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Prepare a balance sheet as of december 31 20x9

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Prepare a balance sheet as of December 31, 20X9, considering thebeginning balances and incorporating the effects of the December 20X9transactions.12.1-4) Which of the following statement(s) describe the principal
reason(s) why investors and creditors use financial statement analysis?1. To assess the risks associated with expected returns2. To evaluate top and middle level management3. To predict the amount of expected returns4. To establish recommended dividend and interest payments
D) 1 and 4E) 2, 3, and 412.1-5) Short-term liquidity isA) a company's ability to turn accounts receivable into cash.B) a company's ability to meet current payments as they become due.C) current assets divided by current liabilities.D) a company's ability to sell inventory.E) a company's ability to shift current liabilities into long-term liabilities.12.1-6) List the assets in the order from most liquid to least liquid.A) Inventory, accounts receivable, cashB) Inventory, cash, accounts receivableC) Accounts receivable, inventory, cashD) Cash, inventory, accounts receivableE) Cash, accounts receivable, inventory12.1-7) With respect to creditors and equity investors, which of thefollowing statements is incorrect?A) Creditors are concerned with assessing the short-term liquidity of acompany.B) Creditors are concerned with assessing the long-term solvency of a
company.C) Equity investors are concerned about dividend payments.D) Both creditors and equity investors are concerned about profitability.E) Creditors are more concerned about future security prices.
12.3-1) How is working capital calculated?A) (total current assets) minus (total current liabilities)B) (total current assets) minus (inventories and prepaid assets)C) (total current assets) divided by (total current liabilities)D) (total current assets)E) (total current liabilities)Table 12-5The following are the income statements and balance sheets for Amazon Pools and Spas at and forthe years ended December 31, 2X10, 2X09, and 2X08:Amazon Pools and SpasCombined Statements of IncomeFor the Years Ended December 31, 2X10, 2X09, and 2X082X102X092X08Sales (all credit sales)$800$740$675Less Cost of Goods Sold525490450Gross Profit$275$250$225Less Operating Expenses150140125Operating Income$125$110$100Less Other Expense: Interest1085Income before Tax$115$102$ 95Less Income Tax Expense514643Net Income$ 64$ 56$ 52
Amazon Pools and SpasConsolidated Balance SheetsDecember 31, 2X10, 2X09, and 2X082X102X092X08Current Assets:Cash$ 25$ 20$ 15Accts Receivable907060Inventory655040Prepaid Rent10155Total Current Assets$190$155$120Long-Term Assets:Equipment$160$155$140Accumulated Depreciation(100)(95)(85)Total Long-Term Assets$ 60$ 60$ 55Total Assets$250$215$175Current Liabilities:Accounts Payable$ 50$ 30$ 20Wages Payable20105Taxes Payable10515Current Long-Term Debt10155

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Term
Winter
Professor
JenifferDoede
Tags
Balance Sheet, Generally Accepted Accounting Principles, Amazon Pools and Spas

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