Principles of Financial Accounting.
24th Edition
ISBN: 9781260158601
Author: Wild
Publisher: MCG
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Textbook Question
Chapter 1, Problem 1AA
COMPANY ANALYSIS
Key financial figures for Apple's two most recent fiscal years follow.
| $ millions | Current Year | Prior Year |
| Liabilities + Equity................. | $375,319 | $321,686 |
| Net income....................... | 48,351 | 45,687 |
| Revenues......................... | 229.234 | 215,639 |
Required
1. What is the total amount of assets invested in Apple in the current year?
2. What is Apple's return on assets for the current year?
3. How much are total expenses for Apple for the current year?
4. Is Apple's current-year return on assets better or worse than competitors' average of 10% return?
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Using a BalanceSheetMOON CORPORATIONBALANCE SHEETJULY 31, 2011Assets Liabilities & Owners’ EquityCash . . . . . . . . . . . . . . . . $ 18,000 Liabilities:Accounts Receivable . . . 26,000 Notes PayableLand . . . . . . . . . . . . . . . . 37,200 (due in 60 days) . . . . . . . . . . . . . $ 12,400Building. . . . . . . . . . . . . . 38,000 Accounts Payable . . . . . . . . . . . . . 9,600Office Equipment . . . . . . 1,200 Total liabilities . . . . . . . . . . . . . . $ 22,000Stockholders’ equity:Capital Stock . . . . . . . . . $60,000Retained Earnings. . . . . 38,400 98,400Total . . . . . . . . . . . . . . . . $120,400 Total . . . . . . . . . . . . . . . . . . . . . . . . . $120,400STAR CORPORATIONBALANCE SHEETJULY 31, 2011Assets Liabilities & Owners’ EquityCash . . . . . . . . . . . . . . . . $ 4,800 Liabilities:Accounts Receivable . . . 9,600 Notes PayableLand . . . . . . . . . . . . . . . . 96,000 (due in 60 days) . . . . . . . . . . . . . $ 22,400Building. . . . . . . . . . . .…
The following information came from a recent balance sheet of Apple Computer, Inc.:End of Year Beginning of YearAssets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $53.9 billion $39.6 billionLiabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $26.0 billion ?Owners’ Equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ? $21.0 billiona. Determine the amount of total liabilities reported in Apple Computer ’s balance sheet at thebeginning of the year.b. Determine the amount of total owners’ equity reported in Apple Computer ’s balance sheet atthe end of the year.c. Retained earnings was reported in Apple Computer ’s year-end balance sheet at $19.5 billion.If retained earnings was $13.8 billion at the beginning of the year, determine net income forthe year if no dividends were declared.
Question Description
The following income statement and selected balance sheet account data are available for Treece, Inc., at December 31, 2013
Revenue:
Net sales………………………………………..$3,200,000
Interest income………………………………….. . 45,000
Gain on sale of marketable securities…….………...34,000
Total revenue…………………………………..$3,279,000
Costs and expenses:
Cost of goods sold…………………………………………... $1,620,000
Operating expenses (including depreciation of $150,000)….1, 240,000
Interest expense…………………………………………….…...42,000
Income taxes…………………………………………….……....100,000
Loss on sale of plant Assets.....................................................…...12,000
Total Costs and expenses…………………………..………. $3,014,000
Net income………………………………………….…………. $260,000
Changes in the Company’s balance sheet accounts over the year are summarized as follows:
Accounts receivable increased by $60,000
Accrued interest receivable decreased by $2,000
Inventory decreased by $60,000, and Account payable decreased by $16,000
Short term…
Chapter 1 Solutions
Principles of Financial Accounting.
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