Questions from Financial Reporting

Q: The following information was taken from the 20X1 financial statements of Zurich

The following information was taken from the 20X1 financial statements of Zurich Corporation, a maker of fine Swiss watches: Required: 1. Calculate Zurich’s cash flow from operating...

Q: Presented below are excerpts from the 2018 annual report of Marston’s PLC

Presented below are excerpts from the 2018 annual report of Marston’s PLC, a UK-based company that operates pubs. Property, plant and equipment • Freehold and leas...

Q: Caterpillar Inc. manufactures and sells earth-moving equipment. Presented

Caterpillar Inc. manufactures and sells earth-moving equipment. Presented below is information on its receivables and allowance for credit losses from its 2018 Form 10-K. The “Record...

Q: Jones Corporation switched from the LIFO method of costing inventories to the

Jones Corporation switched from the LIFO method of costing inventories to the FIFO method at the beginning of 20X1. The LIFO inventory at the end of 20X0 would have been $80,000 higher using FIFO. Rep...

Q: Bettner, Inc., is a calendar-year corporation whose financial

Bettner, Inc., is a calendar-year corporation whose financial statements for 20X0 and 20X1 included errors as follows: Assume that inventory purchases were recorded correctly and that no correcting en...

Q: Tack, Inc., reported a Retained earnings balance of $150

Tack, Inc., reported a Retained earnings balance of $150,000 at December 31, 20X0. In June 20X1, Tack’s internal audit staff discovered two errors that were made in preparing the 20X0 financial statem...

Q: Krafty Kris, Inc., discovered the following errors after the 20X1

Krafty Kris, Inc., discovered the following errors after the 20X1 financial statements were issued: a. A major supplier shipped inventory valued at $8,550 to Krafty Kris on consignment. This merchandi...

Q: The preliminary draft of the balance sheet at the end of the

The preliminary draft of the balance sheet at the end of the current fiscal year for Eagle Industries follows. The statement will be incorporated into the annual report to stockholders and will presen...

Q: Trubisky Corporation acquired a machine on January 1, 20X1, for

Trubisky Corporation acquired a machine on January 1, 20X1, for $3 million and decided to depreciate it over eight years using the double-declining method. The depreciation rate each year, as a percen...

Q: Nagy Corporation reported the following income statement in 20X1, along with

Nagy Corporation reported the following income statement in 20X1, along with a comparable income statement for 20X0, its first year of operations: In its Form 10-K, Nagy also provided a non-GAAP metri...