Exercise 1: Suppose The Following Information Was Taken From

Exercise 1 5suppose The Following Information Was Taken From The 2017

Suppose the following information was taken from the 2017 financial statements of pharmaceutical giant Bramble Corp. (All dollar amounts are in millions.) Retained earnings, January 1, 2017 $46,836.3 Cost of goods sold 9,460.6 Selling and administrative expenses 8,592.7 Dividends 3,387.0 Sales revenue 38,203.8 Research and development expense 5,960.5 Income tax expense 2,691.2 After analyzing the data, prepare an income statement for the year ending December 31, 2017. (Enter amounts in millions upto 1 decimal place, e.g. 45.5 million.) Bramble Corp. Income Statement (in millions) $ $ $ SHOW LIST OF ACCOUNTS LINK TO TEXT After analyzing the data, prepare a retained earnings statement for the year ending December 31, 2017. (List items that increase retained earnings first. Enter amounts in millions upto 1 decimal place, e.g. 45.5 million.) Bramble Corp. Retained Earnings Statement (in millions) $ : : $ Exercise 1-11 Wildhorse Co. is the world’s leading producer of ready-to-eat cereal and a leading producer of grain-based convenience foods such as frozen waffles and cereal bars. Suppose the following items were taken from its 2017 income statement and balance sheet. (All dollars are in millions.) Retained earnings $4,800 Cost of goods sold 6,860 Selling and administrative expenses 3,640 Cash 340 Notes payable 40 Interest expense 340 Bonds payable 4,700 Inventory 740 Sales revenue 12,400 Accounts payable 1,070 Common stock 140 Income tax expense 430 In each case, identify whether the item is an asset, liability, stockholders’ equity, revenue, or expense. Retained earnings Cost of goods sold Selling and administrative expenses Cash Notes payable Interest expense Bonds payable Inventory Sales revenue Accounts payable Common stock Income tax expense SHOW LIST OF ACCOUNTS LINK TO TEXT Prepare an income statement for Wildhorse Co. for the year ended December 31, 2017. (Enter amounts in millions, e.g. 45.) Wildhorse Co. Income Statement (in millions) $ $ $ Exercise 1-14 Wayne Holtz is the bookkeeper for Windsor, Inc.. Wayne has been trying to get the balance sheet of Windsor, Inc. to balance. It finally balanced, but now he’s not sure it is correct. Windsor, Inc. Balance Sheet December 31, 2017 Assets Liabilities and Stockholders’ Equity Cash $12,400 Accounts payable $10,400 Supplies 15,100 Accounts receivable (17,600 ) Equipment 34,400 Common stock 45,600 Dividends 13,600 Retained earnings 37,100 Total assets $75,500 Total liabilities and stockholders’ equity $75,500 Prepare a correct balance sheet. (List assets in order of liquidity.) Windsor, Inc. Balance Sheet Assets $ $ Liabilities and Stockholders' Equity $ $ $ Exercise 2-2 Classify each of the following financial statement items based upon the major balance sheet classifications. Prepaid advertising Equipment Trademarks Salaries and wages payable Income taxes payable Retained earnings Accounts receivable Land (held for future use) Patents Bonds payable Common stock Accumulated depreciation—equipment Unearned sales revenue Inventory Exercise 2-4 Suppose the following information (in thousands of dollars) is available for Swifty Corporation —famous for ketchup and other fine food products—for the year ended April 30, 2017. Prepaid insurance $ 140,700 Buildings $4,002,900 Land 72,200 Cash 360,900 Goodwill 3,980,400 Accounts receivable 1,146,100 Trademarks 770,800 Accumulated depreciation—buildings 2,144,500 Inventory 1,269,500 Prepare the assets section of a classified balance sheet. (List current assets in order of liquidity.) Swifty Corporation Partial Balance Sheet (in thousands) Assets $ $ $ : $ Exercise 2-8 These financial statement items are for Novak Corp. at year-end, July 31, 2017. Salaries and wages payable $ 3,980 Salaries and wages expense 58,900 Supplies expense 16,800 Equipment 20,400 Accounts payable 4,100 Service revenue 67,500 Rent revenue 9,700 Notes payable (due in ,000 Common stock 16,000 Cash 30,300 Accounts receivable 10,980 Accumulated depreciation—equipment 7,700 Dividends 4,000 Depreciation expense 5,700 Retained earnings (beginning of the year) 35,100 Prepare an income statement for the year. Novak Corp. did not issue any new stock during the year. Novak Corp. Income Statement $ $ $ $ SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT Prepare a retained earnings statement for the year. Novak Corp. did not issue any new stock during the year. Novak Corp. Retained Earnings Statement $ : $ : $ SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT Prepare a classified balance sheet at July 31. (List current assets in order of liquidity.) Novak Corp. Balance Sheet Assets $ $ : $ Liabilities and Stockholders' Equity $ $ $ SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT Compute the current ratio and debt to assets ratio. (Round answers to 1 decimal place, e.g. 15.2.) Current ratio :1 Debt to assets ratio %