What is the order of the subtotals that appear on a multi-step income statement? a. Gross Profit, Operating Income, Net Income, Total Other Revenues and Expenses b. Operating Income, Gross Profit, Net Income, Total Other Revenues and Expenses c. Total Other Revenues and Expenses, Operating Income, Gross Profit, Net Income d. Gross Profit, Operating Income, Total Other Revenues and Expenses, Net Income

Each of the following independent situations represents amounts shown on the four basic financial statements. 1. Revenues = $27,000; Expenses =$18,000; Net income = _____. 2. Increase in stockholders' equity = $17,000; Issuance of common stock =$11,000; Net income = $12,000; Dividends = _____. 3. Assets =$24,000; Stockholders' equity = $15,000; Liabilities = _____. 4. Total change in cash =$26,000; Net operating cash flows = $34,000; Net investing cash flows = ($17,000); Net financing cash flows = _____. Required: Fill in the missing blanks using your knowledge of amounts that appear on the financial statements.

Compute the current ratio and acid-test ratio for each of the following separate cases. (Round ratios to two decimals.) Which company situation is in the best position to meet short-term obligations? Explain.

Swell Company has a lawsuit pending from a customer claiming damages of $100,000. Swell's attorney advises that the likelihood the customer will win is remote. GAAP requires at a minimum that this contingent liability be a. disclosed in the footnotes. b. disclosed in the footnotes, with ranges of potential loss. c. recorded as a journal entry, as well as disclosed in the footnotes. d. No disclosure is required.

Which account does a merchandiser use that a service company does not use? a. Cost of Goods Sold c. Sales Revenue b. Merchandise Inventory d. All of the above

Generally accepted accounting principles (GAAP) are formulated by the a. Financial Accounting Standards Board (FASB). b. Securities and Exchange Commission (SEC). c. Institute of Management Accountants (IMA). d. American Institute of Certified Public Accountants (AICPA).

If a company owns 25% of the voting stock of Pink Co. and can exercise significant influence, dividends received will be

• a. credited to Equity Investments- Pink Co.
• b. credited to Dividend Revenue.
• c. debited to Equity Investments-Pink Co.
• d. credited to Cash.

Known liabilities of estimated amounts are

• a. ignored. (Record them when paid.)
• b. reported on the balance sheet
• c. reported on the income statement
• d. reported only in the notes to the financial statements.

A product has a sales price of $150 and a per-unit contribution margin of$50. What is the contribution margin ratio?

Which of the following formulae is the right formula for calculating contribution margin​ ratio?

A. Contribution margin ratio​ = Contribution margin x Net sales revenue

B. Contribution margin ratio​ = Contribution margin​ + Net sales revenue

C. Contribution margin ratio​ = Contribution margin minus Net sales revenue

D. Contribution margin ratio​ = Contribution margin​ / Net sales revenue

The marketing research department for a company that manufactures and sells memory chips for microcomputers established the following price-demand and revenue functions: $p(x)=75-3 x$ Price-demand function $R(x)=x p(x)=x(75-3 x)$ Revenue function, where p(x) is the wholesale price in dollars at which x million chips can be sold, and R(x) is in millions of dollars. Both functions have domain $1 \leq x \leq 20$. (A) Sketch a graph of the revenue function in a rectangular coordinate system. (B) Find the value of x that will produce the maximum revenue. What is the maximum revenue? (C) What is the wholesale price per chip that produces the maximum revenue?

Milbank Repairs & Service, an electronics repair store, prepared the following unadjusted trial balance at the end of its first year of operations:

$$\begin{array}{cc} \begin{array}{c} \textbf{Milbank Repairs \& Service}\\ \textbf{Unadjusted Trial Balance}\\ \textbf{June 30, 2019}\\ \end{array}\\ \begin{array}{lrr} \hline & \textbf{Debit} & \textbf{Credit}\\ & \textbf{Balances} & \textbf{Balances}\\ \hline \text{Cash. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .} & 10,350\\ \text{Accounts Receivable . . . . . . . . . . . . . . . . .} & 67,500\\ \text{Supplies . . . . . . . . . . . . . . . . . . . . . . . . . . . } &16,200\\ \text{Equipment. . . . . . . . . . . . . . . . . . . . . . . . .} & 166,100\\ \text{Accounts Payable . . . . . . . . . . . . . . . . . . . } &&15,750\\ \text{Unearned Fees. . . . . . . . . . . . . . . . . . . . . .} && 18,000\\ \text{Nancy Townes, Capital. . . . . . . . . . . . . . .} && 171,500\\ \text{Nancy Townes, Drawing. . . . . . . . . . . . . . } &13,500\\ \text{Fees Earned. . . . . . . . . . . . . . . . . . . . . . . .} && 294,750\\ \text{Wages Expense . . . . . . . . . . . . . . . . . . . . . } &94,500\\ \text{Rent Expense. . . . . . . . . . . . . . . . . . . . . . .} & 72,000\\ \text{Utilities Expense . . . . . . . . . . . . . . . . . . . .} & 51,750\\ \text{Miscellaneous Expense. . . . . . . . . . . . . . . .} & \underline{8,100} & \_\_\_\_\_\_\_ \\ & \underline{\underline{500,000}} & \underline{\underline{500,000}} \end{array} \end{array}$$

For preparing the adjusting entries, the following data were assembled:

• Fees earned but unbilled on June 30 were $7,380.
• Supplies on hand on June 30 were$2,775.
• Depreciation of equipment was estimated to be $11,000 for the year.
• The balance in unearned fees represented the June 1 receipt in advance for services to be provided. During June,$16,500 of the services were provided.
• Unpaid wages accrued on June 30 were $3,880.

Instructions

1. Journalize the adjusting entries necessary on June 30, 2019.
2. Determine the revenues, expenses, and net income of Milbank Repairs & Service before the adjusting entries.
3. Determine the revenues, expenses, and net income of Milbank Repairs & Service after the adjusting entries.
4. Determine the effect of the adjusting entries on Nancy Townes, Capital.

Below are approximate amounts related to cash flow information reported by five companies in previous years. 1. Kraft Foods reports operating cash flows of $3.6 billion, investing cash flows of$0.6 billion, and financing cash flows of -$4.2 billion. What is the amount of the change in total cash? 2. Sara Lee reports operating cash flows of$1.4 billion, investing cash flows of -$0.3 billion, and financing cash flows of -$1.4 billion. If the beginning cash amount is $0.7 billion, what is the ending cash amount? 3. Performance Food Group reports operating cash flows of$0.07 billion, investing cash flows of $0.63 billion, and a change in total cash of$0.04 billion. What is the amount of cash flows from financing activities? 4. Smithfield Foods reports operating cash flows of $0.60 billion, financing cash flows of$0.42 billion, and a change in total cash of $0.02 billion. What is the amount of cash flows from investing activities? 5. Tyson Foods reports investing cash flows of -$1.42 billion, financing cash flows of $1.03 billion, and a change in total cash of$0.02 billion. What is the amount of cash flows from operating activities? Required: Calculate the answer to each.

Below are approximate amounts related to balance sheet information reported by five companies in previous years. 1. ExxonMobil reports total assets of $228 billion and total liabilities of$107 billion. What is the amount of stockholders' equity? 2. Citigroup reports total liabilities of $1,500 billion and stockholders' equity of$110 billion. What is the amount of total assets? 3. Amazon.com reports total assets of $4.7 billion and total stockholders' equity of$0.3 billion. What is the amount of total liabilities? 4. Nike reports an increase in assets of $1.2 billion and an increase in liabilities of$0.3 billion. What is the amount of the change in stockholders' equity? 5. Kellogg reports a decrease in liabilities of $0.34 billion and an increase in stockholders' equity of$0.02 billion. What is the amount of the change in total assets? Required: Calculate the answer to each.