 and declared dividends on common...

Q: Sphinx, Inc., reported cost of goods sold of $100

Sphinx, Inc., reported cost of goods sold of $100,800 during the current year. Following are the beginning and ending balances of merchandise inventory and accounts payable for the year. Determine th...

Q: Tyler, Inc.’s cash balance at December 31 of the

Tyler, Inc.’s cash balance at December 31 of the current year, the end of its financial reporting year, was $155,000. During the year, cash provided by operations was $145,000, cash used in investing...

Q: Zephyr Company reported net income for the year of $68,

Zephyr Company reported net income for the year of $68,000. Depreciation expense for the year was $15,000. During the year, accounts receivable increased by $4,000, inventory decreased by $6,000, acco...

Q: The simplifying assumption that costs and volume vary in straight-line

The simplifying assumption that costs and volume vary in straight-line relationships makes the analysis of cost behavior much easier. What factors make this a reasonable and useful assumption in many...

Q: During the current year, Hitchcock Developers disposed of plant assets in

During the current year, Hitchcock Developers disposed of plant assets in the following transactions. Instructions: a. Prepare journal entries to record each of the disposal transactions. Assume tha...

Q: Mains, Inc., had a cash balance at the beginning of

Mains, Inc., had a cash balance at the beginning of the year of $72,000. During the year, the following cash flows occurred. Prepare an abbreviated statement of cash flows, including a reconciliation...

Q: Sail Right Boat Company builds and sells small sailboats. Identify at

Sail Right Boat Company builds and sells small sailboats. Identify at least four specific components of Sail Right’s value chain. For each component describe what activities might take place in that p...