Question 1

The balance sheet of Evanston Inc. includes the following items:
  Required:
1 Determine the current ratio and working capital.
2 What does the composition of the current assets tell you about Evanston's liquidity?
3 What other information do you need to fully assess Evanston's liquidity?

Accepted Answer

The answer of The balance sheet of Evanston Inc. includes...

Question 2

Read the information about Cargo Corporation.
Required:
Calculate Cargo's current ratio at December 31, 2015. What does this ratio tell you about the "composition" of the
current assets?

Accepted Answer

The answer of Read the information about Cargo Corporation.
Required:
Calculate Cargo's...

Question 3

Read the information about Fasoli, Inc.
Required:
Compute Fasoli's current ratio. On the basis of your answer, does Fasoli appear to be liquid? What other information do you need to fully answer that question?

Accepted Answer

The answer of Read the information about Fasoli, Inc.
Required:
Compute Fasoli's...

Question 4

Read the information about Fasoli, Inc.
Required:
Present the Current Assets section including the total of a classified balance sheet.

Accepted Answer

The answer of Read the information about Fasoli, Inc.
Required:
Present the...

Question 5

Complete the December 31, 2015 first year of operation Balance sheet for Weglein Company using the following information:
a Retained earnings at December 31, 2015 was $51,000.
b Total stockholders' equity at January 1, 2015 was $139,000.
c On December 30, 2015, additional capital stock was sold for cash, $55,000
d The land and building were purchased on December 30, 2015 for $150,000.

Accepted Answer

The answer of Complete the December 31, 2015 first year...

Question 6

Read the information about Burke Company
Required:
Prepare a single-step income statement for the year ended December 31, 2014.

Accepted Answer

The answer of Read the information about Burke Company
Required:
Prepare a...

Question 7

Read the information about Eagle Corporation.
Required:
How much is net income for the year ended December 31, 2014? If Eagle Corporation had used a single-step statement, by how much would net income be different? Explain.

Accepted Answer

The answer of Read the information about Eagle Corporation.
Required:
How much...

Question 8

Read the information about Crystal, Inc. Which item is most "liquid"? Why is liquidity important?

Accepted Answer

The answer of Read the information about Crystal, Inc. Which...

Question 9

Harrison Company calculated the following amounts concerning its financial information for the years ending December 31, 2015 and 2014:
  Required:
Suppose Harrison Company had a decrease in its cash account from 2014 to 2015. Would the other current asset amounts have increased or decreased? Explain.

Accepted Answer

The answer of Harrison Company calculated the following amounts concerning...

Question 10

Read the information about Cargo Corporation.
Required:
Calculate the amount of working capital at December 31, 2015 for Cargo Corp. What can you learn from the current ratio that you cannot learn from the amount of working capital?

Accepted Answer

The answer of Read the information about Cargo Corporation.
Required:
Calculate the...

Question 11

Read the information about Eagle Corporation.
Required:
Compare the profit margins for 2014 and 2013. Is the company becoming more or less profitable or staying the same? What could be contributing to this?

Accepted Answer

The answer of Read the information about Eagle Corporation.
Required:
Compare the...

Question 12

Read the information about Burke Company.
Required:
Prepare a multiple-step income statement for the year ended December 31, 2014.

Accepted Answer

The answer of Read the information about Burke Company.
Required:
Prepare a...

Question 13

Read the information about Fasoli, Inc.
Required:
Prepare the Liabilities section of the classified balance sheet, including total liabilities balance.

Accepted Answer

The answer of Read the information about Fasoli, Inc.
Required:
Prepare the...

Question 14

Read the information about Fasoli, Inc.
Required:
Present the current liabilities section including the total of a classified balance sheet.

Accepted Answer

The answer of Read the information about Fasoli, Inc.
Required:
Present the...

Question 15

Read the information about Crystal, Inc. Has Crystal been profitable since it began operations? How do you know?

Accepted Answer

The answer of Read the information about Crystal, Inc. Has...

Question 16

Read the information about Fellsmere Corporation.
Required:
A Explain the change in Fellsmere's working capital from 2013 to 2014. Why do users believe the current ratio provides more information than the dollar amount of working capital? Explain.
B Fellsmere Corporation's creditors need to know whether its working capital position improved during the year. How would you evaluate this?

Accepted Answer

The answer of Read the information about Fellsmere Corporation.
Required:
A Explain...

Question 17

Harrison Company calculated the following amounts concerning its financial information for the years ending December 31, 2015 and 2014:
  Required:
Examine Harrison's ratios. Is the change in the current ratio favorable or not? Explain.

Accepted Answer

The answer of Harrison Company calculated the following amounts concerning...

Question 18

Read the information about Fasoli, Inc.
Required:
Prepare the Assets section of the classified balance sheet.

Accepted Answer

The answer of Read the information about Fasoli, Inc.
Required:
Prepare the...

Question 19

Read the information about Fellsmere Corporation.
Required:
A Did Fellsmere's current ratio increase or decrease from 2013 to 2014? Make any necessary calculations and explain your answer. Which financial statement users are most concerned with this ratio?
B The balance sheets show a large increase in retained earnings during 2014. Identify the possible reasons for this increase.

Accepted Answer

The answer of Read the information about Fellsmere Corporation.
Required:
A Did...

Question 20

Read the information about Fasoli, Inc.
Required:
Prepare the Stockholders' Equity section of the classified balance sheet, including the total stockholders' equity
amount.

Accepted Answer

The answer of Read the information about Fasoli, Inc.
Required:
Prepare the...

Quiz 1: Accounting As a Form of Communication

The balance sheet of Evanston Inc. includes the following items: Required: 1 Determine the current ratio and working capital. 2 What does the composition of the current assets tell you about Evanston's liquidity? 3 What other information do you need to fully assess Evanston's liquidity?

Read the information about Cargo Corporation. Required: Calculate Cargo's current ratio at December 31, 2015. What does this ratio tell you about the "composition" of the current assets?

Read the information about Fasoli, Inc. Required: Compute Fasoli's current ratio. On the basis of your answer, does Fasoli appear to be liquid? What other information do you need to fully answer that question?

Read the information about Fasoli, Inc. Required: Present the Current Assets section including the total of a classified balance sheet.

Read the information about Burke Company Required: Prepare a single-step income statement for the year ended December 31, 2014.

Read the information about Eagle Corporation. Required: How much is net income for the year ended December 31, 2014? If Eagle Corporation had used a single-step statement, by how much would net income be different? Explain.

Read the information about Crystal, Inc. Which item is most "liquid"? Why is liquidity important?

Read the information about Cargo Corporation. Required: Calculate the amount of working capital at December 31, 2015 for Cargo Corp. What can you learn from the current ratio that you cannot learn from the amount of working capital?

Read the information about Eagle Corporation. Required: Compare the profit margins for 2014 and 2013. Is the company becoming more or less profitable or staying the same? What could be contributing to this?

Read the information about Burke Company. Required: Prepare a multiple-step income statement for the year ended December 31, 2014.

Read the information about Fasoli, Inc. Required: Prepare the Liabilities section of the classified balance sheet, including total liabilities balance.

Read the information about Fasoli, Inc. Required: Present the current liabilities section including the total of a classified balance sheet.

Read the information about Crystal, Inc. Has Crystal been profitable since it began operations? How do you know?

Harrison Company calculated the following amounts concerning its financial information for the years ending December 31, 2015 and 2014: Required: Examine Harrison's ratios. Is the change in the current ratio favorable or not? Explain.

Read the information about Fasoli, Inc. Required: Prepare the Assets section of the classified balance sheet.

Read the information about Fasoli, Inc. Required: Prepare the Stockholders' Equity section of the classified balance sheet, including the total stockholders' equity amount.