Ti reported the following actual earnings numbers on

Info icon This preview shows pages 17–18. Sign up to view the full content.

TI Reported the following actual earnings numbers on April 24, 2018 Amounts are in millions of dollars, except per-share amounts. 1Q18 1Q17 Change Revenue $3,789 $3,402 11% Operating profit $1,548 $1,252 24% Net income $1,366 $997 37% Earnings per share $1.35 $0.97 39% Give your reading from class prep, how would you expect the market to respond to this news? 17
Image of page 17

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

Riffe – ACCT 6201 – Session 3 – Fall 2018 Notes Problems Smart Retailer uses the accrual basis of accounting. Calculate the amount of revenue, expense and net income that would be recognized in March, April and May under the following scenarios. Show revenues as positive and expenses as negatives in the following table. a. Collects $7000 in cash from a customer during March for goods delivered in April. b. Sells inventory to customers on account during March and will collect $58,400 cash from customers during April. c. Rents space in its stores to a travel agency for $9,000 a month effective May 1. Receives $18,000 cash on May 1 for two months rent. d. Pays $18,000 on April 1 for one year’s rent on a warehouse beginning on that date. e. Receives a utility bill on April 2 totaling $4,560 for utility services received in March. It pays the bill in May. f. Pays $7,200 for property taxes on April 1 for the current calendar year. g. Pays $4,500 on April 25 as an advance on a May salary of an employee. h. Pays $2,900 on April 25 for an advertisement that appeared in magazines in March. Transaction March April May a. b. c. d. e. f. g. h. Net Income 18
Image of page 18
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern