ORIE_350_Homework__1_fall_2007_solutions

ORIE_350_Homework__1_fall_2007_solutions - ORIE 350 Fall...

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ORIE 350 Fall 2007 Homework #1 Due September 4, 2007 1. a. Contributed Capital SE B/S b. Fuel Expense SE I/S c. Cash A B/S d. Rent Expense SE I/S e. Accounts Payable L B/S f. Dividends SE neither g. Net Sales Revenue SE I/S h. Cost of Goods Sold SE I/S i. Accounts Receivable A B/S j. Retained Earnings SE B/S 2. a. The assets of Newport Corporation are $650,000, and the stockholder’s equity is $360,000. What is the amount of the liabilities? $290,000 b. The liabilities and stockholder’s equity of Fitzgerald Corporation are $95,000 and $32,000 respectively. What is the amount of the assets? $127,000 c. The liabilities of Emerald Corp. equals one-third of the total assets, and stockholder’s equity is $120,000. What is the amount of the liabilities? $60,000 d. At the beginning of the year, Pickett Corporation’s assets were $220,000 and its stockholder’s equity was $100,000. During the year, assets increased $60,000 and liabilities decreased $10,000. What is the stockholder’s equity at the end of the year? $170,000 3. a. Received $10,000 in cash by selling stock to investor Johnny Depp. F b. Got $500 in cash from customer Vince Gill for pressure washing his barn. O c. Purchased a new pressure washer from Gifford Supplies for $15,000. The pressure washer is expected to last at least three years. I d. Bought $42 in postage stamps at the post office, to be used to mail bills to customers. O e. Washed Kenny Chesney’s ranch buildings. Billed him $1200 for the service. He has not paid this bill yet, but is expected to within 30 days. O f. Borrowed $5,000 from the First Nashville Bank. F g. Paid employee wages for the first half of July, $9,800. O
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4. Flick Co. Balance Sheet Dec. 31, 2005. Assets Cash $20,000 Accounts Receivable: 25,000 Equipment 20,000 Building 45,000 Total Assets $110,000 Liabilities Notes Payable $5,000 Accounts Payable 20,000 Total Liabilities $25,000 Stockholder’s Equity Contributed Capital $40,000 Retained Earnings 45,000 Total Stockholder’s Equity $85,000 Total Liabilities and Stockholder’s Equity $110,000 From Text: 1.19 (Classifying financial statement accounts.) a. NA. b. NI (revenue). c. CC. d. X. e. NA. f. CA. g. X (a footnote to the balance sheet would probably disclose the lawsuit). h. NI (expense). i. CA. j. CL. k. X (not recognized as a gain until the firm sells the land). l. RE. m. CL. n. NL.
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1.21 (PepsiCo; balance sheet relations.) a. Year 8 Year 9 Year 10 Year 11 Current Assets 4,362 4,173 4,604 5,853 Noncurrent Assets 18,298 13,378 13,735 15,842 Total Assets 22,660 17,551 18,339 21,695 Current Liabilities 7,914 3,788 3,935 4,998 Noncurrent Liabilities 8,345 6,882 7,155 8,023 Shareholders’ Equity 6,401 6,881 7,249 8,674 Total Liabilities and Share- holders' Equity 22,660 17,551 18,339 21,695 b. Noncurrent assets decreased as a percentage of total assets, suggesting either that PepsiCo sold property, plant and equipment or did not increase these assets at the same pace as the growth in operations. PepsiCo may have also acquired other firms that had
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This note was uploaded on 05/31/2008 for the course ORIE 310 taught by Professor Callister during the Fall '07 term at Cornell University (Engineering School).

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ORIE_350_Homework__1_fall_2007_solutions - ORIE 350 Fall...

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