Need two quick questions answers in the next 40 mins. They are very basic and should take tutor no more than 3 mins.
Assessing Financial Statement Effects of Transactions and Adjustments Selected accounts of Piotroski Properties, a real estate management firm, are shown below as of January 31, before any accounts have been adjusted. Debits Credits $26,640 7,720 23,808 $21,000 12,400 60,000 Prepaid Insurance Supplies Office Equipment Unearned Rent Revenue Salaries Expense Rent Revenue Piotroski Properties prepares monthly financial statements. Using the following information, adjust the accounts as necessary on January 31 using the financial statements effect template. (a) Prepaid insurance represents a threeyear premium paid on January 1. (b) Supplies of $850 were still available on January 31. (c) Office equipment is expected to last eight years (or 96 months). (d) The unearned rent revenue represents six months of rent received in advance on January 1. (e) Salaries of $1960 have been earned by employees but yet not recorded as of January 31. Balance Sheet Transaction Cash Asset + Noncash Assets = Liabilities + Contributed Capital + Earned Capital Answer Answer Answer Answer (a) Answer Answer Answer Answer (b) Answer Answer Answer Answer Answer (c) Answer Answer Answer Answer (d) Answer Answer Answer Answer (e) Answer Answer Net Income Answer Answer Answer Answer Answer - Expenses = Answer Answer Answer Answer Answer Income Statement Revenue Answer Income Statement Revenue - Expenses = Answer Net Income Answer Answer Answer Answer Answer Compute, Disaggregate, and Interpret RNOA of Competitors Selected balance sheet and income statement information for the clothing retailers, Abercrombie & Fitch and The GAP, Inc., follows. Company ($ millions) Abercrombie & Fitch The GAP Ticker 2006 Sales 2006 NOPAT 2006 Net Operating 2005 Net Operating Assets Assets ANF $2,785 $330 $533 $331 GPS $16,023 $1,083 $2,896 $2,745 (a) Compute the 2006 return on net operating assets (RNOA) for each company. (Do not round until your final answer. Round your answers to two decimal places. Do not use RNOA = NOPM x NOAT to calculate.) Company ($ millions) RNOA Answer Abercrombie & Fitch % Answer The GAP % (b) Disaggregate RNOA into net operating profit margin (NOPM) and net operating asset turnover (NOAT) for each company. (Do not round until your final answer. Round your answers to two decimal places.) Company NOPM Answer NOAT Answer % Answer Answer Abercrombie & Fitch The GAP Company NOPM NOAT % (c) Which of the following statements about business models bests explains differences between the RNOA for ANF and GPS? GPS reports a higher RNOA because it is a much larger company. GPS reports a lower RNOA because its asset turnover rate is substantially lower than ANF's. ANF reports a higher RNOA because its net profit margin is higher than GPS's. ANF reports a higher RNOA because its NOA is about onefourth that for GPS
