Woodlawn company is preparing the company

Assignment Help Financial Accounting

Reference no: EM13942002

Woodlawn Company is preparing the company's statement of cash flows for the fiscal year just ended. The following information is available:

Retained earnings balance at the beginning of the year	$ 303,000
Cash dividends declared for the year	67,500
Proceeds from the sale of equipment	115,800
Gain on the sale of equipment	6,600
Cash dividends payable at the beginning of the year	29,700
Cash dividends payable at the end of the year	37,000
Net income for the year	148,500

The ending balance in retained earnings is:

A $451,500.

B$302,100.

C $384,000.

D $395,700.

E $390,600.

2] Selected current year company information follows:

Net income	$ 16,453
Net sales	717,855
Total liabilities, beginning-year	88,932
Total liabilities, end-of-year	108,201
Total stockholders' equity, beginning-year	203,935
Total stockholders' equity, end-of-year	129,351

The total asset turnover is (Do not round intermediate calculations.):

A 6.20 times.

B 2.71 times.

C 2.29 times.

D 3.02 times.

A company paid $34,800 plus a broker's fee of $450 to acquire 10% bonds with a $37,000 maturity value. The company intends to hold the bonds to maturity. The cash proceeds the company will receive when the bonds mature equal:

A $40,700.

B $37,000.

C $35,250.

D $34,800.

E $37,450.

Refer to the following selected financial information from Fennie's, LLC. Compute the company's accounts receivable turnover for Year 2.

	Year 2	Year 1
Cash	$ 39,500	$ 34,250
Short-term investments	110,000	70,000
Accounts receivable, net	95,500	89,500
Merchandise inventory	131,000	135,000
Prepaid expenses	14,100	11,700
Plant assets	398,000	348,000
Accounts payable	103,400	117,800
Net sales	721,000	686,000
Cost of goods sold	400,000	385,000

A 8.06 times

B 7.79 times

C 6.55 times

D 7.55 times

E 5.50 times

Clark Corporation purchased 45% of IT Corporation for $120,000 on January 1. On May 20 of the same year, IT Corporation declared total cash dividends of $30,000. At year-end, IT Corporation reported net income of $150,000. The balance in Clark Corporation's Long-Term Investment-IT Corporation account as of December 31 should be:

A $81,000.

B $174,000.

C $120,000.

D $231,000.

E $201,000.

On January 4, Year 1, Larsen Company purchased 6,500 shares of Warner Company for $78,000 plus a broker's fee of $1,600. Warner Company has a total of 32,500 shares of common stock outstanding and it is presumed the Larsen Company will have a significant influence over Warner. During each of the next two years, Warner declared and paid cash dividends of $0.75 per share, and its net income was $81,000 and $76,000 for Year 1 and Year 2, respectively. The January 12, Year 3, entry to record the sale of 3,900 shares of Warner Company stock for $52,650 cash should be:

A Debit Cash $52,650; debit Loss on Sale of Investment $4,890; credit Long-Term Investments $47,760.

B Debit Cash $52,650; debit Loss on Sale of Investment $8,100; credit Long-Term Investments $60,750.

C Debit Cash $52,650; debit Loss on Sale of Investment $9,750; credit Long-Term Investments $42,900.

D Debit Cash $52,650; debit Loss on Sale of Investment $9,750; credit Long-Term Investments $62,400.

E-Debit Cash $52,650; debit Loss on Sale of Investment $26,950; credit Long-Term Investments $79,600.

On January 1, a company issues bonds dated January 1 with a par value of $270,000. The bonds mature in 5 years. The contract rate is 11%, and interest is paid semiannually on June 30 and December 31. The market rate is 10% and the bonds are sold for $280,420. The journal entry to record the issuance of the bond is:

A Debit Cash $280,420; credit Discount on Bonds Payable $10,420; credit Bonds Payable $270,000.

B Debit Cash $280,420; credit Bonds Payable $280,420.

C Debit Cash $280,420; credit Premium on Bonds Payable $10,420; credit Bonds Payable $270,000.

D Debit Bonds Payable $270,000; debit Interest Expense $10,420; credit Cash $280,420.

E-Debit Cash $270,000; debit Premium on Bonds Payable $10,420; credit Bonds Payable $280,420.

On February 15, Seacroft buys 8,000 shares of Kebo common stock at $ 28.63 per share plus a brokerage fee of $400. The stock is classified as available-for-sale securities. On March 15, Kebo declares a dividend of $1.15 per share payable to stockholders of record on April 15. Seacroft received the dividend on April 15 and ultimately sells half of the Kebo stock on November 17 of the current year for $29.40 per share less a brokerage fee of $250. The journal entry to record the dividend on April 15 is:

A Debit Cash $8,388; credit Dividend Revenue $8,388.

B Debit Cash $9,200; credit Interest Revenue $9,200.

C Debit Cash $8,388; credit Interest Revenue $8,388.

D Debit Cash $9,200; credit Gain on Sale of Investments $9,200.

E-Debit Cash $9,200; credit Dividend Revenue $9,200.

The accountant for Robinson Company is preparing the company's statement of cash flows for the fiscal year just ended. The following information is available:

Retained earnings balance at the beginning of the year	$ 166,000
Cash dividends declared for the year	56,000
Proceeds from the sale of equipment	91,000
Gain on the sale of equipment	9,000
Cash dividends payable at the beginning of the year	28,000
Cash dividends payable at the end of the year	52,000
Net income for the year	102,000

The amount of cash dividends paid during the year would be:

A $56,000.

B $24,000.

C $57,000.

D $47,000.

E $32,000.

10]

A company had a profit margin of 11.40% and total asset turnover of 1.93. Its return on total assets was:

A 13.33%

B 5.91%

C 9.47%

D 22.00%

E 16.10%

Reference no: EM13942002

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