Financial Accouting Hw2 Essay

534 words - 3 pages

Problem 2-3: Classified Balance Sheet:

RUTH CORPORATION
BALANCE SHEET
DECEMBER 31, 2012

Assets
Current assets:
Cash $ 13,230
Accounts receivable 23,450
Prepaid rent 1,500
Office supplies 2,340
Total current assets $ 40,520
Long-term investments 85,000
Property, plant, and equipment:
Land $250,000
Automobiles $112,500
Less: Accumulated depreciation 22,500 90,000
Buildings $200,000
Less: Accumulated depreciation 40,000 160,000
Total property, plant, and equipment 500,000
Intangible assets:
Patents 40,000
Total assets $665,720

Liabilities
Current liabilities:
Accounts payable $ 18,255
Income taxes payable 6,200
Interest payable 1,500
Notes payable, due June 30, 2013 10,000
Salaries and wages payable 4,200
Total current liabilities $ 40,155
Long-term debt:
Bonds ...view middle of the document...

At a 1 to 1 ratio, the company seems to be financially unhealthy.

Problem 2-6: Single-Step Income Statement:
SHAW CORPORATION
INCOME STATEMENT
FOR THE YEAR ENDED DECEMBER 31, 2012
Revenues:
Sales $ 48,300
Interest 1,340
Rent 6,700
Total revenues $ 56,340
Expenses:
Cost of goods sold $ 29,200
Advertising 1,500
Commissions 2,415
Depreciation—office building 2,900
Interest 1,400
Insurance—salesperson’s auto 2,250
Salaries and wages—office 12,560
Supplies—office 890
Income taxes 1,540
Total expenses 54,655
Net income $ 1,685

2. Weaknesses: The lack of any grouping of the various expenses. It is difficult to differentiate what revenues are derived from sales and operations, and what amounts come from interest or dividends of investments.

















Problem 2-7 Multiple-Step Income Statement and Profit Margin:

SHAW CORPORATION
INCOME STATEMENT
FOR THE YEAR ENDED DECEMBER 31, 2012

Operating revenues $ 19,100
Operating expenses:
Selling expenses:
Advertising $ 1,500
Commissions 2,415
Insurance—salesperson’s auto 2,250
Total selling expense $ 6,165
General and administrative expenses:
Depreciation—office building $ 2,900
Salaries and wages—office 12,560
Supplies—office 890
Total general and administrative expense 16,350
Total operating expense 22,515
Income from operations $ (3,415)
Other revenues and expenses:
Interest expense $ 1,400
Interest revenue 1,340
Rent revenue 6,700
Excess of other revenues over other expenses 6,640
Income before taxes $ 3,225
Income tax expense 1,540
Net income $ 1,685

2. Main advantages: groupings of various items and the provision of important subtotals
3. Profit margin = Net income/Operating Revenues
= $1,685/$19,100 = 8.8%
4. A profit margin of 8.8% margin profit= $.09 net income for every dollar of operating revenues, it would be important to compare the profit margin with prior years and with companies in the same industry.

Other Essays Like Financial Accouting Hw2

The French And Indian War: The "Real" First World War

1955 words - 8 pages The Seven Years War, or more commonly referred to as “The French and Indian War”, has been called the true First World War. In this book The French and Indian War: Deciding the Fate of North America, the author and historian Walter R. Borneman paints a detailed and elaborate picture that justifies the claim of it being the first true war of global proportions. If ever there truly was a climax to the never ending feud of the European powers

Is The Use Of Animals In Medical Research A Necessary Measure?

1513 words - 7 pages Throughout history, animals have been used in experiments to test product safety and obtain medical knowledge that benefits both humans and animals alike. Every year there are numerous medical breakthroughs, such as medications and surgical instruments, which are tested on animals to insure their safety before they are deemed acceptable for human use. Even though the results of the experiments saved millions of human lives, they are also

Education And The Evolving Job Market

2363 words - 10 pages The lives of students today are changing. They are preparing for lives and jobs that have never before existed. If teachers hope to have a significant and worthwhile impact on these quickly changing lives, they must change the way they think, prepare, and instruct our future generations. Children cannot afford to have teachers who remain stagnant in their methods and ideals. Students crave instructors that are willing to allow them to tap

Young And Relentless

1737 words - 7 pages financial burdens to their children. In addition, among the growing number of HIV diagnoses in the U.S., young teens have joined the list of groups most vulnerable to infection. In pushing condoms as a solution, we have overlooked some of the most serious consequences of early sexual activity, and effectively hidden others” (Witherbee 6). When parents give an effort to talk to teens about sex, the sexual activity can be lowered and decrease a

The Natural Law Theory

1231 words - 5 pages Obeying by the natural law theory is the only true and moral way to live life; especially a life lived in God’s image. God’s presence is a guiding factor to obtaining a moral and virtuous life, which can only be obtained by following the natural law theory. God created a set of laws as a supreme guide for humans to live life, like any law these laws were created to ensure wellbeing for everyone. The laws he created are the civil law, the natural

Resolved: Presidential Signing Statements Threaten To Undermine The Rule Of Law And The Separation Of Powers

1811 words - 8 pages The subject of signing statements has created much debate among the houses of Congress, government officials, and the public alike. These signing statements fall under the categories of constitutional and legislative history signing statements. Constitutional signing statements are those in which the president deems certain provisions of the legislation as unconstitutional, therefore they should not be enforced (Bradley & Posner, 2006

Oppressive Systems Of Government In Egypt And Animal Farm

1529 words - 7 pages As in Egypt, Orwell demonstrates through his allegorical novel “Animal Farm” that leaders are able to establish and maintain power over a people, and in turn create an oppressive and corrupt government system. Orwell shows the significant difference in the education and levels of knowledge in the animals, and how the government takes advantage of this difference. The split between the levels of intelligence is portrayed in the first chapter when

The Pathway To Psychosis

1415 words - 6 pages “How all occasions do inform against me” is a line from act IIII, scene IIII of William Shakespeare’s Hamlet. This line, spoken by Hamlet, expresses his emotional state as he is currently overwhelmed by the death of his father, the king of Denmark, and the situation surrounding it. After Hamlet learns of his father’s death he finds out that his mother has married Claudius, Hamlet’s uncle. On top of all of that, Hamlet soon after

Rated “M” For “More Censorship Not Needed”

1241 words - 5 pages Since the moment video games became a commercial success there have been people who have pushed for unfair amounts of censorship to be placed upon the content of the games and its availability to children. These groups push for increased regulations on content but there is already an appointed group to handle this issue, the ESRB. Even though there has been an increase in mature content in the video game industry, increased censorship is not

Four Components Of A Legally Astute Social Media Marketing Manager

1914 words - 8 pages With the advances in technology constantly changing companies have to find better ways to market their products to consumers. The explosion of Facebook has given companies a way to market products to consumers. Examine how a legally astute manager can use social media to his advantage. Review different forms of dispute resolution and determine which one works the best. What is the best course of action, the government can use to

Obama's Values

1217 words - 5 pages As individuals, we don’t tend to take action unless it’s for self-interest; however, in Dreams from My Father, Obama spends three years, after college, as a community organizer in Chicago. Obama goes through tribulations, disappointments, and even complete failures organizing meaningful events, decisive meetings, and humble gatherings but he keeps working toward achieving any possible change in the community. Even though results give him every

Related Papers

The Separation Of Capital Ownership And Control

1577 words - 7 pages Wealth of Nations, 1776, Modern Library, Cannon Ed., New York. Jensen, M. C., and Meckling, W. H., (1976) Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure. Journal of Financial Economics 3: 305-360. Fama E. F., (1980), Agency Problems and the Theory of the Firm, The Journal of Political Economy, The University of Chicago Press. Macey J. R. (2008), CORPORATE GOVERNANCE AS PROMISE, Corporate Governance, Princeton University Press.

The Versatility And Flexibility Of Oled's

1014 words - 5 pages In April 1, 2002, organic light emitting diodes gain rise in the scientific community with their published, more practical form at Ames Laboratory. “Scientists at the U.S. Department of Energy's Ames Laboratory, in collaboration with scientists at the University of Michigan, Ann Arbor, have developed and demonstrated a novel, fluorescence-based chemical sensor that is more compact, versatile and less expensive than existing technology of its

Comparing The Moral Virtues Of Antony And Julian The Apostate

1103 words - 5 pages Roman emperor Julian the Apostate and Christian leader Antony both exhibited many qualities of character during their existence. Both of them led very distinctive lives although shared several ethical values. Book 25 of “The Later Roman Empire” and the book “Early Christian Lives” show concrete evidence of this. In the following essay, I will argue how both leaders’ lives were devoted to their religious beliefs and their mutual cardinal virtues

Living In A Cashless Society Essay

1637 words - 7 pages join them.” Nevertheless, as financial institutions are implementing debit cards, internet banking, and credit cards, more people are beginning to accept it. In order for each and everyone us to benefit fully from this program or “cashless society,” we need to have basic idea about the pros and cons of cashless society. The question of whether the world should become a cashless society is a tough question to answer and hard to boldly say yes