Reference no: EM131556866

Exercise 1

Suppose the following information was taken from the 2017 financial statements of pharmaceutical giant Bramble Corp. (All dollar amounts are in millions.)

Retained earnings, January 1, 2017	$46,836.3
Cost of goods sold	9,460.6
Selling and administrative expenses	8,592.7
Dividends	3,387.0
Sales revenue	38,203.8
Research and development expense	5,960.5
Income tax expense	2,691.2

After analyzing the data, prepare an income statement for the year ending December 31, 2017.

After analyzing the data, prepare a retained earnings statement for the year ending December 31, 2017.

Exercise 2

Wildhorse Co. is the world's leading producer of ready-to-eat cereal and a leading producer of grain-based convenience foods such as frozen waffles and cereal bars. Suppose the following items were taken from its 2017 income statement and balance sheet. (All dollars are in millions.)

Retained earnings	$4,800
Cost of goods sold	6,860
Selling and administrative expenses	3,640
Cash	340
Notes payable	40
Interest expense	340
Bonds payable	4,700
Inventory	740
Sales revenue	12,400
Accounts payable	1,070
Common stock	140
Income tax expense	430

In each case, identify whether the item is an asset, liability, stockholders' equity, revenue, or expense.

Prepare an income statement for Wildhorse Co. for the year ended December 31, 2017.

Exercise 3

Wayne Holtz is the bookkeeper for Windsor, Inc.. Wayne has been trying to get the balance sheet of Windsor, Inc. to balance. It finally balanced, but now he's not sure it is correct.

Windsor, Inc. Balance Sheet December 31, 2017
Assets				Liabilities and Stockholders' Equity
Cash		$12,400		Accounts payable		$10,400
Supplies		15,100		Accounts receivable		(17,600	)
Equipment		34,400		Common stock		45,600
Dividends		13,600		Retained earnings		37,100
Total assets		$75,500		Total liabilities and stockholders' equity		$75,500

Prepare a correct balance sheet.

Exercise 4

Classify each of the following financial statement items based upon the major balance sheet classifications.

Exercise 5

Suppose the following information (in thousands of dollars) is available for Swifty Corporation-famous for ketchup and other fine food products-for the year ended April 30, 2017.

Prepaid insurance	$ 140,700	Buildings	$4,002,900
Land	72,200	Cash	360,900
Goodwill	3,980,400	Accounts receivable	1,146,100
Trademarks	770,800	Accumulated depreciation-buildings	2,144,500
Inventory	1,269,500

Prepare the assets section of a classified balance sheet.

Exercise 6

These financial statement items are for Novak Corp. at year-end, July 31, 2017.

Salaries and wages payable	$ 3,980
Salaries and wages expense	58,900
Supplies expense	16,800
Equipment	20,400
Accounts payable	4,100
Service revenue	67,500
Rent revenue	9,700
Notes payable (due in 2020)	3,000
Common stock	16,000
Cash	30,300
Accounts receivable	10,980
Accumulated depreciation-equipment	7,700
Dividends	4,000
Depreciation expense	5,700
Retained earnings (beginning of the year)	35,100

Prepare an income statement for the year. Novak Corp. did not issue any new stock during the year.

Prepare a retained earnings statement for the year. Novak Corp. did not issue any new stock during the year.

Prepare a classified balance sheet at July 31.

Compute the current ratio and debt to assets ratio.

Attachment:- Template.rar