[SOLVED] What was Lakeside’s gross profit for

> Spicer Industries prepares budgets to help manage the company. Spicer is budgeting for the fiscal year ended January 31, 2018. During the preceding year ended January 31, 2017, sales totaled $9,700 million and cost of goods sold was $6,400 million. At

> Hodson Corp. purchased ten $1,000 8% bonds of Eagle Corporation when the market rate of interest was 6%. Interest is paid semiannually, and the bonds will mature in four years. Using the PV function in Excel®, compute the price Hodson paid (the present v

> Marvinâs Foods has outstanding 400 shares of 2% preferred stock, $100 par value; and 1,500 shares of common stock, $15 par value. Marvinâs declares dividends of $13,800. Which of the following is the correct entry?

> Quill Corporation paid $28 per share to purchase 900 shares of its common stock as treasury stock. The stock was originally issued at $12 per share. Which of the following would be the journal entry that Quill would make to record the purchase of the tre

> Sportplace’s net income for the period is $119,600 and its average common stockholders’ equity is $699,415. Sportplace’s return on common stockholders’ equity is closest to a. 17.1%. b. 17.2%. c. 18.4%. d. 17.3%.

> What is total paid-in capital for Sportplace? (Assume that treasury stock does not reduce total paid-in capital.) a. $632,300 b. $709,900 c. $643,700 d. $638,000 e. None of the above

> Spirit World, Inc., issued 250,000 shares of no-par common stock for $5 per share. The journal entry to record the issuance would be:

> The basic form of capital stock is a. par value stock. b. the corporate charter. c. a share of preferred stock. d. a share of common stock.

> Apollo Corporation issued $300,000, five-year bonds at 98 on January 1, 2016. On December 31, 2020, the bonds matured. The payment of the bonds at maturity would be reported on the statement of cash flows as a cash outflow of a. $294,000 in the financing

> The leverage ratio is equal to average total divided by average. a. long-term debt; common stockholders’ equity b. assets; common stockholders’ equity c. debt; total assets d. debt; common stockholders’ equity

> Cases Unlimited reported operating income of $780,000, interest expense of $120,000, and net income of $575,000. The weighted-average number of shares of common stock outstanding during the year was 100,000 shares. What is the times-interest-earned ratio

> The Red Wagon Shop had the following inventory data: Company managers need to know the companyâs gross profit percentage and rate of inventory turnover for 2018 under 1. FIFO. 2. LIFO. Which method produces a higher gross profit perce

> Which of the following items is most likely a short-term liability? a. Deferred income taxes b. Finance lease covering 30-year term c. Bonds payable d. Accounts payable

> Corporate bonds that can be exchanged for shares of the corporation’s common stock if certain conditions are met are called a. callable bonds. b. equity bonds. c. convertible bonds. d. exchangeable bonds

> Josselle Corporation retires its bonds at 106 on January 1, after the payment of interest. The face value of the bonds is $750,000. The carrying value of the bonds at retirement is $775,600. The entry to record the retirement will include a a. debit of $

> On January 1, 2020, Fergus Corporation issued $800,000, 10%, 5-year bonds. The bond interest is payable on January 1 and July 1. The bonds sold for $864,887. The market rate of interest when the bonds were issued was 8%. Under the effective-interest meth

> Maridell’s Fashions has a debt that has been properly reported as a long-term liability up to the present year (2018). Some of this debt comes due in 2018. If Maridell’s Fashions continues to report the current position as a long-term liability, the effe

> Using the facts in the preceding question, Mcdonaugh’s entry to record the interest expense on July 1, 2019, will include a a. debit to Premium on Bonds Payable. b. credit to Discount on Bonds Payable. c. debit to Bonds Payable. d. credit to Interest Exp

> Mcdonaugh Corporation issued $250,000 of 5%, 10-year bonds payable on January 1, 2019. The market interest rate when the bonds were issued was 8%. Interest is paid semiannually on January 1 and July 1. The first interest payment is July 1, 2019. Using th

> Cheyenne Company sells $400,000 of 14%, 10-year bonds for 92.613 on April 1, 2018. The market rate of interest on that day is 15.5%. Interest is paid each year on April 1.Cheyenne Company uses the straight-line amortization method. The amount of interest

> Cheyenne Company sells $400,000 of 14%, 10-year bonds for 92.613 on April 1, 2018. The market rate of interest on that day is 15.5%. Interest is paid each year on April 1. The entry to record the sale of the bonds on April 1 would be as follows:

> The carrying value on bonds equals Bonds Payable a. minus Premium on Bonds Payable. b. plus Discount on Bonds Payable. c. plus Premium on Bonds Payable. d. minus Discount on Bonds Payable. e. both a and b f. both c and d

> Refer to the data in E6-37B. Compute all ratio values to answer the following questions: ■ Which company has the highest and which company has the lowest gross profit percentage? ■ Which company has the highest and which has the lowest rate of inventory

> Madison Corporation acquired a machine for $27,000 and has recorded depreciation for two years using the straight-line method over a five-year life and $8,000 residual value. At the start of the third year of use, Madison revised the estimated useful lif

> At the beginning of last year, Bratworth Corporation purchased a piece of heavy equipment for $99,000. The equipment has a life of five years or 100,000 hours. The estimated residual value is $9,000. Bratworth used the equipment for 21,000 hours last yea

> Text World, Inc., reported sales revenue of $450,000, net income of $54,000, and average total assets of $360,000. Text World’s return on assets is a. 12.0%. b. 1.25%. c. 15.0%. d. 80.0%.

> Harlem, Inc., was reviewing its assets for impairment at the end of the current year. Information about one of its assets is as follows: Harlem should report an impairment loss for the current year of a. $275,000. b. $25,000. c. $0. d. $250,000

> Suppose Speedy Delivery pays $62 million to buy Lone Star Overnight. The fair value of Lone Star’s assets is $80 million, and the fair value of its liabilities is $24 million. How much goodwill did Speedy Delivery purchase in its acquisition of Lone Star

> A company purchased mineral assets holding approximately 240,000 tons of ore for $960,000. The estimated residual value of the assets is zero. During the first year, 40,000 tons are extracted and sold. What is the amount of depletion for the first year?

> Taylor Company purchased a machine for $9,800 on January 1, 2016. The machine has been depreciated using the straight-line method assuming it has a five-year life with a $1,400 residual value. Taylor sold the machine on January 1, 2018, for $7,600 What g

> Taylor Company purchased a machine for $9,800 on January 1, 2016. The machine has been depreciated using the straight-line method assuming it has a five-year life with a $1,400 residual value. Taylor sold the machine on January 1, 2018, for $7,600 What i

> Suppose you buy land for $2,800,000 and spend $1,100,000 to develop the property. You then divide the land into lots as follows: How much did each Hilltop lot cost you? a. $176,800 b. $83,200 c. $510,000 d. $36,667

> An error understated Power Corporation’s December 31, 2018, ending inventory by $54,000. What effect will this error have on total assets and net income for 2018? Assets Net income a. Understate b. Understate No effect c. No effect Overstate d. No effect

> Supply the missing amounts for each of the following companies: Requirement: 1. Prepare the income statement for Altieri Company for the year ended December 31, 2018. Use the cost-of-goods-sold model to compute cost of goods sold. Altieriâ

> Scott Equine Supplies had the following beginning inventory, net purchases, net sales, and gross profit percentage for the first quarter of 2018: By the gross profit method, the ending inventory should be a. $75,200. b. $48,800. c. $105,200. d. $124,000

> Roswell Corporation reported the following data: Roswellâs gross profit percentage is a. 49.2. b. 50.8. c. 56.0. d. 48.2

> A company’s sales are $550,000 and cost of goods sold is $350,000. Beginning and ending inventories are $27,000 and $38,000, respectively. How many times did the company turn its inventory over during this period? a. 10.8 times b. 6.2 times c. 7.4 time

> A capital expenditure a. adds to an asset. b. is expensed immediately. c. is a credit like capital (equity). d. records additional capital.

> An error understated Golden Flash Company’s December 31, 2018, ending inventory by $27,000. What effect will this error have on net income for 2019? a. Understate it b. Have no effect on it c. Overstate it

> Pineview Company ended the month of March with inventory of $26,000. Pineview expects to end April with inventory of $14,000 after selling goods with a cost of $98,000. How much inventory must Pineview purchase during April in order to accomplish these r

> The following data come from the inventory records of Albrecht Company: Based on these facts, the gross profit for Albrecht Company is a. $120,000. b. $223,000. c. $195,000. d. $205,000.

> The income statement for Gilmore Uniforms shows gross profit of $143,000, operating expenses of $130,000, and cost of goods sold of $219,000. What is the amount of net sales revenue? a. $362,000 b. $492,000 c. $273,000 d. $349,000

> A bond with a face amount of $12,000 has a current price quote of 107.15. What is the bond’s price? a. $12,107.15 b. $1,285.80 c. $12,858.00 d. $128,580

> If The Corner Frame Shop uses the LIFO method, cost of goods sold will be a. $21,200. b. $21,240. c. $20,900. d. $22,340.

> Huron Garden Supplies uses a perpetual inventory system. The company has these account Balances at October 31, 2018, prior to making the year-end adjustments: A year ago, the net realizable value of ending inventory was $12,800, which exceeded the cost

> If The Corner Frame Shop uses the FIFO method, the cost of the ending inventory will be a. $21,200. b. $20,900. c. $21,240. d. $27,840

> Swisher Company sold inventory with a selling price of $5,000 to customers for cash. It also collected sales taxes of $250. The journal entry to record this information includes a a. credit to Sales Tax Expense $250. b. credit to Sales Revenue $5,250. c.

> Connors Company paid $700 cash to make a repair on equipment it sold under a one-year warranty in the prior year. The entry to record the payment will debit a. Accrued Warranty Payable and credit Cash. b. Operating Expense and credit Cash. c. Warranty Ex

> Lakeside Software began January with $3,900 of merchandise inventory. During January, Lakeside made the following entries for its inventory transactions: How much was Lakesideâs inventory at the end of January? a. $4,300 b. $9,900 c. $

> Which of the following statements is false? a. A contingent liability should be disclosed in the notes to the financial statements if there is a reasonable possibility that a loss (or expense) will occur. b. All contingent liabilities should be reported

> Blue Jay, Inc., manufactures and sells computer monitors with a three-year warranty. Warranty costs are expected to average 7% of sales during the warranty period. The following table shows the sales and actual warranty payments during the first two year

> Lexter Corporation borrows cash by signing a $90,000, 8%, eight-month note on December 1 with its local bank. The total cash paid for interest (only) at the maturity of the note by Lexter will be a. $600. b. $3,600. c. $4,800. d. $7,200.

> Gravel Corporation borrowed $250,000 from a bank on January 1, 2019, by signing a 10%, six-month note. The journal entry made by Gravel on January 1, 2019, will debit a. Interest Expense for $25,000 and credit Interest Payable for $25,000. b. Cash for $2

> A company reports purchases of $388,000, a beginning accounts payable balance of $27,000, and an ending accounts payable balance of $48,000. All purchases were on account. The company’s accounts payable turnover would be closest to: a. 7.26 b. 8.33 c. 10

> Suppose a Target store in Chicago, Illinois, ended November 2018 with 500,000 units of merchandise that cost $8.00 each. Suppose the store then sold 110,000 units for $960,000 during December. Further, assume the store made two large purchases during Dec

> On November 1, 2018, Sigma Inc. invests in $1,000,000 of 5%, 10-year bonds issued by Microsoft Corporation, intending to hold the bonds until their maturity. The bonds pay interest each January 1 and July 1. What account related to the bonds will be on S

> Consolidation accounting a. eliminates all liabilities. b. reports the receivables and payables of the parent company only. c. combines the accounts of the parent company and its subsidiary companies. d. all of the above

> Jackson Bank lends Jabbour Clothing Company $125,000 on September 1. Jabbour signs a $125,000, 6%, six-month note. The journal entry made by Jabbour on December 31, its fiscal year-end, is a. debit Interest Payable and credit Interest Expense for $2,500.

> Reliable Networks owns the following long-term equity investments (it does not have significant influence over any of its investments) Reliableâs income statement for the year should report a. investments of $68,800. b. an unrealized

> Reliable Networks owns the following long-term equity investments (it does not have significant influence over any of its investments) Reliableâs balance sheet at year-end should report a. investments of $100,000. b. an unrealized loss

> Refer to the Continental data in E-Q-32. On December 31, Continental’s balance sheet should report a. dividend revenue of $37,000. b. investment in equity securities of $554,000. c. investment in equity securities of $550,000. d. an unrealized gain o

> Continental Bank, a nationwide banking company, owns many types of investments. Continental paid $550,000 for equity securities on December 5. Continental owns less than 10% of the stock of the companies in which it invests. Two weeks later, Continental

> The beginning balance sheet of Homesby Corporation included the following long-term asset: Homesby completed the following investment transactions during the year: At year-end, the fair values of Homesbyâs investments were as follows:

> Oregon Exchange Company completed the following long-term investment transactions during 2018: At year-end, the fair value of the Columbus stock is $30,100. The fair value of the Nashua stock is $658,000. Requirements: 1. For which investment is fair

> During the fourth quarter of 2018, Rainbarrel, Inc. generated excess cash, which the company invested in equity securities as follows: Requirements: 1. Open T-accounts for Cash (including its beginning balance of $23,000), Investment in Equity Securitie

> Paulsonâs specializes in sound equipment. Company records indicate the following data for a line of speakers: Requirements: 1. Determine the amounts that Paulsonâs should report for cost of goods sold and ending inven

> Selected data from Switzer Furniture, Inc., follows. Industry averages have been gathered for several ratios. Requirements: 1. Perform a trend analysis on Switzerâs sales revenue, inventory, and receivables over the past three years, u

> Assume that you are considering purchasing stock as an investment. You have narrowed the choice to either Border Corporation stock or Celebration Company stock and have assembled the following data for the two companies. Selected income statement data

> Comparative financial statement data of Stow Optical Mart follow: Other information: 1. Market price of Stow Optical Mart common stock: $122.91 at December 31, 2018, and $165.75 at December 31, 2017 2. Common shares outstanding: 13,000 during 2018 and 8

> Financial statement data of Highland Engineering include the following items: Requirements: 1. Calculate Highlandâs current ratio, debt ratio, and earnings per share. Round all ratios to two decimal places. 2. Calculate the three rati

> Top managers of Ryan Products, Inc., have asked you to compare the companyâs profit performance and financial position with the average for the industry. The companyâs accountant has given you the businessâ

> Net sales, net income, and total assets for Suburban Shipping, Inc., for a five-year period follow: Requirements: 1. Calculate trend percentages for each item for 2015 through 2018. Use 2014 as the base year and round to the nearest percent. 2. Calcul

> Selected data from Tompkin Furniture, Inc., follows. Requirements: 1. Perform a trend analysis on Tompkinâs sales revenue, inventory, and receivables over the past three years, using 2015 as the base. Is the trend in each of these are

> Assume that you are considering purchasing stock as an investment. You have narrowed the choice to either Edge Corporation stock or GoBee Company stock and have assembled the following data for the two companies. Selected income statement data for the

> Comparative financial statement data of Hamden Optical Mart follow: Other information: 1. Market price of Hamden Optical Mart common stock: $48.15 at December 31, 2018, and $39.96 at December 31, 2017 2. Common shares outstanding: 17,000 during 2018 a

> Financial statement data of Greatland Engineering include the following items: Requirements: 1. Calculate Great landâs current ratio, debt ratio, and earnings per share. Round all ratios to two decimal places. 2. Calculate the three r

> Sherwood Companyâs inventory records for the most recent year contain the following data Sherwood Company sold a total of 19,800 units during the year. Requirements: 1. Using the average-cost method, compute the cost of goods sold and

> Top managers of Caffrey Products, Inc., have asked you to compare the companyâs profit performance and financial position with the average for the industry. The companyâs accountant has given you the businessâ&#1

> Net sales, net income, and total assets for Azul Shipping, Inc., for a five-year period follow: Requirements: 1. Calculate trend percentages for each item for 2015 through 2018. Use 2014 as the base year and round to the nearest percent. 2. Calculate t

> The comparative balance sheets of Mary McGuire Design Studio, Inc., at June 30, 2018, and 2017, and transaction data for fiscal 2018, are as follows: Transaction data for the year ended June 30, 2018, follows: a. Net income, $71,000 b. Depreciation expe

> To prepare the statement of cash flows, accountants for Dartmouth Electric Company have summarized 2018 activity in two accounts: Requirements: 1. Prepare the statement of cash flows of Dartmouth Electric for the year ended December 31, 2018, using the

> Ballinger Furniture Gallery, Inc., provided the following data from the company’s records for the year ended August 31, 2019: a. Credit sales, $574,400 b. Loan to another company, $13,000 c. Cash payments to purchase plant assets, $37,600 d. Cost of goo

> Use the Mercedes Supply Corp. data from P11-70B. Requirements: 1. Prepare the companyâs 2018 statement of cash flows using the direct method. 2. How can the concepts used in this problem help you evaluate an investment? Data from p11-

> The 2018 and 2017 comparative balance sheets and 2018 income statement of Mercedes Supply Corp. follow: Mercedes Supply had no noncash investing and financing transactions during 2018. During the year, there were no sales of land or equipment, no payme

> The comparative balance sheets of Shaw Movie Theater Company at June 30, 2018 and 2017, reported the following: Shawâs transactions during the year ended June 30, 2018, included the following: Requirements: 1. Prepare Shaw Movie Theat

> Fortune Software Corp. has assembled the following data for the years ending December 31, 2018 and 2017: Requirement: 1. Prepare Fortuneâs statement of cash flows using the indirect method to report operating activities. Include a sch

> Use the Vintage Motors data from P11-66B. Requirements: 1. Prepare Vintage’s income statement for the year ended December 31, 2018. Use the singlestep format, with all revenues listed together and all expenses together. 2. Prepare Vintage’s balance shee

> Use the data for Spear Corporation in illustrate Spear’s income tax advantage from using LIFO over FIFO. Sales revenue is $10,080, operating expenses are $800, and the income tax rate is 25%. How much in taxes would Spear Corporation save by using the LI

> Vintage Motors, Inc., was formed on January 1, 2018. The following transactions occurred during 2018:On January 1, 2018, Vintage issued its common stock for $430,000. Early in January, Vintage made the following cash payments: a. $160,000 for equipment b

> The comparative balance sheets of American-Davis Design Studio, Inc., at June 30, 2018, and 2017, and transaction data for fiscal 2018, are as follows: Transaction data for the year ended June 30, 2018, follows: a. Net income, $60,500 b. Depreciation ex

> To prepare the statement of cash flows, accountants for Ronklin Electric Company have summarized 2018 activity in two accounts: Ronklin Electricâs 2018 income statement and balance sheet data follow: Requirements: 1. Prepare the state

> Rourke Furniture Gallery, Inc., provided the following data from the company’s records for the year ended March 31, 2019: a. Credit sales, $583,800 b. Loan to another company, $10,000 c. Cash payments to purchase plant assets, $89,300 d. Cost of goods so

> Use the Queen Supply Corp. data from P11-61A. Requirements: 1. Prepare the companyâs 2018 statement of cash flows using the direct method. 2. How can the concepts used in this problem help you evaluate an investment? Data from p11-61A

> The 2018 and 2017 comparative balance sheets and 2018 income statement of Queen Supply Corp. follow: Queen Supply had no noncash investing and financing transactions during 2018. During the year, there were no sales of land or equipment, no payment of

> The comparative balance sheets of Bedford Movie Theater Company at November 30, 2018, and 2017, reported the following: Bedfordâs transactions during the year ended November 30, 2018, included: Requirements: 1. Prepare Bedford Movie T

> Smither Software Corp. has assembled the following data for the years ending December 31, 2018 and 2017. Requirement: 1. Prepare Smitherâs statement of cash flows using the indirect method to report operating activities. Include a sc

> Use the Coleman Motors data from P11-57A. Requirements: 1. Prepare Coleman’s income statement for the year ended December 31, 2018. Use the single-step format, with all revenues listed together and all expenses together. 2. Prepare Coleman’s balance she

> Coleman Motors, Inc., was formed on January 1, 2018. The following transactions occurred during 2018On January 1, 2018, Coleman issued its common stock for $350,000. Early in January, Coleman made the following cash payments: a. $140,000 for equipment b.

> Use the data for Spear Corporation in E6-30B to answer the following. Requirements 1. Compute cost of goods sold and ending inventory using each of the following methods: a. Specific identification, with seven $160 units and four $170 units still on hand

Question: What was Lakeside’s gross profit for