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Chapter: 9 -Problem: 19 >> What is the purpose of the W-2 form? What is the purpose of the W-4 form?
Answer Preview: The W-2 form provides the employee and the federal and state government the …

, Chapter: 11 -Problem: 2 >> Listed here are the stockholders’ equity sections of three public companies for 2017 and 2018. Required a. Divide the class in three sections and divide each section into groups of three to five students. Assign each section one of the companies. Group Tasks Based on the company assigned to your group, answer the following questions: b. What is the per share par or stated value of the common stock
Answer Preview: ANSWER a. Dividing the class in three sections and assigning each section a company: .Group 1: The Wendy's Company .Group 2: Coca-Cola .Group 3: Gener…

, Chapter: 8 -Problem: 4 >> Electronic Arts, Inc. better known to consumers as EA Sports, is in the digital interactive entertainment business. Its products include Madden NFL and The Sims. Union Pacific Corporation is one of the largest railway networks in the nation. The following data were taken from one of the companies’ March 1, 2019, annual report and from the other’s December 31, 2018, annual report. Revealing which d
Answer Preview: a. Depreciation expense as a percentage of sales: Company 1: $2,191 $22,832 = 9 6% Company 2: $ …

, Chapter: 9 -Problem: 34 >> How does issuing an $8,000 discount note with an 8 percent discount rate and a one-year term to maturity affect the accounting equation?
Answer Preview: Event Issuing Discount Note Amortization of Discount Payment of Note at Maturi…

, Chapter: 7 -Problem: 2 >> What is the net realizable value of receivables?
Answer Preview: The net realizable value is the amou…

, Chapter: 7 -Problem: 3 >> Presented here are the average days to collect accounts receivable for four companies in different industries. The data are for 2018. Required Write a brief memorandum that provides possible answers to each of the following questions: a. Why would a company that manufactures and sells airplanes (Boeing) and a company that manufactures and sells automobiles (Ford) collect their accounts receivables
Answer Preview: a. The rather short collection period for Boeing may surprise many students. They may suggest that B…

, Chapter: 2 -Problem: 3 >> The following data are based on information in the 2019 annual report of Cracker Barrel Old Country Store. As of August 2, 2019, Cracker Barrel operated 660 restaurants and gift shops in 45 states. Dollar amounts are in millions.Required a. Calculate the company’s net income and retained earnings for 2018 and 2019. b. Which increased (or decreased) by the greatest percentage amount: revenues or ne
Answer Preview: Dollar amounts are in millions. a. b. C. d. Revenues - E…

, Chapter: 8 -Problem: 5 >> Companies in the tire manufacturing business use a lot of property, plant, and equipment. Cooper Tire & Rubber Company “. . . is a leading manufacturer and marketer of replacement tires. It is the fifth largest tire manufacturer in North America and, according to a recognized trade source, the Cooper family of companies is the thirteenth largest tire company in the world based on sales.” Goodyear
Answer Preview: a. Depreciation expense as a percentage of sales: Cooper Tire: $147 $ 2,808 = 5 2% Goodyear Tire: $778 $15,475 = 5 0% b. Buildings, machinery, and equ…

, Chapter: 10 -Problem: 24 >> The following information is available for three companies. Requireda. Determine the annual before-tax interest cost for each company in dollars.b. Determine the annual after-tax interest cost for each company in dollars.c. Determine the annual after-tax interest cost for each company as a percentage of the face value of the bonds.
Answer Preview: a. b. c. There are two ways to determine the afte…

, Chapter: 5 -Problem: 5 >> Domino’s Pizza, Inc. had 5,486 franchised restaurants in the United States and 85 in international markets as of December 30, 2018. Signet Jewelers Limited claims to be the world’s largest retailer of diamond jewelry. Its stores include Zales, Jared, Kay Jewelers, and Piercing Pagoda. As of February 2, 2019, it had 3,334 retail outlets. The following data were taken from these companies’ 2018 annu
Answer Preview: a. b. C. d. One would expect a restaurant, which sells low cost, perishable goods, …

, Chapter: 9 -Problem: 4 >> Stanley Black & Decker, Inc. (SBD) was founded in 1843. Its 2018 annual report states that “the Company is a diversified global provider of hand tools, power tools and related accessories, engineered fastening systems and products, services and equipment for oil & gas and infrastructure applications, commercial electronic security and monitoring systems, healthcare solutions, and mechanical access
Answer Preview: a. Current ratios: 2018: $ 4,569 4 $ 4,001 6 = 1 14 to 1 00 2017: $ 4,559 0 $ 4,391 5 = 1 …

, Chapter: 6 -Problem: 27 >> What is a deposit in transit?
Answer Preview: A deposit in transit is …

, Chapter: 1 -Problem: 33 >> What is the going concern doctrine?
Answer Preview: The going concern doct…

, Chapter: 2 -Problem: 6 >> The following data are based on information in the 2019 annual reports of H&R Block, Inc. and Intuit, Inc. Dollar amounts are in millions. H&R Block, Inc. has subsidiaries that provide tax, investment, retail banking, accounting, and business consulting services and products in the United States, Canada, and Australia. For the fiscal year ended April 30, 2019, the company prepared approximately 24
Answer Preview: a. & b. C. d. Revenues Expenses Net income Cash from operating activities Cash from investing …

, Chapter: 2 -Problem: 7 >> In Year 1, Lee Inc. billed its customers $72,000 for services performed. The company collected $55,000 of the amount billed. Lee incurred $42,000 of other operating expenses on account. Lee paid $34,000 of the accounts payable. Lee acquired $44,000 cash from the issue of common stock. The company invested $18,000 cash in the purchase of land. Required Use the preceding information to answer the fo
Answer Preview: f. $18,000 cash outflow for the purchase of land. g. $44,000 cash inflow from the issue of common st…

, Chapter: 1 -Problem: 14 >> The December 31, Year 1, balance sheet for James Company showed total stockholders’ equity of $200,000. Total stockholders’ equity increased by $80,000 between December 31, Year 1, and December 31, Year 2. During Year 2, James Company acquired $30,000 cash from the issue of common stock. James Company paid a $2,000 cash dividend to the stockholders during Year 2. Required Determine the amount of n
Answer Preview: Steps: 1. Common Stock Issued = Change in Common Stock $30,000 (given) = $30,000 2. …

, Chapter: 12 -Problem: 3 >> The following financial statements and information are available for Blythe Industries Inc.Additional Information 1. Sold land that cost $40,000 for $44,000. 2. Sold equipment that cost $30,000 and had accumulated depreciation of $20,000 for $18,000. 3. Purchased new equipment for $190,000. 4. Sold marketable securities that were classified as available-for-sale and that cost $40,000 for $70,000.
Answer Preview: Class Discussion: a. Cost per share of the treasury stock was $100 ($10,000 100 shares). b. Issue pr…

, Chapter: 1 -Problem: 26 >> Pet Partners experienced the following events during its first year of operations, Year 1: 1. Acquired cash by issuing common stock. 2. Borrowed cash from a bank. 3. Signed a contract to provide services in the future. 4. Purchased land with cash. 5. Paid cash for operating expenses. 6. Paid a cash dividend to the stockholders. 7. Determined that the market value of the land is higher than the his
Answer Preview: a. b. 56 Event 1. 2. 3. Event No. 1 2 3 4 7 4. 5. 6. 7. Cash I I DD D Asset Source Asset Sou…

, Chapter: 5 -Problem: 3 >> What are some advantages and disadvantages of using the FIFO method of inventory valuation?
Answer Preview: FIFO allocates the cost of the first units purchased to …

, Chapter: 5 -Problem: 4 >> Costco Wholesale Corporation operated 787 stores as of September 1, 2019. The following data were taken from the company’s annual report. All dollar amounts are in millions. Required a. Compute Costco’s inventory turnover ratio for 2019 and 2018. b. Compute Costco’s average days to sell inventory for 2019 and 2018. c. Based on your computations in Requirements a and b, did Costco’s inventory manag
Answer Preview: a. b. C. Inventory turnover: 2019: 2018: $132,886 + $11,395 = 11 7 times $123,152 + $11,040 11 …

, Chapter: 1 -Problem: 22 >> As of January 1, Year 2, Room Designs Inc. had a balance of $9,900 in Cash, $3,500 in Common Stock, and $6,400 in Retained Earnings. These were the only accounts with balances in the ledger on January 1, Year 2. Further analysis of the company’s cash account indicated that during the Year 2 accounting period, the company had (1) net cash inflow from operating activities of $9,800, (2) net cash out
Answer Preview: a. Since the amount in the Notes Payable account increased from zero to $9,000, Room Designs, Inc. m…

, Chapter: 5 -Problem: 2 >> What are some advantages and disadvantages of the specific identification method of accounting for inventory?
Answer Preview: One advantage of the specific identification method is that both the i…

, Chapter: 8 -Problem: 3 >> The following ratios are for four companies in different industries. Some of these ratios have been discussed in the textbook, others have not, but their names explain how the ratio was computed. These data are for the companies’ 2018 fiscal years. The four sets of ratios, presented randomly are as follows.The four companies to which these ratios relate, listed in alphabetical order, are: Anheuser
Answer Preview: The companies and the set of ratios to which each relates are as follows: Company 3 stands out for h…

, Chapter: 3 -Problem: 4 >> The following data were taken from Netflix, Inc.’s 2018 annual report. All dollar amounts are in millions.Required a. For each year, compute Netflix’s debt-to-assets ratio, return-on-assets ratio, and return-on-equity ratio. You will need to compute total liabilities. b. Did the company’s level of financial risk increase or decrease from 2017 to 2018? c. In which year did the company appear to man
Answer Preview: a. b. C. d. First compute Netflix's liabilities: Assets $25,974 20…

, Chapter: 8 -Problem: 7 >> Define amortization. Which kinds of assets are amortized?
Answer Preview: Amortization is the s…

, Chapter: 9 -Problem: 11 >> Are contingent liabilities recorded on a company’s books? Explain.
Answer Preview: Only contingent lia…

, Chapter: 3 -Problem: 10 >> The following information is available for the Maine Company and the Iowa Company. Required a. For each company, compute the debt-to-assets ratio and the return-on-equity ratio. b. Determine what percentage of each company’s assets were financed by the owners. c. Which company has the greatest level of financial risk? d. Based on profitability alone, which company performed better? e. Do the prece
Answer Preview: a. b. c. Based only on the information available, Iowa appears …

, Chapter: 7 -Problem: 27 >> How is the accounts receivable turnover ratio computed? What information does the ratio provide?
Answer Preview: The A/R turnover tells how many time…

, Chapter: 5 -Problem: 17 >> The following information related to accounting for inventory was taken from the 2019 annual report of Costco Wholesale Corporation. Merchandise inventories consist of the following at the end of 2019 and 2018.Merchandise inventories are valued at the lower of cost or market, as determined primarily by the retail inventory method, and are stated using the last-in, first-out (LIFO) method for subst
Answer Preview: Costcos operations outside the United States are probably in countries …

, Chapter: 3 -Problem: 5 >> The following data were taken from the 2018 annual reports of Biogen, Inc. and Amgen Inc. Both companies are leaders in biotechnology. All dollar amounts are in millions. Required a. For each company, compute the debt-to-assets ratio, return-on-assets ratio, and return-on-equity ratio. b. Which company has the greatest level of financial risk? Explain. c. Which company appears to have managed its
Answer Preview: a. b. C. d. Debt to assets: Biogen: Amgen: Return on assets…

, Chapter: 7 -Problem: 5 >> Use the following information to prepare a multistep income statement and a balance sheet for Sherman Equipment Co. for Year 2. Transcribed Image Text: Salaries Expense Common Stock Notes Receivable (short term) Allowance for Doubtful Accounts Uncollectible Accounts Expense Supplies Interest Revenue
Answer Preview: Sherman Equipment Co. Income Statement For the Year Ending December 31, Year 2 Sales Revenue Cost of …

, Chapter: 7 -Problem: 4 >> The following data were taken from The Hershey Company’s 2018 annual report. All dollar amounts are in millions. Required a. Compute Hershey’s accounts receivable turnover ratios for 2018 and 2017. b. Compute Hershey’s average days to collect accounts receivables for 2018 and 2017. c. Based on the ratios computed in Requirements a and b, did Hershey’s performance get better or worse from 2017 to 2
Answer Preview: a . Accounts receivable turnover: 2018: $7,791 $594 = 13 1 times 2017: $7,515 $588 = 12 8 ti…

, Chapter: 12 -Problem: 2 >> Tesla, Inc. began operations in 2003 but did not begin selling its stock to the public until June 28, 2010. It has lost money every year it has been in existence, and by December 31, 2019, it had total lifetime losses of approximately $6.1 billion. In addition to making automobiles, Tesla makes solar energy and energy storage systems. Tesla’s statements of cash flows for 2017, 2018, and 2019 follo
Answer Preview: a. Tesla Motors reported a net loss in all three years, but positive net cash flow from operating ac…

, Chapter: 7 -Problem: 15 >> The following post-closing trial balance was drawn from the accounts of Little Grocery Supplier (LGS) as of December 31, Year 1. Required a. What is the accounts receivable turnover for each of the companies? b. What is the average days to collect the receivables? c. Assuming both companies use the percent of receivables allowance method, what is the estimated percentage of uncollectible accounts
Answer Preview: a. b. c. Event 1. 2. 3a. 3b. 4. 5 9/1 6. 7. 8. 9. 10a. Cash Comm…

, Chapter: 10 -Problem: 5 >> The following data are for the 2018 fiscal year of Alphabet, Inc., which is the parent company of Google, Inc., and Facebook, Inc. All dollar amounts are in thousands. Required a. Calculate the EBIT for each company. b. Calculate each company’s debt-to-assets ratio, current ratio, and the times-interest-earned ratio. c. Calculate each company’s return-on-assets ratio using EBIT instead of net earn
Answer Preview: a. Dollar amounts in millions. b. Debt-to-assets ratio: (Total Liabilities Total Assets) Alphabet $5…

, Chapter: 1 -Problem: 27 >> Corrugated Boxes Inc. is a U.S.-based company that develops its financial statements under GAAP. The total amount of the company’s assets shown on its balance sheet for the current year was approximately $305 million. The president of Corrugated is considering the possibility of relocating the company to a country that practices accounting under IFRS. The president has hired an international accou
Answer Preview: a. An assets worth is based on its fair market value, not the amount reco…

, Chapter: 1 -Problem: 31 >> What causes a net loss?
Answer Preview: A net loss occu…

, Chapter: 8 -Problem: 10 >> Metals Exploration Corporation engages in the exploration and development of many types of natural resources. In the last two years, the company has engaged in the following activities: Required a. Prepare the journal entries to account for the following: (1) The Year 1 purchases. (2) Depletion on the Year 1 purchases, assuming that 80,000 tons of coal were mined and 1,000,000 board feet of lumber
Answer Preview: a. b. c. Undepleted Cost of Coal Mine at 1/1/Year 3: $456,000 Revised Estimated Tons of …

, Chapter: 10 -Problem: 3 >> American Airlines, Inc. “. . . our airline operates an average of nearly 6,700 flights per day to nearly 350 destinations in more than 50 countries through hubs and gateways in Charlotte, Chicago, Dallas/ Fort Worth, London Heathrow, Los Angeles, Miami, New York, Philadelphia, Phoenix, and Washington, D.C. In 2018, approximately 204 million passengers boarded our flights.”Exxon Mobil Corporation “
Answer Preview: As stated in the problem, students answers should be evaluated based on the logic they used to support their conclusions more than on whether they got …

, Chapter: 2 -Problem: 2 >> Verizon Communications, Inc. is one of the world’s largest providers of communication services. The following information, taken from the company’s annual reports, is available for the years 2018, 2017, and 2016. Dollar amounts are in millions. Required Divide the class into groups of four or five students. Organize the groups into three sections. Assign each section of groups the financial data f
Answer Preview: 1. (In millions) 2. The balance in Retained earnings would be increased by Verizons net earn…

, Chapter: 3 -Problem: 24 >> a. Describe some ways that U.S. GAAP and IFRS are different. b. How are U.S. GAAP and IFRS alike for reporting purposes?
Answer Preview: a. The differences between IFRS and U S. GAAP can be summarized in …

, Chapter: 7 -Problem: 5 >> AutoZone, Inc. claims to be the nation’s leading auto parts retailer. It sells replacement auto parts directly to the consumer. BorgWarner, Inc. has over 30,000 employees and produces automobile parts, such as transmissions and cooling systems, for the world’s vehicle manufacturers. The following data were taken from these companies’ 2018 and 2019 annual reports. All dollar amounts are in millions
Answer Preview: a. Since AutoZone sells directly to consumers, it probably rec…

, Chapter: 1 -Problem: 34 >> Explain the matching concept.
Answer Preview: The matching conce…

, Chapter: 4 -Problem: 3 >> Mano Company was started in Year 1 when it acquired $40,000 from the issue of common stock. The following data summarize the company’s first three years’ operating activities. Assume that all transactions were cash transactions. Required Prepare an income statement (use the multistep format) and balance sheet for each fiscal year.
Answer Preview: T-accounts are provided for the instructors use: Assets Cash Year 1 40,000 42,000 Bal. 4…

, Chapter: 1 -Problem: 32 >> What is a business liquidation?
Answer Preview: A business liquidation is when …

, Chapter: 10 -Problem: 4 >> FedEx Corporation provides a broad range of transportation, e-commerce and business services. The following data were taken from the company’s 2019 annual report. All dollar amounts are in millions. Required a. Calculate the EBIT for each year. b. Calculate the times-interest-earned ratio for each year. c. Calculate the current ratio and debt-to-assets ratio for each year. d. Did the company’s lev
Answer Preview: a. FedEx Corp., dollar amounts in millions. b. Times interest earned: (EBIT Interest Expense) 2019 $…

, Chapter: 7 -Problem: 19 >> Define the following terms: a. Maker b. Payee c. Principal d. Interest e. Maturity date f. Collateral
Answer Preview: a. b. C. d. e. f. Maker: Payee: Principal: Interest: Maturity date: Collateral: The borrower or …

, Chapter: 2 -Problem: 1 >> The trial balance of Pacilio Security Services, Inc. as of January 1, Year 2, was as follows.During Year 2, Pacilio Security Services experienced the following transactions:1. Acquired an additional $2,000 from the issue of common stock.2. Paid $3,000 on the debt owed to the Small Business Government Agency. The loan is interest-free.3. Performed $21,000 of security services for numerous local eve
Answer Preview: a . b. Event B. Bal. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13.* 14. 15 1 16. 17. Bal. Cash + 8,500 …

, Chapter: 2 -Problem: 5 >> The following data are based on information in the 2019 annual reports of Abercrombie & Fitch, Co. and American Eagle Outfitters, Inc. Dollar amounts are in millions.Abercrombie & Fitch is a specialty retailer of apparel and accessories for men, women, and kids. As of February 2, 2019, it operated 663 stores in the United States and 198 stores outside the United States. American Eagle Outfitters,
Answer Preview: a. b. C. Revenues Expenses Net income Beg. retained ear…

, Chapter: 8 -Problem: 2 >> Three different companies each purchased a machine on January 1, Year 1, for $64,000. Each machine was expected to last five years or 43,800 hours. Salvage value was estimated to be $6,000. All three machines were operated for 10,000 hours in Year 1, 12,000 hours in Year 2, 8,000 hours in Year 3, 9,000 hours in Year 4, and 6,000 hours in Year 5. Each of the three companies earned $30,000 of cash r
Answer Preview: Depreciation Calculation: Straight-Line: Company A ($64,000 - $6,000) 5 = $11,600 per …

, Chapter: 1 -Problem: 26 >> The Candle Shop experienced the following events during its first year of operations, Year 1: 1. Acquired cash by issuing common stock. 2. Paid a cash dividend to the stockholders. 3. Paid cash for operating expenses. 4. Borrowed cash from a bank. 5. Provided services and collected cash. 6. Purchased land with cash. 7. Determined that the market value of the land is higher than the historical cost
Answer Preview: a. b. 23 Event 1. 2. 3. 4. 5. Event No. 1 4 5 6 7 6. 7. Cash I D D I I D Asset Source Asset Use Ass…

, Chapter: 9 -Problem: 3 >> In the liabilities section of its 2018 balance sheet, Bank of America reported “noninterest-bearing deposits” in U.S. offices of over $412 billion. Bank of America is a very large banking company. In the liabilities section of its 2018 balance sheet, Newmont Goldcorp Corporation reported “reclamation and remediation liabilities” of more than $2.4 billion. Newmont is involved in gold mining and ref
Answer Preview: a. The $412 billion of noninterest-bearing deposits on Bank of Americas (BOA) balance sheet represen…

, Chapter: 1 -Problem: 6 >> At the beginning of Year 2, Master Corp.’s accounting records had the following general ledger accounts and balances:Master Corp. completed the following transactions during Year 2: 1. Purchased land for $12,000 cash. 2. Acquired $20,000 cash from the issue of common stock. 3. Received $50,000 cash for providing services to customers. 4. Paid cash operating expenses of $42,000. 5. Borrowed $20,000
Answer Preview: a. b. c. Event Bal. 1/1/Y2 1. Pur. Land 2. Issued stk. 3. …

, Chapter: 6 -Problem: 3 >> The following excerpt was taken from Alphabet, Inc.’s 10-K report for its 2019 fiscal year. Alphabet, Inc. is the parent company of Google, Inc.CONTROLS AND PROCEDURES Evaluation of Disclosure Controls and ProceduresOur management, with the participation of our chief executive officer and chief financial officer, evaluated the effectiveness of our disclosure controls and procedures. . . . Based on
Answer Preview: To ensure proper internal controls, Alphabets management should have the following policies: Ensure …

, Chapter: 5 -Problem: 3 >> The following data were extracted from the 2018 financial statements of Penske Automotive Group, Inc. This company operates automobile dealerships, mostly in the United States, Canada, and Western Europe, and commercial truck dealerships in Australia, New Zealand, and the United Kingdom. The company had 536 dealerships as of the end of 2018. Dollar amounts are in millions. Required a. Compute Pens
Answer Preview: All dollar amounts are in millions a. b. C. 2017 Gross margin Sales $ 3,222 5 $21,3…

, Chapter: 1 -Problem: 4 >> The following information was drawn from the annual report of Symphony Harp Builders (SHB).Required a. Compute the percentage of growth in net income from Year 1 to Year 2. Can stockholders expect a similar increase between Year 2 and Year 3? b. Assuming that SHB collected $264,000 cash from earnings (i.e., net income), explain how this money was spent in Year 2. c. Assuming that SHB experiences t
Answer Preview: a. The percentage growth from Year 1 to Year 2 was 65% [($264,000 - $160,000) $160,000]. However, th…

, Chapter: 1 -Problem: 39 >> Why are temporary accounts closed at the end of the accounting period?
Answer Preview: The information in the temporary accounts is transferred to Retained Earnings at the end of the a…

, Chapter: 7 -Problem: 21 >> What is accrued interest?
Answer Preview: Accrued intere…

, Chapter: 9 -Problem: 5 >> Advanced Micro Devices, Inc. (AMD) is “a global semiconductor company with facilities around the world.” AMD began operations in 1969. Texas Instruments, Inc. is the company that invented the integrated circuit over 50 years ago. It has more than 100,000 customers in over 30 countries. The following data were taken from the companies’ 2018 annual reports. Dollar amounts are in millions. Required a
Answer Preview: a. Current ratios: AMD: $ 3,540 $1,984 = 1 78 to 1 00 Texas Instru…

, Chapter: 1 -Problem: 3 >> The following cash transactions occurred in five real-world companies. 1. During the third quarter of 2019 (July 1 through September 30), Snap, Inc. the company that produces Snapchat, borrowed $1.3 billion using notes payable. 2. In August, 2019, Occidental Petroleum Corporation announced that it was paying $29.4 billion in cash to the shareholders of Anadarko Petroleum Corporation as a part of i
Answer Preview: 1. Snaps borrowing of cash should be classified as a cash inflow in the financing act…

, Chapter: 11 -Problem: 4 >> General Motors Company (GM) is one of the world’s largest automobile manufacturing companies. The following data were taken from the company’s 2019 annual report. Required a. Compute GM’s price-earnings ratio for February 6, 2020, and February 7, 2018. b. Did the financial markets appear to be more optimistic about GM’s future performance on February 6, 2020, or February 7, 2019? c. Based on the i
Answer Preview: a. Price-earnings ratios: 2020: $34 37 $4 62 = 7 4 tim…

, Chapter: 11 -Problem: 5 >> There were over 38,000 McDonald’s Company restaurants in 120 countries as of December 31, 2019. Shake Shack, Inc., a much newer fast-food restaurant company, began operations as a hot dog cart in 2001. It incorporated on September 23, 2014, and had it initial public offering of stock on February 4, 2015. As of December 31, 2019, it had 275 restaurants operating in 30 states and 15 countries. The f
Answer Preview: a. Price-earnings ratios: McDonalds: $216 18 $7 88 = 27 times Shake Shack: $ 63 07 …

, Chapter: 9 -Problem: 27 >> What is a classified balance sheet?
Answer Preview: A classified balance …

, Chapter: 7 -Problem: 18 >> What is a promissory note?
Answer Preview: A promissory note is a legal document that set…

, Chapter: 4 -Problem: 3 >> Presented here is selected information from the 2018 fiscal-year 10-K reports of four companies. The four companies, in alphabetical order, are: Advance Micro Devices, a global semiconductor company; AT&T, Inc., a company that provides communications and digital entertainment; Caterpillar, Inc., a manufacturer of heavy machinery; and Pfizer, Inc., a pharmaceutical manufacturer. The data for the co
Answer Preview: The correct matching of the four companies with their related financial data can be achieved primari…

, Chapter: 8 -Problem: 5 >> Why do you think natural resources are called wasting assets?
Answer Preview: Natural resources are assets that are produc…

, Chapter: 13 -Problem: 4 >> Selected financial information for Purdy Company for Year 4 follows. Required Assuming that the merchandise inventory buildup was relatively constant, how many times did the merchandise inventory turn over during Year 4? Transcribed Image Text: Sales Cost of goods sold Merchandise inventory Beginnin
Answer Preview: To calculate the merchandise inventory turnover duri…

, Chapter: 2 -Problem: 4 >> The following data are based on information in the 2018 annual report of YUM! Brands, Inc. YUM! Brands is the parent company of KFC, Pizza Hut, and Taco Bell. As of December 31, 2018, the parent company owned or franchised over 48,000 restaurants in 140 countries. Dollar amounts are in millions.Required a. Calculate the company’s net change in cash for 2017 and 2018. b. Calculate the company’s end
Answer Preview: Dollar amounts in millions. a. & b. C. Cash from opera…

, Chapter: 11 -Problem: 3 >> Listed here are data for five companies. These data are for the companies’ 2019 fiscal years. The market price per share is the closing price of the companies’ stock the day after they announced their 2019 earnings. Except for market price per share, all amounts are in millions. The shares outstanding number is the weighted-average number of shares the company used to compute basic earnings per sh
Answer Preview: a. b. and c. A companys P/E ratio can be high because of unusually low EP…

, Chapter: 1 -Problem: 6 >> Blix Corp. started the Year 2 accounting period with total assets of $50,000 cash, $20,000 of liabilities, and $20,000 of retained earnings. During the Year 2 accounting period, the Retained Earnings account increased by $8,500. The bookkeeper reported that Blix Corp. paid cash expenses of $15,000 and paid a $4,000 cash dividend to stockholders, but she could not find a record of the amount of cas
Answer Preview: a. Blix Corp. Income Statement For the Year Ended December 31, Year 2 Rev…

, Chapter: 9 -Problem: 35 >> What type of account is Discount on Notes Payable?
Answer Preview: Discount on Notes Payable is a …

, Chapter: 4 -Problem: 4 >> Bloomin’ Brands, Inc. is the corporation behind five restaurant chains: Outback Steakhouse, Carrabba’s Italian Grill, Bonefish Grill, Fleming’s Prime Steakhouse and Wine Bar, and Roy’s. The following data were taken from its 2018 annual report. All dollar amounts are in millions. Required a. Compute Bloomin’ Brands’ gross margin percentage for 2018 and 2017. b. Compute Bloomin’ Brands’ return-on-s
Answer Preview: a. b. C. d. Gross Margin Percentages: First, the gross margins must be calculated: 2018: $4,061 - …

, Chapter: 8 -Problem: 17 >> What is salvage value?
Answer Preview: Salvage value is the …

, Chapter: 7 -Problem: 15 >> What is “aging of accounts receivable”?
Answer Preview: When using an aging schedule for estimating uncollectible accounts, ac…

, Chapter: 4 -Problem: 5 >> The Kroger Co. was founded in 1883 and is one of the largest retailers in the world, based on annual sales. Publix Super Markets, Inc. operates 1,167 grocery stores throughout the southeastern and mid-Atlantic United States. It is employee owned, and its stock is not available for purchase by the general public. Publix is usually rated in the top three for customer service among national grocery s
Answer Preview: a. Since both companies are retailers of grocery and pharmacy retailers, and since they …

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11 Reviews for Fundamental Financial Accounting Concepts Textbook Questions And Answers