Question 1

Required: Compute the asset turnover ratio for 2013.

Accepted Answer

The answer of Required: Compute the asset turnover ratio for...

Question 2

Required: Compute the average days in inventory for 2013.

Accepted Answer

The answer of Required: Compute the average days in inventory...

Question 3

Required: Compute the inventory turnover ratio for 2013.

Accepted Answer

The answer of Required: Compute the inventory turnover ratio for...

Question 4

Assume that McCombs uses the completed contract method for revenue recognition.
Required: Compute the amount of gross profit recognized by McCombs during 2012 and 2013.

Accepted Answer

The answer of Assume that McCombs uses the completed contract...

Question 5

Its asset turnover ratio for 2013. Round your answer to two decimal places.

Accepted Answer

The answer of Its asset turnover ratio for 2013. Round...

Question 6

Required: Compute the average collection period (rounded to one decimal place) for 2013.

Accepted Answer

The answer of Required: Compute the average collection period (rounded...

Question 7

Required: Compute the return on shareholders' equity for 2013. Round your answer to one decimal place, e.g., .1234 as 12.3%.

Accepted Answer

The answer of Required: Compute the return on shareholders' equity...

Question 8

Assume that McCombs uses the percentage-of-completion method for revenue recognition.
Required: Compute the amount of gross profit recognized during 2012 and 2013.

Accepted Answer

The answer of Assume that McCombs uses the percentage-of-completion method...

Question 9

Its profit margin on sales for 2013. Round your answer to one decimal place, e.g., .1234 as 12.3%.

Accepted Answer

The answer of Its profit margin on sales for 2013....

Question 10

In 2013, KP Building Inc. began work on a four-year construction project (called Cincy One). The contract price is $300 million. KP uses the percentage-of-completion method of accounting. At the end of 2013, the following financial statement information indicates the results to date for Cincy One:  Required: Compute the following, placing your answer in the spaces provided and showing supporting computations below.

Accepted Answer

The answer of In 2013, KP Building Inc. began work...

Question 11

Its average collection period for 2013. Round your final answer to one decimal place.

Accepted Answer

The answer of Its average collection period for 2013. Round...

Question 12

Assume that Beavis reports under IFRS and uses the percentage-of-completion method for revenue recognition.
Required: Prepare all journal entries to record costs, billings, collections, and profit recognition.

Accepted Answer

The answer of Assume that Beavis reports under IFRS and...

Question 13

Required: Compute the receivables turnover ratio for 2013.

Accepted Answer

The answer of Required: Compute the receivables turnover ratio for...

Question 14

Its inventory turnover ratio for 2013. Round your answer to one decimal place.

Accepted Answer

The answer of Its inventory turnover ratio for 2013. Round...

Question 15

Emu and You, a new fast-food chain, sells exclusive franchises for $25,000. For this fee, franchisees receive training, assistance on site selection, assistance during the construction phase, and promotional considerations for the grand opening, including a visit by Ernie Emu. There is also a $500 per month continuation fee for institutional advertising and accounting services after the store is open for business. On March 20 of the current year, Emu and You sold a franchise to I.M. Stuck for the standard fee. The franchisor received a 20% down payment and a 10%, four-year note for the balance. On June 15, Stuck had his grand opening and Emu and You had met all requirements for substantial performance. On July 15, Emu and You received $500 for the continuing fee.
Required: Prepare the appropriate journal entries for Emu and You at March 20, June 15, and July 15. Ignore any interest accrual.

Accepted Answer

The answer of Emu and You, a new fast-food chain,...

Question 16

Required: Compute the return on assets for 2013.

Accepted Answer

The answer of Required: Compute the return on assets for...

Question 17

Its receivables turnover ratio for 2013. Round your answer to one decimal place.

Accepted Answer

The answer of Its receivables turnover ratio for 2013. Round...

Question 18

Required: Compute the profit margin on sales for 2013.

Accepted Answer

The answer of Required: Compute the profit margin on sales...

Question 19

In 2013, Chicago Construction began work on a three-year construction project to build a new performing arts complex (the PAC). The PAC contract price is $150 million. Chicago uses the percentage-of-completion method of accounting. At the end of 2013, the following financial statement information indicates the results to date for the PAC:  Required: Compute the following, placing your answer in the spaces provided and showing supporting computations below:

Accepted Answer

The answer of In 2013, Chicago Construction began work on...

Question 20

Assume that McCombs uses the percentage-of-completion method for revenue recognition.
Required: Prepare all journal entries to record costs, billings, collections, and profit recognition. Round your answers to the nearest whole dollar.

Accepted Answer