investments or capital of the firm and not only in relation to sales. Return on capital employed ratio measures the efficiency with which the investment made by shareholders and creditors is used in the business. Managers use this ratio for various financial decisions. It is a ratio of overall profitability and a higher ratio is‚ therefor‚ better. To see whether the business has improved its profitability or not‚ the ratio can be calculated for a number of years. Return on equity (ROE) is widely
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1. An advantage of the corporate form of business is that: A. It has limited life. B. Its owner’s personal resources are at stake. C. Its ownership is easily transferable via the sale of shares of stock. D. It is simple to establish. E. It has double taxation. 2. External users want answers to all of the following questions except: A. Is the company earning satisfactory income? B. Will the company be able to pay its debts as they come due
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E2-1‚ 2‚5‚7; P2-2A‚ 4A E2-1. The following are the major balance sheet classifications: Current assets (CA Long-term investments (LTI) Property‚ plant and equipment (PPE) Intangible assets (IA) Current liabilities (CL) Long-term liabilities (LTL) Stockholders’ equity (SE) Classify each of the following financial statement items taken from Mordica Corporation’s balance sheet. CL Accounts payable CA Accounts receivable PPE Accounts depreciation-equipment PPE Buildings CA Cash CL Interest
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INC) | |[pic] | |Financial analysis statement for the year ended | |December in 2011
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Missing Information in a Bank Reconciliation Survey of Accounting May 28‚ 2012 Missing information in bank reconciliation‚ the following data applies to Superior Auto Supply Inc‚ for May 2012. 1. Balance per the bank on May 31‚ $8‚000 2. Deposits in transit not recorded by the bank‚ $975 3. Bank error; check written by Allen Auto Supply was charged to Superior Auto Supply’s 4. The following check written an recorded by Superior Auto Supply
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MNGT-511 FINAL EXAM (Total points 100) Name: Rebecca Malandrino Chapter 7 1) Which of the following types of inventory usually is not held by a manufacturing business? (3P) C) Merchandise inventory 2) The following information was taken from the 2007 income statement of Cobra Company: Pretax income‚ $12‚000; Total operating expenses‚ $20‚000; Sales revenue‚ $120‚000. Compute cost of goods sold. (5P) A) $88‚000 (120‚000 – 20‚000 – 12‚000) 12‚000 (pre-tax income) + 20‚000 (operating
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ANSWERS 1 a) 1 b) 1 c) 1 d) 1 e) 1 f) This transaction has no effect on the balance sheet since this is only an order‚ no financial value. 1 g) 1 h) 1 i) 1 j) 2 a) a] b] c] d] e] f] g] h] j] k] l] 2 b)
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Financial Reporting Google is a publicly traded company which means that customer and stakeholders have access to the company’s financial information. The balance sheet and income statements are the two financial statements which gives a brief summary of a company’s overall financial condition. The balance sheet focuses and report figures of assets‚ liabilities and owner’s equity of the business. Assets are anything that a business has with a value such as furniture‚ liabilities are monies owe to
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1) Liabilities Stockholders’ Equity Assets $23‚500 $56‚500 $80‚000 2) RE‚ Beg. Sales Expenses Dividends Net Loss $65‚000 $29‚500 $33‚000 $3‚500 ($3‚500) 3) Salaries Expense‚ Beg. Increase Decrease Increase Increase Salaries Expense‚ Ending $0 $450 $175 $600 $350 $1‚225 4) Purchases Credit Cash Debit Cash Credit Accounts Payable $375 $375 375 375 5) Allied‚ Inc. Insurance Policy $3‚600 Debit Insurance Expense Credit Prepaid Insurance 1‚800 1‚800 6) Supplies‚ Beginning Supplies Purchased
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Chapter 9: E9-6‚ E9-11‚ P9-1A‚ P9-5A E9-6 SY Telc has recently started the manufacture of RecRobo‚ a three-wheeled robot that can scan a home for fires and gas leaks and then transmit this information to a mobile phone. The cost structure to manufacture 20‚000 RecRobo’s is as follows. | Cost | Direct materials ($40 per robot) | $ 800‚000 | Direct labor ($30 per robot) | 600‚000 | Variable overhead ($6 per robot) | 120‚000 | Allocated fixed overhead ($25 per robot) | 500
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