Given the following prices and quantities

Compute and interpret the Laspeyres price index number for the year 2018 with 2008 as base.

Compute the interpret the Paasche’s price index number for the year 2018 with 2008 as base

On March 31, 2018, Canseco Plumbing Fixtures purchased equipment for $44,000. Residual value at the end of an estimated four-year service life is expected to be $8,000. The company expects the machine to operate for 20,000 hours. a. Calculate depreciation expense for 2018 and 2019 using straight line method. b. Calculate depreciation expense for 2018 and 2019 using sum-of-the-years’-digits method. c. Calculate depreciation expense for 2018 and 2019 using double-declining balance method.

On January 1, 2018, for $18.7 million, Cenotaph Company purchased 10% bonds, dated January 1, 2018, with a face amount of $20.7 million. For bonds of similar risk and maturity, the market yield is 12%. Interest is paid semiannually on June 30 and December 31

. Required: 1. Prepare the journal entry to record interest on June 30, 2018, using the effective interest method.

2. Prepare the journal entry to record interest on December 31, 2018, using the effective interest method.

Provide calculations and show steps for each:

Average Collection Period

Average Accounts Receivables/Net Credit Sales

2018 = 11,721/79,040 =

2019 = 12,046/90,621 =

Total Asset turnover

Net Sales/Average Total Assets

2018 = 90,621/118,007 =

2019 = 79,040/124,193 =

Debt Ratio

Total Debt/Total Assets

2018 = 53,521/111,820 =

2019 = 51,871/124,193 =

Times interest earned

EBIT/Total Interest

2018 = -2,926/-2,353 =

2019 = -2,181/-2,170 =

On January 1, 2018, Dreamworld Co. began construction of a new warehouse. The building was finished and ready for use on September 30, 2019. Expenditures on the project were as follows:

Dreamworld had $5,300,000 in 13% bonds outstanding through both years.

The average accumulated expenditures for 2019 by the end of the construction period was:

Exercise 9-27

Presented below is information related to Sandhill Corporation. Price Index LIFO Cost Retail Inventory on December 31, 2017, when dollar-value LIFO is adopted 100 $36,600 $69,100 Inventory, December 31, 2018 110 ? 95,260 Compute the ending inventory under the dollar-value LIFO method at December 31, 2018. The cost-to-retail ratio for 2018 was 60%. Ending inventory under the dollar-value LIFO method at December 31, 2018

Compute and Interpret Altman's Z-scores

Following is selected financial information for Netflix, for 2018 and 2017.

Compute and interpret Altman Z-scores for the company for both years. (Do not round until your final answer; then round your answers to two decimal places.)
2018 z-score = Answer

2017 z-score = Answer

Which of the following best describes the company's likelihood to go bankrupt given the z-score in 2017 compared to 2018.

The z-score in 2018 increased. Z-scores for both years are in the gray area indicating some risk of bankruptcy.

The z-score in 2018 increased, which suggests the company's risk of bankruptcy has increased.

The z-score in 2018 increased. Z-scores for both years indicate low bankruptcy potential in the short term.

The z-score in 2018 decreased, which suggests the company's risk of bankruptcy has decreased.

On January 1, 2018, Coronado Corp. had 491,000 shares of common stock outstanding. During 2018, it had the following transactions that affected the Common Stock account.

February 1 Issued 114,000 shares

March 1 Issued a 10% stock dividend

May 1 Acquired 103,000 shares of treasury stock

June 1 Issued a 3-for-1 stock split

October 1 Reissued 60,000 shares of treasury stock

a. Determine the weighted-average number of shares outstanding as of December 31, 2018.

b. Assume that Coronado Corp. earned net income of $3,619,000 during 2018. In addition, it had 98,000 shares of 9%, $100 par nonconvertible, noncumulative preferred stock outstanding for the entire year. Because of liquidity considerations, however, the company did not declare and pay a preferred dividend in 2018. Compute earnings per share for 2018, using the weighted-average number of shares determined in part (a).

c. Assume the same facts as in part (b), except that the preferred stock was cumulative. Compute earnings per share for 2018.

d. Assume the same facts as in part (b), except that net income included a loss from discontinued operations of $431,000 (net of tax). Compute earnings per share for 2018.