BE1-1 Presented below is the basic accounting equation (in thousands). Determine the missing amounts. Assets = Liabilities + Equity 90‚000 = 50‚000 + 40‚000 110‚000 = 40‚000 + 70‚000 ------------------------------------------------- 94‚000 = 41‚000 + 53‚000 BE1-5 Indicate whether each of the following items is an asset (A)‚ liability (L)‚ or part of equity (E). (A) Accounts receivable (L) Salaries and wages payable (A) Equipment (A) Supplies
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deferred tax liability should be recorded to reflect the future tax consequences of the temporary difference. Income tax expense (to balance) 140‚000 Deferred tax liability ([$400‚000 – 250‚000] x 35%) 52‚500 Income tax payable ($250‚000 x 35%) 87‚500 As a result‚ net income is $260‚000: Pretax accounting income $400‚000 Income tax expense 140‚000 Net income $260‚000 Requirement 2 In its balance sheet‚ Alvis will report the $52‚500 deferred tax liability among either
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KHF CORPORATION SEEDS OF DISTRESS Jim Layton‚ controller for Kitty (Hawk Food)‚ Inc. (KHF) was under considerable stress as he walked toward the chief executive’s office. Marshall Horne‚ the CEO‚ was not known to take bad news well. In his hands‚ Jim held two letters from food suppliers that threatened to cancel KHF’s trade credit accounts. KHF had developed difficulties in cash flow such that their payments on the accounts had been late‚ at best. The suppliers provided normal trade terms to KHF
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the target company being purchased. Ownership control of the company in turn conveys effective control over the assets of the company‚ but as the company is acquired intact as a going concern‚ this form of transaction carries with it all of the liabilities accrued by that business over its past and all of the risks that company faces. • The buyer buys the assets of the target company. The cash the target receives from the
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of stock (raw materials) + Materials bought in this time Gross profit / Sales x 100 = Gross profit margin (%) Value of stock at end of time + Direct costs related to production (wages‚ power etc) + Work in progress + Value of products at start of period Value of products at end of period = Costs of production/cost of sales for period Don’t forget: your stock of raw materials is valued at what you paid for them‚ even if that is more or less than what you could get for them.
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of financial data. B) Notes (footnotes). C) Management’s discussion and analysis. D) Only B and C are required disclosures. E) All of the above are required disclosures. Answer: E 4. Current liabilities are defined as A) obligations which are incurred during the past year. B) debts at the balance sheet date which must be paid within two years. C) accounts payable and bonds payable. D) debts at the balance
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Student Name and ID (Print Legibly) ________________________________________________________________ True or False/Multiple Guess/Fill in the blank Identify the choice that best completes the statement or answers the question. Carefully and completely fill out this test with the answer that best fits the question. For each answer‚ clearly circle your choice from the options provided (a‚ b‚ c‚ d‚ etc.). Dont make me guess‚ I wont award credit if it isnt obvious. 1. What type of data is found in
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Tootsie Roll Industries Inc. the working capital‚ current ratio‚ and the inventory turnover ratio was used. To determine the working capital subtract the current liabilities from the current assets. Tootsie Roll Industries Inc.’s working capital is $141‚ 754. To determine the current ratio the current assets are divided by the current liabilities‚ which equals a current ratio of 3.4 for Tootsie Roll Industries‚ Inc. Finally‚ the inventory ratio is found by dividing the cost of goods sold by the average
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the business. Nowadays‚ when a lot of new salon hairs are opened around in Australia‚ they are bringing an important role in Australia economy in generated income and important. These small businesses contribute over 40% of the total income for products and services. Planning to open a new salon hair demands each hairdresser must consider a lot because if a business is lack of planing that is result of the failure hairdresser. Beside that‚ original business idea always important because it helps
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