50.1K

Verified Solution

Link Copied!

1. The following items are taken from the financial statements of Cullumber Company at December 31, 2022.

Land			$196,500
Accounts receivable			21,300
Supplies			10,100
Cash			12,000
Equipment			83,100
Buildings			261,400
Land improvements			46,250
Notes receivable (due in 2023)			5,100
Accumulated depreciationland improvements			13,100
Common stock			73,500
Retained earnings (December 31, 2022)			502,000
Accumulated depreciationbuildings			34,200
Accounts payable			9,300
Mortgage payable			90,150
Accumulated depreciationequipment			18,700
Interest payable			3,800
Income taxes payable			15,200
Patents			47,100
Investments in stock (long-term)			72,200
Debt investments (short-term)			4,900

A) Prepare a classified balance sheet. Assume that $10,200 of the mortgage payable will be paid in 2023. (List Current Assets in order of liquidity. List Property, Plant and Equipment in order of Land, Buildings, Equipment and Land Improvements.)

2. These items are taken from the financial statements of Pharoah Company at December 31, 2022.

Buildings		$95,220
Accounts receivable		11,340
Prepaid insurance		2,880
Cash		10,656
Equipment		74,160
Land		55,080
Insurance expense		702
Depreciation expense		4,770
Interest expense		2,340
Common stock		54,000
Retained earnings (January 1, 2022)		36,000
Accumulated depreciationbuildings		41,040
Accounts payable		8,550
Notes payable		84,240
Accumulated depreciationequipment		16,848
Interest payable		3,240
Service revenue		13,230

A) Prepare a classified balance sheet. Assume that $12,240 of the note payable will be paid in 2023.

3. You are provided with the following information for Carla Vista Co., effective as of its April 30, 2022, year-end.

Accounts payable		$ 880
Accounts receivable		880
Accumulated depreciationequipment		660
Cash		1,220
Common stock		17,400
Cost of goods sold		1,070
Depreciation expense		375
Dividends		340
Equipment		2,570
Goodwill		1,600
Income tax expense		155
Income taxes payable		130
Insurance expense		340
Interest expense		580
Inventory		950
Investment in land		14,240
Land		3,000
Mortgage payable (long-term)		3,300
Notes payable (short-term)		60
Prepaid insurance		50
Retained earnings (beginning)		2,000
Salaries and wages expense		700
Salaries and wages payable		240
Sales revenue		4,600
Stock investments (short-term)		1,200

a) Prepare an income statement for Carla Vista Co. for the year ended April 30, 2022. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

b) Prepare a retained earnings statement for Carla Vista Co. for the year ended April 30, 2022. (List items that increase retained earnings first.

c) Prepare a classified balance sheet for Carla Vista Co. as of April 30, 2022. (List Current Assets in order of liquidity.)

4. Suppose the following information is available for Callaway Golf Company for the years 2022 and 2021. (Dollars are in thousands, except share information.)

		2022		2021
Net sales		$ 1,129,000		$ 1,136,000
Net income (loss)		84,462		70,965
Total assets		855,338		838,078
Share information
Shares outstanding at year-end		69,500,000		71,270,000
Preferred dividends		0		0

There were 78,130,000 shares outstanding at the end of 2020. (a) What was the companys earnings per share for each year? (Round answers to 2 decimal places, e.g. 15.25.)

5. A list of financial statement items for Sunland Company includes the following: accounts receivable $19,600; prepaid insurance $3,640; cash $14,560; supplies $5,320; and debt investments (short-term) $11,480. a) Prepare the current assets section of the balance sheet listing the items in the proper sequence. (List current assets in order of liquidity.)

6. Suppose the following items were taken from the 2022 financial statements of Texas Instruments, Inc. (All dollars are in millions.)

Common stock		$2,250		Accumulated depreciationequipment		$2,150
Prepaid rent		150		Accounts payable		1,230
Equipment		7,100		Patents		2,270
Stock investments (long-term)		710		Notes payable (long-term)		770
Debt investments (short-term)		1,980		Retained earnings		10,050
Income taxes payable		110		Accounts receivable		1,770
Cash		1,490		Inventory		1,090

a) Prepare a classified balance sheet in good form as of December 31, 2022. (List Current Assets in order of liquidity.)

Answer & Explanation Solved by verified expert

See Answer