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| Instructions |
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| To complete the homework assignments in the templates provided: |
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| 1. | The question is provided for each problem. You may need to refer to your textbook for additional information in a few cases. |
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| 2. | You will enter the required information into the shaded cells. |
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| 3. | The cells are coded: |
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| a. | T requires a text answer. |
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| b. | C requires a calculation. You cannot perform the operation on a calculator and then type the answer in the cell. You will enter the calculation in the cell, and only the final answer will show in the cell. I will be able to review your calculation and correct, if necessary. |
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| c. | F requires a number only. In some problems, a “Step 1” is added to help you solve the problem. |
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| 4. | Name your assignment file as "lastnamefirstinitial-FINC650-Week#", and submit by midnight EST, Day 7. |
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Problem 1-2: Users of Accounting Information and Their Needs |
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Havre Company would like to buy a building and equipment to produce a new product line. Information about Havre is more useful to some people involved in the project than to others. Complete the following chart by identifying the information listed with the user’s need to know the information. Identify the information as one of the following: a. Need to know, b. Helpful to know, or c. Not necessary to know | |
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1. | Amount of current debt, repayment schedule, and interest rate | | |
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2. | Fair market value of the building | | | | | |
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3. | Condition of the roof and heating and cooling, electrical, and plumbing systems | |
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4. | Total cost of the building, improvements, and equipment to set up production | | |
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5. | Expected sales from the new product, variable production costs, and related selling costs | |
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| Users of Information | | | | |
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| Management | | Stockholders | | Banker |
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| Problem 1-5: Income Statement, Statement of Retained Earnings, and Balance Sheet |
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| General Instructions |
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| 1. The following worksheet may be used to complete the exercise/problem. |
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| You may need to refer to your textbook for additional information. |
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| 2. The blue cells are for data entry. Enter text in the T cells, figures in the F cells, calculations in C cells |
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| P1-5 |
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| The following list, in alphabetical order, shows the various items that regularly appear on the financial |
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| statements of Maple Park Theatres Corp. The amounts shown for balance sheet items are balances |
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| as of September 30, 2012 (with the exception of retained earnings, which is the balance on |
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| September 1, 2012); and the amounts shown for income statement items are balances for the month |
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| ended September 30, 2012. | | | | | | |
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| Accounts payable | | $ 17,600 | | | | |
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| Accounts receivable | | 6,410 | | | | |
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| Advertising expense | | 14,500 | | | | |
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| Buildings | | 60,000 | | | | |
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| Capital stock | | 50,000 | | | | |
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| Cash | | 15,230 | | | | |
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| Concessions revenue | | 60,300 | | | | |
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| Cost of concessions sold | | 23,450 | | | | |
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| Dividends paid during the month | | 8,400 | | | | |
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| Furniture and fixtures | | 34,000 | | | | |
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| Land | | 26,000 | | | | |
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| Notes payable | | 20,000 | | | | |
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| Projection equipment | | 25,000 | | | | |
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| Rent expense—movies | | 50,600 | | | | |
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| Retained earnings | | 73,780 | | | | |
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| Salaries and wages expense | | 46,490 | | | | |
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| Ticket sales | | 95,100 | | | | |
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| Water, gas, and electricity | | 6,700 | | | | |
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| Required |
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| 1. Prepare an income statement for the month ended September 30, 2012. |
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| MAPLE PARK THEATRES CORP. |
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| INCOME STATEMENT |
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| FOR THE MONTH ENDED SEPTEMBER 30, 2012 |
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| Revenues: |
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| Total revenues |
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| Expenses: |
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| 2. Prepare a statement of retained earnings for the month ended September 30, 2012. |
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| MAPLE PARK THEATRES CORP. |
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| STATEMENT OF RETAINED EARNINGS |
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| FOR THE MONTH ENDED SEPTEMBER 30, 2012 |
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| Beginning balance, September 1, 2012 |
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| Ending balance, September 30, 2012 |
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| 3. Prepare a balance sheet at September 30, 2012 |
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| Note: Classify Assets and Liabilities in the order of Liquidity |
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| MAPLE PARK THEATRES CORP. |
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| BALANCE SHEET |
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| SEPTEMBER 30, 2012 |
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| 4. You have $1,000 to invest. On the basis of the statements you prepared, would you use it to buy | |
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| stock in Maple Park? Explain. What other information would you want before making a |
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| final decision? | | | | | | |
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| The following items, in alphabetical order, are available from the records of Walker Corporation as of December 31, 2012 and 2011: |
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| Accounts payable | 8400 | 5200 |
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| Accounts receivable | 27830 | 35770 |
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| Cash | 20200 | 19450 |
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| Cleaning supplies | 450 | 700 |
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| Interest payable | 0 | 1200 |
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| Inventory | 24600 | 26200 |
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| Marketable securities | 6250 | 5020 |
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| Note payable, due in six months | 0 | 12000 |
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| Prepaid rent | 3600 | 4800 |
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| Taxes payable | 1450 | 1230 |
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| Wages payable | 1200 | 1600 |
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| 2. On the basis of your answers to (1), comment on the company’s relative liquidity at the beginning and end of the year. Explain the change in the company’s liquidity from the beginning to the end of 2012. |
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| TOTAL | C | C |
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| TOTAL | C | C |
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| Working Capital | C | C |
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| Problem 2-7: Multiple-Step Income Statements and Profit Margin |
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| Refer to the list of income statement items in Problem 2-6 (provided below). Assume that Shaw Corporation classifies all operating expenses into two categories: (1) selling and (2) general and administrative. | |
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| | | | Advertising expense | 1500 | | |
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| | | | Commissions expense | 2415 | | |
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| | | | Cost of goods sold | 29200 | | |
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| | | | Depreciation expense-office building | 2900 | | |
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| | | | Income tax expense | 1540 | | |
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| | | | Insurance expense-salesperson’s auto | 2250 | | |
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| | | | Interest Expense | 1400 | | |
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| | | | Interest revenue | 1340 | | |
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| | | | Rent revenue | 6700 | | |
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| | | | Salaries and wages expense-office | 12560 | | |
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| | | | Sales revenue | 48300 | | |
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| | | | Supplies expense-office | 890 | | |
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| | 1. | Prepare a multiple-step income statement for the year ended December 31, 2012. |
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| | 2. | What advantages do you see in this form for the income statement? | |
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| | 3. | Compute Shaw’s profit margin. | | | |
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| | 4. | Comment on Shaw’s profitability. What other factors need to be taken into account to assess Shaw’s profitability ? |
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| 1. Multiple-step income statement |
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| SHAW CORPORATION |
| INCOME STATEMENT |
| FOR THE MONTH ENDED DECEMBER 31, 2012 |
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| 3. Profit Margin Formula | Calculation |
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CLICK HERE TO GET THE ANSWER !!!! Instructions To complete the homework assignments in the templates provided: 1. The question is provided for each problem. You may need to refer to your textbook for additional information in a few cases. 2. You will enter the required information into the shaded cells. 3. The cells are coded: a. T requires a text answer. b. C requires a calculation. You cannot perform the operation on a calculator and then type the answer in the cell. You will enter the calculation in the cell, and only the final answer will show in the cell. I will be able to review your calculation and correct, if necessary. c. F requires a number only. In some problems, a “Step 1” is added to help you solve the problem. 4. Name your assignment file as "lastnamefirstinitial-FINC650-Week#", and submit by midnight EST, Day 7. Problem 1-2: Users of Accounting Information and Their Needs Havre Company would like to buy a building and equipment to produce a new product line. Information about Havre is more useful to some people involved in the project than to others. Complete the following chart by identifying the information listed with the user’s need to know the information. Identify the information as one of the following: a. Need to know, b. Helpful to know, or c. Not necessary to know 1. Amount of current debt, repayment schedule, and interest rate 2. Fair market value of the building 3. Condition of the roof and heating and cooling, electrical, and plumbing systems 4. Total cost of the building, improvements, and equipment to set up production 5. Expected sales from the new product, variable production costs, and related selling costs Users of Information Management Stockholders Banker 1. T T T 2. T T T 3. T T T 4. T T T 5. T T T Problem 1-5: Income Statement, Statement of Retained Earnings, and Balance Sheet General Instructions 1. The following worksheet may be used to complete the exercise/problem. You may need to refer to your textbook for additional information. 2. The blue cells are for data entry. Enter text in the T cells, figures in the F cells, calculations in C cells P1-5 The following list, in alphabetical order, shows the various items that regularly appear on the financial statements of Maple Park Theatres Corp. The amounts shown for balance sheet items are balances as of September 30, 2012 (with the exception of retained earnings, which is the balance on September 1, 2012); and the amounts shown for income statement items are balances for the month ended September 30, 2012. Accounts payable $ 17,600 Accounts receivable 6,410 Advertising expense 14,500 Buildings 60,000 Capital stock 50,000 Cash 15,230 Concessions revenue 60,300 Cost of concessions sold 23,450 Dividends paid during the month 8,400 Furniture and fixtures 34,000 Land 26,000 Notes payable 20,000 Projection equipment 25,000 Rent expense—movies 50,600 Retained earnings 73,780 Salaries and wages expense 46,490 Ticket sales 95,100 Water, gas, and electricity 6,700 Required 1. Prepare an income statement for the month ended September 30, 2012. MAPLE PARK THEATRES CORP. INCOME STATEMENT FOR THE MONTH ENDED SEPTEMBER 30, 2012 Revenues: T F T F Total revenues C Expenses: T F T F T F T F T F Total expenses C Net income C 2. Prepare a statement of retained earnings for the month ended September 30, 2012. MAPLE PARK THEATRES CORP. STATEMENT OF RETAINED EARNINGS FOR THE MONTH ENDED SEPTEMBER 30, 2012 Beginning balance, September 1, 2012 F T F T F Ending balance, September 30, 2012 C 3. Prepare a balance sheet at September 30, 2012 Note: Classify Assets and Liabilities in the order of Liquidity MAPLE PARK THEATRES CORP. BALANCE SHEET SEPTEMBER 30, 2012 Assets T F T F T F T F T F T F Total assets C Liabilities and Stockholders' Equity T F T F T F T F Total liabilities and stockholders' equity C 4. You have $1,000 to invest. On the basis of the statements you prepared, would you use it to buy stock in Maple Park? Explain. What other information would you want before making a final decision? T The following items, in alphabetical order, are available from the records of Walker Corporation as of December 31, 2012 and 2011: 12/31/12 12/31/11 Accounts payable 8400 5200 Accounts receivable 27830 35770 Cash 20200 19450 Cleaning supplies 450 700 Interest payable 0 1200 Inventory 24600 26200 Marketable securities 6250 5020 Note payable, due in six months 0 12000 Prepaid rent 3600 4800 Taxes payable 1450 1230 Wages payable 1200 1600 1. Calculate the following as of December 31, 2012 and 2011: a. Working capital b. Current ratio 2. On the basis of your answers to (1), comment on the company’s relative liquidity at the beginning and end of the year. Explain the change in the company’s liquidity from the beginning to the end of 2012. 1a. STEP 1: Current Assets FY2012 FY2011 T F F T F F T F F T F F T F F T F F TOTAL C C Current Liabilities FY2012 FY2011 T F F T F F T F F T F F T F F TOTAL C C STEP 2: Working Capital C C 1b. Current Ratio C C 2. T Problem 2-7: Multiple-Step Income Statements and Profit Margin Refer to the list of income statement items in Problem 2-6 (provided below). Assume that Shaw Corporation classifies all operating expenses into two categories: (1) selling and (2) general and administrative. Advertising expense 1500 Commissions expense 2415 Cost of goods sold 29200 Depreciation expense-office building 2900 Income tax expense 1540 Insurance expense-salesperson’s auto 2250 Interest Expense 1400 Interest revenue 1340 Rent revenue 6700 Salaries and wages expense-office 12560 Sales revenue 48300 Supplies expense-office 890 1. Prepare a multiple-step income statement for the year ended December 31, 2012. 2. What advantages do you see in this form for the income statement? 3. Compute Shaw’s profit margin. 4. Comment on Shaw’s profitability. What other factors need to be taken into account to assess Shaw’s profitability ? 1. Multiple-step income statement SHAW CORPORATION INCOME STATEMENT FOR THE MONTH ENDED DECEMBER 31, 2012 Sales F Cost of goods sold F Gross profit C Operating expenses: Selling expenses: Advertising F Commissions F Insurance—salesperson’s auto F Total selling expenses C General and administrative expenses: Depreciation—office building F Salaries and wages—office F Supplies—office F Total general and administrative expenses C Total operating expenses C Loss from operations C Other revenues and expenses: Interest expense F Interest revenue F Rent revenue F Excess of other revenues over other expenses C Income before taxes C Income tax expense F Net income C 2. Advantages: T 3. Profit Margin Formula Calculation T C 4. Profitability Comments: T CLICK HERE TO GET THE ANSWER !!!!
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Instructions
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To complete the
homework assignments in the templates provided:
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1.
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The question is
provided for each problem. You may need to refer to your textbook for
additional information in a few cases.
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2.
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You will enter the
required information into the shaded cells.
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3.
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The cells are coded:
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a.
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T requires a text answer.
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b.
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C
requires a calculation. You cannot perform the operation on a
calculator and then type the answer in the cell. You will enter the
calculation in the cell, and only the final answer will show in the cell. I
will be able to review your calculation and correct, if necessary.
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c.
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F
requires a number only. In some problems, a “Step 1” is added to help
you solve the problem.
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4.
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Name your assignment
file as "lastnamefirstinitial-FINC650-Week#", and submit by midnight EST, Day 7.
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Problem 1-2: Users
of Accounting Information and Their Needs
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Havre Company would like to buy a
building and equipment to produce a new product line. Information about Havre is more useful to
some people involved in the project than to others.
Complete the following chart by identifying the information listed with the
user’s need to know the information.
Identify the information as one of the following: a. Need to know, b.
Helpful to know, or c. Not necessary to know
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1.
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Amount of current
debt, repayment schedule, and interest rate
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2.
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Fair market value of
the building
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3.
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Condition of the roof
and heating and cooling, electrical, and plumbing systems
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4.
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Total cost of the
building, improvements, and equipment to set up production
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5.
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Expected sales from
the new product, variable production costs, and related selling costs
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Users of Information
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Management
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Stockholders
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Banker
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1.
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T
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T
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2.
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T
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T
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T
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3.
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T
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T
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T
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4.
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T
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T
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T
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5.
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T
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T
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T
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Problem 1-5: Income Statement, Statement of Retained Earnings, and
Balance Sheet
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General Instructions
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1. The following worksheet may
be used to complete the exercise/problem.
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You may need to refer to your textbook
for additional information.
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2. The blue
cells are for data entry. Enter text in the T cells, figures in the F
cells, calculations in C cells
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P1-5
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The following list, in
alphabetical order, shows the various items that regularly appear on the
financial
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statements of Maple Park
Theatres Corp. The amounts shown for balance sheet items are balances
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as of September 30, 2012 (with
the exception of retained earnings, which is the balance on
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September 1, 2012); and the
amounts shown for income statement items are balances for the month
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ended September 30, 2012.
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Accounts payable
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$
17,600
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Accounts receivable
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6,410
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Advertising expense
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14,500
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Buildings
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60,000
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Capital stock
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50,000
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Cash
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15,230
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Concessions revenue
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60,300
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Cost of concessions sold
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23,450
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Dividends paid during the month
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8,400
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Furniture and fixtures
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34,000
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Land
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26,000
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Notes payable
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20,000
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Projection equipment
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25,000
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Rent expense—movies
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50,600
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Retained earnings
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73,780
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Salaries and wages expense
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46,490
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Ticket sales
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95,100
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Water, gas, and electricity
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6,700
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Required
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1. Prepare an income statement
for the month ended September 30, 2012.
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MAPLE PARK THEATRES CORP.
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INCOME STATEMENT
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FOR THE MONTH ENDED SEPTEMBER
30, 2012
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Revenues:
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T
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F
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T
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F
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Total revenues
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C
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Expenses:
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T
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F
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T
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F
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T
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F
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T
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F
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T
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F
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Total expenses
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C
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Net income
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C
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2. Prepare a
statement of retained earnings for the month ended September 30, 2012.
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MAPLE PARK THEATRES
CORP.
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STATEMENT OF
RETAINED EARNINGS
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FOR THE MONTH ENDED
SEPTEMBER 30, 2012
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Beginning balance,
September 1, 2012
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F
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T
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F
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T
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F
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Ending balance,
September 30, 2012
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C
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3. Prepare a balance sheet at
September 30, 2012
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Note: Classify Assets
and Liabilities in the order of Liquidity
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MAPLE PARK THEATRES CORP.
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BALANCE SHEET
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SEPTEMBER 30, 2012
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Assets
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T
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F
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T
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F
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T
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F
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T
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F
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T
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F
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T
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F
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Total assets
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C
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Liabilities and Stockholders' Equity
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T
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F
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T
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F
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T
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F
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T
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F
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Total liabilities
and stockholders' equity
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C
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4. You have $1,000 to invest. On
the basis of the statements you prepared, would you use it to buy
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stock in Maple Park? Explain.
What other information would you want before making a
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final decision?
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T
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The following
items, in alphabetical order, are available from the records of Walker
Corporation as of December 31, 2012 and 2011:
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12/31/12
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12/31/11
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Accounts payable
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8400
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5200
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Accounts
receivable
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27830
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35770
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Cash
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20200
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19450
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Cleaning supplies
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450
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700
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Interest payable
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0
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1200
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Inventory
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24600
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26200
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Marketable
securities
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6250
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5020
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Note payable, due
in six months
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0
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12000
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Prepaid rent
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3600
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4800
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Taxes payable
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1450
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1230
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Wages payable
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1200
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1600
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1. Calculate the
following as of December 31, 2012 and 2011:
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a. Working capital
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b. Current ratio
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2. On the basis of your
answers to (1), comment on the company’s relative liquidity at the
beginning and end of the year.
Explain the change in the company’s liquidity from the beginning
to the end of 2012.
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1a.
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STEP 1:
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Current Assets
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FY2012
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FY2011
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T
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F
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F
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T
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F
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F
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T
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F
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F
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T
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F
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F
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T
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F
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F
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T
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F
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F
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TOTAL
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C
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C
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Current Liabilities
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FY2012
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FY2011
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T
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F
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F
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T
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F
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F
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T
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F
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F
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T
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F
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F
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T
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F
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F
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TOTAL
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C
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C
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STEP 2:
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Working Capital
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C
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C
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1b.
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Current Ratio
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C
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C
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2.
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T
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Problem 2-7: Multiple-Step Income Statements and Profit Margin
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Refer to the list
of income statement items in Problem 2-6 (provided below). Assume that Shaw Corporation classifies
all operating expenses into two categories: (1) selling and (2) general
and administrative.
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Advertising
expense
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1500
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Commissions
expense
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2415
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Cost of goods sold
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29200
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Depreciation
expense-office building
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2900
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Income tax expense
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1540
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Insurance
expense-salesperson’s auto
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2250
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Interest Expense
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1400
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Interest revenue
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1340
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Rent revenue
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6700
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Salaries and wages
expense-office
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12560
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Sales revenue
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48300
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Supplies
expense-office
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890
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1.
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Prepare a multiple-step income
statement for the year ended December 31, 2012.
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2.
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What advantages do you see in this form
for the income statement?
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3.
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Compute Shaw’s profit margin.
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4.
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Comment on Shaw’s profitability. What other factors need to be taken
into account to assess Shaw’s profitability ?
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1. Multiple-step income
statement
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SHAW CORPORATION
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INCOME STATEMENT
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FOR THE MONTH ENDED DECEMBER
31, 2012
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Sales
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F
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Cost of goods sold
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F
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Gross profit
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C
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Operating expenses:
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Selling expenses:
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Advertising
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F
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Commissions
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F
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Insurance—salesperson’s auto
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F
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Total selling expenses
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C
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General and administrative
expenses:
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Depreciation—office building
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F
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Salaries and wages—office
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F
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Supplies—office
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F
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Total general and
administrative expenses
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C
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Total operating expenses
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C
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Loss from operations
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C
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Other revenues and expenses:
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Interest expense
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F
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Interest revenue
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F
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Rent revenue
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F
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Excess of other revenues over
other expenses
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C
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Income before taxes
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C
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Income tax expense
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F
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Net income
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C
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2. Advantages: T
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3. Profit Margin Formula
|
Calculation
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T
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C
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4. Profitability Comments: T
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