"update" "non-redundant database" 2018 empirical citations 2000 questions

Questions

Case Development began operations in December 2018. When property is sold on an installment basis, Case...

Case Development began operations in December 2018. When property is sold on an installment basis, Case recognizes installment income for financial reporting purposes in the year of the sale. For tax purposes, installment income is reported by the installment method. 2018 installment income was $770,000 and will be collected over the next three years. Scheduled collections and enacted tax rates for 2019–2021 are as follows:


2019	$	184,000	30	%
2020		335,000	40
2021		251,000	40

Case also had product warranty costs of $97,000 expensed for financial reporting purposes in 2018. For tax purposes, only the $28,500 of warranty costs actually paid in 2018 was deducted. The remaining $68,500 will be deducted for tax purposes when paid over the next three years as follows:


2019	$	23,400	30	%
2020		28,400	40
2021		16,700	40

Pretax accounting income for 2018 was $1,065,000, which includes interest revenue of $27,000 from municipal bonds. The enacted tax rate for 2018 is 30%.

Required:
1. Assuming no differences between accounting income and taxable income other than those described above, prepare the appropriate journal entry to record Case’s 2018 income taxes.
2. What is Case’s 2018 net income?

In: Accounting

Case Development began operations in December 2018. When property is sold on an installment basis, Case...

Case Development began operations in December 2018. When property is sold on an installment basis, Case recognizes installment income for financial reporting purposes in the year of the sale. For tax purposes, installment income is reported by the installment method. 2018 installment income was $690,000 and will be collected over the next three years. Scheduled collections and enacted tax rates for 2019–2021 are as follows:


2019	$	168,000	30	%
2020		295,000	40
2021		227,000	40

Case also had product warranty costs of $89,000 expensed for financial reporting purposes in 2018. For tax purposes, only the $24,500 of warranty costs actually paid in 2018 was deducted. The remaining $64,500 will be deducted for tax purposes when paid over the next three years as follows:


2019	$	21,800	30	%
2020		26,800	40
2021		15,900	40

Pretax accounting income for 2018 was $945,000, which includes interest revenue of $19,000 from municipal bonds. The enacted tax rate for 2018 is 30%.

Required:
1. Assuming no differences between accounting income and taxable income other than those described above, prepare the appropriate journal entry to record Case’s 2018 income taxes.
2. What is Case’s 2018 net income?

In: Accounting

2018 2017 Net Income $49,500 $38,250 Dividendsâ€”Common 24,000 24,000 Dividendsâ€”Preferred 12,000 12,000 Total Stockholders' Equity at...

	2018	2017
Net Income	$49,500	$38,250
Dividendsâ€”Common	24,000	24,000
Dividendsâ€”Preferred	12,000	12,000
Total Stockholders' Equity at Year-End
(includes 75,000 shares of common stock)	790,000	610,000
Preferred Stock	230,000	230,000
Market Price per Share of Common Stock	$17.50	$12.00

calculate the price/earnings ratio for 2018 and 2017

(Round interim calculations to the nearest cent, $X.XX and your answers to two decimal places, X.XX.)

2018:
2017:

calculate the dividend yield on common stock for

2018 and 2017.

(Round interim calculations to the nearest cent, $X.XX, and your final answers to one tenth of a percent, X.X%.)

2018:		%
2017:		%

calculate the dividend payout for

2018 and 2017

(Round interim calculations to the nearest cent, $X.XX, and your final answers to the nearest whole percent, X%.)

2018:		%
2017:		%

Determine whether the common stock has increased or decreased in attractiveness during the past year.

The stock's attractiveness during 2018 as shown by the increase or decrease

in the price/earnings ratio. If an investor is looking at the stock for dividend potential, then the stock is less attractive or more attractive

than last year; both the dividend yield and the dividend payout decreased or increased

.

In: Accounting

Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after...

Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after delivery and receive a credit to their accounts. All of Halifax's sales are for credit (no cash is collected at the time of sale). The company began 2018 with a refund liability of $390,000. During 2018, Halifax sold merchandise on account for $12,400,000. Halifax's merchandise costs it 65% of merchandise selling price. Also during the year, customers returned $368,000 in sales for credit, with $203,000 of those being returns of merchandise sold prior to 2018, and the rest being merchandise sold during 2018. Sales returns, estimated to be 3% of sales, are recorded as an adjusting entry at the end of the year.

Required:

1. Prepare entries to (a) record actual returns in 2018 of merchandise that was sold prior to 2018; (b) record actual returns in 2018 of merchandise that was sold during 2018; and (c) adjust the refund liability to its appropriate balance at year end.
2. What is the amount of the year-end refund liability after the adjusting entry is recorded?

I am getting everything besides part C. My math comes out to 4,000 for the difference in estimated and actual but mcgraw hill is saying this is incorrect.

In: Accounting

Financial statements for Allendale Company follow: ALLENDALE COMPANY Balance Sheets As of December 31 2019 2018...

Financial statements for Allendale Company follow:

ALLENDALE COMPANY
Balance Sheets As of December 31
	2019		2018
Assets
Current assets
Cash	$	40,000	$	36,000
Marketable securities		20,000		6,000
Accounts receivable (net)		54,000		46,000
Inventories		135,000		143,000
Prepaid items		25,000		10,000
Total current assets		274,000		241,000
Investments		27,000		20,000
Plant (net)		270,000		255,000
Land		29,000		24,000
Total assets	$	600,000	$	540,000
Liabilities and Stockholders’ Equity
Liabilities
Current liabilities
Notes payable	$	17,000	$	6,000
Accounts payable		113,800		100,000
Salaries payable		21,000		15,000
Total current liabilities		151,800		121,000
Noncurrent liabilities
Bonds payable		100,000		100,000
Other		32,000		27,000
Total noncurrent liabilities		132,000		127,000
Total liabilities		283,800		248,000
Stockholders’ equity
Preferred stock, (par value $10, 4% cumulative, non-participating; 8,000 shares authorized and issued)		80,000		80,000
Common stock (no par; 50,000 shares authorized; 10,000 shares issued)		80,000		80,000
Retained earnings		156,200		132,000
Total stockholders’ equity		316,200		292,000
Total liabilities and stockholders’ equity	$	600,000	$	540,000

ALLENDALE COMPANY
Statements of Income and Retained Earnings For the Years Ended December 31
	2019		2018
Revenues
Sales (net)	$	230,000	$	210,000
Other revenues		8,000		5,000
Total revenues		238,000		215,000
Expenses
Cost of goods sold		120,000		103,000
Selling, general, and administrative		55,000		50,000
Interest expense		8,000		7,200
Income tax expense		23,000		22,000
Total expenses		206,000		182,200
Net earnings (net income)		32,000		32,800
Retained earnings, January 1		132,000		107,000
Less: Preferred stock dividends		3,200		3,200
Common stock dividends		4,600		4,600
Retained earnings, December 31	$	156,200	$	132,000

Required

Calculate the following ratios for 2019 and 2018. Since 2017 numbers are not presented do not use averages when calculating the ratios for 2018. Instead, use the number presented on the 2018 balance sheet.

Working capital.

Current ratio. (Round your answers to 2 decimal places.)

Quick ratio. (Round your answers to 2 decimal places.)

Receivables turnover (beginning receivables at January 1, 2018, were $47,000). (Round your answers to 2 decimal places.)

Average days to collect accounts receivable. (Round your intermediate calculations to 2 decimal places and your final answers to the nearest whole number.)

Inventory turnover (beginning inventory at January 1, 2018, was $140,000). (Round your answers to 2 decimal places.)

Number of days to sell inventory. (Round your intermediate calculations to 2 decimal places and your final answers to the nearest whole number.)

Debt to assets ratio. (Round your answers to the nearest whole percent.)

Debt to equity ratio. (Round your answers to 2 decimal places.)

Number of times interest was earned. (Round your answers to 2 decimal places.)

Plant assets to long-term debt. (Round your answers to 2 decimal places.)

Net margin. (Round your answers to 2 decimal places.)

Turnover of assets. (Round your answers to 2 decimal places.)

Return on investment. (Round your answers to 2 decimal places.)

Return on equity. (Round your answers to 2 decimal places.)

Earnings per share. (Round your answers to 2 decimal places.)

Book value per share of common stock. (Round your answers to 2 decimal places.)

Price-earnings ratio (market price per share: 2018, $11.75; 2019, $12.50). (Round your intermediate calculations and final answer to 2 decimal places.)

Dividend yield on common stock. (Round your answers to 2 decimal places.)

In: Accounting

Financial statements for Allendale Company follow: ALLENDALE COMPANY Balance Sheets As of December 31 2019 2018...

Financial statements for Allendale Company follow:

ALLENDALE COMPANY
Balance Sheets As of December 31
	2019		2018
Assets
Current assets
Cash	$	40,000	$	36,000
Marketable securities		20,000		6,000
Accounts receivable (net)		54,000		46,000
Inventories		135,000		143,000
Prepaid items		25,000		10,000
Total current assets		274,000		241,000
Investments		27,000		20,000
Plant (net)		270,000		255,000
Land		29,000		24,000
Total assets	$	600,000	$	540,000
Liabilities and Stockholders’ Equity
Liabilities
Current liabilities
Notes payable	$	17,000	$	6,000
Accounts payable		113,800		100,000
Salaries payable		21,000		15,000
Total current liabilities		151,800		121,000
Noncurrent liabilities
Bonds payable		100,000		100,000
Other		32,000		27,000
Total noncurrent liabilities		132,000		127,000
Total liabilities		283,800		248,000
Stockholders’ equity
Preferred stock, (par value $10, 4% cumulative, non-participating; 8,000 shares authorized and issued)		80,000		80,000
Common stock (no par; 50,000 shares authorized; 10,000 shares issued)		80,000		80,000
Retained earnings		156,200		132,000
Total stockholders’ equity		316,200		292,000
Total liabilities and stockholders’ equity	$	600,000	$	540,000

ALLENDALE COMPANY
Statements of Income and Retained Earnings For the Years Ended December 31
	2019		2018
Revenues
Sales (net)	$	230,000	$	210,000
Other revenues		8,000		5,000
Total revenues		238,000		215,000
Expenses
Cost of goods sold		120,000		103,000
Selling, general, and administrative		55,000		50,000
Interest expense		8,000		7,200
Income tax expense		23,000		22,000
Total expenses		206,000		182,200
Net earnings (net income)		32,000		32,800
Retained earnings, January 1		132,000		107,000
Less: Preferred stock dividends		3,200		3,200
Common stock dividends		4,600		4,600
Retained earnings, December 31	$	156,200	$	132,000