Question: Use the Pratt Computer Sales data in
Use the Pratt Computer Sales data in SE12-9 to compute the following; enter all amounts in thousands. a. New borrowing or payment of long-term notes payable. Pratt Computer Sales had only one long-term note payable transaction during the year. b. Issuance of common stock or retirement of common stock. Pratt Computer Sales had only one common stock transaction during the year. c. Payment of cash dividends (same as dividends declared). From SE12-9 Pratt Computer Sales, Inc., reported the following ï¬nancial statements for 2016: 
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A1 Pratt Computer Sales, Inc. Income Statement Year Ended December 31, 2016 2 (In thousands) 3 Service revenue 4 Cost of goods sold 5 Salary expense 6 Depreciation expense 7 Other expenses 8 Total expenses 9 Net income 10 $ 770 310 50 40 140 540 $ 230 A1 Pratt Computer Sales, Inc. Comparative Balance Sheets December 31, 2016 and 2015 2 (In thousands) 3 Assets 2016 2015 Liabilities 2016 2015 4 Current: Cash Accounts receivable Inventory 8. Current: $ 20 $ 17 56 71 Accounts payable $ 53 30 12 $ 42 26 15 45 Salary payable Accrued liabilities 5 Long-term note payable 180 71 Stockholders' Equity Common stock Retained earnings $ 405 Total 87 Prepaid expenses 64 53 9 Plant assets, net 10 Long-term investments 11 12 13 Total 226 52 41 30 231 239 $ 431 $ 405 $ 431 14 3 00 6799
> Use the Pioneer Corporation data in E10-42B to prepare the stockholders’ equity section of the company’s balance sheet at December 31, 2017. From E10-42B Common stock $3.00 par value per share, 22 million shares issued...................... $ 66 Paid-
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> Raintree Marketing Corporation reported the following stockholders’ equity at December 31 (adapted and in millions): Common stock.................................. $ 365 Additional paid-in capital...................... 286 Retained earnings...........
> Patterson Software had the following selected account balances at December 31, 2016 (all numbers and amounts are in thousands, except par value per share): Requirements 1. Prepare the stockholders’ equity section of Patterson Softwar
> Mike Magid Toyota is an automobile dealership. Magid’s annual report includes Note 1—Summary of Significant Accounting Policies as follows: Bay Area Nissan, a competitor of Mike Magid Toyota, includes
> The financial statements of Royal Employment Services, Inc., reported the following accounts (adapted, with dollar amounts in thousands except for par value): Prepare the stockholders’ equity section of Royalâ
> Nationwide Publishing was recently organized. The company issued common stock to an attorney who provided legal services worth $27,000 to help organize the corporation. Nationwide Publishing also issued common stock to an inventor in exchange for her pat
> Tropical Goods is authorized to issue 10,000 shares of common stock. During a two-month period, Tropical completed these stock-issuance transactions: Requirements 1. Journalize the transactions. 2. Prepare the stockholders’ equity s
> Seaside Water Company reported the following items on its statement of shareholders’ equity for the year ended December 31, 2016 (amounts in thousands of dollars): Requirements 1. Determine the December 31, 2016, balances in Seaside
> Use the York Company data in E10-34A to show how the company reported cash flows from financing activities during 2016 (the current year). From E10-34A Payment of long-term debt . $17,075 Dividends paid.. ... $ 205 Pro
> York Company included the following items in its financial statements for 2016, the current year (amounts in millions): Requirements 1. Use DuPont Analysis to compute York’s return on assets and return on common equity
> The balance sheet of Eclectic Rug Company reported the following: Redeemable preferred stock, 8%, $100 par value, redemption value $25,000; outstanding 200 shares................ $ 20,000 Common stockholders’ equity: 4,000 shares issued and outstanding..
> Identify the effects—both the direction and the dollar amount—of these assumed transactions on the total stockholders’ equity of Ashby Corporation. Each transaction is independent. a. Declaration of cash dividends of $78 million. b. Payment of the cash
> On January 14, Roland Corporation issued 100,000 shares of its $0.01 par-value common stock for the market price of $13.50 per share. Attorney Christie Mann invoiced Roland Corporation for $28,000 and has agreed to accept 2,000 shares of its $0.01 par-va
> At fiscal year-end 2016, Martin Legal Services and Kramer Doughnuts reported these adapted amounts on their balance sheets (all amounts in millions except for par value per share): Assume each company issued its stock in a single transac
> Mitchell Corporation received $11,500,000 for the issuance of its stock on May 14. The par value of the Mitchell Corporation stock was only $11,500. Was the excess amount of $11,488,500 a profit to Mitchell Corporation? If not, what was it? Suppose the p
> Answer the following questions about the characteristics of a corporation’s stock: 1. Who are the real owners of a corporation? 2. What privileges do preferred stockholders have over common stockholders? 3. Which class of stockholders reaps greater be
> What are two main advantages that a corporation has over a proprietorship and a partnership? What are two main disadvantages of a corporation? Describe the authority structure of a corporation. Who holds ultimate power?
> Use the financial statements of Gagnon, Inc., in S13-6 and S13-7 to compute these profitability measures for 2016. Show each computation. a. Rate of return on sales b. Asset turnover ratio c. Rate of return on total asset
> Use the financial statements of Gagnon, Inc., in S13-6 and S13-7. 1. Compute the company’s debt ratio at December 31, 2016. 2. Compute the company’s times-interest-earned ratio for 2016. For operating
> Use the Gagnon 2016 income statement that follows and the balance sheet from S13-6 to compute the following: a. Gagnon, Inc.’s, rate of inventory turnover and days’ inventory outstanding for 2016. b. Daysâ
> Use the Gagnon, Inc., balance-sheet data to answer the following questions. 1. Compute Gagnon, Inc.’s, quick (acid-test) ratio at December 31, 2016, and 2015. 2. Use the comparative information from the table given for Horner, Inc., I
> Examine the financial data of Peterson Corporation. Show how to compute Peterson’s current ratio for each year 2014 through 2016. Is the company’s ability to pay its current liabilities improving or de
> The stockholders’ equity for Rightwell Corporation on June 16, 2017, follows: On June 16, 2017, the market price of Rightwell common stock was $18 per share. Assume Rightwell declared and distributed a 12% stock dividend on this date.
> Carlton, Inc., and Lofton Corporation are competitors. Compare the two companies by converting their condensed income statements to common size. Which company earned more net income? Which company’s net income was a higher percentage
> Crafton Software reported the following amounts on its balance sheets at December 31, 2016, 2015, and 2014: Sales and profits are high. Nevertheless, Crafton is experiencing a cash shortage. Perform a vertical analysis of Cra
> Breen, Inc., reported the following sales and net income amounts: Show Breen’s trend percentages for sales and net income. Use 2013 as the base year. (In thousands) 2016 2015 2014 2013 Sales. $10,962 $10,266 $9,570 392 $8,700 350
> Compute economic value added (EVA®) for Beecher Software. The company’s cost of capital is 12%. Net income before taxes was $730 thousand, interest expense $403 thousand, beginning long-term debt $750 thousand, and beginning stockholders’ equity was $3,2
> Take the role of an investment analyst at Cole Binder. It is your job to recommend investments for your client. The only information you have is the following ratio values for two companies in the graphics software industry: Write a report to the Cole
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> A skeleton of Pine Florals’ income statement appears as follows (amounts in thousands): Use the following ratio data to complete Pine Florals’ income statement: a. Inventory turnover was 4 (beginning inventory was $
> The annual report of Ferguson Cars, Inc., for the year ended December 31, 2016, included the following items (in millions): 1. Compute earnings per share (EPS) and the price-earnings ratio for Ferguson Cars’ stock. Round to the neares
> Verifine Corporation reported the following amounts on its 2016 comparative income Statements: Perform a horizontal analysis of revenues and net income—both in dollar amounts and in percentages—for 20
> Pratt Computer Sales, Inc., reported the following financial statements for 2016: Compute the following investing cash flows; enter all amounts in thousands. a. Acquisitions of plant assets (all were for cash). Pratt Com
> Supreme Manufacturing, Inc., reported the following at December 31, 2016, and December 31, 2017: Supreme Manufacturing has paid all preferred dividends through 2013. Requirement 1. Compute the total amounts of dividends to both preferred and common
> Prudhoe Bay Oil Co. is having its initial public offering (IPO) of company stock. To create public interest in its stock, Prudhoe Bay’s chief financial officer has blitzed the media with press releases. One in particular caught your eye. On November 19, P
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> Smythe Transportation began 2016 with accounts receivable, inventory, and prepaid expenses totaling $60,000. At the end of the year, Smythe had a total of $62,000 for these current assets. At the beginning of 2016, Smythe owed current liabilities of $35
> The CEO and CFO from Jolson Hotels, Inc., are reviewing company performance for 2016. The income statement reports a 20% increase in net income over 2015. However, most of the increase resulted from a gain on insurance proceeds from fire d
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> Weather Seal Windows Company has preferred stock outstanding and issued additional common stock during the year. 1. Give the basic equation to compute earnings per share of common stock for net income. 2. List the income items for which Weather Seal Wi
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> Juneau Cruise Lines, Inc., reported the following income statement for the year ended December 31, 2016: Requirements 1. Were Juneau Cruise Line’s discontinued operations more like an expense or revenue? How can you tell? 2. Should
> Industrial Belting sells goods on account for 700,000 Mexican pesos. The foreign-exchange rate for a peso is $0.092 on the date of sale. Industrial Belting then collects cash on April 24 when the exchange rate for a peso is $0.096. Record Industrial Belt
> Suppose Natural Soda Corp. sells soft-drink syrup on account to a Russian company on September 12. Natural Soda Corp. agrees to accept 200,000 Russian rubles. On the date of sale, the ruble is quoted at $0.36. Natural Soda Corp. collects half the receiva
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> Use the Sidestep Corporation data in E10-27A to prepare the stockholders’ equity section of the company’s balance sheet at December 31, 2017. From E10-27A Common stock $1.00 par value per share, 26 million shares issued……………………………......................
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> Study the 2016 income statement of Kurzic Imports, Inc., and answer these questions about the company: 1. How much gross profit did Kurzic Imports earn on the sale of its products in 2016? How much was income from continuing operations? Net income? 2.
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> During 2016, Advantage Corporation earned net income of $5.8 billion and paid off $2.7 billion of long-term notes payable. Advantage raised $1.4 billion by issuing common stock, paid $3.0 billion to purchase treasury stock, and paid cash dividends of $1.
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> This short exercise demonstrates the similarity and the difference between two ways to acquire plant assets. Compare the balances in all the accounts after making both sets of entries. Are the account balances similar or different? Case A–Issue sto
> Which of the following items is most closely related to prior-period adjustments? a. Preferred stock dividends b. Retained earnings c. Treasury stock d. Earnings per share
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> Copyking Corporation has income before income tax of $200,000 and taxable income of $120,000. The income tax rate is 25%. Copyking’s income statement will report net income of a. $30,000. b. $50,000. c. $120,000. d. $150,000.
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