Question
In: Accounting
The remaining questions relate to the following presentation in the balance sheets of HiROE Co. at...
The remaining questions relate to the following presentation in the balance sheets of HiROE Co. at December 31, 2017 and 2016:
12/31/17 12/31/16
Accounts receivable, less allowance for uncollectible $487,000. $406,000 accounts of $12,000 and $4,000 repsectively
a. Describe how the allowance amount at December 31, 2017 was most likely determined.
b. If the bad debt expense for 2017 totaled $14,000, what was the amount of accounts receivable written off during the year? (Hint: Using the T account model of the allowance account, plug in the three amounts that you know and then solve for the unknown.)
c. The December 31, 2017 allowance account balance includes $3,500 for a past due account that is not likely to be collected. This account has not been written off. If it had been written off, what would have been the effect of the write off on: 1. Working capital at December 31, 2017? 2. Net income and ROI, for the year ended December 31, 2017?
d. What do you suppose was the level of HiROE's sales in 2017, compared to 2016?
Solutions
ekkarill92 answered 2 years agoRelated Solutions
XYZ Co.’s summary balance sheets for 2017 and 2018 are below: XYZ Co. Balance Sheets 2017...
XYZ Co.’s summary balance sheets for 2017 and 2018 are below:
XYZ Co. Balance Sheets 2017 2018
Cash 400,000 300,000
Accounts receivable 800,000 _________
(b) Net fixed assets 1,600,000 2,300,000 TOTAL ASSETS _________
_________
Accounts payable 250,000 300,000 Short-term debt 350,000
400,000
Long-term debt 800,000 800,000 Shareholders’ equity
_________
(a) 1,500,000 TOTAL LIABIL. & SHAREHOLDER’S EQUITY _________
_________
Calculate the following: a) Shareholders’ equity in 2017
b) Accounts receivable in 2018
c) If XYZ Co. has a company policy to...
Comparative Balance Sheets Consider the following balance sheet data for Great Buy Co., Inc., an electronics...
Comparative Balance Sheets
Consider the following balance sheet data for Great Buy Co., Inc.,
an electronics and major appliance retailer, at February 26, 2013
and February 27, 2012 (amounts in thousands):
Feb. 26, 2013
Feb. 27, 2012
Cash and Cash Equivalents
$77,834
$8,566
Accounts Receivables
68,827
45,562
Merchandise Inventories
829,335
299,989
Other Current Assets
17,997
11,795
Total Current Assets
993,993
365,912
Property and Equipment (net)
224,541
151,730
Other Assets
19,708
9,329
Total Assets
$1,238,242
$526,971
Current Liabilities
$522,636
$223,206
Long-Term...
[The following information applies to the questions displayed below.] The balance sheets for Fantasy Football for...
[The following information applies to the questions
displayed below.]
The balance sheets for Fantasy Football for 2018 and 2017 are
provided below.
Required:
1. Prepare a vertical analysis of Fantasy
Football's 2018 and 2017 balance sheets. Express each amount as a
percentage of total assets for that year. (Amounts to be
deducted should be indicated by a minus sign. Round your answers to
1 decimal place.)
FANTASY FOOTBALL
Balance Sheets
December 31
2018
2017
Amount
%
Amount
%
Assets
Current...
Which of the following is a difference between balance sheets and income statements? a. Balance sheets...
Which of the following is a difference between balance sheets
and income statements?
a. Balance sheets are also known as
profit and loss statements, whereas income statements are also
known as statements of financial position.
b. Balance sheets are used to track
a business's liquidity, efficiency, and profitability over time
compared to other businesses in its industry, whereas income
statements are quantitative plans through which managers decide how
to allocate available money to best accomplish company goals.
c. Balance sheets...
The comparative balance sheets for Wildhorse Co. as of December 31 are presented below. Wildhorse Co....
The comparative balance sheets for Wildhorse Co. as of December
31 are presented below.
Wildhorse Co.
Comparative Balance Sheets
December 31
Assets
2017
2016
Cash
$ 93,364
$ 61,785
Accounts receivable
68,650
79,634
Inventory
207,941
194,966
Prepaid expenses
20,979
28,833
Land
199,085
178,490
Buildings
274,600
274,600
Accumulated depreciation—buildings
(82,380
)
(54,920
)
Equipment
308,925
212,815
Accumulated depreciation—equipment
(61,785
)
(48,055
)
Total
$1,029,379
$928,148
Liabilities and Stockholders’ Equity
Accounts payable
$ 61,414
$ 49,428
Bonds payable
411,900
411,900
Common stock,...
On January 1 2017 the balance sheets of Potter Co. and Hogwarts Co. were as follows:...
On January 1 2017
the balance sheets of Potter Co. and Hogwarts Co. were as
follows:
Potter
Hogwarts
cash
1,000,000
50,000
equipment
1,000,000
100,000
a/d equip
100,000
10,000
Land
2,000,000
20,000
building
3,000,000
100,000
a/d building
1,000,000
30,000
patent
50,000
50,000
total assets
5,950,000
280,000
accounts payable
1,000,000
40,000
notes payable
1,000,000
40,000
common stock $5 par
3,000,000
150,000
apic c/s
100,000
0
r/e
850,000
50,000
On January 2nd Potter acquired
80% of the stock of Hogwarts by issuing 50,000...
On January 1 2017 the balance sheets of Potter Co. and Hogwarts Co. were as follows:...
On January 1 2017
the balance sheets of Potter Co. and Hogwarts Co. were as
follows:
Potter
Hogwarts
cash
1,000,000
50,000
equipment
1,000,000
100,000
a/d equip
100,000
10,000
Land
2,000,000
20,000
building
3,000,000
100,000
a/d building
1,000,000
30,000
patent
50,000
50,000
total assets
5,950,000
280,000
accounts payable
1,000,000
40,000
notes payable
1,000,000
40,000
common stock $5 par
3,000,000
150,000
apic c/s
100,000
0
r/e
850,000
50,000
On January 2nd Potter acquired
all of the stock of Hogwarts by issuing 50,000...
[The following information applies to the questions displayed below.] Income statements and balance sheets data for...
[The following information applies to the questions displayed
below.]
Income statements and balance sheets data for Virtual Gaming
Systems are provided below.
VIRTUAL GAMING SYSTEMS Income Statements
For the year ended December 31
2019
2018
Net sales
3,470,000
2,996,000
Cost of goods sold
2,472,000
1,942,000
Gross Profit
998,000
1,054,000
Expenses:
Operating Expenses
947,000
850,000
Depreciation expenses
22,000
23,000
Loss on sale of land
0
7,200
Interest expense
14,000
11,000
Income tax expense
7,200
44,000
Total expenses
990,200
935,200
Net income...
At the end of 2017 fiscal year, L&Z Co. has the following information: Balance Sheets Current...
At the end of 2017
fiscal year, L&Z Co. has the following information:
Balance
Sheets
Current Assets
Accounts
receivable, net of allowance of
$1,076
$16,194
a)
During 2018, the company wrote off $200 of specific accounts that
were deemed uncollectable. Prepare the journal entry to record the
write-off of these accounts receivable. (4 pts)
b) At the end of
2018 (12/31/2018), management estimate 8% of account receivables
balance will likely be difficult to collect. The company’s Accounts
Receivable has a...
Use the information below for ABC Co. to answer the following questions. Balance Sheet
Use the information below for ABC Co. to answer the
following questions.
Balance
Sheet December
31
2005 2004
Assets
Cash $ 20,000 $ 10,000
Accounts
receivable 160,000 110,000
Inventories
80,000 50,000
Prepaid
Rent 15,000
10,000
Investments 100,000 75,000
Plant
assets 210,000 250,000
Accumulated depreciation
(65,000) (60,000)
Total
$520,000 $445,000
Liabilities and Stockholders' Equity
Accounts
payable $ 50,000 $ 40,000
Interest payable
20,000 5,000
Income tax
payable 5,000 10,000
Note
payable 130,000 140,000
Common
stock 155,000 100,000
Retained earnings
160,000 150,000
Total
$520,000 $445,000
Income Statement
For the Year Ended December 31, 2005
Sales $800,000
Cost of goods
sold 480,000
Gross
Profit 320,000
Operating expenses (including Depreciation Expense) 120,000
Interest expense 20,000
Income...
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