Author: Anonymous

Refer to the following selected financial information from Storm River, LLC. Compute the company’s days’ sales in inventory for Year 2. (Use 365 days a year.)    Year 2   Year 1 Cash $ 37,500   $ 36,850   Short-term investments   90,000     90,000   Accounts receivable, net   85,500     86,250   Merchandise inventory   121,000     117,000   Prepaid expenses   12,100     13,500   Plant assets   388,000     392,000   Accounts payable   113,400     111,750   Net sales   711,000     706,000   Cost of goods sold   390,000     385,500  

All of the following are asset accounts except:

Mumford Corporation reported Net sales of $765,000 and Net income of $142,000. The Profit margin is:

The statement of cash flows explains how transactions and events impact the end-of-period cash balance to produce the end-of-period net income.

The appropriate section in the statement of cash flows for reporting the purchase of land in exchange for common stock is:

Increases in liability accounts are recorded as debits.

When preparing the operating activities section of the statement of cash flows using the direct method, non-operating losses are added to net income.

Dennison Company reports depreciation expense of $35,000 for Year 2. Also, equipment costing $140,000 was sold for a $5,000 gain in Year 2. The following selected information is available for Dennison Company from its comparative balance sheet. Compute the cash received from the sale of the equipment.  At December 31 Year 2 Year 1 Equipment $ 610,000   $ 750,000   Accumulated Depreciation-Equipment   428,000     500,000  

Each adjusting entry affects one or more income statement account, one or more balance sheet account, and never cash.

Market prospects are the ability to provide financial rewards sufficient to attract and retain financing.