Exam 4: Understanding Financial Statements

Mountain Company earns a net income of $430,500 and pays dividends of $39,000 during the period. Mountain has ending retained earnings of $733,500. The balance in Mountain's beginning retained earnings must have been:

During 2019, Duncan Company's total assets increased $100,000, and total liabilities decreased $60,000. During the same year, the company's investors invested an additional $120,000 and the company paid dividends of $60,000. What must have been the company's net income for 2019?

Mountain Company has beginning retained earnings of $450,000, earns a net income of $75,000, and pays dividends of $9,000 during the period. The balance in Mountain's ending retained earnings is:

The records of Manhattan T's show the following information after all transactions are recorded for 2019. Manhattan T's raised $16,000 cash through the issuance of additional common stock during the year. Based on this information, prepare Manhattan T's statement of stockholders' equity for the year ending December 31, 2019.

The accounting record for Hardware Company reported the following selected information: Determine Hardware Company's gross profit.

Elk, Inc. has a debt-to-total-assets ratio of 0.56 and a ROS of 13.4%. The median ROS for similar companies in the same industry as Elk is about 6.3%. The median debt-to-total-assets ratio for similar companies in the same industry is 0.31. Based on this industry information, how does Elk compare to similar companies and what are the causes of these differences?

Data from the financial statements of Creativity Crafts and Fun Projects, Inc. are presented below (in millions): To the nearest hundredth of a percent, what is the return on assets ratio 2019 for Fun Projects, Inc.?

Best Ball Bearings has a ROS of 24.60% and Amazing Automotive has an ROS of 27.45%. Which of the following statements is true?

Data from the financial statements of Nancarrow Brothers Co. and J. C. Murphy, Inc. are presented below (in millions): To the nearest hundredth of a percent, what is the 2019 return on sales ratio for Nancarrow Brothers Co.?

The following amounts have been taken from the recent financial statements for Daniel Enterprises: Which of the following amounts is the free cash flow for Daniel Enterprises?

Ivey Company began operations on January 1, 2019, with an investment of $186,000 by each of its two stockholders, or a total of $372,000. Net income for its first year of business was $654,000. During the year, the company paid dividends of $90,000 each to its two stockholders. How much is the company's ending Stockholders' Equity on December 31, 2019?

Melvin Company began operations on January 1, 2019, with an investment of $248,000 by each of its two stockholders, or a total of $496,000. Net income for its first year of business was $872,000. During the year, the company paid dividends of $120,000 each to its two stockholders. How much is the company's ending Stockholders' Equity on December 31, 2019?

On September 1, 2019, Might Dog, Inc. reported Retained Earnings of $544,000. During the month of September, Bulldog generated revenues of $80,000, incurred expenses of $48,000, purchased equipment for $20,000 and paid dividends of $24,000. What is the balance in Retained Earnings on September 30, 2019?

A company reported total stockholders' equity of $435,000 on its Dec 31, 2018, balance sheet. The following information is available for the year ended Dec 31, 2019: What are the total assets of the company on December 31, 2019?

Rock Springs Company has beginning retained earnings of $600,000, earns a net income of $100,000, and pays dividends of $12,000 during the period. The balance in Rock Springs' ending retained earnings is:

Fabulous Mints Company reported the following year-end amounts: What is the company's Sales Returns for the year?

Data from the financial statements of Creativity Crafts and Fun Projects, Inc. are presented below (in millions): To the nearest hundredth of a percent, what is the return on sales ratio 2019 for Fun Projects, Inc.?

At the end of 2019, LoMo Manufacturing reported the following amounts on its balance sheet: Answer each of the following independent questions: a. Assume that LoMo's stockholders' equity on January 1, 2019 was $396,000. LoMo did not issue common stock during the year, but it paid $54,000 cash in dividends. How much is LoMo's net income or loss for 2019? b. Assume that LoMo's stockholders' equity on January 1, 2019 was $354,000, and that LoMo issued additional common stock of $105,000 and paid $90,000 in cash dividends before the end of 2019. What was LoMo's net income or net loss for 2019?

Buick Company presented the following data at the end of 2019: Determine the debt-to-total assets ratio for Buick Company (rounded).

Data from the financial statements of Creativity Crafts and Fun Projects, Inc. are presented below (in millions): To the nearest hundredth, what is the 2019 debt-to-total-assets ratio for Creativity Crafts?