14quiz. Wlll assets (ROA) ratio better or worse in the most current year compare
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Question
14quiz.Wlll assets (ROA) ratio better or worse in the most current year compared to prior years? CUMULATIVE REVIEW PROBLEM: CHAPTER 14 The purpose of this problem is to provide an opportunity to review both new concepts in the current chapter and major concepts in previous chapters. This cumulative reviene should assist you in integrating accounting concepts and preparing for exams. gfortion for tlloen PART 1: USE THE FOLLOWING INFORMATION FOR THE NEXT FIVE QUESTIONS. Selected Balance Sheet account balances are: MELLISSA COMPANY December 31 2011 2010 Cash Accounts Pay Accounts Receivable Salaries Payable Land Merchandise Inventory Prepaid Rent Income Taxes Payable $ 20,000 30,000 160,000 7,000 50,000 70,000 18,000 ,000 S 10,000 40,000 110,000 1,000 80,000 90,000 30,000 2,000
Explanation / Answer
Answers
Accounts receivables
A
Beginning Balance
$ 1,10,000.00
B
Sales
$ 9,40,000.00
C
Ending Balance
$ 1,60,000.00
D = A + B - C
Cash collections from Customers
$ 8,90,000.00
Working:
Inventory
A
Beginning Balance
$ 90,000.00
B
Cost of Goods Sold
$ 5,00,000.00
C
Ending Balance
$ 70,000.00
D = C + B - A
Inventory purchased
$ 4,80,000.00
Answer:
Accounts Payable
A
Beginning Balance
$ 40,000.00
B
Inventory purchased
$ 4,80,000.00
C
Ending Balance
$ 30,000.00
D = A + B - C
Cash paid to suppliers
$ 4,90,000.00
Salaries Payable
A
Beginning Balance
$ 1,000.00
B
Salaries expense
$ 2,00,000.00
C
Ending Balance
$ 7,000.00
D = A + B - C
Cash payment for salaries
$ 1,94,000.00
Prepaid Rent
A
Beginning Balance
$ 30,000.00
B
Rent Expense
$ 70,000.00
C
Ending Balance
$ 18,000.00
D = A + B - C
Cash payment for rent
$ 82,000.00
Income Tax Payable
A
Beginning Balance
$ 2,000.00
B
Income Tax expense
$ 40,000.00
C
Ending Balance
$ 1,000.00
D = A + B - C
Cash payment for Income Taxes
$ 41,000.00
Accounts receivables
A
Beginning Balance
$ 1,10,000.00
B
Sales
$ 9,40,000.00
C
Ending Balance
$ 1,60,000.00
D = A + B - C
Cash collections from Customers
$ 8,90,000.00
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