Refer the following table.

*90% of the plant and equipment are secured by long-term notes payable.

Required:
Calculate Focus Metals solvency ratios for 2016 and 2017.Use Exhibit 17.14. (Round the final answers to 2 decimal places.)


DEBIT RATIO OF 2017 AND 2016

EQUITY RATIO FOR THE YEARS

PLEDGED ASSETS TO SECURED LIABILITIES

TIME INTREST EARNED

home / study / business / accounting / accounting questions and answers / iverson company purchased a delivery truck for $45,000 on january 1, 2015. the truck was assigned ... Your question needs more information to be answered. A Chegg Expert needs more info to provide you with the best answer. See comments below. Question: Iverson Company purchased a delivery truck for $45,000 on January 1, 2015. The truck was assigned... Edit question Iverson Company purchased a delivery truck for $45,000 on January 1, 2015. The truck was assigned an estimated useful life of 5 years and has a residual value of $10,000 and the truck was assigned an estimated useful life of 100,000 miles. Using the attached Excel File, compute and label each type of depreciation expense under following independent methods. Straight line method for years 2015 and 2016. Assume you disposed of the asset on July 1, 2017 and no cash was received. Calculate the gain or loss for this disposal as of that date.

Double Declining Balance method for years 2015, 2016, and 2017. What is the book value of the truck as of December 31, 2017?

The truck was driven 18,000 miles in 2015 and 22,000 miles in 2016. Compute depreciation expense using the units-of-activity method for the years 2015 and 2016

The comparative financials of Stargel Inc is as follows. At December 31, 2015, Stargel inventory was $200 and the total equity was $165. Stargel Inc. Comparative Balance Sheet December 31, 2017 and 2016 2017 2016 Assets Cash............................................................................ 400 300 Accounts Receivable................................................. 290 350 Inventory.................................................................... 150 220 Total Assets..................................................... 840 870 Liabilities Accounts Payable...................................................... 140 75 Loan Payable.............................................................. 450 600 Total Liabilities................................................ 590 375 Stockholders’ Equity Common Stock.......................................................... 40 40 Retained Earnings..................................................... 210 155 Total Stockholders’ Equity................................ 250 195 Total Liabilities and Stockholders’ Equity........... 840 870 Stargel Inc. Comparative Income Statement For the Years ending December 31, 2017 and 2016 2017 2016 Sales Revenue............................................................ 1,200 1,000 Less Cost of Goods Sold............................................ 800 600 Gross Profit................................................................ 400 400 Insurance Expenses................................................... 200 190 Interest Expense........................................................ 60 80 Net Income................................................................ 140 130

Instructions:

a.    Prepare a horizontal analysis of Stargel’s financial statements indicating the increase and decrease.

b.    Prepare a vertical analysis of Stargel’s financial statements.

c.     Determine the inventory turnover for both years

d.    Determine the rate of return on stockholders’ equity ratio for both years

Dowell Company produces a single product. Its income statements under absorption costing for its first two years of operation follow. 2016 2017 Sales ($44 per unit) $ 1,012,000 $ 1,892,000 Cost of goods sold ($29 per unit) 667,000 1,247,000 Gross margin 345,000 645,000 Selling and administrative expenses 291,000 331,000 Net income $ 54,000 $ 314,000 Additional Information Sales and production data for these first two years follow. 2016 2017 Units produced 33,000 33,000 Units sold 23,000 43,000 Variable cost per unit and total fixed costs are unchanged during 2016 and 2017. The company's $29 per unit product cost consists of the following. Direct materials $ 6 Direct labor 9 Variable overhead 4 Fixed overhead ($330,000/33,000 units) 10 Total product cost per unit $ 29 Selling and administrative expenses consist of the following. 2016 2017 Variable selling and administrative expenses ($2 per unit) $ 46,000 $ 86,000 Fixed selling and administrative expenses 245,000 245,000 Total selling and administrative expenses $ 291,000 $ 331,000 2. What are the differences between the absorption costing income and the variable costing income for these two years? (Loss amounts should be entered with a minus sign.)

On January 1, 2016, Kittson Company had a retained earnings balance of $218,600. It is subject to a 30% corporate income tax rate. During 2016, Kittson earned net income of $67,000, and the following events occurred:

Required:

American customer satisfaction index: Starbucks in the U.S. 2006-2016

This statistic shows the American customer satisfaction index scores of Starbucks in the United States from 2006 to 2016. Starbucks had an ACSI score of 75 in 2016. Just over 50 percent (around 7,880) of all Starbucks stores were company-operated stores, from which Starbucks generates around 79 percent of its revenue. Around 5,292 stores are licensed stores. Starbucks, which became a publicly traded company on June 26, 1992, generated around 21.32 billion U.S. dollars in revenue in the 2016 fiscal year. In its company-operated stores Starbucks generates 74 percent of revenue from the sale of beverages, 19 percent from food sales and three percent from the sale of packaged and single serve coffees. Another four percent of retail sales are attributable to coffee-making equipment and other merchandise. The United States is Starbucks’ biggest and most important market. In 2016, revenues from Starbucks Americas segment amounted to more than 14 billion U.S. dollars. The Americas segment comprises over 13,000 stores in the U.S., Canada, Mexico, Puerto Rico, Brazil Chile and other American countries with around 86 percent of those stores located in the United States. 1. Plot this set of data as a scatterplot in excel. 2. Find the correlation coefficient. 3. Is it positive or negative? 4. What does the sign tell us? 5. What does the correlation imply about the relationship between the time and the satisfaction? 6. Is the correlation significant? Why or why not? (Answer in 1-2 complete sentences.) (Use the Pearson calculator). 7. Draw the trendline in excel. Can the regression line be used for prediction? No, it is too weak. Insert excel graph here:

a.       Record the issuance of the bonds on January 1, 2016.

b.       Record the annual investment to sinking fund.

C.            Record the annual appropriation of retained earnings for the retirement of 20 year bonds.

b.    Record removal of appropriations of retained earnings for retirement of funds.

On November 1, 2016, Gordon Co. collected $10,380 in cash from its tenant as an advance rent payment on its store location. The six-month lease period ends on April 30, 2017, at which time the contract may be renewed.

a-1. Use the horizontal model to record the effect of the six months of rent collected in advance on November 1, 2016 for Gordon Co. (Use amounts with + for increases and amounts with – for decreases.)

a-2. Use the horizontal model to record the effect of the adjustment that will be made at the end of each month to show the amount of rent "earned" during the month for Gordon Co. (Use amounts with + for increases and amounts with – for decreases.)

Record the receipt a six-month advance rent payment.

Note: Enter debits before credits.

c. Suppose the advance collection received on November 1, 2016, covered an 30-month lease period at the same amount of rent per month. How should Gordon Co. report the unearned rent amount on its December 31, 2016, balance sheet?

Cocoa Company *

2016 2017

Cash 100 75

Cost of Goods Sold 1000 1100

Debt (LT) 10000 12000

Depreciation 2000 2200

Equity (total) 5300 5125

Interest Expense 600 720

Inventories 400 400

Payables 1200 1350

Property, Plant, Equipment 16000 18000

Revenues 6500 7500

Salaries 2200 2100

Share Capital 4964 4491

* All values given are in 1000s of dollars.

1. Construct a statement of comprehensive income for Cocoa Co. up through Earnings-Before- Taxes (EBT) for both 2016 and 2017. Use three columns: The left column should list the relevant accounts, the middle column should show the appropriate values for each account in 2016, and the right column should show the appropriate values for 2017.

2. Compute full (combined federal and provincial) corporate taxes for Cocoa Co. for both 2016 and 2017. Cocoa is a small corporation based in New Brunswick. As such it pays only 15.5% (i.e., 11% federal and 4.5% provincial tax) on the first $425,000 it earns, and then pays 27.0% (i.e., 15% federal and 12% provincial tax) on the remainder.

3. What was net income for both years?

4. If Cocoa’s payout ratio is always 40%, what was the addition to retained earnings for both years?

5. Construct a statement of financial position for Cocoa Co. for both 2016 and 2017. (In constructing the SFP, please use three columns: The left column should list the relevant accounts that appear on the SFP, the middle column should show the appropriate values for each account in 2016, and the right column should show the appropriate values for each account in 2017.)

6. Calculate Cocoa’s current ratio for 2017. Explain what it means, and state whether you think it’s good news or bad news for Cocoa’s managers.

7. If the value of Cocoa’s assets are to remain unchanged for the foreseeable future, and its profits are expected to increase, what do you expect will happen to its ROA.