408 Words2 Pages

Accounting Homework Assignment #1
1. Question 1: Brady Brothers, a partnership, has total assets of $350,000 and $100,000 of owners' equity. What are the partnership's total liabilities? Assests-Owners Equity= Liabilities
$350,000-$100,000= $250,000
Based on the Bradys Brothers partnership, their total liabilities is $250,000. 2. Question 2: During the first month of operation, Brady Brothers made sales to customers totaling $12,000 but received only $6,000 from customers in cash. Brady Brothers incurred $8,000 for operating expenses but only paid $5,000 in cash for those expenses. What was Brady Brothers cash basis income? Cash-based income:
Revenues Received $6,000
Less expenses paid $5,000
= Income $1,000
3. Question 3: Please refer to Q2. What was Brady Brothers accrual basis income?
Accrual-based income:
Revenues Earned $12,000
Less expenses incurred $8,000
=Income $4,000
4. Question 4: Anderson Company’s balance sheet at the end of the year revealed the following information: Clients owe Anderson Company $35,300 for completed projects.
Anderson Company owns office equipment totaling $95,500.
Anderson Company owns $5,000 of material used on various client projects.
Anderson Company owes suppliers $21,200.
Anderson Company owes $41,000 to the bank.
Anderson Company’s cash balance is $14,400. A. What are Anderson Company’s total assets? 35300+95500+5000+14400= $150,200
B. What are Anderson Company’s total liabilities? 41000+21200= 62,200
C. What is Anderson Company’s total owners’ equity? 150,200-62,200= 88,000
Assests – Liabilities = owners equity
D. What is Anderson Company’s debt to equity ratio?
Total liabilities divided by owners’ equity = 62,200/88,000= 0.71 to 1 ratio
5. Question 5: Farwell Company has the following information available from its most recent

Related

## Financial Management Ch1-4

512 Words | 3 Pages| $780 | C. | $990 | D. | $2,430 | E. | $2,640 | | 2 | D | A firm has common stock of $6,200, paid-in surplus of $9,100, total liabilities of $8,400, current assets of $5,900, and fixed assets of $21,200. What is the amount of the shareholders' equity? A. $6,900B. $15,300C.$18,700D $23,700E.

## Adv Accounting Chapter 1

8940 Words | 36 PagesA. $16,500 B. $9,000 C. $25,500 D. $7,500 E. $50,000 Difficulty: Easy 2. Yaro Company owns 30% of the common stock of Dew Co. and uses the equity method to account for the investment. During 2008, Dew reported income of $250,000 and paid dividends of $80,000.

## Accounting Essay

340 Words | 2 Pages10. Harley paid $400 towards the principal on the note payable. 11. Harley made a $900 cash withdrawal from the company. Requirements: Complete the accounting equation worksheet for the transactions.

## Accounting Solutions Essay

1051 Words | 5 PagesAnswer: $235,000 6. Corporation P owns 85 percent of Corporation S1; Corporation S1 owns 60 percent of Corporation S2; Corporation S2 owns 90 percent of S3; Corporation S3 owns 60 percent of Corporation S4 and 15 percent of Corporation S2; Corporation S4 owns 100 percent of Corporation S5. Identify the consolidated group of corporations. Answer: P, S1, S2, S3, S4, S5 7. Corporation P files a consolidated return with Corporation S. In preparing a consolidated return, their accountant finds the following: Separate taxable income (loss) P= $500,000 S= ($200,000) Capital gain (loss)

## Fin 515 Week 2 Homework

1111 Words | 5 PagesAns: DSO (Days Sales Outstanding) = Accounts Receivables/Average Sales per day Accounts Receivables = 20 * 20000 = $400,000 (3-2) Debt Ratio Vigo Vacations has an equity multiplier of 2.5. The company’s assets are financed with some combination of long-term debt and common equity. What is the company’s debtratio? Ans: Equity Multiplier = 2.5 Therefore Equity Ratio = 1/EM Equity Ratio = 1/2.5 = 0.40 Debt Ratio + Equity Ratio = 1 Therefore Debt Ratio = 1 - Equity Ratio = 1 - 0.40 = 0.60 = 60% (3-3) Market/Book Ratio Winston Washers’s stock price is $75 per share. Winston has $10 billion in total assets.

## Acct 346 Essay

742 Words | 3 Pages4. Which of the following includes operating income in the ratio’s numerator? A. Times interest earned B. Debt-to-equity ratio C. Acid-test ratio D. Gross margin percentage Use the following information for the next 2 questions. Tedi Co. had net sales of $1,000,000; inventory of $230,000; cost of goods sold of $700,000; average accounts receivable of $25,000; and average total assets of $750,000.

## Assignment 9: Business Finance Instructions

931 Words | 4 Pages(0.5 points) 50% c. A company has $1,400 in liabilities and $1,500 in assets. Calculate the company's debt ratio as a percentage. (0.5 points) 93.3% d. A company has $1,400 in liabilities and $1,500 in equity. Calculate the company's debt to equity ratio as a percentage. (0.5 points) 93.3% e. A company's current assets are $30,000 and current liabilities are

## Wpp And Its Acquistions

737 Words | 3 PagesIn 1987, WPP acquired JWT and Knowlton. They paid goodwill of £465 million. This left the balance sheet of WPP with negative assets. They eventually valued the brand value of a JWT's Hill and Knowlton at £175 million. In 1989, the firm bought O&M for $ 862 million.

## Finance Homework Essay

681 Words | 3 PagesWhich of the following statements is CORRECT? Answer: e. If the interest rate the companies pay on their debt is less than their earning power. (BEP), then Company HD will have the higher ROE. 4. Muscarella Inc. has the following balance sheet and income statement data: Cash $ 14,000 Accounts payable $ 42,000 Receivables 70,000 Other current liabilities 28,000 Inventories 210,000 Total CL $ 70,000 Total CA $294,000 Long-term debt 70,000 Net fixed assets 126,000 Common equity $280,000 Total Assets $420,000 Total liab.

## Fin 300 Questions

1860 Words | 8 PagesPublic Question Time value of money 1. Harry invested $10,600 in an account that pays 4 percent simple interest. How much money will he have at the end of five years? a. 12,897 b.

### Financial Management Ch1-4

512 Words | 3 Pages### Adv Accounting Chapter 1

8940 Words | 36 Pages### Accounting Essay

340 Words | 2 Pages### Accounting Solutions Essay

1051 Words | 5 Pages### Fin 515 Week 2 Homework

1111 Words | 5 Pages### Acct 346 Essay

742 Words | 3 Pages### Assignment 9: Business Finance Instructions

931 Words | 4 Pages### Wpp And Its Acquistions

737 Words | 3 Pages### Finance Homework Essay

681 Words | 3 Pages### Fin 300 Questions

1860 Words | 8 Pages