Question: Refer to the information below for CakePops

> On January 1, 2020, Ultra Green Packaging purchased a used machine for $156,000. The next day, it was repaired at a cost of $4,068 and mounted on a new platform that cost $5,760. Management estimated that the machine would be used for seven years and wou

> In 2020, DelCano Properties paid $540,000 for a tract of land on which two buildings were located. The plan was to demolish Building A and build a new factory (Building C) in its place. Building B was to be used as a company office and was appraised at a

> On April 14, 2020, Orchid Company, a new Thai restaurant, purchased land and a building for a total price of $540,000, paying cash of $85,000 and borrowing the balance from the bank. The bank appraised the land at $320,000 and the building at $180,000. C

> 1. Classify the following expenditures as Repairs and Maintenance Expense or Betterment: a. The monthly replacement cost of filters on an air conditioning system, $120. b. The cost of replacing a compressor for an ice cream company’s refrigeration system

> Fire Pizza Food Truck purchased a giant wood stove for $11,000, terms 2/10, n/60, FOB shipping point, to go on a trailer behind the food truck. Fire Pizza received an invoice for $280 for freight charges. Fire Pizza took advantage of the discount. Staff

> Sydney Lanes, a local bowling alley, installed automatic scorekeeping equipment. The electrical work required to prepare for the installation was $18,000. The invoice price of the equipment was $180,000. Additional costs were $3,000 for delivery and $600

> The following data are taken from the comparative balance sheets of Duncan Data Storage Company. Calculate the accounts receivable turnover for 2020 and 2019 (round to two decimal places). Is the change favourable or unfavourable? Explain why. Compare Du

> a. Using the information in QS 17-7, calculate the quick ratio. b. At the end of the last accounting period, this company’s quick ratio was 0.82:1. Has the change in the quick ratio been favourable or unfavourable? Data from QS 17-7: U

> Using the information above, calculate the: a. Working capital b. Current ratio Round calculations to two decimal places. c. What is the difference between working capital and the current ratio? d. Assuming this company’s current ratio

> Carmon Cupcake Inc.’s December 31 balance sheets included the following data: Required: Express the balance sheets in common-size percentages. Round calculations to two decimal places.

> Express the following income statement information in common-size percentages and assess whether the situation is favourable or unfavourable.

> Required: Refer to the information in Problem 16-9B. Prepare a statement of cash flows for 2020 using the direct method to report cash inflows and outflows from operating activities. Other information: a. All accounts payable balances result from other e

> Calculate trend percentages for the following items using 2016 as the base year. Then, state whether the situation shown by the trends appears to be favourable or unfavourable.

> Where possible, calculate percentage of increase and decrease for the following accounts of Craft Brewery Ltd.:

> Quick Video Inc. declared and paid an $8 per share cash dividend on its common shares during the current accounting period. The current market value of the Quick Video Inc. shares is $56 per share. Required a. Calculate the dividend yield (express as a p

> ABC Inc.’s common shares have a market value of $60 per share and its EPS is $3.50. XYZ Inc.’s common shares have a market value of $85 per share and its EPS is $4.10. You have done thorough research and are considering purchasing the shares of one of th

> Calculate the earnings per share for 2020 and evaluate the result against the industry average, explaining why it compares favourably or unfavourably (round to two decimal places).

> Calculate the book value per common share for 2020 and evaluate the result against the industry average, explaining why it compares favourably or unfavourably (round to two decimal places).

> Calculate the return on common shareholders’ equity for 2020 and evaluate the result against the industry average, explaining why it compares favourably or unfavourably (round to two decimal places).

> What are four possible bases of comparison you can use when analyzing financial statement ratios? Which of these is generally considered to be the most useful? Which one is least likely to provide a good basis for comparison?

> Calculate the return on total assets for 2020 and evaluate the result against the industry average, explaining why it compares favourably or unfavourably (round to two decimal places).

> Calculate the gross profit ratio for 2020 and evaluate the result against the industry average, explaining why it compares favourably or unfavourably (round to two decimal places).

> MED Supplies Inc., a software retailer, recently completed its 2020 operations. The following information is available: Additional information regarding MED Supplies Inc.’s activities during 2020: 1. Equipment was purchased for $64,848

> Calculate the profit margin for 2020 and evaluate the result against the industry average, explaining why it compares favourably or unfavourably (round to two decimal places).

> The following information is available for Swing High Inc.: Required Calculate the times interest earned ratio for 2020. Explain why it compares favourably or unfavourably.

> The following information relates to three companies that operate similar businesses: For each company, calculate the debt ratio, equity ratio, and pledged assets to secured liabilities. Identify which company has the least favourable performance in each

> Family Co manufactures books. It buys significant quantities of supplies from various vendors in order to make its quality products. Calculate Family’s accounts payable turnover for 2020 and 2019 and determine whether it is meeting its

> Outdoor Play Inc. reported the following facts in its 2020 annual report: net sales of $9,683 million for 2019 and $9,050 million for 2020; total end-of-year assets of $10,690 million for 2019 and $13,435 million for 2020. Calculate the total asset turno

> Days’ sales in inventory a. Calculate the days’ sales in inventory for each company (round to two decimal places). b. Which company will take the longest to sell its current balance in inventory?

> Livingston Lumber Company begins the year with $200,000 of goods in inventory. At year-end, the amount in inventory has increased to $230,000. Cost of goods sold for the year is $1,600,000. Calculate Livingston’s inventory turnover (round calculations to

> Calculate and interpret the days’ sales uncollected for 2020 and 2019 based on the following selected information for Lumbar Cushions Company (round to two decimal places):

> Which of the following items are means of accomplishing the objective of financial reporting but are not included within general-purpose financial statements? (a) income statements, (b) company news releases, (c) balance sheets, (d) certain reports filed

> Refer to the information below for Douglas Tree Housing Inc. a. Calculate the cash paid for equipment purchased during 2020. b. Calculate the cash proceeds for equipment sold during 2020.

> River Outdoor Supply Corporation (River Corp.) was organized on January 2, 2020. River Corp. issued 50,000 common shares for $250,000 on that date. The following investment transactions and events subsequently occurred: Assume that River Corp. has signif

> The following information for 2020 relates to Day Cycle Manufacturing Corp.: Calculate the cash inflow or outflow from operating activities.

> The following information for 2020 is extracted from Mountain Toys Limited, owner of a retail store: Calculate the cash inflow or outflow from operating activities.

> Using the indirect method, calculate the cash inflow or outflow from operating activities using the following information:

> Using the indirect method, calculate the cash inflow or outflow from operating activities, using the following information:

> Identify which of the following are non-cash financing and investing transactions. 1. Long-term bonds were retired by issuing common shares. 2. Recorded depreciation expense on the building. 3. A 3:2 share split was declared. 4. A cash dividend was decla

> Classify each of the following events as operating, financing, or investing activities and give a reason for your choice. 1. Change in Accounts Receivable 2. Change in Equipment account 3. Change in Accumulated Depreciation 4. Change in Accrued Wages 5.

> Classify each of the following transactions as operating, financing, or investing activities, or none of these classifications, and state whether it is an inflow or outflow of cash. 1. The corporation’s outstanding bonds were retired. 2. Land was sold at

> Use the following information to answer questions (a) through (e) below. a. How much cash was received from customers during 2020? b. How much cash was paid for merchandise during 2020? c. How much cash was paid for operating expenses during 2020? d. How

> Use the following information to answer questions (a) through (c) below. a. How much cash was received from customers during 2020? b. How much cash was paid for merchandise during 2020? c. How much cash was paid for operating expenses during 2020?

> Drum Holdings Inc. collected $737,000 cash from customers during 2020. If beginning accounts receivable were $41,000 and credit sales totalled $705,000, what was the balance in ending accounts receivable?

> Irving Inc.’s non-strategic investment portfolio at December 31, 2019, consisted of the following Irving Inc. had no other debt and equity investments at December 31, 2019, other than those shown above. During 2020, Irving engaged in th

> Middleton Supplies Inc. had sales revenue of $805,000 during 2020. Accounts receivable at the beginning of the year were $20,000 but were $24,000 at the end of the year. How much cash was collected from customers during 2020?

> Organic Gardening Ltd. had operating expenses of $968,000 during 2020. Accrued liabilities at the beginning of the year were $27,000, and were $36,000 at the end of the year. Assuming all debits and credits to accrued liabilities are related to operating

> Use the following information to prepare a statement of cash flows for the year ended October 31, 2020, using the indirect method.

> Use the following information to prepare a statement of cash flows for the year ended March 31, 2020, using the indirect method.

> Refer to the following information for LED Lighting Inc. a. What caused the change in common shares during 2020? Calculate the change. b. What caused the change in notes payable? Calculate the change. c. Were dividends paid during 2020? If so, calculate.

> Refer to the information below for Morningside Environmental Inc. Calculate the: a. Cash paid for the purchase of the franchise during 2020. b. Cash proceeds for equipment sold during 2020. c. Change in cash and cash equivalents during 2020.

> Classify the following cash flows as operating, investing, or financing activities: 1. Paid interest on outstanding bonds. 2. Received interest on investment. 3. Issued common shares for cash. 4. Paid dividends. 5. Paid property taxes on the company offi

> On January 1, 2020, Nickle Entertainment Inc. purchased a 4%, $50,000 Imax bond for $46,490. Interest is to be paid semiannually each June 30 and December 31. Nickle Inc. is planning to hold the bond until maturity. Record the entries on January 1, 2020,

> On January 1, 2020, Gordon Activewear purchased a 12%, $40,000 Telus bond with a three-year term for $42,030. Interest is to be paid semiannually each June 30 and December 31. Gordon is planning to hold the bond until maturity. Record the entries on Janu

> On April 1, 2020, Joe Lite Corporation paid $851,560 to acquire bonds of Santos Electric Inc. with a par value of $860,000. The annual contract rate on the bonds is 6.5% and interest is paid quarterly beginning June 30, 2020. The bonds mature in six year

> On February 1, 2020, Snappy Printing Inc. purchased 4% Telus bonds with a face value of $5,000 at 98 as a non-strategic investment. Interest is paid quarterly beginning May 1, 2020. The bonds mature February 1, 2027. Record the entries on February 1 and

> Refer to the information in QS 15-5. Show how the investments will be presented on the December 31, 2020, balance sheet. Data from QS 15-5: Wind Industries had selected unadjusted balances as shown below at year-end. A search on the Internet showed fair

> Wind Industries had selected unadjusted balances as shown below at year-end. A search on the Internet showed fair values on December 31, 2020, of CashCo, $18; Wells, $0.70. Prepare the appropriate entry on December 31, 2020, to record the valuation adju

> Dynamic Express Inc. prepared the summary shown below regarding its investments on December 31, 2020, its year-end. Prepare the appropriate entry on December 31, 2020, to record the fair value adjustment.

> On May 2, 2020, Systematic Industries Inc. acquired 1,200 common shares of Computer Gaming Corp. at $40.50 per share. Systematic’s intent is to sell the shares within eight to ten months. On August 7, Systematic received dividends of $0.50 per share rega

> Refer to QS 15-1. Identify how each investment would be classified from ABC Inc.’s perspective: non-strategic (N), investment in associate (I), business combination (B), joint arrangement (J), or not applicable (NA). Data from QS 15-1: ABC Inc. had the

> On January 2, 2020, Bella Software Corp. paid cash of $1,200,000 to acquire 704,000 of Domino Inc.’s 3,200,000 outstanding common shares. Assume that Bella has significant influence over Domino as a result. On March 15, 2020, Domino paid dividends of $0.

> On January 2, 2020, Nassau Travel Corp. paid $500,000 cash to acquire 10,000 of Suffolk Corporation’s 40,000 outstanding common shares. Assume that Nassau has significant influence over Suffolk as a result. On October 12, 2020, Suffolk Corp. paid a $100,

> Refer to the information in QS 15-9. Show how the investment will be presented on the December 31, 2020, balance sheet, assuming the carrying value reflected the fair value. Data from QS 15-9: On January 1, 2020, Nickle Entertainment Inc. purchased a 4%

> ABC Inc. had the following selected transactions during the year. Identify whether each of 1 through 8 represents an equity investment (E), investment in a debt security (D), or neither (N) from ABC Inc.’s perspective. If you answer N, explain. 1. ______

> On January 1, 2020, White River Corporation paid $2,499,760 to acquire bonds of Precision Investment Corp with a par value of $2,480,000. The annual contract rate on the bonds is 7.5% and interest is paid semiannually on June 30 and December 31. The bond

> Bellevue Marketing Corp. issued $600,000 of 6%, four-year bonds for $579,224 on July 1, 2020, the day the bonds were dated. The market interest rate on this date was 7%. Interest is paid quarterly beginning October 1, 2020. Bellevue uses the effective in

> Assume that on January 1, 2020 Barb’s Wildlife Rescue issues a $1,000, 5-year, 5% (coupon rate) bond with semiannual interest payments that yields a market adjusted interest rate of 6%. Use the following table to calculate the issue pri

> On February 1, 2020, Swiss Travel Corp. issued $750,000 of 11%, eight-year bonds. Interest is to be paid quarterly. Calculate the issue price of the bonds if the market interest rate was: a. 6% b. 11% c. 13%

> On August 1, 2020, Billboard Inc. issued $520,000 of 10%, seven-year bonds. Interest is to be paid semiannually. Calculate the issue price of the bonds if the market interest rate was: a. 12% b. 10% c. 14%

> Purity Vegetable Corp. issued $200,000 of 6% bonds on November 1, 2020, at par value. The bonds were dated October 1, 2020, and pay interest each April 1 and October 1. Record the issue of the bonds on November 1, 2020.

> On March 1, 2020, JenStar Hydroponics Inc. issued at par an $80,000, 6%, three-year bond. Interest is to be paid quarterly beginning May 31, 2020. JenStar’s year-end is July 31. A partial payment schedule is shown below: a. Record the i

> Match the following terms and phrases by entering the letter of the phrase that best describes each term in the blank next to the term. Serial bonds Debentures Bond indenture Secured bonds Registered bonds Bearer bonds Convertible bonds a. Issuer rec

> a. Calculate the debt to equity ratio for 2019 and 2020, for the following three separate companies. b. Comment on whether the ratio for each has improved or weakened from a risk perspective.

> Curtis Ltd. issued $100,000 of 8% bonds at face value on October 1, 2020. Interest is paid each March 31 and September 30. If Curtis’s tax rate is 40%, what is the annual after-tax borrowing cost (a) in percentage terms and (b) in dollars?

> Explain the difference between an operating lease and a finance type lease for a lessor.

> Thunderbird Corporation has excess cash resulting from extremely successful operations. It has decided to invest this cash in debt and equity securities as follows to be held as non-strategic investments: On December 31, 2020, the fair values of the inve

> Calvin Corp. borrowed $80,000 from a bank and signed an installment note that calls for five annual payments of equal size, with the first payment due one year after the note was signed. Use Table 14A.2 or a calculator to calculate the size of the annual

> On January 1, 2020, the Pareto Company borrowed $80,000 in exchange for an interest-bearing note. The note plus interest compounded at an annual rate of 8% is due on December 31, 2022. Calculate the amount that Pareto will pay on the due date.

> On January 1, 2020, the $1,000,000 par value bonds of Sinclair Corporation with a carrying value of $950,000 are converted to 500,000 common shares. Journalize the conversion of the bonds.

> On July 1, 2020, Lester Shoes Ltd. exercises a $4,000 call option on its outstanding bonds, which have a carrying value of $206,000 and par value of $200,000. Lester exercises the call option immediately after the semiannual interest is paid on June 30,

> Henderson Armour Inc. issued a $652,000, 14% 10-year bond on October 1, 2020, for cash of $697,701. Interest is to be paid quarterly. The annual market rate of interest is 12.75%. Assume a year-end of February 28. A partial amortization schedule, using t

> Bonanza Graphics Inc. issued a $200,000, 8%, three-year bond on November 1, 2020, for cash of $194,792. Interest is to be paid quarterly. The annual market rate of interest is 9%. Assume a year-end of December 31. The amortization schedule, using the eff

> Dawson Limited issued 12%, 10-year bonds with a par value of $60,000 and semiannual interest payments. On the issue date, the annual market rate of interest for the bonds was 10%, and they sold for $67,478. The effective interest method is used to alloca

> Maier Investment Corporation issued $700,000 of 6%, six-year bonds for $735,902 on July 1, 2020, the day the bonds were dated. The market interest rate was 5%. Interest is paid semiannually beginning December 31, 2020. Maier uses the effective interest m

> Alberta Industries Ltd. issued 10%, 10-year bonds with a par value of $200,000 and semiannual interest payments. On the issue date, the annual market rate of interest for the bonds was 12%, and the selling price was $177,059. The effective interest meth

> A $15,000 bond with a contract interest rate of 6% was issued on March 1, 2020. Calculate the cash paid on the first interest payment date if interest is paid: a. annually b. semiannually c. quarterly d. monthly

> Huang Hardware Inc. had the following transactions involving non-strategic investments during 2020: Required 1. Prepare an amortization schedule for the Barker bond showing only 2020 and 2021. 2. Prepare journal entries to record the preceding transactio

> On January 1, Star Corp. had 50,000 common shares issued and outstanding. On April 1, it issued 4,000 additional shares, and on June 5 declared and distributed a two-for-one share split. Calculate Star’s weighted average outstanding shares for the year.

> On January 1, Harrell Corp. had 75,000 common shares issued and outstanding. On April 1, it issued 24,000 additional shares, and on June 1 declared and distributed a 20% share dividend. Calculate Harrell’s weighted average outstanding shares for the year

> On January 1, Harmon Corp. had 100,000 common shares outstanding. On February 1, Harmon Corp. issued 40,000 additional common shares. On June 1, another 80,000 common shares were issued. Calculate Harmon Corp.’s weighted-average shares outstanding. Round

> Bellevue Ltd. reported profit of $860,000 for its year ended December 31, 2020. Calculate earnings per share given the following additional information at December 31, 2020:

> Nelson Corp. earned profit of $450,000. The number of common shares outstanding all year long was 200,000 and preferred shareholders received a dividend totalling $10,000. Calculate the earnings per share for Nelson Corp.

> Outdoor Equipment Inc. had 180,000 common shares issued and outstanding as at December 31, 2020. The shares had been issued for $9.80 each. On September 12, 2021, Outdoor repurchased and retired 40,000 of these shares at $9.10 each, the first retirement

> On September 2, Garrett Corporation purchased and retired 2,000 of its own shares for $18,000. The shares had been issued at an average price of $5. Prepare the September 2 entry for the purchase and retirement of the shares (assuming this is the first r

> Vector Gaming Ltd. showed the following equity account balances on December 31, 2020: Common shares, 100,000 shares authorized; 28,000 shares issued and outstanding $476,000 Retained earnings 85,000 On January 2, 2021, Vector declared and distributed a 3

> Barton Inc. changed the method of calculating depreciation on its equipment from straight-line to double declining-balance during 2020. The cumulative effect of the change is an additional expense of $46,000 related to prior years. The tax benefit is $13

> Answer the questions about each of the following items related to a company’s activities for the year: a. After using an expected useful life of seven years and no residual value to depreciate its office equipment over the preceding three years, the comp

> On February 1, 2020, Fireside Corp. issued a $900,000, 5%, two-year bond. Interest is payable quarterly each May 1, August 1, November 1, and February 1. Required Part 1 a. Calculate the bond issue price assuming a market interest rate of 6% on the date

> Using the numbers to represent each section of a comprehensive income statement, identify where each of items (a) through (k) should be reported: 1. Continuing operations 2. Discontinued operations 3. Earnings per share a. Gain on sale of Division E b.