Project Part 1 - Task 2:
Cost per Unit Total Cost
If 400 units were purchased and there is only 100 units left at the end of the quarter, 300
If the CFO decides to pay off a portion of its accounts payable with cash, the current asset will be reduced and the current liability will be reduced as well. This indicates a decrease in the current ratio.
The vertical analysis is perfor
The purpose of current ratio is to measure a companys ability to pay current lia-
bilities with current assets.
total current assets / total current liabilities
= 1,550 / 535
=1,330 / 425
The purpose of inventory tu
The income statement of Minerals Plus, Inc., follows:
MINERAL PLUS, INC.
Year Ended September 30, 2012
Cost of goods sold
Income tax expense
Summerborn Manufacturing, Co., completed the following transactions during 2012:
Declared a cash dividend on the 5%, $100 per preferred stock (900 shares outstanding).
Declared a $0.30 per share dividend on the 80,000 shares of common stock outstan
Trial balance is a preparation of a balance sheet. The purpose of a trial balance
is to ensure that all debits and credits are balanced correctly before the final statement
balance. The trial balance is only used internally in the accounting department of
Finished goods inventory is a current asset because it is a good. Raw goods are created into finished goods and the purpose is to make a profit. This is also a current asset.
Outstanding receivables from products sold is a part of accounts
AC1220 ACCOUNTING I
AC1220 Lab 1.2
Jake Jones analyzes the effect that each transaction has on the assets, liabilities and owners equity of Jakes Computer Repair
Service. Jake records the transactions in a journal using double-entry a
Data for Mariner Designs, Inc., follow:
MARINER DESIGNS, INC.
Comparative Income Statement
Years Ended December 31, 2012 and 2011
Net sales revenue:
Cost of goods sold
Selling and general expenses