Universal Communications, Inc., began 2018 with 340,000 shares of $1 par common stock issued and outstanding. Beginning Paid-in Capital in Excess of Par—Common was $590,000, and Retained Earnings was $750,000. In June 2018, Universal Communications, Inc., issued 13,000 shares of stock at $8 per share. In October, when the stock’s market price was $12 per share, the board of directors distributed a 5 percent stock dividend. Requirements 1. Make the journal entries for the issuance of stock for cash and for the declaration and distribution of the 5 percent stock dividend. 2. Prepare the company’s statement of stockholders’ equity for the year ended December 31, 2018. Ignore net income.
> Determine the taxable income for a company that had gross income of $36.7 million, earnings before interest and income taxes of $21.4 million, and depreciation of $9.5 million.
> For a company that had net operating income of $51.3 million and operating expenses of $23.6 million, what was the (a) gross income, and (b) earnings before interest and income taxes?
> For the events described below, select the taxrelated term from the following list that best applies: gross income, depreciation, operating expense, taxable income, income tax, or net operating profit after taxes. (a) A corporation reports that it had a
> If the ability-to-supply-area and relative-cost factors were each weighted 20% and the other four factors 15% each, which alternatives would be ranked in the top three?
> For each funding option, perform a spreadsheet analysis that shows the total CFAT and its present worth over a 6-year period, the time it will take to realize the full advantage of MACRS depreciation. An after-tax return of 10% is expected. Which funding
> Cal Spas, Inc., reported the following statement of stockholders’ equity for the year ended September 30, 2018: Requirements 1. What is the par value of the company’s common stock? 2. At what price per share did the
> The balance sheet of Johnson Supply, Inc., at December 31, 2017, reported 800,000 shares of $2 par common stock authorized, with 116,000 shares issued and outstanding. Paid-in Capital in Excess of Par—Common had a balance of $300,000. R
> Cho Sporting Goods, Inc., completed the following selected transactions during 2018: Requirement 1. Record the transactions in the journal.
> Kommeri Consulting, Inc., has 9,000 shares of $6, no-par preferred stock and 60,000 shares of no-par common stock outstanding for 2016–2018. Kommeri Consulting, Inc., declared and paid the following dividends during a three-year period: 2016, $22,000; 20
> The Davenport Hotel, Inc., included the following stockholders’ equity on its year-end balance sheet at December 31, 2018. Requirements 1. Identify the different issues of stock that the Davenport Hotel, Inc., has outstanding. 2. Give
> Gamma Corporation was organized in 2017. At December 31, 2017, Gamma Corporation’s balance sheet reported the following stockholders’ equity: Requirement Answer the following questions and make journal entries as nee
> Assume you are purchasing an investment and decide to invest in a company in the home remodeling business. You narrow the choice to Hudson, Inc., or Madison Corp. You assemble the following data: Selected income statement data for the current year: Sel
> Comparative financial statement data of Lodgepole Furniture Company follow: Other information follows: a. Market price of a share of common stock was $50.00 at December 31, 2018, and $33.00 at December 31, 2017. b. An average of 11,000 common shares w
> Financial statement data of Helgeson Enterprises, Inc., include the following items: Cash ……………………………………………………………………………………………. $ 24,300 Short-Term Investments ………………………………………………………….………. 28,100 Accounts Receivable, Net ………………………………………………………….……… 90,600
> Otto’s Auto Sales asked for your help in comparing the company’s profit performance and financial position with the average for the auto sales industry. The owner has given you the company’s income st
> To help you understand the importance of cash flows in the operation of a small business. You own a business, like Susan and Brian Miller of the Bold City Brewery. You just received your year-end financial statements from your CPA. Although receiving the
> Net sales, net income, and total assets for Schmitz Construction, Inc., for a four-year period follow: Requirements 1. Compute trend percentages for each item for 2015 through 2018. Use 2015 as the base year. 2. Compute the return on assets for 2016, 2
> To prepare the statement of cash flows, accountants for Kim & Associates, Inc., summarized 2018 activity in the Cash account as: Requirement 1. Prepare the statement of cash flows of Kim & Associates, Inc., for the year ended December 31, 2018,
> Use the Linderman Garden Supply, Inc., data from P11-39B. The cash amounts for Interest Revenue, Salaries Expense, Interest Expense, and Income Tax Expense are the same as the accrual amounts for these items. Requirements 1. Prepare the 2018 statement o
> The accounting records for Best Way Lumber, Inc., for the year ended November 30, 2018, contain the following information: a. Purchase of fixed assets, $88,400 b. Proceeds from issuance of common stock, $12,000 c. Payment of dividends, $45,400 d. Collect
> The 2018 comparative balance sheet and income statement of Linderman Garden Supply, Inc., follow: Linderman Garden Supply, Inc., had no noncash investing and financing transactions during 2018. During the year, Linderman Garden Supply, Inc., sold no l
> Data from the comparative balance sheet of Gibson’s Greenhouse, Inc., at May 31, 2018, follow: Gibson’s Greenhouse, Inc.’s transactions during the year ended May 31, 2018, included: Requirements 1
> Fred’s Appliance, Inc.’s accountants assembled the following data for the year ended December 31, 2018: Requirement 1. Prepare Fred’s Appliance Inc.’s statement of cash flows usin
> To prepare the statement of cash flows, accountants for Houton & Associates, Inc., summarized 2018 activity in the Cash account as: Requirement 1. Prepare the statement of cash flows of Houton & Associates, Inc., for the year ended December 31,
> Use the Bone Appetit Pet Supply, Inc., data from P11-33A. The cash amounts for Interest Revenue, Salaries Expense, Interest Expense, and Income Tax Expense are the same as the accrual amounts for these items. Requirements 1. Prepare the 2018 statement o
> You have been hired as an investment analyst at Lancaster Securities, Inc. It is your job to recommend investments for your client. You have the following information for two different companies. Requirement 1. Write a memo to your client recommending
> Zepher, Inc., prepared the following stockholders’ equity section as of December 31, 2018. Requirement 1. Answer the following questions about Zepher, Inc.’s dividends: a. How much in dividends must Zepher, Inc., dec
> Assume you are purchasing an investment and decide to invest in a company in the home remodeling business. You narrow the choice to Skyview, Inc., or Vista Corp. You assemble the following data. Assume all sales are on credit. Selected income statement d
> Comparative financial statement data of Shabby Chic Furniture Company follow: Other information follows: 1. Market price of a share of common stock was $31.00 at December 31, 2018, and $48.50 at December 31, 2017. 2. Average common shares outstanding
> Financial statement data of New Brunswick Fence, Inc., include: Cash ……………………………………………..………………………………………………. $ 24,000 Short-Term Investments …………………..……………………………………….………. 30,000 Accounts Receivable, Net ………………………………………………………….……… 103,000 Inventory ………………
> Chelsey’s Auto Sales asked for your help in comparing the company’s profit performance and financial position with the average for the auto sales industry. The owner has given you the company’s income
> Net sales, net income, and total assets for Versacheki Construction, Inc., for a four-year period are: Requirements 1. Compute trend percentages for each item for 2015 through 2018. Use 2015 as the base year. 2. Compute the return on assets for 2016, 2
> Popovich Computers, Inc., reported the following statement of stockholders’ equity for the year ended September 30, 2018: Requirements 1. What is the par value of the company’s common stock? 2. At what price per shar
> Find the Columbia Sportswear Company Annual Report located in Appendix A and go to the Financial Statements starting on page 663. Now go online and access the 2016 Annual Report for Under Armour, Inc.. For instructions on how to access the report online,
> Find the Columbia Sportswear Company Annual Report located in Appendix A and go to the Selected Financial Data starting on page 647. Now access the 2016 Annual Report for Under Armour, Inc. from the Internet. For instructions on how to access the report
> Find the Columbia Sportswear Company Annual Report located in Appendix A and go to the Consolidated Statements of Cash Flows on page 666. Now access the 2016 Annual Report for Under Armour, Inc., from the Internet. For instructions on how to access the r
> This case continues our examination of Columbia Sportswear. Here we study the stockholders’ equity of Columbia Sportswear, which you will see titled as Shareholders’ Equity. Refer to the Columbia Sportswear financial statements in Appendix A. Look for th
> Watkins Enterprises earned net income of $95,000 during the year ended December 31, 2018. On December 15, 2018, Watkins Enterprises declared the annual cash dividend on its 2 percent preferred stock (total par value, $140,000) and a $0.70 per share cash
> This case focuses on the financial statement analysis of Columbia Sportswear. Recall from this chapter that stakeholders use numerous ways to analyze and so better understand the financial position and results of a company’s operations. Tools such as ver
> The following data are adapted from the financial statements of Tycom, Inc. Total Current Assets …………………â&#
> Evaluate the common stock of Build Right Incorporated as an investment. Utilize the four ratios that help determine whether a business is generating enough net income to reward the stockholders for the use of their money; use this information to determin
> Consider the following comparative income statement and additional balance sheet data for Classic Fashions, Inc. Additional data follow: Requirements 1. For 2017 and 2018, compute the five ratios that measure how the business is investing its money a
> Green Bluff Winery requested that you determine whether the company’s ability to pay its current liabilities and long-term debts improved or deteriorated during 2018. To answer this question, compute the following ratios for 2018 and 20
> Simpson Painting, Inc., requested that you perform a vertical analysis of its balance sheet to determine the component percentages of its assets, liabilities, and stockholders’ equity. Round to the nearest tenth of a percent.
> Below are net sales and net income data for a five-year period. Requirements 1. Compute trend percentages for net sales and net income for the five-year period, using year 1 as the base year. Round to the nearest percent. 2. Which grew faster during th
> Below is the comparative income statement of P. Donnelly, Inc. Requirements 1. Prepare a horizontal analysis of the comparative income statement of P. Donnelly, Inc. Round percentage changes to the nearest tenth of a percent. 2. Why did net income incr
> Based on the data below, what were the dollar and percentage changes in Fessler’s Fine Furnishings, Inc.’s net working capital during 2017 and 2018? Is this trend favorable or unfavorable?
> Assume that Pugliese Industrial Supply, Inc., has the following data: Net income for 2018 .......................................................................................... $ 149,000 Total stockholders’ equity, 12/31/2018........................
> Matrix, Inc., reported the following data for 2018: Compute Matrix, Inc.’s net cash provided by operating activities according to the indirect method.
> At December 31, 2017, Gentili Corp. reported the following stockholders’ equity: During 2018, Gentili completed these transactions and events in this order: a. Sold 1,200 shares of treasury stock for $39 per share; the cost of these s
> Patterson Manufacturing Co. has the following selected account balances at September 30, Requirement 1. Prepare the stockholders’ equity section of the company’s balance sheet.
> The following data are adapted from the financial statements of Intermountain Leasing, Inc.: Total Current Assets ………………â€
> Evaluate the common stock of Pittsford Incorporated as an investment. Utilize the four ratios that help determine whether a business is generating enough net income to reward the stockholders for the use of their money; use this information to determine
> Walla Walla Winery requested that you determine whether the company’s ability to pay its current liabilities and long-term debts improved or deteriorated during 2018. To answer this question, compute the following ratios for 2018 and 2017: (a) current r
> The financial statements of Hernandez & Son, Inc., include the following items: Requirements 1. Compute the following ratios for the current year: (a) current ratio, (b) quick ratio, (c) cash conversion cycle, (d) accounts receivable turnover, (e)
> Prepare a comparative common-size income statement for Variline, Inc., using the 2018 and 2017 data from E12-12A. Round percentages to the nearest tenth of a percent. E12-12A: Below is the comparative income statement of Variline, Inc. Requirements 1.
> The stockholders’ equity for Coeur d’Alene Marina, Inc., on December 31, 2017, follows: On May 31, 2018, the market price of Coeur d’Alene Marina, Inc.’s common stock was $17 per s
> The following elements of stockholders’ equity are adapted from the balance sheet of Sacchetti Corporation: Sacchetti Corporation paid no preferred dividends in 2018 but paid the designated amount of cash dividends per share to prefer
> At December 31, 2018, Sugarland Company reported the following on its comparative balance sheet, which included 2017 amounts for comparison (adapted, with all amounts in millions except par value per share): 1. How much did Sugarland Companyâ
> Tri County Communications, Inc., has the following stockholders’ equity: Requirements 1. Assume the preferred stock is cumulative. Compute the amount of dividends to preferred and common shareholders for 2018 and 2019 if total dividen
> Below are net sales and net income data for a five-year period. Requirements 1. Compute trend percentages for net sales and net income for the five-year period, using year 1 as the base year. Round to the nearest percent. 2. Which grew faster during th
> Trudeau’s Marine, Inc., reported the following selected amounts in its financial statements for the year ended December 31, 2018: Requirement 1. Determine the following for Trudeau’s Marine, Inc., during 2018: a. Co
> The charter for Zealax, Inc., authorizes the company to issue 250,000 shares of $3, no-par preferred stock and 950,000 shares of common stock with $8 par value. During its start-up phase, Zealax, Inc., completed the following transactions: Requirements
> The income statement and additional data of Amalgamated Services, Inc., follow: Additional data: a. Collections from customers are $9,000 more than sales. b. Payments to suppliers are $3,000 more than the sum of cost of goods sold plus advertising expe
> Assume that Pembrook Industries, Inc., has the following data: Net income for 2018 ......................................................................................... $ 104,000 Total stockholder’s equity, 12/31/2018................................
> Century Communications, Inc., began 2018 with 290,000 shares of $1 par common stock issued and outstanding. Beginning Paid-in Capital in Excess of Par—Common was $580,000, and retained earnings was $730,000. In February 2018, Century Communications, Inc.
> At December 31, 2017, Gertner Corp. reported the following stockholders’ equity: During 2018, Gertner Corp. completed these transactions and events in this order: a. Sold 1,300 shares of treasury stock for $42 per share; the cost of t
> Tsongas Manufacturing Co. has the following selected account balances at July 31, 2018: Requirements 1. Prepare the stockholders’ equity section of the company’s balance sheet.
> The financial statements of Motion Auto Repair, Inc., include the following items: Requirement 1. Compute the following ratios for the current year: (a) current ratio, (b) quick ratio, (c) cash conversion cycle, (d) accounts receivable turnover, (e
> Buckeye, Inc., reported the following on its balance sheet at December 31, 2018: 1. Assume Buckeye, Inc., issued all of its stock during 2018 in one transaction. Journalize the company’s issuance of the stock for cash. 2. Was Buckeye,
> Prepare a comparative common-size income statement for P. Donnelly, Inc., using the 2018 and 2017 data of E12-22B. Round percentages to the nearest tenth of a percent. E12-22B: Below is the comparative income statement of P. Donnelly, Inc. Requirement
> The income statement and additional data of Amalgamated Services, Inc., follow: Additional data: a. Acquisition of fixed assets totaled $115,000. Of this amount, $85,000 was paid in cash; a $30,000 note payable was signed for the remainder. b. Proceeds
> Pilgrim Canopies, Inc., reported the following selected amounts in its financial statements for the year ended December 31, 2018: Requirement 1. Determine the following for Pilgrim Canopies, Inc., during 2018: a. Collections from customers b. Payments
> The income statement and additional data of Consolidated Services, Inc., follow: Additional data: a. Collections from customers are $5,000 more than sales. b. Payments to suppliers are $3,000 more than the sum of cost of goods sold plus advertising exp
> The stockholders’ equity for Lakeside Marina, Inc., on December 31, 2017, follows: On January 31, 2018, the market price of Lakeside Marina’s common stock was $20 per share and the company distributed a 10 percent st
> The following elements of stockholders’ equity are adapted from the balance sheet of Sanders Corporation: Requirement 1. Compute the dividends to preferred and common shareholders for 2019 if total dividends are $40,000 in 2019.
> H&K Telecom, Inc., has the following stockholders’ equity: Requirement 1. Assume the preferred stock is cumulative. Compute the amount of dividends to preferred and common shareholders for 2018 and 2019 if total dividends are $15,
> Consider the following comparative income statement and additional balance sheet data for Caitlin Richardson Fashions, Inc. Additional data follow: Requirements 1. For 2017 and 2018, compute the five ratios that measure how a business is investing it
> Compute the following items for the statement of cash flows: 1. The beginning and ending Retained Earnings balances are $52,000 and $73,000, respectively. Net income for the period is $97,000. How much are cash dividends? 2. The beginning and ending net
> The charter for Zelkin, Inc., authorizes the company to issue 200,000 shares of $3, nopar preferred stock and 900,000 shares of common stock with $1 par value. During its start-up phase, Zelkin, Inc., completed the following transactions: Requirements
> The 2018 accounting records of Sullivan, Inc., showed the following: Cash, $14,400; Accounts Receivable, Net, $5,600; Inventory, $23,200; Prepaid Expenses, $2,400; Plant and Equipment, Net, $34,400. Construct a vertical analysis of the asset section of S
> The income statement and additional data of Consolidated Services, Inc., follow: Additional data: a. Acquisition of fixed assets totaled $117,000. Of this amount, $103,000 was paid in cash; a $14,000 note payable was signed for the remainder. b. Procee
> Natalie’s Cleaning, Inc., requested that you perform a vertical analysis of its balance sheet to determine the component percentages of its assets, liabilities, and stockholders’ equity. Round to the nearest tenth of a
> The accounting records of Perry & Associates, Inc., reveal: Net Income ........................................................................................................... $25,000 Depreciation Expense..............................................
> Below is the comparative income statement of Variline, Inc. Requirements 1. Prepare a horizontal analysis of the comparative income statement of Variline, Inc. Round percentage changes to the nearest tenth of a percent. 2. Why did net income increase b
> What were the dollar and percentage changes in Rozzi’s Gift Shop’s net working capital during 2017 and 2018? Is this trend favorable or unfavorable?
> This case focuses on the cash flows of Columbia Sportswear. Recall that inflows and outflows of cash are classified as operating activities, investing activities, or financing activities. The statement of cash flows presents cash flows from each of these
> Crane Corporation was in the process of completing the financial statements for the latest fiscal year. Susan Randal, Crane’s CEO, was reviewing the comparative financial statements and expressed some concerns. In comparing the current year’s income stat
> This problem continues our accounting for Fitness Equipment Doctor, Inc., from Chapter 9. Fitness Equipment Doctor, Inc., has been authorized to sell 100,000 shares of $5 par value common stock and 40,000 shares of $10 par, 15% preferred stock. During th
> In Chapter 11, we prepared a cash flow statement for Fitness Equipment Doctor, Inc. Now, we will analyze Fitness Equipment Doctor, Inc.’s financial statements using the tools we learned in this chapter. Following are Fitness Equipment D
> In this problem, we continue our accounting for Fitness Equipment Doctor, Inc., from Chapter 10. Fitness Equipment Doctor, Inc., is now in its second year of operations. Assume the comparative balance sheet for Fitness Equipment Doctor, Inc., at May 31,
> Sullivan Corp. issued stock above par on July 31. Answer the following questions about Sullivan Corp. 1. Sullivan Corp. received $6 million for the issuance of its stock. The par value of the Sullivan Corp. stock was only $4.5 million. Was the excess amo
> Let’s look again at Dick’s Sporting Goods (Dick’s). Think about Dick’s. How did Dick’s get the money to fund its operations? Return to Dick’s Annual Report and review the financial statements (see the Continuing Financial Statement Analysis Problem in Ch
> Let’s consider Dick’s Sporting Goods (Dick’s) again. Think about Dick’s. How much cash does Dick’s have? What are the sources and uses of Dick’s cash? Return to Dick’s Annual Report and look at the company’s financial statements (see the Continuing Finan
> Let’s look at Dick’s Sporting Goods (Dick’s) one last time. Think about Dick’s and how everything you’ve learned comes together. Think about accountants reporting what Dick’s has, where it got its money, and what it has been doing to create value. Is Dic
> This exercise continues the accounting for Sensations Salon, Inc., from the Continuing Exercise in Chapter 10. Assume Sensations Salon, Inc., had the following comparative balance sheet at the end of 2019, its second year of operations. Requirement 1.
> This exercise continues our accounting for Sensations Salon, Inc., from Chapter 9. In this exercise, we account for the declaration and issuance of a cash dividend by Sensations Salon, Inc. On November 5, 2018, Sensations Salon, Inc., declared a $5,000 c
> Prepare a paper outlining the importance of the statement of cash flows, the details of what is included in each of the three sections of the statement, and how it provides a link between the income statement and the balance sheet.
> Following are selected financial data for your client for the current year and corresponding data for the client’s industry: Requirement 1. Write a memo to your client comparing his or her business to the industry averages, and explai
> Using the information from S12-8, a market price of $34 per share, and 50,000 and 60,000 shares of common stock outstanding in 2017 and 2018, respectively, compute the following for 2018. Round answers to two decimal places. 1. Earnings per share 2. Pric
