Question
1. Listed below are assets and liabilities of Oriole Corporation for the years 2021 and 2022. Each is listed in alphabetical order. Assets 2022 2021
1. Listed below are assets and liabilities of Oriole Corporation for the years 2021 and 2022. Each is listed in alphabetical order.
Assets | 2022 | 2021 | Liabilities | 2022 | 2021 | |||||
---|---|---|---|---|---|---|---|---|---|---|
Accounts receivable | $2,200 | $2,900 | Accounts payable | $4,400 | $3,500 | |||||
Cash | 1,400 | 1,728 | Bonds payable | 31,500 | 26,500 | |||||
Equipment (net) | 46,500 | 52,500 | Notes payable (current) | 2,700 | 2,100 | |||||
Inventory | 4,200 | 4,700 | Notes payable (long-term) | 5,500 | 4,500 | |||||
Land | 24,500 | 24,500 | ||||||||
Supplies | 933 | 1,200 | ||||||||
Total assets | $79,733 | $87,528 | Total liabilities | $44,100 | $36,600 |
Oriole reported net income of $50,500 for 2022 and $44,500 for 2021.
a. Compute total current assets and total current liabilities for each year.
b. Compute working capital and the current ratio for each year. (Round current ratio to 2 decimal places, e.g. 52.75.)
c. Compute the debt to assets ratio for each year. (Round answers to 2 decimal places, e.g. 52.75%.)
2. Nordstrom, Inc. operates department stores in numerous states. Selected financial statement data (in millions of dollars) for a recent year follow.
End of Year | Beginning of Year | |||||||
---|---|---|---|---|---|---|---|---|
Cash and cash equivalents | $72 | $358 | ||||||
Receivables (net) | 1,942 | 1,788 | ||||||
Merchandise inventory | 900 | 956 | ||||||
Other current assets | 303 | 259 | ||||||
Total current assets | $3,217 | $3,361 | ||||||
Total current liabilities | $1,601 | $1,635 |
a. Compute working capital and the current ratio at the beginning of the year and at the end of the year. (Round current ratio to 2 decimal places, e.g. 15.25.)
3. Comparative financial statement data for Blossom Corporation and Pina Corporation, two competitors, appear below. All balance sheet data are as of December 31, 2022.
Blossom Corporation | Pina Corporation | |||
---|---|---|---|---|
2022 | 2022 | |||
Net sales | $2,232,000 | $768,800 | ||
Cost of goods sold | 1,457,000 | 421,600 | ||
Operating expenses | 350,920 | 121,520 | ||
Interest expense | 11,160 | 4,712 | ||
Income tax expense | 105,400 | 44,640 | ||
Current assets | 460,561 | 192,317 | ||
Plant assets (net) | 659,680 | 173,263 | ||
Current liabilities | 82,243 | 41,808 | ||
Long-term liabilities | 134,540 | 50,448 |
a. Compute working capital and the current ratios for each company for 2022. (Round current ratio to 1 decimal place, e.g. 0.7 : 1.)
b. Compute the debt to assets ratio for each company for 2022. (Round debt to assets ratio to 1 decimal place, e.g. 78.9%.)
Debt to Assets Ratio | ||
---|---|---|
Blossom Corporation | enter debt to assets ratio in percentages rounded to 1 decimal place % | |
Pina Corporation | enter debt to assets ratio in percentages rounded to 1 decimal place % |
4. These items are taken from the financial statements of Grouper Corporation for 2022.
Retained earnings (beginning of year) | $33,280 | |
Utilities expense | 2,110 | |
Equipment | 68,280 | |
Accounts payable | 22,570 | |
Cash | 15,070 | |
Salaries and wages payable | 5,840 | |
Common stock | 12,000 | |
Dividends | 12,000 | |
Service revenue | 69,290 | |
Prepaid insurance | 6,340 | |
Maintenance and repairs expense | 1,690 | |
Depreciation expense | 3,490 | |
Accounts receivable | 15,970 | |
Insurance expense | 2,310 | |
Salaries and wages expense | 38,290 | |
Accumulated depreciationequipment | 22,570 |
a. Prepare an income statement for the year ended December 31, 2022. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
5. You are provided with the following information for Ayayai Enterprises, effective as of its April 30, 2022, year-end.
Accounts payable | $844 | |
Accounts receivable | 910 | |
Accumulated depreciationequipment | 670 | |
Cash | 1,370 | |
Common stock | 1,200 | |
Cost of goods sold | 1,070 | |
Depreciation expense | 325 | |
Dividends | 335 | |
Equipment | 2,520 | |
Income tax expense | 175 | |
Income taxes payable | 145 | |
Insurance expense | 220 | |
Interest expense | 410 | |
Inventory | 1,067 | |
Land | 3,200 | |
Mortgage payable | 3,600 | |
Notes payable (due March 31, 2023) | 161 | |
Prepaid insurance | 70 | |
Retained earnings (beginning) | 1,600 | |
Salaries and wages expense | 690 | |
Salaries and wages payable | 232 | |
Sales revenue | 5,200 | |
Stock investments (short-term) | 1,290 |
a. Prepare an income statement for Ayayai Enterprises for the year ended April 30, 2022. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
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