Concept explainers
(1)
Analysis of Financial Statements
A financial statement is the complete record of financial transactions that take place in a company at a particular point of time. It provides important financial information like assets, liabilities, revenues and expenses of the company to its internal and external users. It helps them to know the exact financial position of the company.
To identify: Name of the
(2)
To identify: The amounts for various items that are reported in the balance sheet as on January 30, 2016 of Corporation T.
(3)
To identify: The largest current asset and the largest current liabilities of the Corporation T.
(4)
To calculate: The
(5)
To comment: On Corporation T liquidity and long-term solvency position.
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Intermediate Accounting
- Contingent liabilities Altria Group, Inc., has more than 12 pages dedicated to describing contingent liabilities in the notes to recent financial statements. These pages include extensive descriptions of multiple contingent liabilities. Use the Internet to research Altria Group, Inc., at www.altria.com. a. What are the major business units of Altria Group? b. Based on your understanding of this company, why would Altria Group require more than 12 pages of contingency disclosure?arrow_forwardconcerning such concepts as the business entity and the valuation of assets, 37 liabilities, and owner's equity. BERSOZA PLAYHOUSE Statement of Financial Position September 30, 2019 ASSETS Cash P 21,900 132,200 LIABILITIES & OWNER'S EQUITY Liabilities: Accounts Accounts Payable P 60,000 Receivable Props and Costumes Theatre Building Lighting Equipment Automobile 30,000 Salaries Payable 29,200 270,000 Total Liabilities P 89,200 94,000 Owner's Equity: 350,000 Helen Bersoza, 808,900 Capital Total Total P 898.100 P 898.100 The following facts were discovered after reviewing the records of the Playhouse: a. The amount of cash include P 15,000 in the company's bank account, P 1,900 in the company's safe and P 5,000 in Bersoza's personal savings account. b. The accounts receivable include P 7,200 owed to Playhouse by Artistic Tours and the remaining P 125,000 is an estimate of future ticket sales for the next three months, c. Bersoza explains to you that the props and costumes were purchased…arrow_forward200 nuuiy L 020. b) Statement of Financial Position as at 31 January 2020. 2. The following trial balance was extracted from the books of Syarikat Wawa at 31 Ma 2020: Particulars RM Capital Carriage in Carriage out Purchases Office equipment Motor vehicle Sales 63,030 1,620 800 145,800 10,000 8,500 232,950 68,000 3,600 8,400 4,300 9,600 3,180 28,400 16,440 Wages and salaries Rent and rates Lighting and heating Vehicles running cost Telephone expenses General office expenses Debtors Creditors Provision for depreciation: Motor vehicle Office equipment Provision for doubtful debts 4,250 4,000 500 Drawings Cash at bank 13,570 6,200 300 Cash in hand Stock as at 1 April 2019 Return inwards Return outwards 8,000 3,800 2,900 Additional information as at 31 Mac 2020; Stock on hand was valued at RM8,800 i. Rent and rates prepaid RM1,200 Wages and salaries RM1,750 Depreciation is to be provided as follows: a. Motor vehicles b. Office equipment i. iii. iv. 50 % reducing balance method 20% straight…arrow_forward
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- ease PROBLEM 17-15 Effects of Transactions on Various Financial Ratios [LO2, LO3. L0 your choice. In all cases, assume that the current assets exceed current liabilities both before and the effect in terms of increase, decrease, or no effect on the ratio involved, and give the reason for Indicate the effect that each transaction or event would have on the ratio listed opposite to it. State In the right-hand column below, certain financial ratios are listed. To the left of each ratio is a business transaction or event relating to the operating activities of Graham Company. Business Transaction or Event Ratio Debt-to-equity ratio Earnings per share Acid-test ratio 1. Inventory was sold for cash at a profit. 2. Land was purchased for cash. 3. Inventory was sold on account at cost. 4. Some accounts payable were paid off. 5. A customer paid an overdue bill. 6. A cash dividend was declared, but not yet paid. 7. A previously declared cash dividend was paid. 8. The company's common stock price…arrow_forwardPlppi Aaia of S C acell(PASUC 45,939,500.00 1:37 U v O 4G 4 0 Statement of Financial Position December 31, 2018 and 2019 2019 2018 Assets 2,030,500.00 Cash Marketable Securities 1,191,000.00 4,002,000.00 4,383,500.00 208,500.00 18,384,500.00 379,500.00 28,132,000.00 2,636,000.00 4,704,000.00 Accounts Receivable Allowance for Doubtful Accounts - Inventories 224,000.00 - 23,520,500.00 256,000.00 Prepaid Expenses Total Current Assets 32,923,000.00 20,303,500.00 Property, Plant and Equipment Less: Accumulated Depreciation 13,253,500.00 3,765,000.00 9,488,500.00 5,764,000.00 14,539,500.00 Other Assets Total Assets 186,500.00 47,649,000.00 334,000.00 37,954,500.00 Liabilities and Equity Accounts Payable 7,147,000.00 2,807,000.00 942,000.00 2,834,500.00 3,795,500.00 Notes Payable Current Portion of Long-term Debt 3,006,000.00 758,000.00 2,656,500.00 317,500.00 8,487,500.00 Accrued Liabilities Deferred Income Tax Long-term Debt Total Liabilities 421,500.00 10,529,500.00 24,681,500.00…arrow_forwardQUESTION 4 THIS QUESTION CONSISTS OF TWO UNRELATED PARTS PART A: The following provision has been included in the financial statements of Thriving (Pty) Ltd as at 31 December 2023: • Provision for expected future operating losses R100 000 REQUIRED: Discuss how the provision should be accounted for in the annual financial statements of Thriving (Pty) Ltd so as to comply with IAS 37 of the International Financial Reporting Standards. PART B: During 2022, Enviroserve (Pty) Ltd is involved in litigation relating to environmental damages and is being sued for damages amounting to R800 000. Legal costs are estimated to amount to R40 000. The definition and recognition criteria of a provision are met. In the following financial year, 2023, actual costs paid amount to: • Environmental damage repair costs R 820 000 • Legal costs R 40 000 REQUIRED: Prepare all the necessary general journal entries to account for the environmental damage and legal costs in the 2022 and 2023 financial statements…arrow_forward
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