{"id":24831,"date":"2022-01-14T15:57:21","date_gmt":"2022-01-14T15:57:21","guid":{"rendered":"https:\/\/assignmenttutors.net\/blog\/accounting-problem-accounting-homework-help\/"},"modified":"2022-01-14T15:57:21","modified_gmt":"2022-01-14T15:57:21","slug":"accounting-problem-accounting-homework-help","status":"publish","type":"post","link":"https:\/\/assignmenttutors.net\/blog\/accounting-problem-accounting-homework-help\/","title":{"rendered":"Accounting problem | Accounting homework help"},"content":{"rendered":"
\n

Complete\u00a0the following problem sets of\u00a0<\/span>Financial Accounting: (P2-6A) & (P13-2A)<\/strong><\/em><\/p>\n

\u00a0<\/span><\/strong><\/p>\n

P2-6A<\/span><\/span><\/strong><\/p>\n

\u00a0<\/span><\/p>\n

Condensed balance sheet and income statement data for Sadecki Corporation are presented here and on the next page.<\/span><\/p>\n

Compute and interpret liquidity, solvency, and profitability ratios<\/span><\/em><\/strong>.<\/span><\/strong><\/p>\n

(LO 2, 4, 5),<\/span>\u00a0<\/span>AP<\/span><\/strong><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\n

SADECKI CORPORATION<\/span><\/strong><\/p>\n

Balance Sheets<\/span><\/strong><\/p>\n

December 31<\/span><\/strong><\/p>\n<\/td>\n<\/tr>\n<\/thead>\n

\n

Assets<\/span><\/span><\/strong><\/p>\n<\/td>\n

\n

\u00a0\u00a02014\u00a0\u00a0<\/span><\/span><\/strong>\u00a0\u00a0<\/span><\/p>\n<\/td>\n

\n

\u00a0\u00a02013\u00a0\u00a0<\/span><\/span><\/strong>\u00a0\u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Cash<\/span><\/p>\n<\/td>\n

\n

$ 28,000<\/span><\/p>\n<\/td>\n

\n

$ 20,000<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Receivables (net)<\/span><\/p>\n<\/td>\n

\n

70,000<\/span><\/p>\n<\/td>\n

\n

62,000<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Other current assets<\/span><\/p>\n<\/td>\n

\n

90,000<\/span><\/p>\n<\/td>\n

\n

73,000<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Long-term investments<\/span><\/p>\n<\/td>\n

\n

62,000<\/span><\/p>\n<\/td>\n

\n

60,000<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Property, plant, and equipment (net)<\/span><\/p>\n<\/td>\n

\n

\u00a0510,000<\/span><\/span><\/p>\n<\/td>\n

\n

\u00a0470,000<\/span><\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Total assets<\/span><\/p>\n<\/td>\n

\n

$760,000<\/span><\/p>\n<\/td>\n

\n

$685,000<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Liabilities and Stockholders\u2019 Equity<\/span><\/span><\/strong><\/p>\n<\/td>\n

\n

\u00a0<\/span><\/p>\n<\/td>\n

\n

\u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Current liabilities<\/span><\/p>\n<\/td>\n

\n

$ 75,000<\/span><\/p>\n<\/td>\n

\n

$ 70,000<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Long-term liabilities<\/span><\/p>\n<\/td>\n

\n

80,000<\/span><\/p>\n<\/td>\n

\n

90,000<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Common stock<\/span><\/p>\n<\/td>\n

\n

330,000<\/span><\/p>\n<\/td>\n

\n

300,000<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Retained earnings<\/span><\/p>\n<\/td>\n

\n

\u00a0275,000<\/span><\/span><\/p>\n<\/td>\n

\n

\u00a0225,000<\/span><\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Total liabilities and stockholders\u2019 equity<\/span><\/p>\n<\/td>\n

\n

$760,000<\/span><\/p>\n<\/td>\n

\n

$685,000<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n

\n

\u00a0<\/span><\/strong><\/p>\n

SADECKI CORPORATION<\/span><\/strong><\/p>\n

Income Statements<\/span><\/strong><\/p>\n

For the Years Ended December 31<\/span><\/strong><\/p>\n<\/td>\n<\/tr>\n<\/thead>\n

\n

\u00a0<\/span><\/p>\n<\/td>\n

\n

\u00a0\u00a02014\u00a0\u00a0<\/span><\/span><\/strong>\u00a0\u00a0<\/span><\/p>\n<\/td>\n

\n

\u00a0\u00a02013\u00a0\u00a0<\/span><\/span><\/strong>\u00a0\u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Sales revenue<\/span><\/p>\n<\/td>\n

\n

$750,000<\/span><\/p>\n<\/td>\n

\n

$680,000<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Cost of goods sold<\/span><\/p>\n<\/td>\n

\n

440,000<\/span><\/p>\n<\/td>\n

\n

400,000<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Operating expenses (including income taxes)<\/span><\/p>\n<\/td>\n

\n

\u00a0240,000<\/span><\/span><\/p>\n<\/td>\n

\n

\u00a0220,000<\/span><\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Net income<\/span><\/p>\n<\/td>\n

\n

$ 70,000<\/span><\/p>\n<\/td>\n

\n

$ 60,000<\/span><\/p>\n<\/td>\n<\/tr>\n

\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Additional information:<\/span><\/p>\n\n\n\n\n\n\n
\n

Net cash provided by operating activities<\/span><\/p>\n<\/td>\n

\n

$82,000<\/span><\/p>\n<\/td>\n

\n

$56,000<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Cash used for capital expenditures<\/span><\/p>\n<\/td>\n

\n

$45,000<\/span><\/p>\n<\/td>\n

\n

$38,000<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Dividends paid<\/span><\/p>\n<\/td>\n

\n

$20,000<\/span><\/p>\n<\/td>\n

\n

$15,000<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Average number of shares outstanding<\/span><\/p>\n<\/td>\n

\n

33,000<\/span><\/p>\n<\/td>\n

\n

30,000<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Instructions<\/span><\/span><\/strong><\/p>\n

Compute these values and ratios for 2013 and 2014.<\/span><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>(a)\u00a0Earnings per share.<\/span><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>(b)\u00a0Working capital.<\/span><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>(c)\u00a0Current ratio.<\/span><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>(d)\u00a0Debt to assets ratio.<\/span><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>(e)\u00a0Free cash flow.<\/span><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>(f)\u00a0Based on the ratios calculated, discuss briefly the improvement or lack thereof in financial position and operating results from 2013 to 2014 of Sadecki Corporation.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

P13-2A<\/span><\/span><\/strong><\/p>\n

The comparative statements of Osborne Company are presented here.<\/span><\/p>\n

Compute ratios from balance sheets and income statements<\/span><\/em><\/strong>.<\/span><\/strong><\/p>\n

(LO 6),<\/span>\u00a0<\/span>AP<\/span><\/strong><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>OSBORNE COMPANY<\/span><\/strong><\/p>\n

Income Statements<\/span><\/strong><\/p>\n

For the Years Ended December 31<\/span><\/strong><\/p>\n<\/td>\n<\/tr>\n

\n

\u00a0<\/span><\/strong><\/p>\n<\/td>\n

\n

\u00a0\u00a0\u00a02014\u00a0\u00a0\u00a0<\/span><\/span><\/strong><\/p>\n<\/td>\n

\n

\u00a0\u00a0\u00a02013\u00a0\u00a0\u00a0<\/span><\/span><\/strong><\/p>\n<\/td>\n<\/tr>\n<\/thead>\n

\n

Net sales<\/span><\/p>\n<\/td>\n

\n

$1,890,540<\/span><\/p>\n<\/td>\n

\n

$1,750,500<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Cost of goods sold<\/span><\/p>\n<\/td>\n

\n

\u00a01,058,540<\/span><\/span><\/p>\n<\/td>\n

\n

\u00a01,006,000<\/span><\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Gross profit<\/span><\/p>\n<\/td>\n

\n

832,000<\/span><\/p>\n<\/td>\n

\n

744,500<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Selling and administrative expenses<\/span><\/p>\n<\/td>\n

\n

\u00a0\u00a0500,000<\/span><\/span><\/p>\n<\/td>\n

\n

\u00a0\u00a0479,000<\/span><\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Income from operations<\/span><\/p>\n<\/td>\n

\n

332,000<\/span><\/p>\n<\/td>\n

\n

265,500<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Other expenses and losses<\/span><\/p>\n<\/td>\n

\n

\u00a0<\/span><\/p>\n<\/td>\n

\n

\u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Interest expense<\/span><\/p>\n<\/td>\n

\n

\u00a0\u00a0\u00a022,000<\/span><\/span><\/p>\n<\/td>\n

\n

\u00a0\u00a0\u00a020,000<\/span><\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Income before income taxes<\/span><\/p>\n<\/td>\n

\n

310,000<\/span><\/p>\n<\/td>\n

\n

245,500<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Income tax expense<\/span><\/p>\n<\/td>\n

\n

\u00a0\u00a0\u00a092,000<\/span><\/span><\/p>\n<\/td>\n

\n

\u00a0\u00a0\u00a073,000<\/span><\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Net income<\/span><\/p>\n<\/td>\n

\n

$\u00a0\u00a0218,000<\/span><\/p>\n<\/td>\n

\n

$\u00a0\u00a0172,500<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n

\n

\u00a0<\/span><\/strong><\/p>\n

OSBORNE COMPANY<\/span><\/strong><\/p>\n

Balance Sheets<\/span><\/strong><\/p>\n

December 31<\/span><\/strong><\/p>\n<\/td>\n<\/tr>\n

\n

Assets<\/span><\/span><\/strong><\/p>\n<\/td>\n

\n

\u00a0\u00a0\u00a02014\u00a0\u00a0\u00a0<\/span><\/span><\/strong><\/p>\n<\/td>\n

\n

\u00a0\u00a0\u00a02013\u00a0\u00a0\u00a0<\/span><\/span><\/strong><\/p>\n<\/td>\n<\/tr>\n<\/thead>\n

\n

Current assets<\/span><\/p>\n<\/td>\n

\n

\u00a0<\/span><\/p>\n<\/td>\n

\n

\u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

\u00a0\u00a0Cash<\/span><\/p>\n<\/td>\n

\n

$\u00a0\u00a060,100<\/span><\/p>\n<\/td>\n

\n

$\u00a064,200<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

\u00a0\u00a0Debt investments (short-term)<\/span><\/p>\n<\/td>\n

\n

74,000<\/span><\/p>\n<\/td>\n

\n

50,000<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

\u00a0\u00a0Accounts receivable<\/span><\/p>\n<\/td>\n

\n

117,800<\/span><\/p>\n<\/td>\n

\n

102,800<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

\u00a0\u00a0Inventory<\/span><\/p>\n<\/td>\n

\n

\u00a0\u00a0126,000<\/span><\/span><\/p>\n<\/td>\n

\n

\u00a0115,500<\/span><\/span><\/p>\n<\/td>\n<\/tr>\n

\n

\u00a0\u00a0\u00a0\u00a0Total current assets<\/span><\/p>\n<\/td>\n

\n

377,900<\/span><\/p>\n<\/td>\n

\n

332,500<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Plant assets (net)<\/span><\/p>\n<\/td>\n

\n

\u00a0\u00a0649,000<\/span><\/span><\/p>\n<\/td>\n

\n

\u00a0520,300<\/span><\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Total assets<\/span><\/p>\n<\/td>\n

\n

$1,026,900<\/span><\/p>\n<\/td>\n

\n

$852,800<\/span><\/p>\n<\/td>\n<\/tr>\n

\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

\u00a0<\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\n

Liabilities and Stockholders\u2019 Equity<\/span><\/span><\/strong><\/p>\n<\/td>\n

\n

\u00a0<\/span><\/strong><\/p>\n<\/td>\n

\n

\u00a0<\/span><\/strong><\/p>\n<\/td>\n<\/tr>\n<\/thead>\n

\n

Current liabilities<\/span><\/p>\n<\/td>\n

\n

\u00a0<\/span><\/p>\n<\/td>\n

\n

\u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

\u00a0\u00a0Accounts payable<\/span><\/p>\n<\/td>\n

\n

$\u00a0160,000<\/span><\/p>\n<\/td>\n

\n

$145,400<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

\u00a0\u00a0Income taxes payable<\/span><\/p>\n<\/td>\n

\n

\u00a0\u00a0\u00a043,500<\/span><\/span><\/p>\n<\/td>\n

\n

\u00a0\u00a042,000<\/span><\/span><\/p>\n<\/td>\n<\/tr>\n

\n

\u00a0\u00a0\u00a0\u00a0Total current liabilities<\/span><\/p>\n<\/td>\n

\n

\u00a0\u00a0\u00a0203,500<\/span><\/p>\n<\/td>\n

\n

\u00a0\u00a0187,400<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Bonds payable<\/span><\/p>\n<\/td>\n

\n

\u00a0220,000<\/span><\/span><\/p>\n<\/td>\n

\n

\u00a0200,000<\/span><\/span><\/p>\n<\/td>\n<\/tr>\n

\n

\u00a0\u00a0\u00a0\u00a0Total liabilities<\/span><\/p>\n<\/td>\n

\n

\u00a0423,500<\/span><\/span><\/p>\n<\/td>\n

\n

\u00a0387,400<\/span><\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Stockholders\u2019 equity<\/span><\/p>\n<\/td>\n

\n

\u00a0<\/span><\/p>\n<\/td>\n

\n

\u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

\u00a0\u00a0Common stock ($5 par)<\/span><\/p>\n<\/td>\n

\n

\u00a0\u00a0\u00a0290,000<\/span><\/p>\n<\/td>\n

\n

\u00a0\u00a0300,000<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

\u00a0\u00a0Retained earnings<\/span><\/p>\n<\/td>\n

\n

\u00a0\u00a0313,400<\/span><\/span><\/p>\n<\/td>\n

\n

\u00a0\u00a0165,400<\/span><\/span><\/p>\n<\/td>\n<\/tr>\n

\n

\u00a0\u00a0\u00a0\u00a0Total stockholders\u2019 equity<\/span><\/p>\n<\/td>\n

\n

\u00a0\u00a0603,400<\/span><\/span><\/p>\n<\/td>\n

\n

\u00a0\u00a0465,400<\/span><\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Total liabilities and stockholders\u2019 equity<\/span><\/p>\n<\/td>\n

\n

$1,026,900<\/span><\/p>\n<\/td>\n

\n

$852,800<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

All sales were on account. Net cash provided by operating activities for 2014 was $220,000. Capital expenditures were $136,000, and cash dividends were $70,000.<\/span><\/p>\n

\u00a0<\/span><\/span><\/strong><\/p>\n

Instructions<\/span><\/span><\/strong><\/p>\n

Compute the following ratios for 2014.<\/span><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>(a) Earnings per share.<\/span><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>(b) Return on common stockholders\u2019 equity.<\/span><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>(c) Return on assets.<\/span><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>(d) Current ratio.<\/span><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>(e) Accounts receivable turnover.<\/span><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>(f) Average collection period.<\/span><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>(g) Inventory turnover.<\/span><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>(h) Days in inventory.<\/span><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>(i) Times interest earned.<\/span><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>(j) Asset turnover.<\/span><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>(k) Debt to assets.<\/span><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>(l) Current cash debt coverage.<\/span><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>(m) Cash debt coverage.<\/span><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>(n) Free cash flow.<\/span><\/p>\n

\u00a0<\/span><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Complete\u00a0the following problem sets of\u00a0Financial Accounting: (P2-6A) & (P13-2A) \u00a0 P2-6A \u00a0 Condensed balance sheet and income statement data for Sadecki Corporation are presented here and on the next page. Compute and interpret liquidity, solvency, and profitability ratios. (LO 2, 4, 5),\u00a0AP SADECKI CORPORATION Balance Sheets December 31 Assets \u00a0\u00a02014\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a02013\u00a0\u00a0\u00a0\u00a0 Cash $ 28,000 $ […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16],"tags":[],"class_list":["post-24831","post","type-post","status-publish","format-standard","hentry","category-education"],"_links":{"self":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts\/24831","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/comments?post=24831"}],"version-history":[{"count":0,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts\/24831\/revisions"}],"wp:attachment":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/media?parent=24831"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/categories?post=24831"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/tags?post=24831"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}