Accounting question and answers for November 15, 2023
- Q John Walker is the audit senior on the audit of Alpha Limited, a sportswear company. The following is an excerpt from an interview between John and the sales ledger clerk,...
- Q Paul and Xavier have a business selling homemade soaps. They have been very successful in their first year of operation and have made a profit of $48,000.Your partnership agreement sets forth...
- Q How much should you be willing to pay for the Sunny Apple stock if the company last paid a dividend of $ 4.2 and you feel that a 10.2 percent...
- Q On December 31, 2021, Shy Company had equipment with a cost of P10,000,000 and accumulated depreciation of P5,000,000. Due to obsolescence and physical damage, the equipment was found to be...
- Q The company had credit sales of $110,000 for the calendrer period 2021. Accounts receivable at the beginning of the year was $25,000. $90,000 was collected during 2021.The allowance for doubtful accounts...
- Q DCR Limited is considering the purchase of a new machine at a cost of $100,000 and an expected useful life of 6 years, at which time it could sell for...
- Q Find the yield for a bill of exchange (discount security).When the bill was purchased for $49100 with 113 days. To maturity and held to maturity at which the bill paid...
- Q Assume that your company has had the following recent overhead history:Machine HoursManufacturing overheadOct3000$202,000Nov5000$304,000Dec7000$400,000Jan2500$175,000RequiredA. Using the high-low method, find both (1) the fixed component of monthly overhead, and (2) the variable...
- Q Why are databases important to business? How do databases generate sales and profits? What databases do you interact with, and how do they benefit you?What is meant by requirements gathering,...
- Q Find the yield to maturity of the bond.It is a 12% bond with the face value of $1000. It has 7 years left to maturity, currently selling for $1208.25. Interest...
- Q A consulting company pays their employees bi-weekly. The gross payroll for the officers is $4,000. The gross payroll amount for the rest of the staff is $6,000. The employer's portion...
- Q 1. Woodway Company’s annual report contained the following data (dollars in mil- lions) on its income statementInterest expense $ 2,489Investment income 11,218Other income 9,033Depreciation 1,257Revenues 591,762Other expenses 8,482Cost of sales 482,355Operating...
- Q Assume that you are a manager in a manufacturing firm. You see unrest amongst your team members and try multiple means to address them- you provide better job, higher visibility,...
- Q A project requires a $42,000 initial investment and is expected to generate end-of-period annual cash inflows as follows:Year 1Year 2Year 3$ 19,000$ 20,000$ 19,000Assuming a discount rate of 14%, what is...
- Q Use these present value tables to answer the following questions.Below is a table for the present value of $1 at compound interest.Year6%10%12%10.9430.9090.89320.8900.8260.79730.8400.7510.71240.7920.6830.63650.7470.6210.567Below is a table of the present value of...
- Q Explain why there are costs of financial distress. Identify these costs. Consider both bankruptcy-related costs and potential costs relating to the conflict of interests between equity and debt. Describe these...
- Q You would like to have $90,000 in cash to buy a new ride when you graduate in three years. Approximately how much must you deposit at the end of each...
- Q On February 1, 2021, Niki Corp. purchased for cash worth P56,700,000 certain items of property, plant, and equipment of Zef Corp., which had discontinued its operations. The following are the...
- Q The following bond-related accounts are from the separate accounting records of the two companies at 12/31/20X8. (Two years have passed since A purchased the bonds of B.)A:$143,000 DR Investment in...
- Q a) For the month of September, Perk and Co. has a monthly equipment lease cost of $9,200. Variable cost per unit of $3.00 and expected revenue per unit of $9.00. Required: What...
- Q Some critics blame debt for the financial crisis of 2008. Although this is probably not true, debt did play some role in it. The crisis did not stop what The...
- Q Goodman Co. uses the percent of receivables method for valuing accounts receivable. Credit sales were $250,000. The balance in A/R was $100,000 and they estimate 2% will be uncollectable. If...
- Q On February 2, 2020, Groove Company purchased 16% of Pop Company's common stock for $57,000. Pop's net income for the years ended December 31, 2020, and December 31, 2021, were...
- Q Buttercup Ltd manufactures and sells 3 products (R, S and T). These products are made using the same machinery. The total machining time available each month is 10,500 hours but...
- Q Create a cashflow statement (table) with the following information:• Purchase equipment for $10,000, depreciable using MACRS 7-year recovery period.• Sales price per unit $15/unit• Material costs per unit is $2/unit•...
- Q On Jan1. 2020. Abbott Corporation sold $3,000,000 of 12 percent, 10-year bonds. On that date the market rate was 11%. Abbot uses Straight line Amortization. Interest is payable annually Dec....
- Q All rates in this question are quoted with semi-annual compounding. You observe two spot rates. The 16 month spot rate is 10.50%, while the 25 month spot rate is 15.10%. What...
- Q Assume a $20,000 sale of merchandise was sold with the terms 2/10, n/30. The cost of the merchandise sold was $12,000.What is the journal entry that the seller will make...
- Q McGucken’s Software sold $1,354,000 of merchandise for cash and had credit sales totaling $2,658,000. It collected cash from customers in the amount of $3,396,000. McGucken’s received merchandise from suppliers invoiced...
- Q "The IMF has evolved with the times and plays an important role as watchdog and arbiter of BP disequilibrium". What does it mean here for "watchdog"?How many member countries in...
- Q You work for a company that is installing a new CNC machine. The cost of the machine is $400,000. It costs $5000 for delivery and $10,000 for installation. If the machinery...
- Q A company sells 20,000 widgets in Year One for $8 each.Variable costs are $4 each and the company made a net income of $50,000. In Year Two, the company raises the...
- Q In 2018, the first year of its existence, Chartreuse Corporation had a net capital loss of $3,000. In 2019 and 2020, it had net capital gains of $5,000 and $8,000,...
- Q Zeta Ltd issues loan notes of €65,000 on 1 January 2032. Redemption is to take place on equal terms, four years later. The company decides to put aside an equal amount...
- Q Victor's Vegan Deli plans a two-week discount on veggie wraps, reducing the price from $7.00 to $5.50. Promotion costs $1500. Victor expects veggie wrap sales to increase by 30%, with a...
- Q Pi Ltd issues loan notes of €75,000 on 1 January 2018. Redemption is to take place on equal terms, four years later. The company decides to put aside an equal amount...
- Q Company: Netflix, Inc.ItemAmount (in millions)Net Income$2,761Depreciation and Amortization$1,800Change in Working Capital$-500Cash Flow from Operating Activities$4,061Capital Expenditures$2,200Cash Flow from Investing Activities-$3,200Cash Flow from Financing Activities$1,500Beginning Cash Balance$3,500Ending Cash Balance$5,861Questions:What is Netflix’s...
- Q Company: Google LLC (Alphabet Inc.)ItemAmount (in millions)Revenue$182,527Cost of Goods Sold (COGS)$83,588Gross Profit$98,939Operating Expenses$49,652Operating Income$49,287Interest Expense$1,300Income Tax Expense$8,000Net Income$40,987Questions:What is Google's gross profit margin?Calculate Google's operating profit margin.Determine Google's net profit...
- Q Oscar's Omelettes plans a special where the price of cheese omelettes drops from $7.00 to $5.50 for two weeks. Promotion costs $1500. Oscar expects cheese omelette sales to increase by 30%,...
- Q Gary's Grill plans a special where the price of cheeseburgers drops from $8.00 to $6.50 for a week. Promotion costs $1200. Gary expects cheeseburger sales to increase by 40%, with a...
- Q Company: Intel CorporationItemAmount (in millions)Net Income$22,700Depreciation and Amortization$8,000Change in Working Capital$-3,000Cash Flow from Operating Activities$27,700Capital Expenditures$12,000Cash Flow from Investing Activities-$13,500Cash Flow from Financing Activities-$8,000Beginning Cash Balance$5,200Ending Cash Balance$11,400Questions:What is Intel’s...
- Q A comparative income statement is given below for McKenzie Sales, Ltd., of Toronto: McKenzie Sales, Ltd. Comparative Income Statement This Year...
- Q Chi Ltd issues loan notes of €95,000 on 1 January 2024. Redemption is to take place on equal terms, four years later. The company decides to put aside an equal amount...
- Q Company: Facebook, Inc. (Meta Platforms, Inc.)ItemAmount (in millions)Cash and Cash Equivalents$58,100Accounts Receivable$11,500Inventory$1,200Total Current Assets$82,300Property, Plant, Equipment$44,000Total Assets$138,300Accounts Payable$14,300Short-term Debt$3,700Total Current Liabilities$25,000Long-term Debt$12,000Total Liabilities$47,500Total Equity$90,800Questions:Calculate Facebook's current ratio.Determine Facebook's quick ratio...
- Q Theta Industries issues loan notes of €55,000 on 1 January 2011. Redemption is to take place on equal terms, four years later. The company decides to put aside an equal amount...
- Q Mary's Munchies is considering a week-long discount on veggie burgers, reducing the price from $6.00 to $4.50. Promotion costs $1000. Mary expects veggie burger sales to increase by 40%, with a...
- Q Kappa Corporation issues loan notes of $60,000 on 1 January 2013. Redemption is to take place on equal terms, five years later. The company decides to put aside an equal amount...
- Q Epsilon Ltd issues loan notes of £20,000 on 1 January 2009. Redemption is to take place on equal terms, three years later. The company decides to put aside an equal amount...
- Q Theta Ltd issues loan notes of $140,000 on 1 January 2034. Redemption is to take place on equal terms, five years later. The company decides to put aside an equal amount...
- Q Company: Microsoft CorporationItemAmount (in millions)Revenue$168,088Cost of Goods Sold (COGS)$56,200Gross Profit$111,888Operating Expenses$42,500Operating Income$69,388Interest Expense$1,800Income Tax Expense$10,500Net Income$57,088Questions:What is Microsoft's gross profit margin?Calculate Microsoft's operating profit margin.Determine Microsoft's net profit margin.If Microsoft’s...
- Q Iota Ltd issues loan notes of £85,000 on 1 January 2012. Redemption is to take place on equal terms, six years later. The company decides to put aside an equal amount...
- Q Beta Ltd issues loan notes of $40,000 on 1 January 2006. Redemption is to take place on equal terms, four years later. The company decides to put aside an equal amount...
- Q Company: Tesla, Inc.ItemAmount (in millions)Net Sales$31,536Cost of Goods Sold (COGS)$24,941Gross Profit$6,595Operating Expenses$4,914Operating Income$1,681Net Income$721Total Assets$52,148Total Equity$22,226Questions:Calculate Tesla’s gross profit margin.Determine the operating profit margin.What is the net profit margin?Compute the...
- Q Company: Ford Motor CompanyItemAmount (in millions)Cash and Cash Equivalents$20,300Accounts Receivable$15,700Inventory$21,000Total Current Assets$65,000Property, Plant, Equipment$45,000Total Assets$150,000Accounts Payable$25,000Short-term Debt$8,000Total Current Liabilities$50,000Long-term Debt$45,000Total Liabilities$95,000Total Equity$55,000Questions:Calculate Ford's current ratio.Determine Ford's quick ratio (acid-test ratio).What...
- Q Lambda Enterprises issues loan notes of €90,000 on 1 January 2014. Redemption is to take place on equal terms, three years later. The company decides to put aside an equal amount...
- Q Psi Corporation issues loan notes of £105,000 on 1 January 2025. Redemption is to take place on equal terms, three years later. The company decides to put aside an equal amount...
- Q Eta Enterprises issues loan notes of £115,000 on 1 January 2033. Redemption is to take place on equal terms, six years later. The company decides to put aside an equal amount...
- Q Company: Coca-Cola CompanyItemAmount (in millions)Net Sales$37,266Cost of Goods Sold (COGS)$14,341Gross Profit$22,925Operating Expenses$11,255Operating Income$11,670Net Income$8,920Total Assets$94,354Total Equity$24,411Questions:Calculate Coca-Cola’s gross profit margin.Determine the operating profit margin.What is the net profit margin?Compute the...
- Q Company: Amazon.com, Inc.ItemAmount (in millions)Cash and Cash Equivalents$42,122Accounts Receivable$26,505Inventory$18,874Total Current Assets$104,258Property, Plant, Equipment$60,316Total Assets$321,195Accounts Payable$72,946Short-term Debt$5,500Total Current Liabilities$123,874Long-term Debt$31,816Total Liabilities$227,791Total Equity$93,404Questions:Calculate Amazon's current ratio.Determine Amazon's quick ratio (acid-test ratio).What is...
- Q Delta Ltd issues loan notes of £95,000 on 1 January 2030. Redemption is to take place on equal terms, six years later. The company decides to put aside an equal amount...
- Q Company: Toyota Motor CorporationItemAmount (in millions)Cash and Cash Equivalents$40,200Accounts Receivable$18,600Inventory$19,800Total Current Assets$95,200Property, Plant, Equipment$85,000Total Assets$275,000Accounts Payable$40,000Short-term Debt$10,000Total Current Liabilities$80,000Long-term Debt$45,000Total Liabilities$135,000Total Equity$140,000Questions:Calculate Toyota's current ratio.Determine Toyota's quick ratio (acid-test ratio).What...
- Q Nu Corporation issues loan notes of £120,000 on 1 January 2016. Redemption is to take place on equal terms, six years later. The company decides to put aside an equal amount...
- Q Company: Netflix, Inc.ItemAmount (in millions)Net Income$4,585Depreciation and Amortization$1,823Change in Working Capital$-735Cash Flow from Operating Activities$5,673Capital Expenditures$2,205Cash Flow from Investing Activities-$2,724Cash Flow from Financing Activities$1,245Beginning Cash Balance$4,438Ending Cash Balance$7,984Questions:What is Netflix’s...
- Q Company: IBM CorporationItemAmount (in millions)Cash and Cash Equivalents$12,800Accounts Receivable$8,500Inventory$5,600Total Current Assets$32,900Property, Plant, Equipment$18,200Total Assets$120,500Accounts Payable$9,400Short-term Debt$6,300Total Current Liabilities$26,200Long-term Debt$40,700Total Liabilities$86,900Total Equity$33,600Questions:Calculate IBM's current ratio.Determine IBM's quick ratio (acid-test ratio).What is...
- Q Company: Pfizer Inc.ItemAmount (in millions)Net Income$16,000Depreciation and Amortization$4,500Change in Working Capital$-1,000Cash Flow from Operating Activities$19,500Capital Expenditures$3,200Cash Flow from Investing Activities-$4,800Cash Flow from Financing Activities-$2,500Beginning Cash Balance$10,000Ending Cash Balance$22,200Questions:What is Pfizer’s...
- Q Tau Corporation issues loan notes of €130,000 on 1 January 2021. Redemption is to take place on equal terms, five years later. The company decides to put aside an equal amount...
- Q Omicron Enterprises issues loan notes of $95,000 on 1 January 2017. Redemption is to take place on equal terms, five years later. The company decides to put aside an equal amount...
- Q Fred's Fish & Chips plans a weekend discount on fish fillets, reducing the price from $5.00 to $4.00. Promotion costs $800. Fred expects fish fillet sales to increase by 35%, with...
- Q Gamma Inc issues loan notes of €120,000 on 1 January 2029. Redemption is to take place on equal terms, four years later. The company decides to put aside an equal amount...
- Q Company: Procter & Gamble (P&G)ItemAmount (in millions)Net Sales$70,000Cost of Goods Sold (COGS)$33,000Gross Profit$37,000Operating Expenses$20,000Operating Income$17,000Net Income$13,000Total Assets$120,000Total Equity$55,000Questions:Calculate P&G’s gross profit margin.Determine the operating profit margin.What is the net profit...
- Q Zeta Corp issues loan notes of $75,000 on 1 January 2010. Redemption is to take place on equal terms, five years later. The company decides to put aside an equal amount...
- Q Sally's Salads is considering a week-long discount on Caesar salads, reducing the price from $7.00 to $5.50. Promotion costs $1000. Sally expects Caesar salad sales to increase by 30%, with a...
- Q Alpha Corp issues loan notes of £150,000 on 1 January 2027. Redemption is to take place on equal terms, six years later. The company decides to put aside an equal amount...
- Q Upsilon Ltd issues loan notes of £75,000 on 1 January 2022. Redemption is to take place on equal terms, four years later. The company decides to put aside an equal amount...
- Q Company: Samsung ElectronicsItemAmount (in millions)Revenue$200,734Cost of Goods Sold (COGS)$120,444Gross Profit$80,290Operating Expenses$25,600Operating Income$54,690Interest Expense$2,500Income Tax Expense$10,800Net Income$41,390Questions:What is Samsung's gross profit margin?Calculate Samsung's operating profit margin.Determine Samsung's net profit margin.If Samsung’s...
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