final accounting

The following information is available from the current period financial statements: Net income $165,000 Depreciation expense 28,000 Increase in accounts receivable 16,000 Decrease in accounts payable 21,000 The net cash flow from operating activities using the indirect method is

$156,000

Nebraska Inc. issues 3,000 shares of common stock for $45,000. The stock has a stated value of $10 per share. The journal entry to record the stock issuance would include a credit to Common Stock for

$30,000

Brock Company's financial information is listed below. Assume that all balance sheet amounts represent both average and ending balance figures and that all sales were on credit. Assets Cash and short-term investments $ 40,000 Accounts receivable (net) 30,000Inventory 25,000Property, plant, and equipment 215,000Total assets$310,000 Liabilities and Stockholders' Equity Current liabilities$ 60,000 Long-term liabilities 95,000 Common stock, $10 par 60,000 Retained earnings 95,000 Total liabilities and stockholders' equity $310,000 Income Statement Sales $90,000 Cost of goods sold 45,000 Gross margin $45,000 Operating expenses 20,000 Net income $25,000 Number of shares of common stock 6,000 Market price of common stock $20 What is the current ratio?

1.58

The balance sheets at the end of each of the first two years of operations indicate the following: Kellman Company Year 2 Year 1Total current assets $600,000 $560,000 Total investments 60,000 40,000 Total property, plant, and equipment 900,000 700,000 Total current liabilities125,000 65,000 Total long-term liabilities 350,000 250,000 Preferred 9% stock, $100 par 100,000 100,000 Common stock, $10 par 600,000 600,000 Paid-in capital in excess of par—Common stock 75,000 75,000 Retained earnings 310,000 210,000 Using the balance sheets for Kellman Company, if net income is $150,000 and interest expense is $20,000 for Year 2, what is the return on total assets for the year?

11.9%

A corporation has 50,000 shares of $25 par stock outstanding. If the corporation issues a 3-for-1 stock split, the number of shares outstanding after the split will be

150,000 shares

. Based on the following data, what is the accounts receivable turnover? Sales on account during year $700,000 Cost of goods sold during year 270,000 Accounts receivable, beginning of year 45,000 Accounts receivable, end of year 35,000 Inventory, beginning of year 90,000 Inventory, end of year 110,000

17.5

The journal entry to record the conversion of a $6,300 accounts payable to a note payable would be

Accounts Payable 6,300 Notes Payable 6,300

On January 5, Thomas Company, a calendar-year company, issued $1,000,000 of notes payable, of which $250,000 is due on January 1 each of the next four years. The proper balance sheet presentation on December 31 is

Current Liabilities, $250,000; Long-Term Debt, $750,000

On the first day of the fiscal year, Lisbon Co. issued $1,000,000 of 10-year, 7% bonds for $1,050,000, with interest payable semiannually. Orange Inc. purchased the bonds on the issue date for the issue price. If Lisbon uses the straight-line method for amortizing the premium, the journal entry to record the first semiannual interest payment by Lisbon Co. would include a debit to

Interest Expense for $32,500

Dylan Corporation issues for cash $2,000,000 of 8%, 15-year bonds, interest payable annually, at a time when the market rate of interest is 9%. The straight-line method is adopted for the amortization of bond discount or premium. Which of the following statements is true?

The amount of annual interest paid to bondholders remains the same over the life of the bonds.

Corporate annual reports typically do not contain

an SEC statement expressing an opinion

Which of the following should be added to net income in calculating net cash flow from operating activities using the indirect method?

an increase in accrued expenses

The current portion of long-term debt shoulda. be classified as

be reclassified as a current liability

Which of the following can be found on the statement of cash flows?

cash flows from operating activities

Vacation pay payable is reported on the balance sheet as a(n)

current liability or long-term liability, depending upon when the vacations will be taken by employees

The journal entry used to record the issuance of a discounted note for the purpose of borrowing funds for the business is

debit Cash and Interest Expense; credit Notes Payable

The journal entry a company records for the issuance of bonds when the contract rate and the market rate are the same is to

debit Cash, credit Bonds Payable

The journal entry a company records for the interest payment and amortization of bond discount is

debit Interest Expense and Discount on Bonds Payable, credit Cash

The journal entry a company uses to record accrued vacation privileges for its employees at

debit Vacation Pay Expense; credit Vacation Pay Payable

When the bonds are sold for more than their face value, the carrying amount of the bonds is equal to

face value plus the unamortized premium

Stockholders' equity

includes retained earnings and paid-in capital

The two main sources of stockholders' equity are

investments by stockholders and net income retained in the business

Which of the following is a noncash investing and financing activity?

issuance of common stock to acquire land

Treasury stock shares are

issued shares that have been reacquired by a corporation

On the statement of cash flows, the cash flows from operating activities section would include

payment for interest on short-term notes payable

In which section of the financial statements would Paid-In Capital from Sale of Treasury Stock be reported?

stockholders' equity on balance sheet

Treasury stock that was purchased for $3,000 is sold for $3,500. As a result of these two transactions combined

stockholders' equity will be increased by $500

Which of the following would most likely be classified as a current liability?

unearned rent