Question: The following information relates to three

> The 2020 four-year comparative financial statements of Digital Shelf Space Corp. follow: Required 1. Calculate the following for 2020 and 2019 and identify whether the ratios compare favourably (F) or unfavourably (U) from 2019 to 2020: (a) quick ratio,

> Zhang Inc. and Black Inc. are similar firms that operate within the same industry. Black began operations in 2018 and Zhang in 2012. In 2020, both companies paid 7% interest to creditors. The following information is available: Required The controller of

> City Software Inc. began the month of March with $286,000 of current assets, a current ratio of 2.2 to 1, and a quick ratio of 0.9 to 1. During the month, it completed the following transactions: Mar. 3 Sold for $55,000 merchandise that cost $36,000. (Th

> The condensed statements of Organic Grocery Corporation follow. Required 1. Calculate each year’s current ratio. 2. Express the income statement data in common-size percentages. 3. Express the balance sheet data in trend percentages wit

> The condensed comparative statements of Modern Health Inc. follow: Required Calculate trend percentages for the items of the statements using 2014 as the base year. Analysis Component: Analyze and comment on the situation shown in the statements.

> During 2020, Global Designs Inc. had the following transactions. Aug. 31 Traded in furniture with a cost of $42,000 and accumulated depreciation of $25,800 recorded in the accounting records on this date. Global paid $56,400 in cash for a computer system

> Clear Strategy Corp., a strategic marketing consulting firm, began operations on January 1, 2019. Its post-closing trial balance at December 31, 2019 and 2020 is shown below along with some other information. Other information regarding Clear Strategy Co

> Required: Refer to the information in Problem 16-7B. 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 merchan

> Zhang Systems Inc. began operations on January 1, 2019. Its post-closing trial balance at December 31, 2019 and 2020 is shown below along with some other information. Other information regarding Zhang Systems Inc. and its activities during 2020: 1. Assum

> Required: Refer to the information in Problem 16-5B. 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 sales were credit sales. b. All credits to ac

> Triple Flip Inc., a sporting goods retailer, recently completed its 2020 operations. Triple Flip Inc.’s balance sheet information and income statement follow. Additional information regarding Triple Flip Inc.’s activit

> Required: Refer to the information in Problem 16-3B. 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 sales are credit sales. b. All credits to acc

> Burrow Mining Inc.’s comparative balance sheet information at December 31, 2020 and 2019, and its income statement for the year ended December 31, 2020, are as follows: During 2020, the following transactions occurred: 1. Issued $14,000

> Required: Refer to the information in Problem 16-1B. 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 sales were credit sales. b. All credits to ac

> Required: Refer to the information in Problem 16-11B. 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 mercha

> On May 2, 2020, Uniglobe Satellite Company purchased and installed a new machine that cost $273,000, with a five-year life and an estimated $38,220 residual value. Management estimated that the machine would produce 168,000 units of product during its li

> ID Watchdog Inc. recently negotiated a lump-sum purchase of several assets from a contractor who was planning to change locations. The purchase was completed on September 30, 2020, at a total cash price of $1,044,000, and included a building, land, certa

> CHECK FIGURES: 1. Dr. Depreciation Expense, Machinery $55,000; 1. Dr. Depreciation Expense, Equipment $126,667; 2. Total PPE = $241,666 Required 1. Calculate and record depreciation for the year ended December 31, 2021, for both the machinery and equipme

> Refer to the information in Problem 9-5B. Redo the question assuming that depreciation for partial periods is calculated using the half-year convention. Data from Problem 9-5: Tundra Tours runs tundra buggy expeditions in northern Manitoba for tourists

> Tundra Tours runs tundra buggy expeditions in northern Manitoba for tourists to catch a glimpse of the abundant caribou, polar bears, and other wildlife. Tundra purchased a tundra buggy on October 19, 2020, for cash of $145,000. Its estimated useful life

> LiveReel Media purchased for $588,000 machinery having an estimated useful life of 10 years with an estimated residual value of $56,000. The company’s year-end is December 31. Depreciation is calculated using the half-year rule. Require

> On January 2, 2018, Wavepoint Systems, a cell phone manufacturer, installed a computerized machine in its factory at a cost of $169,200. The machine’s useful life was estimated at four years or a total of 181,500 units with a $24,000 tr

> The adjusted balances at September 30, 2020, for Xentel Interactive are shown in alphabetical order below: Required: Prepare a comparative classified balance sheet at September 30, 2020. Analysis Component: How were Xentel’s assets main

> Country Feed Inc., a Saskatchwan-based farm and ranch livestock feed distributor, began operations on January 1, 2019. Its post-closing trial balance at December 31, 2019 and 2020 is shown below along with some other information. Other information regard

> 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.

> 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 information below for CakePops Inc. a. Calculate the profit or loss for 2020. b. What caused common shares to change during 2020? Show your calculations. c. What caused the change in notes payable during 2020? d. Do share dividends affect th

> 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.