Fill This Form To Receive Instant Help

Help in Homework
trustpilot ratings
google ratings


Homework answers / question archive / 1

1

Accounting

1. Analyzing the Effects of Transactions Using T-Accounts, Preparing an Income Statement, and Evaluating the Net Profit Margin Ratio LO3-4, 3-5, 3-6 (The following information applies to the questions displayed below.] Following are account balances (in millions of dollars) from a recent StateEx annual report, followed by several typical transactions. Assume that the following are account balances on May 31 (end of the prior fiscal year): Account Property and equipment (net) Retained earnings Accounts payable Prepaid expenses Accrued expenses payable Long-term notes payable Other noncurrent assets Common stock ($0.10 par value) Balance Account $17,094 Receivables 12,806 Other current assets 1,577 Cash 268 Spare parts, supplies, and fuel 2,390 other noncurrent liabilities 1,810 other current liabilities 3,032 Additional Paid-in Capital 2 Balance $ 2,349 1,039 1,204 715 3, 770 2,259 1,087 These accounts are not necessarily in good order and have normal debit or credit balances. Assume the following transactions (in millions, except for par value) occurred the next fiscal year beginning June 1(the current year): a. Provided delivery service to customers, who paid $9,390 in cash and owed $35,104 An Palint

These accounts are not necessarily in good order and have normal debit or credit balances. Assume the following transactions (in millions, except for par value) occurred the next fiscal year beginning June 1 (the current year): a. Provided delivery service to customers, who paid $9,390 in cash and owed $35,104 on account b. Purchased new equipment costing $3,754; signed a long-term note. c. Paid $11,064 cash to rent equipment and aircraft, with $5,536 for rent this year and the rest for rent next year. d. Spent $1,184 cash to repair facilities and equipment during the year. e. Collected $33,885 from customers on account. f. Repaid $310 on a long-term note (ignore interest). g. Issued 180 million additional shares of $0.10 par value stock for $32 (that's $32 million) h. Paid employees $13,276 for work during the year. i. Purchased spare parts, supplies, and fuel for the aircraft and equipment for $11,364 cash. j. Used $7,250 in spare parts, supplies, and fuel for the aircraft and equipment during the year. k. Paid $1,104 on accounts payable. 1. Ordered $120 in spare parts and supplies.
3. Prepare an unadjusted income statement for the current year ended May 31. State Ex Income Statement (unadjusted) (in millions) 0
P3-6 Part 4 s 4. Compute the company's net profit margin ratio for the current year ended May 31. (Round your percentage answer to 1 decimal place (i.e., 32.1)). Net profit margin ratio %
P3-7 Part 2 2. For the transactions below, indicate how the transactions will affect the statement of cash flows. Cash outflows should be entered as negative amounts. The first transaction is provided as an example. (If there is no effect on the statement of cash flows, select "No effect". Enter your answers in thousands, not in dollars. Cash outflows should be indicated with a minus sign.) Transaction Type of Activity a. Operating b. Effect on Cash Flows 651,042 C. d. e. f. g h. i. j.

2.  A corporation may give current shareholders rights, which are the rights to purchase a share of any new issue of stock. Generally there a time limit on the ability to exercise this right. The purpose of this right is to allow shareholders to their proportionate control in the company. Fill in the blanks with words that would best complete the passage. preemptive is prorated is not increase maintain preview may not

 

3. Bargain Rental Car offers rental cars in an off-airport location near a major tourist destination in California. Management would like to better understand the variable and fixed portions of it car washing costs. The company operates its own car wash facility in which each rental car that is returned is thoroughly cleaned before being released for rental to another customer. Management believes that the variable portion of its car washing costs relates to the number of rental returns. Accordingly, the following data have been compiled:

Month Rental Returns Car Wash Costs
January 2,400   $ 10,600  
February 2,500   $ 12,900  
March 2,700   $ 11,400  
April 2,900   $ 13,700  
May 3,600   $ 15,800  
June 5,000   $ 22,500  
July 5,500   $ 21,800  
August 5,400   $ 21,200  
September 4,700   $ 22,400  
October 3,900   $ 19,900  
November 2,200   $ 10,300  
December 2,700   $ 12,800

 Using least-squares regression, estimate the variable cost per rental return and the monthly fixed cost incurred to wash cars. (Round Fixed cost to the nearest whole dollar amount and the Variable cost per unit to 2 decimal places.) X Answer is complete but not entirely correct. $ Fixed cost per month Variable cost per rental return $ 2,464.00 X
2. Using least-squares regression, estimate the variable cost per rental return and the monthly fixed cost incurred to wash cars. (Round Fixed cost to the nearest whole dollar amount and the Variable cost per unit to 2 decimal places.) Answer is complete but not entirely correct. Fixed cost per month Variable cost per rental return 0 % $ 16,165.63

pur-new-sol

Purchase A New Answer

Custom new solution created by our subject matter experts

GET A QUOTE

Answer Preview

1.

     
  Cash    
Particulars Amount Particulars Amount
Opening 1204 Rent 5536
To revenue 9390 Prepaid rent 5528
To receivables 33885 Repaid 1184
common stock 32 Long term note 310
    Salaries 13276
    Spare parts, supplies and fuel 11364
    accounts payable 1104
    Balance 6209
  44511   44511
       
       
  Accounts receivable    
Particulars Amount Particulars Amount
Opening 2349 Cash 33885
Revenue 35104 Balance 3568
  37453   37453
       
  Equipment    
Particulars Amount Particulars Amount
Opening 17094 balance 20848
Long term note 3754    
  20848   20848
       
  Long term note    
Particulars Amount Particulars Amount
Cash 310 Opening 1810
balance 5254 Equipment 3754
  5564   5564
       
  Prepaid rent    
Particulars Amount Particulars Amount
Opening 268 balance 5796
Cash 5528    
  5796   5796
       
       
  Common stock    
Particulars Amount Particulars Amount
balance 20 opening 2
    Cash 18
  20   20
  Additional Paid in capital    
Particulars Amount Particulars Amount
balance 1101 opening 1087
    Cash 14
  1101   1101
       
  Spareparts, supplies and fuel    
Particulars Amount Particulars Amount
opening 715 p&L 7250
Cash 11364 balance 4829
  12079   12079
       
  Accounts payable    
Particulars Amount Particulars Amount
Cash 1104 opening 1577
balance 473    
  1577   1577
  Revenue    
Particulars Amount Particulars Amount
P&L 44494 Cash 9390
    Accounts receivable 35104
  44494   44494
  Rent    
Particulars Amount Particulars Amount
Cash 5536    
       
       
  Repair    
Particulars Amount Particulars Amount
Cash 1184    
       
  Salaries    
Particulars Amount Particulars Amount
Cash 13276    
       
       
  Spareparts, supplies and fuel expenses    
Particulars Amount Particulars Amount
Spareparts, supplies and fuel expenses 7250    
Income statement  
   
Revenue 44494
   
Less: expenses  
Rent 5536
Repairs 1184
Salaries 13276
Spares, supplies and fuel 7250
Total expenses 27246
   
   
Net Income 17248
   
Profit Margin = Net income/total revenue
  =17248/44494
  38.8%
Balancesheet  
Assets  
Cash 6209
Accounts receivable 3568
Pre-paid expense 5796
Spare parts, supplies and fuel 4829
Other current assets 1039
Equipment 20848
Other non-current assets 3032
Total Assets 45321
   
Liabilitieis  
Long term note 5254
Accrued expenses 2390
Accounts payable 473
Other non-current liabilities 3770
Other current liabilities 2259
Total liabilities 14146
   
Shareholders' capital  
Common stock 20
Addition paid in capital 1101
Retained earnings 30054
Total shareholders' equity 31175
Total liabilties and equity 45321
  Opening 1204
operating Sales 9390
Operating Rent -11064
OPerating Repais -1184
Operating Collection from receivables 33885
Financing Long term note paid -310
Financing Issued stock 18
Financing Paid-in capital 14
Opearting Salaries paid -13276
OPerating Purchased spares -11364
Operating Payables paid -1104
  Balance 6209

 

2.A corporation may give current Shareholders Preemptive rights which are the rights to purchase a Prorated share of any new issue of stock. Generally there is a time limit on the ability to exercise this rate. The purpose of this right is to allow shareholders to maintain their proportionate control in the capital.

3. Please use this google drive link to download the answer file.       

https://drive.google.com/file/d/1uDtOGQl0CENTpzz18NaDHT5mUvoXsPxh/view?usp=sharing

Note: If you have any trouble in viewing/downloading the answer from the given link, please use this below guide to understand the whole process. 

https://helpinhomework.org/blog/how-to-obtain-answer-through-google-drive-link