Assignment Chapter 2 homework 1 Show Me How Show Me How Show Me How Show Me How Show Me How Show Me eBook How Missing Income Statement Amounts For each of the following cases, fill in the blank with the appropriate dollar amount Sara's Coffee Shop Amy's Deli Jane's Bagels Net sales $32,400 $ $71,300 Cost of goods sold 23,000 Gross profit 6,500 35,300 Selling expenses 2,800 8,200 General and administrative expenses 1,400 5,600 Total operating expenses 17,200 14,600 Net income $2,300 $18,100 $21,000 2 eBook Statement of Retained Earnings Landon Corporation was organized on January 2, 2012, with the investment of $100,000 by each of its two stockholders Net income for its first year of business was $87,220 Net income increased during 2013 to $127,340 and to $148,990 during 2014 Landon paid $21,000 in dividends to each of the two stockholders in each of the three years Required eBook Financial Statement Classification Potential stockholders and lenders are interested in a company's financial statements Identify the statement balance sheet, income statement, or retained earnings statementon which each of the following items would appear Note that some items may be related to more than one financial statement Accounts Financial Statement 1 Accounts payable 2 Accounts receivable 3 Advertising expense 4 Bad debt expense 5 Bonds payable 6 Buildings 7 Cash 8 Common stock 9 Depreciation expense 10 Dividends 11 Land held for future expansion 12 Loan payable 13 Office supplies 14 Patent 15 Patent amortization expense 16 Prepaid insurance 17 Retained earnings 18 Sales 19 Utilities expense 20 Wages payable 4 eBook Classified Balance Sheet The following balance sheet items, listed in alphabetical order, are available from the records of Ruth Corporation at December 31, 2014 Accounts payable $17,940 Income taxes payable $5,885 Accounts receivable 21,920 Interest payable 1,545 Accumulated depreciation automobiles 24,630 Inventory 42,190 Accumulated depreciation buildings 36,160 Land 275,000 Automobiles 123,150 Long term investments 87,845 Bonds payable, due December 31, 2018 159,000 Notes payable, due June 30, 2015 10,000 Buildings 180,800 Office supplies 2,195 Capital stock, $10 par value 148,000 Paid in capital in excess of par value 55,000 Cash 13,690 Patents 38,000 Prepaid rent 1,580 Retained earnings 323,860 Salaries and wages payable 4,350 Required Compute Ruth's current ratio Round your answer to two decimal places to 1 On the basis of your answer to (2), does Ruth appear to be liquid 5 eBook Multiple Step Income Statement and Profit Margin The following income statement items, arranged in alphabetical order, are taken from the records of Shaw Corporation for the current year Advertising expense $1,380 Interest expense $1,273 Commissions expense 2,592 Interest revenue 1,374 Cost of goods sold 29,251 Rent revenue 6,810 Depreciation expense office building 2,944 Salaries and wages expenseoffice 11,411 Income tax expense 1,554 Sales revenue 48,216 Insurance expense salespersons auto 2,151 Supplies expenseoffice 825 Required Assume that Shaw Corporation classifies all operating expenses into two categories (1) selling and (2) general and administrative 2 Compute Shaw's profit margin Round your answer to one decimal place 6 eBook Statement of Cash Flows Colorado Corporation was organized at the beginning of the year, with the investment of $250,000 in cash by its stockholders The company immediately purchased an office building for $300,000, paying $210,000 in cash and signing a three year promissory note for the balance Colorado signed a five year, $60,000 promissory note at a local bank during the year and received cash in the same amount During its first year, Colorado collected $93,970 from its customers It paid $65,600 for inventory, $20,400 in salaries and wages, and another $3,100 in taxes Colorado paid $5,600 in cash dividends Required

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Assignment: Chapter 2 homework 1. Show Me How Show Me How Show Me How Show Me How Show Me How Show Me eBook How Missing

Assignment: Chapter 2 homework

Show Me How Show Me

How Show Me How Show Me

eBook How

Missing Income Statement Amounts

For each of the following cases, fill in the blank with the appropriate dollar amount.

Sara's Coffee Shop Amy's Deli Jane's Bagels

Net sales	$32,400 $ $71,300 _________________
Cost of goods sold	23,000 _________________ _________________
Gross profit	6,500 35,300 _________________
Selling expenses	2,800 8,200 _________________
General and administrative expenses	1,400 5,600 _________________
Total operating expenses	17,200 14,600 _________________
Net income	$2,300 $18,100 $21,000

eBook

Statement of Retained Earnings

Landon Corporation was organized on January 2, 2012, with the investment of $100,000 by each of its two stockholders. Net income for its first year of business was $87,220. Net income increased during 2013 to $127,340 and to $148,990 during 2014. Landon paid $21,000 in dividends to each of the two stockholders in each of the three years.

Required:

eBook

Financial Statement Classification

Potential stockholders and lenders are interested in a company's financial statements. Identify the statement balance sheet, income statement, or retained earnings statementon which each of the following items would appear.

Note that some items may be related to more than one financial statement.

Accounts Financial Statement

1. Accounts payable		_________________
2. Accounts receivable		_________________
3. Advertising expense		_________________
4. Bad debt expense		_________________
5. Bonds payable		_________________
6. Buildings		_________________
7. Cash		_________________
8. Common stock		_________________
9. Depreciation expense		_________________
10. Dividends		_________________
11. Land held for future expansion		_________________
	12. Loan payable		_________________
	13. Office supplies		_________________
	14. Patent		_________________
	15. Patent amortization expense		_________________
	16. Prepaid insurance		_________________
	17. Retained earnings		_________________
	18. Sales		_________________
	19. Utilities expense		_________________
	20. Wages payable		_________________

eBook

Classified Balance Sheet

The following balance sheet items, listed in alphabetical order, are available from the records of Ruth Corporation at December 31, 2014:

Accounts payable	$17,940	Income taxes payable	$5,885
Accounts receivable	21,920	Interest payable	1,545
Accumulated depreciation - automobiles	24,630	Inventory	42,190
Accumulated depreciation - buildings	36,160	Land	275,000
Automobiles	123,150	Long-term investments	87,845
Bonds payable, due December 31, 2018	159,000	Notes payable, due June 30, 2015	10,000
Buildings	180,800	Office supplies	2,195
Capital stock, $10 par value	148,000	Paid-in capital in excess of par value	55,000
Cash	13,690	Patents	38,000
		Prepaid rent	1,580
		Retained earnings	323,860
		Salaries and wages payable	4,350

Required:

Compute Ruth's current ratio. Round your answer to two decimal places.

_________________ to 1

On the basis of your answer to (2), does Ruth appear to be liquid? _________________

eBook

Multiple-Step Income Statement and Profit Margin

The following income statement items, arranged in alphabetical order, are taken from the records of Shaw Corporation for the current year:

	Advertising expense		$1,380		Interest expense		$1,273
	Commissions expense		2,592		Interest revenue		1,374
Cost of goods sold		29,251		Rent revenue		6,810
Depreciation expense - office building		2,944		Salaries and wages expenseoffice		11,411
Income tax expense		1,554		Sales revenue		48,216
Insurance expense - salespersons auto		2,151		Supplies expenseoffice		825

Required:

Assume that Shaw Corporation classifies all operating expenses into two categories: (1) selling and (2) general and administrative.

2. Compute Shaw's profit margin. Round your answer to one decimal place. _________________ %

eBook

Statement of Cash Flows

Colorado Corporation was organized at the beginning of the year, with the investment of $250,000 in cash by its stockholders. The company immediately purchased an office building for $300,000, paying $210,000 in cash and signing a three-year promissory note for the balance. Colorado signed a five-year, $60,000 promissory note at a local bank during the year and received cash in the same amount. During its first year, Colorado collected $93,970 from its customers. It paid $65,600 for inventory, $20,400 in salaries and wages, and another $3,100 in taxes. Colorado paid $5,600 in cash dividends.

Required: