Exam 2: A Closer Look at the Financial Statements

Use the information that follows concerning Ulrich Computer for the year ending December 31, 2018 for problems Several accounts and amounts from the financial statements of Ulrich Computer appear below for the year ending December 31, 2018. Cash \ 11,000 Sales Revenue 140,000 Notes Receivable, 6-month 90,000 Cost of goods sold 60,000 Taxes Payable 31,000 Salaries Expense 8,000 Accounts Receivable 34,000 Dividends 42,000 Equipment 150,000 Accounts Payable 8,000 Contributed Capital 30,000 Retained Earnings 40,000 Rent and Utilities Expense 4,000 Income Tax Expense 20,000 Inventory 21,000 -What is the total amount owed to Ulrich by its customers at the end of 2018?

Autry Company determined its total sales were $400,000, salaries expense was $110,000, dividends paid were $8,000, rent expense was $14,000, other operating expenses were $20,000, and customers still owed $2,000 at the end of the year. How much is net income for the year?

Which one of the following is a liability?

Which one of the following creates a decrease in retained earnings?

Which asset is more liquid, inventory or accounts receivable? Why?

Hsu Company has eight major section headings in its balance sheet, which include Current Assets, Long-Term Investments, Property, Plant, and Equipment, Intangible Assets, Current Liabilities, Long-Term Liabilities, and Shareholders' Equity. Below are some of the balance sheet accounts for Hsu: 1. 1. Dividends Payable 7. Wages Payable 2. Prepaid Rent 8. Deferred Revenues 3. Trademarks 9. Accumulated Depreciation - 4. Bonds Payable Building 5. Investment Funds for Plant 10. Accounts Receivable Expansion 11. Accounts Payable 6. Inventories Which of these would be found under the heading "Property, Plant, and Equipment"?

The amount a company expects to collect from its customers is:

Smith Corp. earned $300,000 profit during 2018. On which financial statement(s) will the exact dollar amount of the profit be clearly stated?

The information below was taken from the 2018 annual report of Jena Corp. Beginning cash balance \ 12,000 ? \ 5,000 Net cash flow from operating activities 7,987 ? 9,100 Net cash flow from investing activities 2,450 4,330 ? Net cash flow from financing activities ? (9,612) (7,500) Ending cash balance \ 11,000 ? \ 12,500 Which of the following is the missing amount for the net cash flow from operating activities for 2017?

Describe how the amount of net income relates to the balance sheet.

Which of the above transaction(s) are examples of operating activities?

Explain the concept of liquidity.

The following is the balance sheet of Columbus Corporation immediately prior to deciding how to finance the purchase of an additional $210,000 parcel of land. Answer the question that follows. Columbus Corporation Balance Sheet December 31, 2018 Assets Cash \ 180,000 Accounts receivable 60,000 Land Total assets Liabilities and Shareholders' Equity Accounts payable \ 90,000 Contributed capital 250,000 Retained earnings 170,000 Total liabilities \& shareholders' equity \5 10,000 REQUIRED: Columbus will finance the $210,000 investment in land by issuing either $210,000 of common stock or using $210,000 of additional accounts payable that will be due in 90 days. Indicate which method of financing is preferable for Columbus. Consider the effects on short-term solvency positions.

Desert Company has retained earnings of $11,000, total assets totaling $41,000, and total liabilities of $20,000. How much is total shareholders' equity?

The information below was taken from the 2018 annual report of Jena Corp. Beginning cash balance \ 12,000 ? \ 5,000 Net cash flow from operating activities 7,987 ? 9,100 Net cash flow from investing activities 2,450 4,330 ? Net cash flow from financing activities ? (9,612) (7,500) Ending cash balance \ 11,000 ? \ 12,500 Which of the following is the missing amount for the ending cash balance for 2017?

A company sold 10 widgets. How will the amounts the company reports as 'Sales' differ from amounts reported as 'Cost of Goods Sold'?

Favre Company has current assets, shareholders' equity, current liabilities, and long-term liabilities of $20,000, $54,000, $8,000, and $16,000, respectively. How much are long-term assets?

What is the account, Accounts Payable, used for?