A04 Assignment 04 Essay

393 WordsMar 24, 20172 Pages
A04 Assignment 04 A04 Intermediate Accounting I Click Link Below To Buy: http://hwcampus.com/shop/a04-assignment-04/ Directions: Be sure to make an electronic copy of your answer before submitting it to Ashworth College for grading. Unless otherwise stated, answer in complete sentences, and be sure to use correct English spelling and grammar. Sources must be cited in APA format. Refer to the "Assignment Format" page for specific format requirements. Part A (40 points) Vince Corporation has current assets of $300,000 and current liabilities of $175,000. Compute the effect of each of the following transactions on Vince’s current ratio: Refinanced a $50,000 long-term mortgage with a short-term note. Purchasing $80,000 of merchandise inventory with short-term accounts payable. Paying $30,000 of short-term accounts payable. Collecting $40,000 of short-term accounts receivable. Part B (20 points) Selected data of the Peninsula Company follow: As of December 31 Balance Sheet Data 2014 2013 Accounts receivable $671,000 $642,000 Allowance for doubtful accounts 31,000 22,000 Net accounts receivable $640,000 $620,000 Inventories—lower of cost or market $542,500 $642,500 Year Ended December 31 Income Statement Data 2014 2013 Net credit sales $3,150,000 $3,000,000 Net cash sales 800,000 600,000 Net sales $3,950,000 $3,600,000 Cost of goods sold $2,370,000 $2,160,000 Selling, general, and administrative expenses 475,000 350,000 Other 150,000 125,000 Total operating expenses $2,995,000 $2,635,000 Net income $955,000 $965,000 What is the accounts receivable turnover for 2014? What is the inventory turnover for 2014? Part C (40 points) Selected information taken from the 2014 annual report of Aardvark Company follows. During 2014, the company had no nonoperating or nonrecurring items included in income and had no

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