Suppose during 2022 thatFederal Expressreported the following information (in millions): net sales of $34,600and net income of $92. Its balance sheet also showed total assets at the beginning of the year of $24,620and total assets at the end of the year of $23,300.

Calculate the asset turnover and return on assets.(Round asset turnover to 2 decimal places, e.g. 6.25 and return on assets to 1 decimal place, e.g. 17.5%.)

Asset turn over enter the asset turnover rounded to 2 decimal places

times Return on assets enter the return on assets in percentages rounded to 2 decimal places

%

FlintCorporation purchased machinery on January 1, 2022, at a cost of $290,000. The estimated useful life of the machinery is 4 years, with an estimated salvage value at the end of that period of $34,000. The company is considering different depreciation methods that could be used for financial reporting purposes.

Part 1

Prepare separate depreciation schedules for the machinery using the straight-line method, and the declining-balance method using double the straight-line rate.

STRAIGHT-LINE DEPRECIATION

Computation

End of Year

Years

Depreciable Cost

xDepreciation Rate

=Annual Depreciation Expense

AccumulatedDepreciation

Book Value

2022$

enter a dollar amount

enter a Depreciation Rate in percentages

%$

enter a dollar amount

$

enter a dollar amount

$

enter a dollar amount

2023enter a dollar amount

enter a Depreciation Rate in percentages

%enter a dollar amount

enter a dollar amount

enter a dollar amount

2024enter a dollar amount

enter a Depreciation Rate in percentages

%enter a dollar amount

enter a dollar amount

enter a dollar amount

2025enter a dollar amount

enter a Depreciation Rate in percentages

%enter a dollar amount

enter a dollar amount

enter a dollar amount

$

enter a total for the Annual Depreciation Expense column in dollars

DOUBLE-DECLINING-BALANCE DEPRECIATION

Computation

End of Year

Years

Book Value Beginning of Year

Depreciation Rate

=Annual Depreciation Expense

AccumulatedDepreciation

Book Value

2022$

enter a dollar amount

enter a Depreciation Rate in percentages

%$

enter a dollar amount

$

enter a dollar amount

$

enter a dollar amount

2023enter a dollar amount

enter a Depreciation Rate in percentages

%enter a dollar amount

enter a dollar amount

enter a dollar amount

2024enter a dollar amount

enter a Depreciation Rate in percentages

%enter a dollar amount

enter a dollar amount

enter a dollar amount

2025enter a dollar amount

enter a Depreciation Rate in percentages

%2,250

*enter a dollar amount

enter a dollar amount

$

enter a total for the Annual Depreciation Expense column in dollars

C.S.CullumberCompany had the following transactions involving notes payable.

July 1, 2022Borrows $74,000from First National Bank by signing a9-month,8% note.Nov. 1, 2022Borrows $77,000from Lyon County State Bank by signing a3-month,6% note.Dec. 31, 2022Prepares adjusting entries.Feb. 1, 2023Pays principal and interest to Lyon County State Bank.Apr. 1, 2023Pays principal and interest to First National Bank.

Prepare journal entries for each of the transactions.(Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

Date

Account Titles and Explanation

Debit

Credit

choose a transaction date

July 1, 2022

November 1, 2022

December 31, 2022

February 1, 2023

April 1, 2023

enter an account title

enter a debit amount

enter a credit amount

enter an account title

enter a debit amount

enter a credit amount

choose a transaction date

July 1, 2022

November 1, 2022

December 31, 2022

February 1, 2023

April 1, 2023

enter an account title

enter a debit amount

enter a credit amount

enter an account title

enter a debit amount

enter a credit amount

choose a transaction date

July 1, 2022

November 1, 2022

December 31, 2022

February 1, 2023

April 1, 2023

enter an account title to record accrual of interest from First National Bank

enter a debit amount

enter a credit amount

enter an account title to record accrual of interest from First National Bank

enter a debit amount

enter a credit amount

(To record accrual of interestfrom First National Bank)choose a transaction date

July 1, 2022

November 1, 2022

December 31, 2022

February 1, 2023

April 1, 2023

enter an account title to record accrual of interest from Lyon County State Bank

enter a debit amount

enter a credit amount

enter an account title to record accrual of interest from Lyon County State Bank

enter a debit amount

enter a credit amount

(To record accrual of interestfrom Lyon County State Bank)choose a transaction date

July 1, 2022

November 1, 2022

December 31, 2022

February 1, 2023

April 1, 2023

enter an account title

enter a debit amount

enter a credit amount

enter an account title

enter a debit amount

enter a credit amount

enter an account title

enter a debit amount

enter a credit amount

enter an account title

enter a debit amount

enter a credit amount

choose a transaction date

July 1, 2022

November 1, 2022

December 31, 2022

February 1, 2023

April 1, 2023

enter an account title

enter a debit amount

enter a credit amount

enter an account title

enter a debit amount

enter a credit amount

enter an account title

enter a debit amount

enter a credit amount

enter an account title

enter a debit amount

enter a credit amount

SupposeMcDonald's2022 financial statements contain the following selected data (in millions).

Current assets$3,411.0Interest expense$472.0Total assets30,219.0Income taxes1,935.0Current liabilities2,993.0Net income4,550.0Total liabilities16,186.0

(a1)

Compute the following values.

a. Working capital.(Round to 1 decimal place, e.g. 5,275.5)$

enter a dollar amount in millions

millions b .Current ratio.(Round to 2 decimal places, e.g. 6.25:1.)enter current ratio rounded to 2 decimal places

:1c. Debt to assets ratio.(Round to 0 decimal places, e.g. 62%.)enter percentages rounded to 0 decimal places

%d .Times interest earned.(Round to 2 decimal places, e.g. 6.25.)enter times interest earned rounded to 2 decimal places

On October 1, 2021,IndigoCorp. issued $960,000,5%,10-year bonds at face value. The bonds were dated October 1, 2021, and pay interest annually on October 1. Financial statements are prepared annually on December 31.

Part 1

Prepare the journal entry to record the issuance of the bonds.(Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date

Account Titles and Explanation

Debit

Credit

Oct. 1, 2021

enter an account title for the journal entry on October 1, 2021

enter a debit amount

enter a credit amount

enter an account title for the journal entry on October 1, 2021