acct cheat sheet
ANSWERS Quiz 1 profit margin on sales for 2013. Net income/net sales. receivables turnover ratio net sales/average A/R inventory turnover ratio for 2013. COGs/average inventory asset turnover ratio for 2013.Net sales/average total sales average collection period for 2013.365/receive turnover ratio. average days in inventory for 2013.365 / inventory turnover ratio decimal place. return on assets for 2013. Profit margin*assets turnover. return on stockholders' equity for 2013. Net income/ average stockholder’s
On December 15, 2013, Rigsby Sales Co. sold a tract of land that cost $3,600,000 for $4,500,000. Rigsby appropriately uses the installment sale method of accounting for this transaction. Terms called for a down payment of $500,000 with the balance in two equal annual installments payable on December 15, 2014, and December 15, 2015. Ignore interest charges. Rigsby has a December 31 year-end. In 2013, Rigsby would recognize realized gross profit of entry at December 31, 2013? Gross profit % = ($4,500,000-3,600,000)/$4,500,000=20%2013:20%x$500,000=$100,000 In its December 31, 2013, balance sheet, Rigsby would report In 2013, Rigsby would recognize realized gross profit of: entry at December 31, 2013? Gross profit % = ($4,500,000-3,600,000)/$4,500,000=20%
2013:20%x$500,000=$100,000In 2014, Rigsby would recognize realized gross profitof:Grossprofit%=($4,500,000-3,600,000)/$4,500,000=20%2013:20%x$500,000=$100,0002014:20%x[($4,500,000-500,000)/2]= $400,000
In its December 31, 2013, balance sheet, Rigsby would report:
At December 31, 2014, Rigsby would report in its balance sheet:
Balance sheet:Deferred gross profit: $800,000 - 400,000 = $400,000Realized gross profit of $400,000 would be reported in the income statement.
Arizona Desert Homes (ADH) constructed a new subdivision during 2012 and 2013 under contract with Cactus Development Co. Relevant data are summarized below:
ADH uses the percentage-of-completion method to recognize revenue.
On December 15, 2013, Rigsby Sales Co. sold a tract of land that cost $3,600,000 for $4,500,000. Rigsby appropriately uses the installment sale method of accounting for this transaction. Terms called for a down payment of $500,000 with the balance in two equal annual installments payable on December 15, 2014, and December 15, 2015. Ignore interest charges. Rigsby has a December 31 year-end. In 2013, Rigsby would recognize realized gross profit of entry at December 31, 2013? Gross profit % = ($4,500,000-3,600,000)/$4,500,000=20%2013:20%x$500,000=$100,000 In its December 31, 2013, balance sheet, Rigsby would report In 2013, Rigsby would recognize realized gross profit of: entry at December 31, 2013? Gross profit % = ($4,500,000-3,600,000)/$4,500,000=20%
2013:20%x$500,000=$100,000In 2014, Rigsby would recognize realized gross profitof:Grossprofit%=($4,500,000-3,600,000)/$4,500,000=20%2013:20%x$500,000=$100,0002014:20%x[($4,500,000-500,000)/2]= $400,000
In its December 31, 2013, balance sheet, Rigsby would report:
At December 31, 2014, Rigsby would report in its balance sheet:
Balance sheet:Deferred gross profit: $800,000 - 400,000 = $400,000Realized gross profit of $400,000 would be reported in the income statement.
Arizona Desert Homes (ADH) constructed a new subdivision during 2012 and 2013 under contract with Cactus Development Co. Relevant data are summarized below:
ADH uses the percentage-of-completion method to recognize revenue.