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Chapter: 7 -Problem: 13 >> Use the following income statement and information about changes in non-cash current assets and current liabilities to present the cash flows from operating activities using the direct method: Changes in current asset and current liability accounts during the year were as follows: Accounts receivable .................................... $10,800 increaseMerchandise inventory .....................
Answer Preview: Cash flows from operating activities Receipts from customers See note a 474000 Payments for inventor…

, Chapter: 6 -Problem: 2 >> Thunderbird Corporation has excess cash resulting from extremely successful operations. It has decided to invest this cash in debt and equity securities as follows to be held as non-strategic investments: On December 31, 2020, the fair values of the investments held by Thunderbird Corporation were Rossport $0.90; Temecula, $101.00; and Pacific Exploration, $14.00. Assume the fair value and carry
Answer Preview: Part 1 Period Ending Cash Interest Received Period Interest Income Premium Amort Unamortized Premium Carrying Value July 120 2938 142938 Sept3020 2520 …

, Chapter: 7 -Problem: 3 >> The account balances for the non-cash current assets and current liabilities of Kid-game Software Inc. are as follows: During 2020, Kid-game Software Inc. reported depreciation expense of $57,000. All purchases and sales are on account. Profit for 2020 was $253,000. Required 1. Prepare the operating activities section of the statement of cash flows using the indirect method. 2. Explain why cash
Answer Preview: Part 1 Cash flows from operating activities Profit 253000 Adjustments to reco…

, Chapter: 6 -Problem: 5 >> Irving Inc.?s non-strategic investment portfolio at December 31, 2019, consisted of the following: Irving Inc. had no other debt and equity investments at December 31, 2019, other than those shown above. During 2020, Irving engaged in the following transactions: Required 1. Calculate the total fair value adjustment that was recorded on December 31, 2019. 2. Journalize the 2020 transactions as
Answer Preview: Part 1 On December 31 2019 a total Investment Loss of 2800 was recorded calculated as follows Nonstr…

, Chapter: 7 -Problem: 2 >> Refer to the information in Problem 16-1B. Prepare a statement of cash flows for 2020 using the direct method to report cash inflows and outflows from operating activities.Other information:a. All sales were credit sales.b. All credits to accounts receivable in the period were receipts from customers.c. Purchases of merchandise were on credit.d. All debits to accounts payable were from payments fo
Answer Preview: MED SUPPLIES INC Statement of Cash Flows For Year Ended December 31 2020 Cash flows from operating a…

, Chapter: 8 -Problem: 10 >> Which of the following ratios enables investors to evaluate profitability?a. Quick ratiob. A/R turnoverc. Return on shareholders’ equityd. Price–earnings ratio
Answer Preview: c Retu…

, Chapter: 6 -Problem: 5 >> Following are the non-strategic investment transactions of Corona Inc.: Required 1. For each of the bond investments, prepare an amortization schedule showing only 2020 and 2021. 2. Prepare the entries to record the transactions described above. 3. Show how the investments would be reported on Corona?s December 31, 2020, balance sheet.
Answer Preview: Part 1 Partial Amortization Schedule Hanna Bond Period Ending Cash Interest Received Period Interest …

, Chapter: 7 -Problem: 2 >> Part 1RequiredRefer to WestJet’s statement of cash flows in Appendix II at the end of the textbook and answer the following questions.a. Identify WestJet’s largest cash outflow during 2017.b. What was the largest cash inflow during 2017?c. Under the operating section of the statement of cash flows, WestJet shows an increase in non-cash working capital of $237,663 (thousand). What is non-cash worki
Answer Preview: Part 1 a WestJets largest cash outflow during 2017was related to an investing activity specifically …

, Chapter: 6 -Problem: 3 >> On May 2, 2020, Systematic Industries Inc. acquired 1,200 common shares of Computer Gaming Corp. at $40.50 per share. Systematic’s intent is to sell the shares within eight to ten months. On August 7, Systematic received dividends of $0.50 per share regarding the Computer Gaming investment. Record the entries on May 2 and August 7.
Answer Preview: 2020 May 2 Investment x Computer GamingSha…

, Chapter: 6 -Problem: 6 >> Refer to the information in QS 15-5. Show how the investments will be presented on the December 31, 2020, balance sheet. QS 15-5Non-strategic ................................................... Unadjusted Investments Balance at Dec. 31/20 CashCo shares (21,250 shares) ......................................................... $340,000 Wells shares (45,000 shares) ...................................
Answer Preview: 1 Calculate the fair value of the CashCo shares Fair Va…

, Chapter: 6 -Problem: 1 >> Corporations may choose to engage in a non-strategic investment in debt or shares for which of the following reasons:a. To earn greater interest or dividend income on available excess cashb. To earn investment income over the original purchase price on the eventual sale of purchased sharesc. To earn interest on debt held for its contract lifed. All of the above. Dividend A
Answer Preview: d A…

, Chapter: 6 -Problem: 6 >> Heritage Ltd. was organized on January 2, 2020. The following investment transactions and events occurred during the following months: Assume that Heritage has a significant influence over Port with its 20% share. Required 1. Give the entries to record the preceding transactions in Heritage?s books. 2. Calculate the carrying value per share of Heritage?s investment as reflected in the investmen
Answer Preview: Part 1 1 2020 Jan 6 Investment in Associate PortInc 581500 Cash 581500 To record purchase of strateg…

, Chapter: 7 -Problem: 3 >> Instant Brake Inc.?s comparative balance sheet information at December 31, 2020 and 2019, and its income statement for the year ended December 31, 2020, are as follows: During 2020, the following transactions occurred: 1. Purchased equipment for $21,000 cash. 2. Sold the investment on January 1, 2020, for $46,800, resulting in investment income of $20,520. 3. Sold equipment for $7,620 cash that
Answer Preview: Part 1 Cash dividends DECLARED 59300 Profit of 129860 less 70560 change in retained earnings But cas…

, Chapter: 7 -Problem: 8 >> In what ways is the direct method different from the indirect method?a. The direct method cash flow statement begins with profit and adjusts cash flow for accrualsb. The direct method cash flow statement begins with total assets and adjusts cash flow for accrualsc. The direct method cash flow statement builds operating inflows and outflows from information obtained both from the income statement a
Answer Preview: c The direct method cash flow st…

, Chapter: 6 -Problem: 2 >> Strategic investments are pursued for which of the following reasons:a. To participate in new markets or new technologiesb. To build a favourable business relationship, generally with a major customer or supplierc. To achieve non-controlling interest with the investee by acquiring enough shares to be influential to the investee’s operating, financing, and investing decisions.d. All of the above.
Answer Preview: d A…

, Chapter: 7 -Problem: 1 >> A major shareholder of Systems Unlimited Inc., Phil Wang, is perplexed. The 2020 income statement showed a healthy profit of $280 thousand. Yet, when Linda Lewis, the bank manager and a friend of Phil?s, called to let him know that the bank had just reviewed the March 31, 2020, statements, she had said, ?Phil, I just wanted to give you a heads-up. We?re extremely concerned about the message your 2
Answer Preview: The answer here is only suggested and not inclusive of all possibilities it is presented in point form for brevity Parts 1 and 2 Problem x the bank ma…

, Chapter: 8 -Problem: 3 >> Where possible, calculate percentage of increase and decrease for the following accounts of Craft Brewery Ltd.: Transcribed Image Text: 2020 2019 Current non-strategic investments Accounts receivable. Notes payable. $203,000 30,888 25,000 $154,000 35,200 -0-
Answer Preview: Item Dollar Change Base Amount Pe…

, Chapter: 6 -Problem: 1 >> Live Large Inc. had the following transactions involving non-strategic investments during 2020. Required 1. Prepare an amortization schedule for the Space Explore bond showing only 2020 and 2021. Round your intermediate and final answers to the nearest whole dollar. 2. Prepare journal entries to record the preceding transactions. 3. Show how Live Large Inc.?s investments will appear on its Decem
Answer Preview: Part 1 Cash Interest Received Period Interest Income Premium Amort Unamortized Premium Carrying Value July 120 2561 75561 Dec 3120 3103 2985 118 2443 …

, Chapter: 7 -Problem: 13 >> Use the following information to prepare a statement of cash flows for the year ended March 31, 2020, using the indirect method. Transcribed Image Text: Parker Consulting Parker Consulting Comparative Balance Sheet Information Income Statement For Year Ended March 31, 2020 March 31 $340 Sales 2020
Answer Preview: PARKER CONSULTING Statement of Cash Flows For Year Ended March 31 2020 Cash flows from operating act…

, Chapter: 5 -Problem: 16 >> On January 1, 2020, the $1,000,000 par value bonds of Sinclair Corporation with a carrying value of $950,000 are converted to 500,000 common shares. Journalize the conversion of the bonds. Corporation A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its r
Answer Preview: 2020 Jan 1 Bonds Payable 10…

, Chapter: 8 -Problem: 3 >> Halifax Fisheries Inc. began the month of March with $760,000 of current assets, a current ratio of 2.5 to 1, and a quick ratio of 1.1 to 1. During the month, it completed the following transactions:Mar. 6 Bought $86,000 of merchandise on account. (The company uses a perpetual inventory system.) 11 Sold merchandise that cost $70,000 for $118,000. 15 Collected a $30,000 account receivable. 17 Paid
Answer Preview: Transaction Current Assets Quick Assets Current Liabilities Current Ratio Quick Ratio Working Ca…

, Chapter: 6 -Problem: 9 >> You have been asked by the VP of Finance to explain the appropriate accounting treatment for the following series of investments made by Metaphor Investments Inc.:• Purchased 50,000 of the 80,000 shares outstanding for The Natural Pharmacy Inc.• Purchased 20,000 of 50,000 shares outstanding for Metro Inc.• Purchased 30,000 of 60,000 shares outstanding for Le Petite Boulangerie Inc.• Purchased 40,0
Answer Preview: Accounting Treatment Shares Company Treatment 50000 80000 The Natural Pharmacy Inc 625 Business comb…

, Chapter: 7 -Problem: 7 >> Paddleboard Inc. began operations on January 1, 2019. Its post-closing trial balance at December 31, 2019 and 2020, is shown below along with some other information. Other information regarding Paddleboard Inc. and its activities during 2020: 1. Assume all accounts have normal balances. 2. Cash dividends were declared and paid during the year. 3. There were no sales of property, plant, and equip
Answer Preview: PADDLEBOARD INC Statement of Cash Flows For Year Ended December 31 2020 000s Cash flows from operati…

, Chapter: 6 -Problem: 10 >> Refer to the information in QS 15-9. Show how the investment will be presented on the December 31, 2020, balance sheet, assuming the carrying value reflected the fair value. QS 15-9 Transcribed Image Text: Cash Perlod Interest Interest Discount Unamortized Carrying Perlod Ending Recelved Income Amor
Answer Preview: Noncurrent …

, Chapter: 7 -Problem: 4 >> Refer to the information in Problem 16-3A. Prepare a statement of cash flows for 2020 using the direct method to report cash inflows and outflows from operating activities.Other information:a. All sales are credit sales.b. All credits to accounts receivable in the period are receipts from customers.c. All purchases of merchandise are on credit.d. All debits to accounts payable in the period result
Answer Preview: INSTANT BRAKE INC Statement of Cash Flows For Year Ended December 31 2020 Cash flows fr…

, Chapter: 7 -Problem: 2 >> The data below refer to Money Ltd. for the year ended December 31, 2020. RequiredFor each item, identify both the dollar amount and its classification—that is, whether it would appear as a positive or a negative adjustment to profit in the calculation of cash flow from operations (using the indirect method), or as some other inflow or outflow of cash.1. Declared a $15,000 cash dividend; paid $12,0
Answer Preview: 1 Show 12000 as dividends paid in financing activities Note Retained Earnings would have been debite…

, Chapter: 8 -Problem: 12 >> The following information is available from the financial statements of Landscape Enhancements Inc.: Calculate Landscape Enhancements? return on total assets for 2019 and 2020. (Round answers to one decimal place.) Comment on whether the change in the company?s efficiency in using its assets from 2019 to 2020 was favourable or unfavourable, including a comparison against the industry averages i
Answer Preview: Return on total assets ProfitAverage total assets 100 2019 58000512…

, Chapter: 5 -Problem: 4 >> Refer to the amortization schedule prepared in Problem 14-3B. Assume a January 31 year-end. RequiredPart 1Record the following entries:a. Issuance of the bonds on September 1, 2020b. Adjusting entry to accrue bond interest and premium amortization on January 31, 2021c. Payment of interest on March 1, 2021Part 2Show how the bond will appear on the balance sheet under non-current liabilities at Jan
Answer Preview: Part 1 a 2020 Sept 1 Cash 418089 Premium on Bonds Payable …

, Chapter: 7 -Problem: 11 >> In each of the following cases, use the information provided about the 2020 operations of Prestige Water Corp. to calculate the indicated cash flow: Transcribed Image Text: Case A: Calculate cash received from customers: $305,000 Sales revenue. Accounts receivable, January 1. 15,100 20,870 Accounts
Answer Preview: Case A Sales revenue 305000 Accounts receivable December 31 20870 Ac…

, Chapter: 6 -Problem: 1 >> On January 1, 2020, Holiday Resorts Ltd. purchased 30% of Chapman Ltd.?s outstanding common shares. The balance in Holiday Ltd.?s Investment in Associate Chapman Ltd. account was $500,000 as of December 31, 2021. The following information is available for years 2020 and 2021 for Chapman Ltd.: Required Calculate the purchase price paid by Holiday Ltd. for Chapman Ltd. shares on January 1, 2020.
Answer Preview: Closing balance in HolidayLtds account Investment in Associate ChapmanLtd on December 31 …

, Chapter: 8 -Problem: 1 >> Drinkwater Inc. reported the following information: Other information: 1. No shares were issued during the years ended March 31, 2020 and 2019. 2. No dividends were declared or paid during the years ended March 31, 2020 and 2019. 3. The market values per common share at March 31, 2020, and March 31, 2019, were $29 and $25, respectively. 4. Industry averages for 2020 were as provided in the chart
Answer Preview: 1 DRINKWATER INC Income Statement For Year Ended March 31 2020 in thousands of Canadian dollars Revenues 2020 2019 Net sales 929000 787000 Investment income 9000 7000 Total revenues 938000 794000 Expe…

, Chapter: 6 -Problem: 3 >> On January 1, 2020, Swift Current Corporation paid $2,540,240 to acquire bonds of Jasper Investment Corp with a par value of $2,520,000. The annual contract rate on the bonds is 7% and interest is paid semiannually on June 30 and December 31. The bonds mature after three years. The market rate of interest was 6.7%. Swift Current Corporation intends to hold the bonds until maturity. Required1. Pre
Answer Preview: Part 1 Period Ending Cash Interest Received Period Interest Income Prem…

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, Chapter: 8 -Problem: 9 >> Refer to Exhibit 17.14 and calculate Focus Metals? solvency ratios for 2019 and 2020 (round answers to two decimal places). Analysis Component: Identify whether the change in each ratio from 2019 to 2020 was favourable (F) or unfavourable (U) and why. Exhibit 17.14 Transcribed Image Text: Focus M
Answer Preview: Ratio Calculations FU and Why 2020 2019 Debt ratio 6540 1 8171 2 F because a decrease in debt de…

, Chapter: 6 -Problem: 4 >> On April 1, 2020, Joe Lite Corporation paid $851,560 to acquire bonds of Santos Electric Inc. with a par value of $860,000. The annual contract rate on the bonds is 6.5% and interest is paid quarterly beginning June 30, 2020. The bonds mature in six years. The market rate of interest at the time of purchase was 6.7%. Joe Lite Corporation plans to hold the bonds until they mature. Required1. Prepa
Answer Preview: Part 1 Cash Interest Received Period Interest Income Discount Amort Unamor…

, Chapter: 7 -Problem: 10 >> Refer to the information in Problem 16-9A. Prepare a statement of cash flows for 2020 using the direct method to report cash inflows and outflows from operating activities.Other information:a. All accounts payable balances result from merchandise purchases.b. All sales are credit sales.c. All credits to accounts receivable are receipts from customers.d. All debits to accounts payable result from p
Answer Preview: LOCK KEY INC Statement of Cash Flows For Year Ended December 31 2020 000s Cash flows …

, Chapter: 6 -Problem: 7 >> The following events are for Toronto Investment Inc.: Required Prepare general journal entries to record each transaction. Round per share calculations to two decimal places. Transcribed Image Text: 2020 Jan. Purchased 18,000 shares of Quatro Inc. common shares for $156,900. Quatro has 90,000 comm
Answer Preview: Toronto Investment Incs investment equals 20 of Quatros shares 1800090000 The equity method should b…

, Chapter: 7 -Problem: 9 >> The indirect method of reporting cash flows begins with profit and adjusts for:a. Changes in non-cash current assets and current liabilities relating to operating activitiesb. Income statement items involving operating activities that do not affect cash inflows and outflows for the periodc. Elimination of gains and losses resulting from investing and financing activitiesd. All of the above.
Answer Preview: d A…

, Chapter: 7 -Problem: 3 >> Swiss Farm Inc.?s 2020 statement of cash flows appeared as follows: Swiss Farm Inc.?s balance sheet information is as follows: An examination of the company?s statements and accounts showed: a. All accounts have normal balances. b. All sales were made on credit. c. All merchandise purchases were on credit. d. Accounts payable balances resulted from merchandise purchases. e. Prepaid expenses r
Answer Preview: SWISS FARMSINC Income Statement For Year Ended December 31 2020 Revenues Sales see note 1 787500 Incomeon retirement of bonds see note 7 7700 Total re…

, Chapter: 8 -Problem: 8 >> Web Structure Inc. calculated the ratios shown below for 2020 and 2019: Required 1. Identify whether the change in the ratios from 2019 to 2020 is favourable (F) or unfavourable (U). 2. Assess whether the 2020 ratios are favourable or unfavourable in comparison to the industry averages shown in Exhibit 17.11. Exhibit 17.11
Answer Preview: 2020 2019 Trend Comparison to Industry Average Current ratio 1081 0971 F U Quick ratio 0991 084…

, Chapter: 8 -Problem: 2 >> Standards we can use to compare corporate financial performance include:a. Intracompanyb. Competitorc. Industry and guidelinesd. All of the above.
Answer Preview: d A…

, Chapter: 8 -Problem: 10 >> Refer to Exhibit 17.14 and calculate Tia?s Trampolines Inc.?s profitability ratios for 2020 (round calculations to two decimal places). Also identify whether each of Tia?s Trampolines Inc.?s profitability ratios compares favourably (F) or unfavourably (U) to the industry average by referring to Exhibit 17.11. Analysis Component: Comment on the trend in sales, accounts receivable, cost of goods sol
Answer Preview: 2020 Industry Average FU 1 Profit margin 722 14 U 2 Gross profit ratio 30 18 F 3 Return on total ass…

, Chapter: 7 -Problem: 6 >> Examples of non-cash investing and financing activities that do not impact the statement of cash flows but must be disclosed include all of the following except:a. Retirement of debt by issuing sharesb. Conversion of preferred shares to common sharesc. Payment of cash dividends to shareholdersd. Declaration and issuance of a share dividend
Answer Preview: c Paymen…

, Chapter: 8 -Problem: 6 >> a. Calculate the inventory turnover for 2020 for each company (round to two decimal places). b. Can you compare these companies? Explain. c. Review the turnover for Fresh-Cut Flowers Inc. Does this result appear to be logical? Explain why or why not. Transcribed Image Text: (millions of $) Custom F
Answer Preview: a Computer Inc Furniture Retailers FreshCut Flowers Inc Custom Furniture Co…

, Chapter: 6 -Problem: 4 >> Is the FVTPL category used when management plans to hold investments to maturity or if they plan to actively trade the debt investments? Maturity Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward tr
Answer Preview: FVTPL category is …

, Chapter: 8 -Problem: 1 >> What are the four key building blocks of financial statement analysis?a. Liquidity and efficiency, solvency, profitability, and marketb. Liquidity and efficiency, solvency, profitability, and industryc. Liquidity and efficiency, solvency, profitability, and economyd. Liquidity and efficiency, solvency, profitability, and government
Answer Preview: a Liquidity …

, Chapter: 6 -Problem: 4 >> Dynamic Express Inc. prepared the summary shown below regarding its investments on December 31, 2020, its year-end. Prepare the appropriate entry on December 31, 2020, to record the fair value adjustment. Transcribed Image Text: Unadjusted Balance at Dec. 31/20 Fair Values at Dec. 31/20 Non-Strateg
Answer Preview: 2020 Dec 31 Investment IMC Shares 7000 Investment Income Loss 45000 Investment Zelco Sha…

, Chapter: 8 -Problem: 4 >> Calculate trend percentages for the following items using 2016 as the base year. Then, state whether the situation shown by the trends appears to be favourable or unfavourable. Transcribed Image Text: 2020 2018 2017 2019 2016 $338,240 155,040 $314,080 $302,000 Sales. $377,600 172,720 $362,400 164,5
Answer Preview: 2020 2019 2018 2017 2016 Sales 125 120 112 104 100 C…

, Chapter: 6 -Problem: 1 >> Delta Corporation showed the following adjusted trial balance at its year-end, December 31, 2020:                                          Delta Corporation                                         Adjusted Trial Balance                                           December 31, 2020 (000s) Account Balance1 Accounts payable.............................................................................. 9
Answer Preview: DELTA CORPORATION Income Statement For Year Ended December 31 2020 000s Revenues Sales 620 Expenses …

, Chapter: 8 -Problem: 4 >> Which of the following issues signal a potential concern when analyzing financial statements?a. Large dollar value and percentage year-over-year changesb. Unusual line itemsc. Unexpected relationshipsd. All of the above.
Answer Preview: d A…

, Chapter: 6 -Problem: 5 >> Wind Industries had selected unadjusted balances as shown below at year-end. A search on the Internet showed fair values on December 31, 2020, of CashCo, $18; Wells, $0.70. Prepare the appropriate entry on December 31, 2020, to record the valuation adjustment.                                                                                        Non-strategic ......................................
Answer Preview: 2020 Dec 31 Investment CashCo Shares 42500 Investment Wells Shares 2500 Investment Income …

, Chapter: 7 -Problem: 9 >> Clear Strategy Corp., a strategic marketing consulting firm, began operations on January 1, 2019. Its post-closing trial balance at December 31, 2019 and 2020 is shown below along with some other information. Other information regarding Clear Strategy Corp. and its activities during 2020: 1. Assume all accounts have normal balances. 2. Share dividends were declared and issued during the year. 3.
Answer Preview: CLEAR STRATEGY CORP Statement of Cash Flows For Year Ended December 31 2020 millions of dollars Cash …

, Chapter: 4 -Problem: 9 >> Venir Exchange Corp. had the following equity account balances at December 31, 2019:Preferred shares, $0.60, cumulative, Authorized: 100,000 shares Issued and outstanding: 45,000 shares ........................................ $ 432,000 Common shares, Authorized: Unlimited Issued and outstanding: 300,000 shares ...................................... 1,077,840 Retained earnings ....................
Answer Preview: VENIR EXCHANGECORP Statement of Changes in Equity For Year Ended December 3…

, Chapter: 5 -Problem: 15 >> On July 1, 2020, Lester Shoes Ltd. exercises a $4,000 call option on its outstanding bonds, which have a carrying value of $206,000 and par value of $200,000. Lester exercises the call option immediately after the semiannual interest is paid on June 30, 2020. Record the journal entry to show the retirement of the bonds. Par Value Par value is the face value of a bond. Par
Answer Preview: 2020 July 1 Bonds Payable 200000 Premium on …

, Chapter: 8 -Problem: 1 >> You are the new human resources manager and are reviewing the bonus policies as part of familiarizing yourself with the payroll system. The plant superintendent?s bonus is calculated as the return on total assets ratio for the year times one month?s salary. You have the information below and, recalling some basic accounting that you took while attending a post-secondary educational institution, yo
Answer Preview: The answer here is only suggested and not inclusive of all possibilities it is presented in point form for brevity Problem x is the plant superintendents bonus being calculated in the most equitable m…

, Chapter: 4 -Problem: 3 >> AIM Inc. showed the following equity account balances on the December 31, 2019, balance sheet: Common shares, unlimited authorized shares,640,000 shares issued and outstanding ................................................. $5,760,000Retained earnings ........................................................................................ 2,130,000 During 2020, the following selected transactio
Answer Preview: a 2020 Feb 10 Common Shares 168000 900 1512000 Retained Earnings 168000 Cash 168000 1000 1680000 To …

, Chapter: 6 -Problem: 1 >> Prepare entries to record the following non-strategic investment transactions of Arrowhead Investment Corporation. Analysis Component: If the fair value adjusting entry on December 31, 2020, were not recorded, what would the effect be on the income statement and balance sheet? Based on your understanding of GAAP, would it be better or worse to omit an investment loss than investment income? Expl
Answer Preview: 2020 Mar 1 Investment ActionBond 69980 Cash 69980 Purchased 2year 8 69000 bond payable to be held as aninvestment Apr 16 Investment Brandon Motors Sha…

, Chapter: 8 -Problem: 7 >> Alberta Playground Inc. produces, markets, distributes, and installs durable playground equipment. It is a new, growing playground distributor in Canada, and is hoping to expand to other provinces shortly. Its head office is in Edmonton, Alberta, and its 2020 and 2019 balance sheets and income statements follow. Assume the common shares represent 203,830 (thousand) shares issued and outstanding
Answer Preview: Part 1 Alberta Playground Inc CommonSize Comparative Balance Sheet As at March 31 2020 and March 31 2019 2020 2019 Assets Current assets Cash and cash …

, Chapter: 6 -Problem: 6 >> Monkey Mortgage Inc. engaged in the following non-strategic investment transactions during 2020: Required 1. Prepare an amortization schedule for the Jaguar bond showing only 2020 and 2021. 2. Prepare the entries to record the transactions described above. 3. Show how the investments would be reported on Monkey?s December 31, 2020, balance sheet.
Answer Preview: Part 1 Period Ending Cash Interest Received Period Interest Income Premium Amort Unamortized Premium …

, Chapter: 8 -Problem: 4 >> North Exploration Inc. and Eagle Minerals Inc. are similar firms that operate within the same industry. The following information is available: Required The controller of your company has asked you to analyze the above two companies, so a decision can be made on whether you should invest in either. Prepare a paragraph on each of the below items that you can give to the controller in a memo. a. C
Answer Preview: a The current ratios and quick ratios show that Eagle Minerals is in a more liquid position than Nor…

, Chapter: 5 -Problem: 15 >> Tahoe Tent Ltd. issued bonds with a par value of $800,000 on January 1, 2020. The annual contract rate on the bonds was 12%, and the interest is paid semiannually. The bonds mature after three years. The annual market interest rate at the date of issuance was 10%, and the bonds were sold for $840,606.a. What is the amount of the original premium on these bonds?b. How much total bond interest expe
Answer Preview: a Premium Issue price Par value 840606 800000 40606 b Total interest expense over …

, Chapter: 8 -Problem: 5 >> The 2020 four-year comparative financial statements of Digital Shelf Space Corp. follow: Required 1. Calculate the following for 2020 and 2019 and identify whether the ratios compare favourably (F) or unfavourably (U) from 2019 to 2020:? (a) Quick ratio,? (b) Inventory turnover,? (c) Accounts payable turnover,? (d) Debt ratio,? (e) Ratio of pledged assets to secured liabilities,? (f) Times int
Answer Preview: Part 1 2020 2019 FU a Quick ratio 2041 2441 U b Inventoryturnover 6015 times 5787times F c Accounts …

, Chapter: 8 -Problem: 19 >> Refer to the financial statements in Appendix II for WestJet and calculate the percentage change in sales and marketing expenses from 2016 to 2017. Financial Statements Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as wel
Answer Preview: WestJet percentage change in the category …

, Chapter: 7 -Problem: 4 >> Refer to the information in Problem 16-3B. Prepare a statement of cash flows for 2020 using the direct method to report cash inflows and outflows from operating activities.Other information:a. All sales are credit sales.b. All credits to accounts receivable are receipts from customers.c. All purchases of merchandise are on credit.d. All debits to accounts payable result from payments for merchandi
Answer Preview: BURROW MINING INC Statement of Cash Flows Year Ended December 31 2020 Cash flows from o…

, Chapter: 7 -Problem: 1 >> Jacobson Manufacturing Corporation earned $84,000 in profit during 2020. Machinery was sold for $116,000 and a $24,000 loss on the sale was recorded. Machinery purchases totalled $330,000 including a July purchase for which an $80,000 promissory note was issued. Bonds were retired at their face value, and the issuance of new common shares produced an infusion of cash. Jacobson?s comparative balanc
Answer Preview: All amounts are in thousands Part 1 Machinery 2019 1260 Purchase during 2020 330 1590 Machinery 2020 …

, Chapter: 7 -Problem: 8 >> Refer to the information in Problem 16-7A. Prepare a statement of cash flows for 2020 using the direct method to report cash inflows and outflows from operating activities.Other information:a. All accounts payable balances result from merchandise purchases.b. All sales are credit sales.c. All credits to accounts receivable are receipts from customers.d. All debits to accounts payable result from p
Answer Preview: PADDLEBOARD INC Statement of Cash Flows For Year Ended December 31 2020 000s Cash flows from o…

, Chapter: 6 -Problem: 10 >> Investments in subsidiaries involves determining control over the investee corporation and requires which of the following accounting treatments:a. Shares are recorded at fair value at the end of each reporting period b. Investment is presented by combining statements with additional disclosure details on subsidiary’s operationsc. Shares are recorded at cost when purchased and the investor company
Answer Preview: b Investment is presen…

, Chapter: 7 -Problem: 9 >> Refer to the information below for Douglas Tree Housing Inc. a. Calculate the cash paid for equipment purchased during 2020. b. Calculate the cash proceeds for equipment sold during 2020. Transcribed Image Text: Douglas Tree Housing Inc. Comparative Balance Sheet Information December 31 2020 2019 $
Answer Preview: a 300 x X 150 328 x 178 paid for purchase of equipment Alternativ…

, Chapter: 5 -Problem: 26 >> Use the data in Exercise 14-25 to prepare journal entries that KEC Environmental Corp. would make to record the loan on December 31, 2020, and the four payments starting on December 31, 2021, through the final payment on December 31, 2024. Exercise 14-25 Transcribed Image Text: (C) (A) (B) Debit (D
Answer Preview: Journal entries 2020 Dec 31 Cash 100000 Notes Payable 100000 Borrowed 100000 …

, Chapter: 8 -Problem: 4 >> Zhang Inc. and Black Inc. are similar firms that operate within the same industry. Black began operations in 2018 and Zhang in 2012. In 2020, both companies paid 7% interest to creditors. The following information is available: Required The controller of your company has asked you to analyze the above two companies so a decision can be made on whether the company should invest in either company.
Answer Preview: Blacksprofit margins are consistently higher than Zhangs However Zhang has significantly higher tota…

, Chapter: 8 -Problem: 9 >> Calculate A/P turnover for Bloom Greenhouses for the December 31, 2020 year-end.a. 0.75 timesb. 1.33 timesc. 2.0 timesd. 2.78 times Use the following financial information to answer question.Bloom Greenhouses has the following financial information for its December 31, 2020 year-end:Average A/P ................................................................... 150,000 Average A/R ................
Answer Preview: b …

, Chapter: 7 -Problem: 9 >> Laura?s Fresh Cooking Inc. began operations on January 1, 2019. Laura?s prepares gourmet dinners and delivers to customers in fresh coolers; customers put them in the oven and have a meal within 30 minutes. The business seems to be a success! Its post-closing trial balance at December 31, 2019 and 2020 is shown below along with some other information. Other information regarding Laura?s Fresh Co
Answer Preview: LAURAS FRESH COOKING INC Statement of Cash Flows For Year Ended December 31 2020 Cash flows from o…

, Chapter: 6 -Problem: 3 >> How is interest recognized on debt investments that are expected to be held for their contract life?
Answer Preview: Intere…

, Chapter: 7 -Problem: 16 >> Middleton Supplies Inc. had sales revenue of $805,000 during 2020. Accounts receivable at the beginning of the year were $20,000 but were $24,000 at the end of the year. How much cash was collected from customers during 2020? Accounts Receivable Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the su
Answer Preview: Sales 805000 Less …

, Chapter: 6 -Problem: 5 >> When non-strategic investments are accounted for using the fair value method, when should investment income be recognized?
Answer Preview: Using the fair value method when accounting for nonstrategic investm…

, Chapter: 8 -Problem: 2 >> Refer to the financial statements for Spin Master, WestJet, Telus, and Indigo in Appendix II. Calculate the following ratios for 2017 and 2016 for each company, indicating whether the change was favourable or unfavourable (round calculations to two decimal places). For Indigo, use the year-ends March 31, 2018 and April 1, 2017 for 2017 and 2016, respectively.1. Profit margin2. Debt ratio3. Curren
Answer Preview: Requirement 1 2 3 A B C D F U Company 2017 2016 2017 2017 2016 2016 Profit Margin AB100 CD100 Profit …

, Chapter: 8 -Problem: 22 >> In the chapter-opening vignette, it was mentioned that Roots Canada had a significant increase in year over year EPS for 2017. Why should investors be evaluating profitability ratios such as EPS and gross profit margin? What information does EPS and gross profit margin provide to investors?
Answer Preview: Investors should be evaluating profitability ratios as they enable investors to analyze the …

, Chapter: 8 -Problem: 13 >> Spence Resources Inc.?s December 31 incomplete balance sheet information follows along with additional information: Required 1. Prepare a three-year comparative balance sheet for Spence Resources Inc. 2. To evaluate the company?s profitability, calculate the ratios for each year shown in the following schedule and determine whether the change was favourable or unfavourable.
Answer Preview: Part 1 Spence ResourcesInc Balance Sheet December 31 2020 2019 2018 Assets Current assets Cash 72520 …

, Chapter: 8 -Problem: 5 >> Express the following income statement information in common-size percentages and assess whether the situation is favourable or unfavourable. Transcribed Image Text: Waterford Corporation Income Statement For Years Ended December 31, 2020 and 2019 2020 2019 Sales Cost of goods sold. Gross profit fr
Answer Preview: 2020 2019 Sales 1000 1000 Cost of goods sold 600 520 …

, Chapter: 6 -Problem: 3 >> Pacific Fishing Inc.?s actively traded non-strategic investments as of December 31, 2020, are as follows: Pacific Fishing Inc. had no investments prior to 2020. Required 1. Prepare the fair value adjustment at December 31, 2020, based on the information provided. 2. Illustrate how the investments will be reported on the December 31, 2020, balance sheet.
Answer Preview: Part 1 2020 Dec 31 Investment Loss 2660 Investments E…

, Chapter: 6 -Problem: 12 >> On January 2, 2020, Bella Software Corp. paid cash of $1,200,000 to acquire 704,000 of Domino Inc.’s 3,200,000 outstanding common shares. Assume that Bella has significant influence over Domino as a result. On March 15, 2020, Domino paid dividends of $0.20 per common share and on December 31, 2020, it reported a loss of $1,675,000 for 2020. Prepare Bella’s entries on January 2, March 15, and Decem
Answer Preview: 2020 Jan 2 Investment in AssociateDomino Inc 1200000 Cash 1200000 Purchased 704000 c…

, Chapter: 7 -Problem: 10 >> Refer to the information below for Morningside Environmental Inc. Calculate the: a. Cash paid for the purchase of the franchise during 2020. b. Cash proceeds for equipment sold during 2020. c. Change in cash and cash equivalents during 2020. Transcribed Image Text: Morningside Environmental Inc. Co
Answer Preview: a The cash paid for the purchase of the franchise during 2020 was 25 …

, Chapter: 8 -Problem: 8 >> Calculate A/R turnover for Bloom Greenhouses for the December 31, 2020 year-end.a. 2.78 timesb. 0.36 timesc. 1.67 timesd. 4.16 times Use the following financial information to answer question.Bloom Greenhouses has the following financial information for its December 31, 2020 year-end:Average A/P ................................................................... 150,000 Average A/R ...............
Answer Preview: d …

, Chapter: 7 -Problem: 11 >> Refer to the following information for LED Lighting Inc. a. What caused the change in common shares during 2020? Calculate the change. b. What caused the change in notes payable? Calculate the change. c. Were dividends paid during 2020? If so, calculate. Transcribed Image Text: LED Lighting Inc. Co
Answer Preview: a Common shares increased by 20 because additional …

, Chapter: 6 -Problem: 9 >> On January 1, 2020, Nickle Entertainment Inc. purchased a 4%, $50,000 Imax bond for $46,490. Interest is to be paid semiannually each June 30 and December 31. Nickle Inc. is planning to hold the bond until maturity. Record the entries on January 1, 2020, and June 30, 2020, based on the partial amortization schedule shown below.
Answer Preview: 2020 Jan 1 Investment Imax Bond 46490 Cash 46490 Purchas…

, Chapter: 5 -Problem: 27 >> On December 31, 2020, a day when the available interest rate was 9%, Valcent Products Inc. leased equipment with an eight-year life. The contract called for an $8,400 annual lease payment at the end of each of the next five years, with the equipment becoming the property of the lessee at the end of that period. Required1. Prepare entries to recorda. the leasing of the equipment,b. depreciation exp
Answer Preview: 1a The leasing of the equipment Dr Equipment 8400 Cr Lease Liabi…

, Chapter: 7 -Problem: 17 >> Drum Holdings Inc. collected $737,000 cash from customers during 2020. If beginning accounts receivable were $41,000 and credit sales totalled $705,000, what was the balance in ending accounts receivable? Accounts Receivable Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed t
Answer Preview: Accounts receivable be…

, Chapter: 6 -Problem: 8 >> On January 1, 2020, Gordon Activewear purchased a 12%, $40,000 Telus bond with a three-year term for $42,030. Interest is to be paid semiannually each June 30 and December 31. Gordon is planning to hold the bond until maturity. Record the entries on January 1, 2020, June 30, 2020, and December 31, 2022, using the amortization schedule provided below.
Answer Preview: 2020 Jan 1 Investment Telus Bond 42030 Cash 42030 Purchas…

, Chapter: 7 -Problem: 14 >> Rosetta Inc.’s records contain the following information about the 2020 cash flows.Cash and cash equivalents balance, December 31, 2019.......................... $ 37,500 Cash and cash equivalents balance, December 31, 2020............................. 84,375 Cash received as interest ................................................................................... 3,750 Cash paid for salaries .
Answer Preview: ROSETTA INC Statement of Cash Flows For Year Ended December 31 2020 Cash flows from operating activi…

, Chapter: 6 -Problem: 4 >> A business combination is required when which of the following conditions are met:a. 20% or more of the shares are heldb. 40% of the shares are held by multiple ownersc. 60% of the shares are held by multiple ownersd. Investor owns sufficient shares to control the investee’s strategic, operating, financing, and investment policies
Answer Preview: d Investor owns suffic…

, Chapter: 7 -Problem: 8 >> Is depreciation an outflow of cash? Explain.
Answer Preview: When depreciation is deducted on the income statement of a corporation the effect i…

, Chapter: 6 -Problem: 2 >> Prepare entries to record the following non-strategic investment transactions of Wiki Garden Tool Inc. Assume each bond acquired is purchased with the intention to actively trade. Analysis Component: How would the financial statements have been affected differently if the dividends received on June 15 were from a significant influence investment or investment in associate as opposed to a non-st
Answer Preview: 2020 Feb 1 Investment CapitalBond 120000 Transaction Fees Expense 200 Cash 120200 Purchased a 4year 3 124000 bond to be actively traded Mar 29 Investm…

, Chapter: 7 -Problem: 7 >> Use the Western Environmental Inc. information given below to prepare a statement of cash flows for the year ended June 30, 2020, using the indirect method. a. A note is retired at carrying value. b. The only changes affecting retained earnings during 2020 are profit and cash dividends paid. c. New equipment is acquired during 2020 for $73,980. d. The profit on sale of equipment costing $61,980 du
Answer Preview: WESTERN ENVIRONMENTAL INC Statement of Cash Flows For Year Ended June 30 2020 Cash flows from operat…

, Chapter: 4 -Problem: 10 >> Which of the following items represent a change in accounting policy, requiring retrospective restatement of financial statements and note disclosure explaining the change:a. Change in approach to revenue recognitionb. Change in inventory costing methodc. Both a) and b)d. Change in warranty accruals Financial Statements Financial statements are the standardized formats to
Answer Preview: c …

, Chapter: 7 -Problem: 3 >> Burrow Mining Inc.?s comparative balance sheet information at December 31, 2020 and 2019, and its income statement for the year ended December 31, 2020, are as follows: During 2020, the following transactions occurred: 1. Issued $14,000 of bonds payable at face value. 2. Sold the non-current investment on January 1, 2020, for $16,800. 3. Sold equipment for $3,920 cash that had originally cost $1
Answer Preview: Part 1 Cash dividends DECLARED 28000 Profit of 60480 less 32480 change in retained earnings But cash …

, Chapter: 8 -Problem: 2 >> The condensed statements of Independent Auto Inc. follow: Required Rounding calculations to two decimal places: 1. Calculate each year?s current ratio. 2. Express the income statement data in common-size percentages. 3. Express the balance sheet data in trend percentages with 2018 as the base year. Analysis Component: Comment on any significant relationships revealed by the ratios and percentage
Answer Preview: Part 1 Current ratios December 31 2020 3463614490 24 to 1 December 31 2019 2724714322 19 to 1 December 31 2018 3615413986 26 to 1 Part 2 INDEPENDENT A…

, Chapter: 3 -Problem: 4 >> Vision HR Consulting began operations on January 1, 2020. Complete the following schedule with journal entries detailing the transactions during 2020 for Vision HR Consulting under two forms of organization: as a single proprietorship (owned by Ian Smith), and as a corporation. Transcribed Image Text:
Answer Preview: Transaction Jan 1 2020 The owners invested 10000 into the new business During 2020 Revenues of 50000 …

, Chapter: 8 -Problem: 6 >> Which of the following ratios provides information on a company’s ability to meet short-term cash requirements?a. Debt to equity ratiob. Gross profit ratioc. Current ratiod. Return on equity
Answer Preview: c C…

, Chapter: 8 -Problem: 6 >> Carmon Cupcake Inc.?s December 31 balance sheets included the following data:? Required Express the balance sheets in common-size percentages. Round calculations to two decimal places. Transcribed Image Text: 2018 2020 2019 $ 70,310 $ 73,600 51,800 Cash. Accounts receivable, net 186,800 125,940 98,
Answer Preview: CARMON CUPCAKE INC CommonSize Comparative Balance Sheet …

, Chapter: 3 -Problem: 14 >> Cableserve Inc. has the following outstanding shares:15,000 shares, $5.40 cumulative preferred 35,000 shares, common During 2020, the company declared and paid $180,000 in dividends. Dividends were in arrears for the previous year (2019) only. No new shares have been issued since the first year of operations. Required1. What was the total amount paid to the preferred shareholders as dividends in 2
Answer Preview: 1 15000 shares 540share 2 y…

, Chapter: 7 -Problem: 1 >> Wong Corporation began operations on January 1, 2019. Its adjusted trial balance at December 31, 2019 and 2020, is shown below along with some other information. Other information regarding Wong Corporation and its activities during 2020: a. Assume all accounts have normal balances. b. Equipment was purchased for $26,000 cash after selling old equipment for $8,000 cash. c. Common shares were iss
Answer Preview: WONG CORPORATION Statement of Changes in Equity For Year Ended December 31 2020 000s Preferred Shares Common Shares Retained Earnings Total Equity Balance January 1 30 98 79 207 Issuance of common sha…

, Chapter: 7 -Problem: 12 >> Refer to the information below for CakePops Inc. a. Calculate the profit or loss for 2020. b. What caused common shares to change during 2020? Show your calculations. c. What caused the change in notes payable during 2020? d. Do share dividends affect the statement of cash flows? Explain your answer. Transcribed Image Tex
Answer Preview: a The 2020Loss was 115 10 x 65 x 40 Alternatively calculated using a Taccount b Com…

, Chapter: 3 -Problem: 10 >> A company that decides to issue dividends would need to record the following entry:a. Dr. Cash Dividends XXX, Cr. Retained Earningsb. Dr. Cash Dividends XXX, Cr. Cashc. Dr. Cash Dividends XXX, Cr. Common Dividends Payable XXXd. Dr. Common Dividends Payable XXX, Cr. Cash XXX
Answer Preview: c Dr Cash D…

, Chapter: 6 -Problem: 8 >> When share investments are accounted for using the equity method, when should investment income be recognized? What accounts are debited and credited?
Answer Preview: Using the equity method incomeshould be rec…

, Chapter: 7 -Problem: 6 >> Use the following income statement and information about changes in non-cash current assets and current liabilities to present the cash flows from operating activities using the indirect method: Changes in current asset and current liability accounts during the year were as follows:Accounts receivable .......................................... $63 decreaseInventory 25 increasePrepaid insurance .
Answer Preview: Profit loss 21 Adjustments Depreciation 223 Loss on …

, Chapter: 3 -Problem: 8 >> The balance sheet for Tactex Controls Inc., provincially incorporated in 2018, reported the following components of equity on December 31, 2019. ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?Tactex Controls Inc.? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? Equity Section of the Balance Sheet? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?December 31, 2019Contributed capital:Preferred shares, $2.10 cumulative, unl
Answer Preview: 1 2020 Jan 1 Cash 319200 Common shares 319200 Issued 30000 common shares 30000 x 1064 5 Cash Dividends or Retained Earnings 231000 Preferred Dividend …

, Chapter: 4 -Problem: 1 >> Arcus Development Inc.’s equity section on the December 31, 2019, balance sheet showed the following information:Common shares, unlimited shares authorized, 210,000 shares issued and outstanding .............................................. $3,360,000 Retained earnings ........................................................................................ 575,000 On January 15, 2020, the compan
Answer Preview: Part 1 2020 Jan 15 Share Dividends or Retained Earnings 595350 Common Share Dividends Distributable …

, Chapter: 7 -Problem: 15 >> Organic Gardening Ltd. had operating expenses of $968,000 during 2020. Accrued liabilities at the beginning of the year were $27,000, and were $36,000 at the end of the year. Assuming all debits and credits to accrued liabilities are related to operating expenses, what was the total cash paid for operating expenses during 2020?
Answer Preview: 27000 9680…

, Chapter: 3 -Problem: 5 >> Benson Inc. had a credit balance in Retained Earnings on December 31, 2020, of $48,000. During 2021, Benson recorded profit of $146,000 and declared and paid dividends of $47,000. During 2022, the company recorded a loss of $15,000. No dividends were declared or paid in 2022. Calculate the balance in Retained Earnings at December 31, 2022.
Answer Preview: 48000 146000 47000 15000 13200…

, Chapter: 7 -Problem: 3 >> All of the following represent examples of operating cash flows except for payments to:a. Employees for salaries and wagesb. Suppliers for goods and servicesc. Purchase equipmentd. Lenders for interest paid
Answer Preview: c Pu…

, Chapter: 7 -Problem: 11 >> Sunny Technologies Inc. began operations on January 1, 2019. Its post-closing trial balance at December 31, 2019, and 2020 is shown below along with some other information. Other information regarding Sunny and its activities during 2020: 1. Assume all accounts have normal balances. 2. Cash dividends were declared and paid during the year. 3. Plant assets were sold during the year. 4. Plant asse
Answer Preview: SUNNY TECHNOLOGIES INC Statement of Cash Flows For Year Ended December 31 2020 Cash flows from operating activities ProfitLoss 57600 Adjustments to re…

, Chapter: 3 -Problem: 8 >> Which of the following journal entries is appropriate to record the issuance of an organization’s shares:a. Dr. Cash XXX, Cr. Owner’s Equity XXXb. Dr. Investment XXX, Cr. Common Shares XXXc. Dr. Cash XXX, Cr. Common Shares XXXd. Dr. Retained Earnings XXX, Cr. Owner’s Equity XXX
Answer Preview: c Dr C…

, Chapter: 6 -Problem: 3 >> On January 1, 2020, White River Corporation paid $2,499,760 to acquire bonds of Precision Investment Corp with a par value of $2,480,000. The annual contract rate on the bonds is 7.5% and interest is paid semiannually on June 30 and December 31. The bonds mature after three years. The market rate of interest was 7.2%. White River Corporation intends to hold the bonds until maturity. Required1. Pr
Answer Preview: Part 1 Cash Interest Received Period Interest Income Premium Amort …

, Chapter: 7 -Problem: 12 >> In each of the following cases, use the information provided about the 2020 operations of River Bungee Inc. to calculate the indicated cash flow:
Answer Preview: Case A Cash received from customers …

, Chapter: 8 -Problem: 14 >> Family Co manufactures books. It buys significant quantities of supplies from various vendors in order to make its quality products. Calculate Family?s accounts payable turnover for 2020 and 2019 and determine whether it is meeting its objective of paying trade creditors within 25 days (round calculations to two decimal places).
Answer Preview: 2020 2019 2018 Cost of goods sold 10800000 9350000 8100000 Accounts payable 8…

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, Chapter: 6 -Problem: 2 >> Canadian Tire, a major Canadian retailer, reported the following in its December 30, 2017, financial statements:Dec. 30, 2017 Current investments .............................................................. $132.5 million Non-current investments ........................................................ 165.0 million No other investments were reported. Required1. On which financial statement would
Answer Preview: 1 Investments both shortterm and longterm would have appeared on the balance sheet in the current an…

, Chapter: 7 -Problem: 6 >> Using the indirect method, calculate the cash inflow or outflow from operating activities using the following information: Transcribed Image Text: Smoothy Juice Inc. Comparative Balance Sheet Information December 31 2020 2019 $ 50 $ 35 Cash. Accounts receivable (net). 46 20 Merchandise inventory. 3
Answer Preview: Profit 28 Adjustments Depreciation 5 Accou…

, Chapter: 3 -Problem: 5 >> An income statement of a sole proprietorship and of a corporation are identical except for which line item?a. Revenueb. Presentation of profitc. Presentation of gains and lossesd. Income taxes Corporation A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and it
Answer Preview: d …

, Chapter: 8 -Problem: 5 >> Which of the following methods of analysis enables users to reveal patterns in successive periods?a. Vertical analysisb. Trend analysisc. Horizontal analysisd. B and C only
Answer Preview: d …

, Chapter: 7 -Problem: 1 >> Wendy Cramer is working late on a Friday night in preparation for a meeting with her banker early Monday morning. Her business is just finishing its fourth year. In Year 1, the business experienced negative cash flows from operations. In Years 2 and 3, cash flows from operations turned positive. Unfortunately, her inventory costs rose significantly in Year 4 and her profit will probably be down ab
Answer Preview: 1 Several possible adjusting entriesactions include a Wendy could defer payments …

, Chapter: 3 -Problem: 6 >> Westby Corp., a high school uniform manufacturer, was authorized to issue an unlimited number of common shares. During January 2020, its first month of operations, the following selected transactions occurred: a. Journalize the above transactions. b. Prepare the equity section of Westby?s balance sheet at January 31, 2020. c. What was the average issue price per common share?
Answer Preview: a 2020 Jan 1 Organization Expenses or other various exp 12000 Common Shares 12000 To record issuance …

, Chapter: 6 -Problem: 6 >> When non-strategic debt investments are accounted for using the amortized cost method, when should interest income be recognized?
Answer Preview: Using the amortized cost me…

, Chapter: 8 -Problem: 8 >> Silver Bullet Slide Company calculated the ratios shown below for 2020 and 2019: Required 1. Identify whether the change in the ratios from 2019 to 2020 is favourable (F) or unfavourable (U). 2. Assess whether the 2020 ratios are favourable or unfavourable in comparison to the industry averages shown in Exhibit 17.11. Exhibit 17.11
Answer Preview: 2020 2019 Trend Comparison to Industry Average Current …

, Chapter: 3 -Problem: 17 >> The equity section of the December 31, 2019, balance sheet for Delicious Alternative Desserts Inc. s

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9 Reviews for Fundamental Accounting Principles Volume II Textbook Questions And Answers