Business and Finance Homework

Need Finance Homework Help? Ask an Expert

Ask an Expert,
Get an Answer ASAP!

Business and Finance Homework

E5-11 (Balance Sheet Preparation) Presented below is the adjusted…

Customer Question
E5-11 (Balance Sheet Preparation) Presented...
E5-11 (Balance Sheet Preparation) Presented below is the adjusted trial balance of Kelly Corporation at December 31, 2007.
Debits Credits
Cash $ ?
Office Supplies 1,200
Prepaid Insurance 1,000
Equipment 48,000
Accumulated Depreciation—Equipment $ 4,000
Trademarks 950
Accounts Payable 10,000
Wages Payable 500
Unearned Service Revenue 2,000
Bonds Payable, due 2014 9,000
Common Stock 10,000
Retained Earnings 25,000
Service Revenue 10,000
Wages Expense 9,000
Insurance Expense 1,400
Rent Expense 1,200
Interest Expense 900
Total $ ? $ ?
Additional information:

1. Net loss for the year was $2,500.
2. No dividends were declared during 2007.

Instructions
Prepare a classified balance sheet as of December 31, 2007.
E24-2 (Post-Balance-Sheet Events) For each of the following subsequent (post-balance-sheet) events, indicate whether a company should (a) adjust the financial statements, (b) disclose in notes to the financial statements, or (c) neither adjust nor disclose.

______ 1. Settlement of federal tax case at a cost considerably in excess of the amount expected at year-end.
______ 2. Introduction of a new product line.
______ 3. Loss of assembly plant due to fire.
______ 4. Sale of a significant portion of the company’s assets.
______ 5. Retirement of the company president.
______ 6. Prolonged employee strike.
______ 7. Loss of a significant customer.
______ 8. Issuance of a significant number of shares of common stock.
______ 9. Material loss on a year-end receivable because of a customer’s bankruptcy.
______ 10. Hiring of a new president.
______ 11. Settlement of prior year’s litigation against the company.
______ 12. Merger with another company of comparable size.
*E24-5 (Analysis of Given Ratios) Picasso Company is a wholesale distributor of professional equipment and supplies. The company’s sales have averaged about $900,000 annually for the 3-year period 2006–2008. The firm’s total assets at the end of 2008 amounted to $850,000. The president of Picasso Company has asked the controller to prepare a report that summarizes the financial aspects of the company’s operations for the past 3 years. This report will be presented to the board of directors at their next meeting. In addition to comparative financial statements, the controller has decided to present a number of relevant financial ratios which can assist in the identification and interpretation of trends. At the request of the controller, the accounting staff has calculated the following ratios for the 3-year period 2006–2008.


2006 2007 2008
Current ratio 1.80 1.89 1.96
Acid-test (quick) ratio 1.04 0.99 0.87
Accounts receivable turnover 8.75 7.71 6.42
Inventory turnover 4.91 4.32 3.42
Total debt to total assets 51.0% 46.0% 41.0%
Long-term debt to total assets 31.0% 27.0% 24.0%
Sales to fixed assets (fixed asset turnover) 1.58 1.69 1.79
Sales as a percent of 2006 sales 1.00 1.03 1.07
Gross margin percentage 36.0% 35.1% 34.6%
Net income to sales 6.9% 7.0% 7.2%
Return on total assets 7.7% 7.7% 7.8%
Return on stockholders’ equity 13.6% 13.1% 12.7%
In preparation of the report, the controller has decided first to examine the financial ratios independent
of any other data to determine if the ratios themselves reveal any significant trends over the 3-year
period.
Instructions
(a) The current ratio is increasing while the acid-test (quick) ratio is decreasing. Using the ratios provided,
identify and explain the contributing factor(s) for this apparently divergent trend.
(b) In terms of the ratios provided, what conclusion(s) can be drawn regarding the company’s use of
financial leverage during the 2006–2008 period?
(c) Using the ratios provided, what conclusion(s) can be drawn regarding the company’s net investment
in plant and equipment?
Submitted: 6 years ago.Category: Business and Finance Homework
Show More
Show Less
Ask Your Own Business and Finance Homework Question
Answered in 1 hour by:
12/18/2011
Business Tutor: BusinessTutor,
 replied 6 years ago
BusinessTutor
Category: Business and Finance Homework
Satisfied Customers: 9,925
Experience: dasdasd
Verified

Hello Tiffany

 

Please click on the following link for the solutions:

 

http://www.box.com/s/4b6bm5inmj3jbl2zqqoq

 

 

P.S. If you like my services, please feel free to direct your future posts to me specifically by typing "For BusinessTutor" at the beginning of your post. Should you choose to do this, please try to allow me 48 hours before the deadline. If you need to meet me online for a timed assignment, please advise me of the date and time (EST) you want me to meet you here and I will. Please make sure you take the length (and number) of the questions into consideration when making your offer to avoid delays in providing solutions.

 

Thank you

BusinessTutor
Category: Business and Finance Homework
Satisfied Customers: 9,925
Experience: dasdasd
Verified
BusinessTutor and 87 other Business and Finance Homework Specialists are ready to help you
Ask your own question now
Ask BusinessTutor Your Own Question
BusinessTutor
BusinessTutor
BusinessTutor
Category: Business and Finance Homework
Satisfied Customers: 9,925
9,925 Satisfied Customers
Experience: dasdasd

BusinessTutor is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

I couldn't be more satisfied! This is the site I will always come to when I need a second opinion.

JustinKernersville, NC

Just let me say that this encounter has been entirely professional and most helpful. I liked that I could ask additional questions and get answered in a very short turn around.

EstherWoodstock, NY

Thank you so much for taking your time and knowledge to support my concerns. Not only did you answer my questions, you even took it a step further with replying with more pertinent information I needed to know.

RobinElkton, Maryland

He answered my question promptly and gave me accurate, detailed information. If all of your experts are half as good, you have a great thing going here.

DianeDallas, TX

< Previous | Next >

Meet the Experts:

linda_us

linda_us

Master's Degree

852 satisfied customers

A tutor for Business, Finance, Accounts and other related topics.

F. Naz

F. Naz

Bachelor's Degree

540 satisfied customers

Have completed B.COM and CA Finalist

Bizhelp

Bizhelp

Accountant

260 satisfied customers

BA degree and Certified Public Accountant

BusinessTutor

BusinessTutor

9,925 satisfied customers

dasdasd

Mr. Gregory White

Mr. Gregory White

Master's Degree

211 satisfied customers

M.A., M.S. Education / Educational Administration

Brittany

Brittany

Professional

30 satisfied customers

AA/Accounting BS/Business

Dimitry K., Esq.

Dimitry K., Esq.

Doctoral Degree

19 satisfied customers

JD/MBA, Business Attorney

< Previous | Next >

Related Business and Finance Homework Questions
It's not a tax question. I need to calculate NPV, and IRR
Hi, it's not a tax question. I need to calculate NPV, and IRR for a company that initially invested $50,000 and yields the following cash flows Year 1 - 10,000 … read more
BusinessTutor
BusinessTutor
9,925 satisfied customers
I see that you have done both the Purchase Point and Moto
Hello - I see that you have done both the Purchase Point and Moto Mart cases. I'd like to get both of those so I can compare to my own work. Can you let me know the cost? Thank you… read more
F. Naz
F. Naz
Bachelor's Degree
CA Finalist & Completed B.com
540 satisfied customers
Your client is 20 years old; and she wants to begin saving
Your client is 20 years old; and she wants to begin saving for retirement, with the first payment to come one year from now. She can save $10,000 per year; and you advise her to invest it in the stock… read more
PDtax
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
I have a question regarding a Business Marketing paper I
I have a question regarding a Business Marketing paper I need assistance with. It is about 4-8 pages in length.… read more
F. Naz
F. Naz
Bachelor's Degree
CA Finalist & Completed B.com
540 satisfied customers
Back in Boston, has been busy creating and managing his new
Back in Boston, Steve has been busy creating and managing his new company, Teton Mountaineering (TM), which is based out of a small town in Wyoming. In the process of doing so, TM has acquired various… read more
BusinessTutor
BusinessTutor
9,925 satisfied customers
Compute the income tax provision for Tulip City Flowers Inc.
compute the income tax provision for Tulip City Flowers Inc. (TCF) as of December 31, 2017. The company's federal income tax rate is 34 percent. The company's income statement for 2017 is attached.You… read more
BusinessTutor
BusinessTutor
9,925 satisfied customers
Is the sole proprietor of a successful small business and
Anna is the sole proprietor of a successful small business and she is looking to expand. Anna also holds stock in "x" corporation and could take a distribution from the corporation in order to fund th… read more
BusinessTutor
BusinessTutor
9,925 satisfied customers
Cadillac Square Corporation determined that $1,000,000 of
Cadillac Square Corporation determined that $1,000,000 of its domestic production activities deduction (DPAD) on its current-year tax return was uncertain, but that it was more likely than not to be s… read more
BusinessTutor
BusinessTutor
9,925 satisfied customers
I have a tax question. On June 6, 1990, Mia's aunt gave her
On June 6, 1990, Mia's aunt gave her a tract of land near Scottsdale, AZ as a wedding present. The land cost the aunt $85,000 but had a fair market value of $100,000 (no gift tax resulted). Since then Mia has held the property as an investment. In the CTY, she was offered $300,000 from a local golf course developer for the tract. After consulting a tax advisor and a realtor, she agreed to exchange the Scottsdale tract for similar land in Flagstaff, AZ worth $250,000 and $50,000 in cash. On August 6 of the CTY, the transaction was completed in the realtor's office. Mia plans to hold the Flagstaff tract as an investment since she thinks it has appreciation potential. … read more
PDtax
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
Mickey, Mickayla, and (MMT), are starting a new business. As
Mickey, Mickayla, and Taylor (MMT), are starting a new business. As a starting contribution, Mickey is contributing $200,000 in exchange for a 40% ownership interest, Mickayla is contributing a buildi… read more
TaxAttorneytoHelp
TaxAttorneytoHelp
Owner
Doctoral Degree
2,542 satisfied customers
What is meant by accounts receivable? Money owed to a
What is meant by accounts receivable? Money owed to a company by its debtors Money owed by a company to its creditors Money owed to a company by its employees Money owed by a company to its vendors… read more
F. Naz
F. Naz
Bachelor's Degree
CA Finalist & Completed B.com
540 satisfied customers
QUESTION 1: A start-up company, Macrotech, plans to produce
QUESTION 1:A start-up company, Macrotech, plans to produce a device to translate Morse code to a written message on a home computer and to send written messages in Morse code over the airwaves. The de… read more
FlyingCPA
FlyingCPA
Senior Manager
Master\u0027s Degree
3 satisfied customers
Your client is looking to start a plumbing and heating
Your client is looking to start a plumbing and heating business and is looking for advice on how to structure this new business entity. He will be the only employee and plans to purchase a van and bas… read more
F. Naz
F. Naz
Bachelor's Degree
CA Finalist & Completed B.com
540 satisfied customers
TCO 5) Misty Company reported the following before-tax items
TCO 5) Misty Company reported the following before-tax items during the current year:Sales - $600 Operating expenses - $250 Restructuring charges - $20 Extraordinary loss - $50Misty's effective tax ra… read more
F. Naz
F. Naz
Bachelor's Degree
CA Finalist & Completed B.com
540 satisfied customers
What is implied by zero values for “other income” and
What is implied by zero values for “other income” and “depreciation” on income statement? … read more
F. Naz
F. Naz
Bachelor's Degree
CA Finalist & Completed B.com
540 satisfied customers
We are the plaintiff in a large lawsuit and believe that it
We are the plaintiff in a large lawsuit and believe that it is extremely likely that we will win. We that that this will have a large positive effect on our stock price. Can we book it? Why or why not… read more
F. Naz
F. Naz
Bachelor's Degree
CA Finalist & Completed B.com
540 satisfied customers
In the 1980s, when Congress developed the generous
In the 1980s, when Congress developed the generous depreciation methods called ACRS and MACRS, one justification was to encourage business investment in long-lived assets by accelerating much of the d… read more
PDtax
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
Read the attached document. Post your answers and arguments
Read the attached document.Post your answers and arguments for the following questions. Views should be supported by argumentsWhat in your opinion is the best argument for CSR? Why? What in your opini… read more
F. Naz
F. Naz
Bachelor's Degree
CA Finalist & Completed B.com
540 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x