The following information relates to R-U Ready Company, a publicly traded company:

1. R. U. Ready acquired Machine B on 1/1/13 by signing a 9% installment note to be paid in 5 equal installments of $65,000. Each payment is due on 12/31, with the first payment due 12/31/13. The useful life of Machine B is 8 years with no residual value. Assume double declining balance depreciation.

Requirement:

Present the accounts and dollar amounts that would appear on comparative balance sheets and income statements for the years ending 12/31/16 and 12/31/15.

List all accounts and dollar amounts. Round dollar amounts to the nearest dollar. You do not need to include cash.  

• For the Classification (Class) column of the Balance Sheet use:
• A for Asset
• L for Liability
• E for Equity

For the Classification (Class) column of the Income Statement use:

• R for Revenue
• E for Expense

On June 1, Haimes Company spent $200,000 to purchase 250,000 coffee
mugs to sell at its retail store. During the year, Haimes Company
recorded the following sales of coffee mugs:

         Month          Mugs solds        Selling price per mug
         June             16,000                  $2.00
         July             35,000                  $2.50
         August            2,000                  $3.00
         September        31,000                  $2.00
         October          46,000                  $3.00
         November         47,000                  $4.00
         December         40,000                  $3.50

Calculate the gross profit earned by Haimes Company for the months
August through November.

Exercise 2A-7

Crane Corporation incurred the following transactions.

Record the transactions. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Presented here is the income statement for Fairchild Co. for March: Sales $ 84,000 Cost of goods sold 40,500 Gross profit $ 43,500 Operating expenses 30,500 Operating income $ 13,000 Based on an analysis of cost behavior patterns, it has been determined that the company's contribution margin ratio is 34%.

Required: a. Rearrange the preceding income statement to the contribution margin format.

Calculate operating income if sales volume increases by 6%. (Do not round intermediate calculations.

Calculate the amount of revenue required for Fairchild to break-even

You have just been hired as a financial analyst for Lydex Company, a manufacturer of safety helmets. Your boss has asked you to perform a comprehensive analysis of the company’s financial statements, including comparing Lydex’s performance to its major competitors. The company’s financial statements for the last two years are as follows: Lydex Company Comparative Balance Sheet This Year Last Year Assets Current assets: Cash $ 950,000 $ 1,110,000 Marketable securities 0 300,000 Accounts receivable, net 2,500,000 1,600,000 Inventory 3,550,000 2,000,000 Prepaid expenses 250,000 190,000 Total current assets 7,250,000 5,200,000 Plant and equipment, net 9,420,000 9,000,000 Total assets $ 16,670,000 $ 14,200,000 Liabilities and Stockholders' Equity Liabilities: Current liabilities $ 3,960,000 $ 2,880,000 Note payable, 10% 3,640,000 3,040,000 Total liabilities 7,600,000 5,920,000 Stockholders' equity: Common stock, $70 par value 7,000,000 7,000,000 Retained earnings 2,070,000 1,280,000 Total stockholders' equity 9,070,000 8,280,000 Total liabilities and stockholders' equity $ 16,670,000 $ 14,200,000 Lydex Company Comparative Income Statement and Reconciliation This Year Last Year Sales (all on account) $ 15,810,000 $ 13,080,000 Cost of goods sold 12,648,000 9,810,000 Gross margin 3,162,000 3,270,000 Selling and administrative expenses 1,183,714 1,584,000 Net operating income 1,978,286 1,686,000 Interest expense 364,000 304,000 Net income before taxes 1,614,286 1,382,000 Income taxes (30%) 484,286 414,600 Net income 1,130,000 967,400 Common dividends 340,000 483,700 Net income retained 790,000 483,700 Beginning retained earnings 1,280,000 796,300 Ending retained earnings $ 2,070,000 $ 1,280,000 To begin your assignment you gather the following financial data and ratios that are typical of companies in Lydex Company’s industry: Current ratio 2.3 Acid-test ratio 1.2 Average collection period 40 days Average sale period 60 days Return on assets 8.7 % Debt-to-equity ratio 0.66 Times interest earned ratio 5.7 Price-earnings ratio 10 Required: 1. Present the balance sheet in common-size format. 2. Present the income statement in common-size format down through net income.

resent the balance sheet in common-size format. (Round your answers to 1 decimal place. Due to rounding, figures may not fully reconcile down a column.)

resent the income statement in common-size format down through net income. (Round your answers to 1 decimal place. Due to rounding, figures may not fully reconcile down a column.)

calculate percent of total assets. Please show excel calculations.

The comparative balance sheets for 2018 and 2017 and the statement of income for 2018 are given below for Dux Company. Additional information from Dux's accounting records is provided also.

Additional information from the accounting records:

1. A building that originally cost $40,000, and which was three-fourths depreciated, was sold for $7,000.
2. The common stock of Byrd Corporation was purchased for $5,000 as a long-term investment.
3. Property was acquired by issuing a 13%, seven-year, $30,000 note payable to the seller.
4. New equipment was purchased for $15,000 cash.
5. On January 1, 2018, bonds were sold at their $25,000 face value.
6. On January 19, Dux issued a 5% stock dividend (1,000 shares). The market price of the $10 par value common stock was $14 per share at that time.
7. Cash dividends of $13,000 were paid to shareholders.
8. On November 12, 500 shares of common stock were repurchased as treasury stock at a cost of $8,000.

Required:
Prepare the statement of cash flows for Dux Company using the indirect method. (Do not round intermediate calculations. Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands. (i.e., 10,000 should be entered as 10).)

Herbert Fancypants, a popular professional golfer, has become known for the knickers (not underwear; Google/Bing it) he wears in each golf tournament. This attire has become his trademark; however, he has no trademark protection under any applicable law. Nor is there any requirement under golfing rules that he wear anything other than “appropriate attire suitable to the profession.”

Are the purchase and cleaning costs of the knickers deductible to Mr. Fancypants? Please cite all resources in your research to support your conclusion

Problem 18-03

The federal corporate income tax rate is 35 percent and firms may carry-back losses for two years and carry-forward losses for 20 years. The carry-back must occur before carry-forward. A corporation breaks even in year 1, earns $27,000 in year 2, but operates at a loss of $87,000 in year 3. It earns $73,000 in year 4, breaks even in year 5, and earns $43,000 in year 6. What are the taxes paid or refunded in each year? Enter your answers as positive values. If the answer is zero, enter "0". Round your answers to the nearest dollar.

For the year ended December 31, 2018, Norstar Industries reported net income of $655,000. At January 1, 2018, the company had 900,000 common shares outstanding. The following changes in the number of shares occurred during 2018:
  

Required:

Compute Norstar's earnings per share for the year ended December 31, 2018. (Enter your answers in thousands.)

This is what I have calculated and it is incorrect. Please help.

STEP 1 Transactions

Select a business of your own choice and make up at least 15 transactions of your own choice. These transactions should focus on Cash Receipts, Cash Payments, Sales, Purchases, Sales Returns, Purchases Returns and General transactions.

STEP 2 Source Documents

For each of the transaction that you have selected, identify the source document used.

Step 3 Journals

Post the 15 transactions selected in step 1 into the 7 journals that you have learnt.

Step 4 T-Form Ledger Accounts

Post the entries from the Journals to the ledger. You are required to make all the ledger accounts.

Step 5 Trial Balance

From all the Ledger Accounts Prepared in Step 4, extract a Trial Balance.

How can a buiness owner end up getting personally sued even if the business is incorporated?