西方财务会计课后答案(第七章)

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国际会计课后题答案第七章,第八章整理版

一、讨论题7.1比照本章引述的金融工具的3个定义，说明各自的特点。

经济学家和金融界所举的定义都把金融工具界定为金融领域运用的单证：史密斯的定义把金融工具表述为“对其他经济单位的债权凭证和所有权凭证”，而《银行与金融百科全书》的定义中列举了金融领域运用的各种单证。

FASB和IASC所下的定义基础是一致的，都把金融工具界定为现金、合同权利或义务及权益工具。

IASC 的定义较清晰，在指明金融工具是“形成个企业的金融资产并形成另一企业的金融负债或权益工具的合同”后，又分别就金融资产、金融负债和权益工具下了定义。

7.2比照本章引述的衍生金融工具的4个定义，说叫各自的特点。

OECD的定义指叫衍生金融工具是“一份双边合约或支付交换协议”，ISDA定义中的表述是“有关互换现金流量和旨存为交易名转移风险的双边合同”。

后名的表述更清晰。

两个定义都着币指明衍生金融工具价值的“衍生性”，并指明可作为衍生价值的基础的标的。

两者都列举了各种不同的标的。

FASB和IASC所下的定义基本上是致的，更便于作为衍生金融工具交易的会计处理所依据的概念。

讨论时可参照教本中归纳的6项最基本的特征展开〔本章教学要点〔二〕第3点中的(2)也有简括的表述〕。

7.3区分金融资产和负债与非金融资产和负债项日是否等同于区分货币性资产和负债与非货币性资产和负债项日？请予以说明。

不等同。

形成收取或支付现金或另金融资产的合同权利或义务，是金融资产和负债的最摹本的特征，以此〔合同权利或义务〕区别于非金融资产和负债〔参阅教术7 2 1〕，而货币性资产和负债与非货币性资产和负债的区分则是根据这些项目对通货膨胀影响或汇率变动的不同反应而作出的。

二者是完全不相下的两种分类法。

更为币要的是，不要把“货币性金融资产和负债”与“货币性资产和负债”这两个概念相混淆。

前名是指“将按固定或可确定的金额收取或支付的金融资产和金融负债”，只是金融资产和金融负债的特定类别。

7.4衍生金融工具品目繁多，但其基本形式不外乎：(1)远期合同；(2)期货合同：〔3)期权合同：(4)互换〔掉期〕合同。

财务会计第七章《会计报表》历年考题解析

财务会计第七章《会计报表》历年考题解析财务会计第七章《会计报表》历年考题解析财务会计第七章《会计报表》历年考题解析历年考题解析题型单项选择题多项选择题判断题计算题综合题合计2001年-8分1分--9分2002年2分2分--10分14分2003年3分2分1分-12分18分（一）单项选择题1、在下列各项税金中，应在利润表中的主营业务税金及附加项目反映的是（）。

（2002年）a．车船使用税b．城市维护建设税c．印花税d．房产税[答案]b[解析]车船使用税、印花税和房产税均应计入管理费用。

2、某企业期末工程物资科目的余额为100万元，分期收款发出商品科目的余额为50万元，原材料科目的余额为60万元，材料成本差异科目的贷方余额为5万元。

假定不考虑其他因素，该企业资产负债表中存货项目的金额为（）万元。

（2002年）a．105b．115c．205d．215[答案]a[解析]考生应特别注意工程物资属于长期资产，而不属于流动资产中的存货。

存货＝原材料＋分期收款发出商品等－材料成本差异科目的贷方余额＝60＋50－5＝105万元。

3、下列资产负债表项目，可直接根据有关总账余额填列的是（）。

（2003年）a．货币资金b．应收票据c．存货d．应收账款[答案]b[解析]在编制资产表时，可直接根据有关总账科目的余额填列的有应收票据、短期借款等；需根据总账科目的余额计算填列的有货币资金等；应收账款则需要根据明细科目余额计算填列。

4、某企业本期实际发放工资和津贴共计110万元，其中车间生产人员55万元，行政管理人员25万元，在建工程人员20万元，离退休人员10万元。

该企业本期现金流量表中支付给职工以及为职工支付的现金项目填列的金额为（）万元。

（2003年）a．55b．80c．100d．110[答案]b[解析] 支付给职工以及为职工支付的现金项目反映企业实际支付给职工，以及为职工支付的现金，包括本期实际支付给职工的工资、奖金、各种津贴和补贴等，以及为职工支付的其他费用。

国际会计第七版英文版课后答案（第七章）

国际会计第七版英文版课后答案（第七章）预览说明:预览图片所展示的格式为文档的源格式展示,下载源文件没有水印,内容可编辑和复制Chapter 7Financial Reporting and Changing PricesDiscussion Questions Solutions1.Historical-based financial statements may be misleading during periods of significant inflation.Many resources may have been acquired in periods when the purchasing power of the monetary unit was much higher. These expenses then typically are deducted from revenues that reflect current purchasing power. The resulting income number is unintelligible. Another problem for statement readers is that the value of assets recorded at their historical acquisition cost is typically understated as a result of inflation. Understated asset values produce understated expenses and overstated earnings.Financial trends are also difficult to interpret, as trend statistics generally include monetary units of different purchasing power. A positive trend in sales may be due to price changes, not real increases in sales.2. A price index is a cost ratio, that is, the ratio of a representative “basket” of goods and servicesconsumed by an average family, compared to the price of that same basket in a benchmark (“base”) year. The price index is invaluable in enabling a statement reader to translate sums of money paid in the past to their current purchasing power equivalents.3.This statement is partly true and shows the confusion thatsurrounds inflation accounting. Inaccounting for changing prices, users must distinguish between general price changes and specific price changes. General prices refer to the prices of all goods and services in the economy. The object of accounting for general price level changes is to preserve the general purchasing power of a company’s money capital. Specific price changes refer to changes in the prices of specific commodities. The object of accounting for specific price changes is to preserve a company’s productive capacity or operating capability.4.The congressman is wrong. The object of inflation accounting is to clarify the distinction betweencapital and income, not to minimize corporate taxes. Inflation accounting shows how much money the company can pay in expenses, taxes, and dividends, while keeping enough resources to maintain its capital.5.Although it is generally conceded in principle that price level-adjusted financial statements are moreuseful than conventional accounting statements during periods of significant inflation, it is a judgment call to identify exactly when price level-adjusted statements become more meaningful. Asa rule of thumb, executives in Brazil use an inflation rate greater than 10 % per month. Investors inGermany or Switzerland may believe that 5 % inflation per year is alarming. Unfortunately, no one has yet developed a formal, rigorous, easy-to-apply definition of meaningfulness.How does one determine whether the benefits of price level-adjusted accounting information exceed the costs? While the costs to generate such information can be measured, it is muchharder to quantify the benefits. Financial accounting deals with information produced by business enterprises for use by external decision makers. Consequently, measurement of the benefits of price level-adjusted information must cover all user groups in an economy. Multiple user groups, uneven distributions of benefits (both within and between groups), and favorable economy-wide spillover effects of price level information complicate the task. Adding international dimensions makes the problem even worse.6.The U.S. approach resembles the price-level adjusted current cost model, whereas the U.K.approach embraces the current cost model. While both require disclosure of the impact ofchanging prices on monetary items, the U.S. approach basically uses the general price level index to compute monetary gains and losses, whereas the U.K. employs specific prices changes by way of its gearing adjustment.1.The International Accounting Standards Board sanctions use of the general price level model orthe current cost framework. Whichever method is employed, these inflation adjustments must be expressed in terms of constant purchasing power as of the balance sheet date. Purchasing powergains or losses are to be included in current income. Firms adjusting their accounts for changingprices must disclose, at a minimum: a) the fact that end-of-period purchasing power adjustmentshave been made, b) the asset valuation framework employed in the primary financial statements,c) the type of inflation index or indexes employed and theirlevel at the end of the period as wellas their movements during the period, and d) the net purchasing power gain or loss on netmonetary items held during the period. Given the options that are available, analysts mustunderstand the differences between the approved inflation accounting methods to be able tocompare companies choosing one option over the other and to assure proper interpretation ofinflation adjusted amounts.2.The historical cost-constant dollar model measures the impact of general price level changes on afirm's reported performance and financial position. The current cost model examines the impact of specific price changes on enterprise income and wealth.The two measurement frameworks are similar in that both attempt to clarify the distinction between capital and income. They differ in reporting objectives. Whereas the historical cost/constant dollar model attempts to preserve the general purchasing power of a firm's original money capital, the current cost model attempts to preserve an entity's physical capital or productive capacity.3.Your authors think that restating foreign and domestic accounts to their current cost equivalentsproduces information that is far more helpful to investor decisions than historical cost methods, whether or not adjusted for changes in general price levels. Such information provides a performance measure that signals the maximum amount of resources that enterprises can distribute without reducing their productive capacity. It also facilitates comparisons ofconsolidated data.10. The gearing adjustment is an inflation adjustment that partially offsets the additional charges toincome associated with assets whose values are restated for inflation (e.g., higher depreciation and cost of sales). This adjustment recognizes that borrowers generally gain from inflation because they can repay their debts with currency of reduced purchasing power. Hence, it is unnecessary to recognize the higher replacement cost of inventory and plant and equipment in the income statement so far as they are financed by debt.11. Accounting for foreign inflation differs from accounting for domestic inflation in two major ways.First, foreign rates of inflation often are higher than domestic rates, which increases potential distortions in an entity's reported results from changing prices. Second, as foreign exchange rates and differential national rates of inflation are seldom perfectly negatively correlated, care must be taken to avoid double-dipping when consolidating the results of foreign operations.12.Double-dipping refers to methods that count the effects of foreign inflation twice in reportedearnings. Earnings are reduced once when cost of sales is adjusted upwards for inflation, andagain when inventories are translated to domestic currency using a current exchange rate, whichyields a translation loss. Since the change in the exchange rate itself was caused by inflation, the result is a double charge for inflation.Exercise Solutions1.This exercise is a good way to test students’ understanding of the various approaches toaccounting for changin g prices. Vestel’s earnings numbers are based on the general price levelmodel whereas Infosys is measuring its performance based on a current cost framework. Modello goes a step further and adjusts its current cost statements for changes in the general price level.Some may feel that current cost data, which is based on the notion of replacement costs, is toosubjective a notion to be reliable. Since general price level data are based on general price level indices, the numbers appearing in Vestel’s income statement are much more objective andfacilitates comparisons among companies using a similar methodology. Moreover, Vestel’sstatements do not violate the historical cost doctrine. Others will argue that the value of stockinvestments are based on discounted future cash flows. Accordingly, the current cost framework provided by Infosys is more germane to investor decisions as it measures the amount of earnings that could be distributed as dividends without reducing the firm’s future dividend gen eratingpotential. Moreover, current cost earnings, including the gearing adjustment , reflects how thefirm is impacted by prices that are more germane to the firm, as opposed to the general public.Some will argue that Modello’s income statement combin es the best of both worlds. However,there is merit to the argument that the income statementshould measure the performance of thefirm and that this is best accomplished with the current cost framework. Since individualinvestors are affected by the g eneral price level, they should adjust their share of a firm’s current cost earnings distributions for general inflation.2. a.Income Statement Historical Price Level Historical Cost-Cost Adjustment Constant Dollar Revenue MXP 144,000,000 420/340 MXP 177,882,353 Operating expenses (86,400,000) 420/340 (106,729,412) Depreciation (36,000,000) 420/263 (57,490,494)Operating income MXP 21,600,000 MXP 13,662,447a Monetary gains(losses) - (73,248,759)Net income MXP 53,280,000 MXP(59,586,312)Balance SheetCash MX(P 157,600,000 420/420 MXP 157,600,000Land 180,000,000 420/263 287,452,471Building 720,000,000 420/263 1,149,809,885Acc. Depreciation (36,000,000) 420/263 (57,490,494)Total MXP 1,021,600,000 MXP 1,537,371,862Owners' equity(beg.) MXP1,000,000,000 rolled forward b MXP 1,596,958,174Net income (loss) 21,600,000 (59,586,312)Owner's equity MXP 1,021,600,000 MXP 1,537,371,862(end)a Monetary loss:CashBeginning balance 1,000,000,000 420/263 1,596,958,174 Purchase ofreal estate ( 900,000,000) 420/263 (1,437,262,356)Rental revenues 144,000,000 420/340 177,882,353Operating expenses (86,400,000) 420/340 106,729,412)157,600,000 230,848,759-157,600,000 Monetary loss (73,248,759)b Beginning equity x price level adjustment = adjusted amount= P 1,000,000,000 x 420/263 = P 1,596,958,1742.b.Cost HC/Constant DollarReturn on Assets 21,600,000 (59,586,312)1,021,600,000 1,537,371,862= 2.1% = -3.9%Cost-based profitability ratios tend to provide a distorted (overstated) picture of a company's operating performance during a period of inflation.3.20X7 20X8Cash MJR 2,500 MJR 5,100Current liabilities (1,000) (1,200)LT-Debt (3,000) (4,000)Net monetary liabilities MJR (1,500) MJR (100)Zonolia Enterprise’s net monetary liability position changed by MJR1,400 during the year (MJR100) –(MJR1,500).4.Nominal Restate for ConstantMJR’s Majikstan GPL MJR’sNet monetary liab.'s MJR 1,500 x 32,900/30,000 = MJR1,645 12/31/X7Decrease during year (1,400) = (1,400)Net monetary liab.'s MJR 100 x 32,900/36,000 = MJR 9112/31/X8Monetary (general purchasing power) gain MJR 1545. Historical Current Cost Current Income Statement Cost Adjustment Cost Revenues MXP 144,000,000 - MXP 144,000,000 Operating expenses 86,400,000 - 86,400,000 Depreciation (36,000.000) 1.8 64,800,000 Net Income (loss) MXP 21,600,000 MXP (7,200,000)Balance SheetCash MXP 157,600,000 - P 157,600,000 Land 180,000,000 1.9 342,000,000 Building 720,000,000 1.8 1,296,000,000 Acc. Depreciation (36,000,000) 1.8 (64,800,000) Total MXP1,021,600,000 MXP 1,730,800,000 Owners' Equity Beg. Balance MXP1,000,000,000 MXP 1,000,000,000 OE revaluation a - 738,000,000Net income (loss) 21,600,000 (7,200,000) Total MXP1,021,600,000 MXP 1,730,800,000a Revaluation of land MXP 162,000,000Revaluation of building 576,000,000MXP 738,000,0006. Solution in 000,000's:MJR8,000 X 137.5/100.0 = MJR11,00020X7 20X8Current cost MJR8,000 MJR11,000Acc. depreciation (1,600) (3,300)aNet current cost MJR6,400 MJR7,700a Current cost depreciation = MJR800 X 137.5/100.0 = 1,100per year for 3 years.7. As no new assets were acquired during the year, we must determine to what extent the MJR3,000 increase in the current cost of Zonolia's equipment exceeded the change in the general price level during the year. The appropriate calculation follows: MJR11,000 - [MJR8,000 X 36,000/30,000]= MJR11,000 - MJR9,600= MJR1,400Alternatively, if we follow the FASB’s sug gested methodology, where calculations are expressed in average (20X8) dollars, current cost depreciation would be computed by reference to the average current cost of the related assets. Thus, Current cost, 12/31/X7 MJR8,000,000Current cost, 12/31/X8 11,000,000MJR19,000,000Average current cost MJR19,000,000/2 = MJR9,500,000Current cost depreciation at 10% = MJR950,000Increase in current cost of equipment, net of inflation (000's): Current Restate for Current cost/Cost Inflation Constant Zonos Current cost, net12/31/X7 MJR6,400 X 32,900/30,000 MJR7,019Depreciation (950) (950)Current cost, net12/31/X8 7,700 X 32,900/36,000 7,037MJR 2,250 MJR968The increase in the current cost of equipment, net of inflation is MJR968. The difference between the nominal renge amount (MJR2,250) and constant renges (MJR968) is the inflation component of the equipment's current cost increase.8. Restate-translate method:Constant Translate $ Equivalentsrenges of constantrengesIncrease in currentcost of equip., netof inflation MJR968,000 X 1/4,800 = $202Translate-restate method:CC (MJR) Translate CC ($) Restate CC/ Constant $U.S. GPLCC, net MJR 6,400,000 x 1/4,800 = $1,333 x 292.5/281.5 = $1,38512/31/X7Dep. (950,000) x 1/4,800 = (198) = (198)CC, net 7,700,000 x 1/4,800 = 1,604 x 292.5/303.5 = 1,54612/31/X8MJR 2,250,000 $ 469 $ 3599.20X7 20X8￡m ￡mTrade receivables 242 270-Trade payables (170) (160)Net monetary working capital 72 110Change in monetary working capital = ￡38 (￡110 - ￡72) Nominal Restate for Constant￡British PPI ￡Net monetary W/C 72 X 110/100 = 79.212/31/20X7Increase during year 38 = 38.0Net monetary W/C 110 X 110/120 = 100.812/31/20X8Monetary working capital adjustment = (16.4)aa This amount is added to the current cost adjustments for depreciation and cost of sales because trade receivables exceeded trade payables, thus tying up working capital in an asset that lost purchasing power.Gearing adjustment:[(TL – CA)/(FA + I + MWC)] [CC Dep. Adj. + CC Sales Adj. + MWCA]where TL = total liabilities other than trade payablesCA = current assets other than trade receivables and inventoryFA = fixed assets including investmentsI = inventoryMWC = monetary working capitalCC Dep. Adj. = current cost depreciation adjustmentCC Sales adj. = current cost of sales adjustmentMWCA = monetary working capital adjustment= [(128 – 75)/(479 + 220 + 110] [￡m 216]= [.066 ] [216]= ￡14.3The only number I could readily identify in problem 9 is inventory of 220. The next number I could come close on is fixed assets. Looks like the solution above says 479, the text for 08 indicates 473. I could not see where the 110 (MWC) came from. Neither is it clear where the other 3 items in brackets came from. The solution needs to be clearer before I can check the numbers.This gearing adjustment of ￡14.3 million is subtracted from the current cost of sales and depreciation adjustments. It represents the purchasing power gain from using debt to finance part of the firm's operating assets.a.Nominal Thai Historical Translation U.S.baht inflation c ost/constant rate dollaradjustment baht equivalentInven-tory BHT500,000 x 100/200 = BHT250,000 x .02 = $5,000b.Nominal Translation U.S. U.S. Historicalbaht rate dollar inflation c ost/constantequivalent adjustment dollarsInven-tory BHT500,000 x .02 = 10,000 x 180/198 = $9,090Sorry this seems confusing compared to number 2 where the year end index was in the numerator and either the beginning or average index was in the denominator (e.g. 420/340 or 420/263). It is not clear why we do the opposite here where the Thai price level doubles and we put the 200 in the denominator and 100 in the numerator.c. Most students will prefer the restate-translate method. This approach has merit if general and specific pricelevels move in tandem. If not, neither approach is satisfactory as both are based on a historical cost valuation framework that is generally irrelevant for investment decisions.d. For reasons enumerated in this chapter, we favor restating local currency assets for specific price changesand then translating these current cost equivalents to dollars using the current exchange rate.11. We assume that Doosan Enterprises translates its inventory at the current rate and adjusts its cost ofsales for inflation by simulating what it would have been ona LIFO basis. Two adjustments are necessarybecause local inflation impacts exchange rates used to translate foreign currency inventory balances to dollars.With FIFO inventories, a translation loss is recorded in "as reported" earnings when it is originally translatedto U.S. dollars by a current exchange rate that changed (devalued) during the period. This translation loss isan indirect charge for local inflation. The inflation adjustment (simulated LIFO charge) to increase "as reported" cost of sales to a current cost basis is an additional charge for inflation. Absent some offsettingentry, consolidated results would be charged twice for inflation. To avoid this double charge, the translation loss embodied in reported earnings is deducted from the simulated LIFO charge to arrive at a net U.S. dollarcurrent cost of sales adjustment. Steps in the adjustment process are as follows:1. FIFO inventory subject to simulated LIFO charge KRW10,920,0002. Restate line 1 to January 1 currency units(KRW10,920,000 x 100/120). The result is anapproximation of December 31 LIFO inventory KRW9,100,0003. Difference between FIFO and LIFO inventorybalances (line 1 minus line 2) is the additionallira LIFO expense (current cost adjustment)for the current year. KRW1,820,0004. Translate line 3 to dollars at the January 1exchange rate (KRW1,820,000 ÷ 900). The resultis the additional dollar LIFO expense for thecurrent year $ 2,0225. Calculate the translation loss on FIFO inventory(line 1) that has already been reflected in "asreported" results:a. Translate line 1 at Januaryexchange rate (KRW10,920,000 ÷ KRW900) $ 12,133b. Translate line 1 at December 31exchange rate (L 10,920,000 ÷ KRW1,170) $ 9,333c. The difference is the translationloss in “as reported” results $ (2,800)6. The difference between lines 4 and 5c isthe cost of sales adjustment in dollars:a. Additional dollar LIFO expense fromline 4. $ 2,022b. Less: Inventory translation loss alreadyreflected in "as reported” results (fromline 5c) $ (2,800)c. The difference is the net dollar currentcost of sales adjustment $ (778)Here, the current cost of sales adjustment is negative (i.e., reduces the dollar cost of sales adjustment). This is because the won devalued by more than the differential inflation rate (assuming a U.S. inflation rate close to zero). If the lira devalued by less than the differential inflation rate, the cost of sales adjustment would have been positive.12.1. Cost of fixed assets at 12/31 EUR20,0002. FIFO inventory at 12/31 EUR 8,0003. Total EUR28,0004. Less: Owners' equity at 12/31 EUR 2,0005. Liabilities used to financefixed assets and inventory EUR26,0006. Restate liabilities to beginningof period markka (EUR26,000 X300/390) EUR20,0007. Purchasing power gain EUR 6,0008. Purchasing power gain inpounds (EUR 6,000/EUR 1.5) ￡4,0009. Translation gain on appliedliabilities(EUR 26,000/EUR 1.5 -EUR26,000/EUR1.95) ￡4,00010. Net purchasing power gain ￡ -0-In this case the translation gain on liabilities used to finance nonmonetary assets equals the purchasing power gain because the currency devaluation matched the differential inflation of 30%. Hence, no purchasing power gains would be recognized.Case 7-1 SolutionCase 7.1 Kashmir Enterprises1.a–cHistorical Price Level HistoricalCost Adjustment Cost ConstantIncome Statement RupeesRevenues INR6,000,000 160/144 I NR6,666,667Cost of Sales 2,560,000 160/128 3,200,000Selling & Admin. 1,200,000 160/144 1,333,333Depreciation 160,000 160/128 200,000Interest 240,000 160/160 240,000Monetary gains (losses)a - 741,666Net Income INR1,840,000 INR2,435,000Balance SheetCash INR2,480,000 160/160 I NR2,480,000 Inventory 480,000 160/128 600,000Building 3,200,000 160/128 4,000,000Accu. depreciation (160,000) 160/128 (200,000) Total INR6,000,000 INR6,880,000Accounts payable INR 620,000 160/160 I NR 620,000 Notes payable 2,400,000 160/160 2,400,000 Owners' equity 2,980,000 3,860,000INR 6,000,000 INR6,880,000a Monetary gains/(losses):CashBeg. balance INR 720,000 160/128 INR1,150,000 Down payment (800,000) 160/128 (1,000,000) Sales 6,000,000 160/144 6,666,667Selling & Adm. exp. (1,200,000) 160/144 (1,333,333) Payment on account (2,200,000) 160/144 (2,444,444) Interest (240,000) 160/160 (240,000)INR 2,480,000 INR2,798,890-2,480,000Monetary loss INR (318,890)a Monetary gains and losses:Accounts PayableBeg. balance INR 420,000 160/128 INR525,000 Purchases 2,400,000 160/128 3,000,000Payments on account (2,200,000) 160/144 (2,444,444) INR 620,000 INR1,080,556- 620,000Monetary gain INR 460,556a Monetary gains/(losses):Notes PayablePurchase warehouse INR 2,400,000 160/128 INR 3,000,000 - 2,400,000Monetary gain INR 600,000Net monetary loss: INR(318,890) + INR460,556 + INR600,000 = INR741,666.Current Cost Financial StatementsHistorical Adjustment Current Cost Income Statement Cost F actor EquivalentsRevenues INR6,000,000 - INR 6,000,000Cost of Sales 2,560,000 1.3 3,328,000Selling and adm. 1,200,000 - 1,200,000Depreciation 160,000 1.4 224,000Interest 240,000 - 240,000Net Income INR 1,840,000 INR1,008,000Balance SheetCash INR 2,480,000 - INR 2,480,000Inventory 480,000 1.3 624,000Building 3,200,000 1.4 4,480,000Acc. depreciation 160,000 1.4 224,000Total INR 6,000,000 INR 7,360,000Accounts payable INR 620,000 - INR 620,000Notes payable 2,400,000 - 2,400,000Owners' equity 2,980,000 4,340,000INR 6,000,000 INR 7,360,0002. Your authors favor current cost over historical or historical cost/constant dollar financial statements. Finance theory states that investors are interested in a firm's dividend-generating potential, as the value of their investment depends on future cash flows. A firm's dividend-generating potential, in turn, is directly related to its productive capacity. Unless a firm preserves itsproductive capacity or physical capital(e.g.,plant, equipment, inventories), dividends can’t be sustained over time. Under these circumstances, current cost financial statements give investors information important to their decisions. They show the maximum resources that a firm can distribute to investors without impairing its operating capability.3.Translate-Restate MethodBalance Sheet, Jan. 1Local Currency Trans. Dollar Inflation Historical costRate Equivalents Adjustment Constant $Cash INR 920,000 .025 $23,000 - $23,000Inventory 640,000 .025 16,000 - 16,000 Total INR1,560,000 $39,000 $39,000A/P INR 420,000 .025 $10,500 - $10,500 Owners' equity 1,140,000 .025 28,500 - 28,500 Total INR 1,560,000 $39,000 $ 39,000Income StatementDec. 31Revenues INR 6,000,000 .022 $ 132,000 108/104 $ 137,077 Cost of sales 2,560,000 .022 56,320 108/100 60,825Selling & Adm. 1,200,000 .022 26,400 108/104 27,415 Depreciation 160,000 .022 3,520 108/100 3,802 Interest 240,000 .022 5,280 108/108 5,280Net Income INR 1,840,000 $ 40,480 $ 39,755 Monetary gains (losses)a - - 4,468$44,223a Monetary gains/(losses):CashBeg. Bal INR 920,000 .02 $ 18,400 108/100 $ 19,872Downpayment (800,000) .02 (16,000) 108/100 (17,280) Sales 6,000,000 .02 120,000 108/104 124,615Selling & Adm. (1,200,000) .02 (24,000) 108/104 (24,923)Payments on Acc. (2,200,000) .02 (44,000) 108/104 (45,692) Interest (240,000) .02 (4,800) 108/108 (4,800)INR 2,480,000 $ 49,600 51,792-49,600Monetary loss $ (2,192) Accounts PayableBeg. Bal. INR 420,000 .02 $ 8,400 108/100 $ 9,072Purchases 2,400,000 .02 48,000 108/100 51,840Pmt. on acc. (2,200,000) .02 (44,000) 108/104 45,692INR 620,000 $ 12,400 $ 15,592- 12,400Monetary gain $ 2,820Notes payablePur. W/house Rpe 2,400,000 .02 $ 48,000 108/100 $ 51,840 48,000Monetary gain $ 3,840Netmonetary gain: $(2,192) + $2,820 + $3,840 = $4,468.Balance Sheet Local Trans. Dollar Inflation Historical cost- Dec. 31 Currency Rate Equiv. Adjustment Constant $Cash INR 2,480,000 .02 48,600 108/108 $ 48,600 Inventory 480,000 .02 9,600 108/100 10,368 Building 3,200,000 .02 64,000 108/100 69,120Acc. Dep. 160,000 .02 3,200 108/100 3,456Total INR 6,000,000 $120,000 $ 124,632Acc. payable 620,000 .02 12,400 108/108 $ 12,400Notes payable 2,400,000 .02 48,000 108/108 48,000Trans. adj.b - (9,380) (9,978)Owners' equity c 2,980,000 68,980 74,210Total INR 6,000,000 $120,000 $124,632________________________________________________________________ __b Translation adjustment:Beginning net assets Rpe 1,140,000 (.02 - .025) = $ (5,700) X 108/100 = $(6,156)Increase in net assets Rpe 1,840,000 (.02 - .022) = (3,680) X 108/104 = $(3,822)$(9,380) $(9,978) c Balancing residualRestate - Translate MethodBalance Sheet Local Inflation Historical Cost- Trans. D ollar Jan 1. Currency Adjustment Constant rupee Rate equivalents Cash INR 920,000 128/128 INR 920,000 .025 $ 23,000 Inventory d 640,000 128/128 640,000 .025 16,000Total INR1,560,000 INR1,560,000 $ 39,000Acct. payable INR 420,000 128/128 INR 420,000 .025 $ 10,500Owner's equity 1,140,000 1,140,000 28,500Total INR 1,560,000 INR 1,560,000 $ 39,000d Assumes inventory acquired near year-end.Income StatementYear ended Dec. 31Revenues INR 6,000,000 160/144 INR 6,666,666 .022 $ 146,667Cost of Sales 2,560,000 160/128 3,200,000 .022 70,400 Selling & Adm. 1,200,000 160/144 1,333,333 .022 29,333 Depreciation 160,000 160/128 200,000 .022 4,400Interest 240,000 160/160 240,000 .022 5,280Net Income INR1,840,000 INR1,693,334 $ 37,254 Monetary gains(losses)a- 741,666 .022 16,317INR2,435,000 $ 53,571Balance SheetDec. 31Cash INR 2,480,000 160/160 INR 2,480,000 .02 $ 49,600Inventory 480,000 160/128 600,000 .02 12,000Building 3,200,000 160/128 4,000,000 .02 80,000Acc. deprec. 160,000 160/128 200,000 .02 4,000Total INR 6,000,000 INR 6,880,000 $137,600Acc. payable INR620,000 160/160 INR 620,000 .02 $ 12,400 Notes payable 2,400,000 160/160 2,400,000 .02 48,000Owner's equity 2,980,000 3,860,000 87,770 Translation adj.b - (10,570)Total INR 6,000,000 INR 6,880,000 $137,600________________________________________b Beginning net assets INR1,140,000 (.02 - .025) = $ (5,700)Change in net assets 2,435,000 ).02 - .022) = $(4,870)$(10,570)Both methods are inadequate for American investors because they are based on the historical cost valuation framework. A better reporting procedure is to restate local accounts to their current cost equivalents, then translate these amounts to the reporting currency using the year-end (current) foreign exchange rate. This is illustrated here.Restate (current cost)/Translate (current rate)Cash INR 920,000 - INR 920,000 .025 $ 23,000Inventory 640,000 - 640,000 .025 16,000Total INR 1,560,000 INR1,560,000 $ 39,000Acc. payable INR 420,000 - INR 420,000 .025 $ 10,500Owner's equity 1,140,000 - 1,140,000 28,500。

国际财务课后习题答案chapter7

CHAPTER 7 FUTURES AND OPTIONS ON FOREIGN EXCHANGESUGGESTED ANSWERS AND SCX.UTIONS TO END-OF-CIIAPTERQUESTIONS AND PROBLEMSQUESTIONS1 ・ Expl ain the basi c dificrcnces between the operation of a ciurcncy ibrward market and a fiitures market. Answer: Tlie forward mark巩is an OTC market where the forward contract for purchase or sale of foreign currency is tailor-made between the client and its international bank・ No money cliangess hands miti l tlie maturity d^:e of the contract when deliveiy and receipt are typically made. A fijtiues contract is ail exchaiige-tiaded instniment with standaidized featuies specifying contiact size and deliveiy date. Futiues coohacts aie m aiked-to-iiiarket daily to reflect chaiig es in tlie settlement pii ce. Delivery i s seldom made in a futures market. Rather a l^versi ng trade is made to close out a long or short position.2.In order for a derivatives market to fimetion most cfFio cntly, two types of economic agetits are needed: hedgers atid speculdtors・ Explain・Answer: Two types of niarket paiticipants arc ncccssaiy for the 巴尸五ci ent operat on of a derivatives market：speculators and hedgers. A speculator attempts to profit fiom a ijiange in the futures price・ To do this, the speculator wi 11 take a long or sliort position iti a futures contract depending upon his expectations of iuture price movern ent. A hedger, on- tlie-otlier- han d, desir es to avoid price var iation by locking in a purchase pri ce of die wide dying asset thiougli a long position in a liitures ccutract ci a sales price through a short positi on. hi effect, the hedger passes off the iisk of price vai iation to the speculator who is better able, or al I ea?t more willing, to bear this risk.3.Wliy are most fiitiu es positions cl os ed out th rough a reversing trade rath er than held to deliveiy? Answer: In forward markets，approximately 90 percent of all cont「勺cts that 前e initially establishucl result in the short making deliveiy to the long of the asset underlying the contract. This is natural because tlie term s of forward contracts ai e tailor — ni ade between th c long and s hort ・ By contrast, only about one percent of CIUTCIICV fiitiwcs cotit roots result in del i very ・ While futures contracts arc useful for speculation and hedging, their standardized delivery dates make them unlikely to correspond to the actual future dates wiicti forogii cxdiange transactions will occur. Tlius, they are genet'al closed out in arcs z ei^ing trade. In fact, the commission that buyers mid sell ers pay to transact hi the futures maket is s singl c amount that covei^ the round-trip tiTais actio ns of initiating and closing out the position・4.How can the FX firtut es maiket be used for pH cc discovery?Answer: To the extent tliat FX forward pri oes are ail unbiased predictor of fiiture spot exchange rates, tlie market anticipates whether one cuiyenoy will appreciate or depreciate versus another・ Because FX Eitiires conti-acts trade in an expi ration cycle, cliflerent c onto acts expire at diHeient peiiDclic dates into tlie iiiture ・Tlie patteiri of the prices of these contacts provides information as to tlie mai kefs ciin ent belief about th巴rd ative fiiture value of one ciui ency versus anothei at the scheduled expiration dates of the contracts. One will genially see a steadily appreci ating or depreciating pattern; howevei; it may be mixed at times. TTius, the fiitures market is usefill for price dscovery. i.e., obtaining the market's forecast of the spot exchange rate at different future：d“tES・5・ What is tlie major di fFerenoe in the obligation of one with a long positi on in a fijturcs (or fonvaid) contract in comparison to an options confraot?Answer: A futures (or forwaid) contract is a vehicle for buying or sei ing a staled amount of foreign exchange at a stated price per unit at a specified time in tlie fiitiue・ If the long holds the contract to the delivery date, he pays tlie effective contractual fiitures (or foiwat'd) price, regardless; of whether i t is an advantageous pti ce in oompaiiscn to tlie spot price at the delkeiy date. By oontiasf, ail option is a contiact giving the loris tlie riglit to buy ci sell a given quantity of an asset at a specified price at some time in the fiihn e? but not enforcing any obligation on him if the spot pti ce is more favorable tliaii the exercise prize. Because th巴opti on ownei* does not have to exercise t he option if it i s to his disadvaiit^e, the option has a price, or premium, whereas no price is p已id at inception to enter into a futures (orforward) contract6. Wliat is nieait by the terminology that an option is in-, at-, or oiit・of— the-money?Answer： A call (put.) option with St >E (E> S^) is refetred to as trading in-thc-monej r・ If E tlie option is hading at-tlic-money. If Sf< E (E<§) the call (put) option is trading out-ofithe- JYiOYie^ ・7 List the arguments (variables) of which an FX call or put oj^tion model price is a function ・ How does tiic call and put preininm change with respect to s change in the ai'guments?Answer: Botii call mid put options are fiinctions of only six variables：£, E, r讣讣 T an de When all else remains tlic same、the price of aEuicpcaii FX call (put) option w 11 incressc:1・ tlic lai'gei'(smaller) isS,2. the small曰(larged is E、3・ tlie smaller (larger) is r n4・ tlie i aiger (smalleij is r t>5.the laiger (smaller) is relative to r f, arid6.the gj eater is aWhen and are not too niucli different in size, a European FX call and put will increase in price when the option term-to-matiirity increases・ Howe、曰；when 飞 is very mu ch laigei than a European FX cal I will increase in price, but the put premium wil I decrease, whe厂i the option tenn-to-m increascs. The opposite i s tme when i s vety much greater than r$. ForAmerican 二X opti oils tlic analysis is I傑s complicated Since a longer tenn American option can be exercised on any date that a shorter tenn opti on can be exercised or □ some later date, it follows tliat tlie all else remaining the sarne. tlie longer tenn Americen opti on will sell at a price at least as laige as tlie shorter tenn option.PROBLEMS1. Assiunc toda>r，s settlement price on a CME EUR futures contract is S1.314O/EUR. Yon have a short position in one contract. Your performaiicc bond accoimt ciurcntly has a balance of $L 700. The next tlii'cc days, scttleincnt prices ETC $1.3126, $1.3133, arid S1.3049. Calculate the changes in tlic perfonnaiicc bond account from d已ily marking-to-market andthe balance of tlie perfotTnance bond accoiuit after the third day. Solution: $1, 700 +[〔$1.314 O・ S1.3126) + ($1.3126 -Si. 3133)+ (Sl.3133 - SI.3049)]XEUR125,000= $2,837.50,where EUR125, 000 is the contractual size of one EUR contract.2- Do problem 1 again assuming you have a long position in the futures conti act・Solution： $1,700+ [($1.3126 ・ $1.3140)+($ 1 ・ 31 33 ・S1・3126)十($L3(Mg • $1 .3133)] xEUR125,0OO= $562.50,where EUR125, OOO istlie contrachial sizeuf one EUR contract.With only $562・ 50 in your petfonnancc bond account, you would experience a tnargiti call requesting that additional fijnds be added to youipeiionnance bond account to bring tlic balance back up to tlie initial petdonnaiice bond level・3・ Using the quotations in Exlubit 7.3、cal cul ate the face value of the open interest in the June 2005 Swiss franc fiitures contiact ・Solution： 2401 contracts x SF125Q00 二SF262, 625JD00.vvhei'e SF125, 0C0 is tlie couti actnal size of one SF contract ・ing tlie quotations in Exliibit 7. 3, note that the June 2005 Mexican peso Mur es contract has a price of SO. 08845. You believe tlie spot piice in June wil be $ 0. 09500. WhM speculative position would you enter into to attempt to profit frotn your beliefs ? Calculate your anticipated profits, assuming you taP；e aposition in tlwee contracts ・ Wliat is the size of your profit (loss) if the fhtures price is indeed an unbiased predictor of the fiitii re spot price and this price materializes?Solution： If you expect the Mexi can peso to li se from SO.08845 to SO. 09500, you would take a long position in fiitiucs since the fiitiires price of $ 0.08845 is less than your expected spot price.Your anticipated profit from a I ong position in tiirec contracts is: 3 x ($0.09 500 -$0・ 08845)xMP500.0C'0= $9, 825.00. where MP500.00C1 isthe contractual size of one MP contrast.If the fiitures price is sn unbiased predictor of the expected spot price, the expected spot price is tlic iutca cs price of $0.08845///MP・ If tliis spot price materializes, you will not hsrs r e any profits or losses from your short position in three futures contracts: 3 x ($O・ 08845 -$0.08845) XMP500.000 =0.5.Do problem 4 again assuming you believe the Jiuie 2005 spot price will be $0.08500. Solution: If you expect tlie Mexi can psso to depieci ate fi-oni $ 0.08&15 to $ 0.07500, you wou d take a short position in fiitures since the futures price of $0.08845 is greater tliaii your expected spot price・Yciu anticipated p io fit from a sh or t pos ition in three contract s is： 3 x i, $ 0 ・ 08845 ・ $0.07500) xXlP500,000= $20,175.00 ・If tlie fiitiues price is an unbiased predictor of the Future spot price and this price materializes? you will not profit or lose from your long futwes pzisiti on.6.George Johnson is considering a possible ax-motith SI 00 million LJBClR-bascd, floating-ratebank loan to Hind a project 址terms shown in the tabic below. Johnson fears a possible ti ss in the LIBOR rate by December mid wants to use the December Eurodollar fiitures contrast to hedge thi s risk・ Tlie contract expires December 20< 1999. has a US$ 1 mi Ilion contract size,and a discount yield of 7. 3 pei cent・Joints on will ignore the cash flow implications of marking to market、i nitial margin requirements, and any timing niisinatch between ex change-ti'aded fiitures contiact cash flows and tlie interest payments due in March. Loan TermsaLoan First loan payment (9%) Second paynie nto initiated and fiitures contract expires and principal•••5 9/20/99 町2/20/933/20/00a・ Fonnulatc Jolmsotrs September 20 floating-to-f xed-ratc sti ategy using the Eurodollai futui c contracts discussed in tlie text above. Showthat tliis strategy would result in a fixed-rate Icaih assiuning ail increase in tlieLIBOR rate to 7・ 8 percent by December20, which remains at 7.8 peicent tbrougli March 2O・ Show all calculations.Johnson is considering s 1 2 — moutli loan as aii alternatiue・Ihi $ approach wi II result in two additional unceilain cash flows, as follows:I.oaricFii sbSecond Tliii(UFoin1li pa^nnento initiated payment (9%) s>payin ent payment a and principal9/20/99 12/20/99 码/20/00 6/20/009/20/00b. Describe tlie strip hedge that Johnson could use and explain how it liedges the 12-month loan (spec 迅'number of contracts). No calculatious are needed.CFA Guidel ine Answer孔Tlie basis point value (BPV) of a Eiu odollai' fiihu es cxDiiti act can be found by substituting the contract specifications into the following money m aiket relationship：a BPV FUI = Ciiange in Value = (face value) x (days to maturity / 360)x (change in yield)a q尸$(1 milion) x (90 / 360)x (.0001 )$25Tlie nimibcr of contract, N. can be found by:N = (BPV spot) / (BPV fiitiires)x($2,500)/($25)3 = 100aORo N = (value of spot position) f (face value of each Futures contract)尸($ 100 million) / (SI million)a =1CO(value of spot position) / (value of iutiucs position)b □ S(1 OO, 000, 000) / ($ 981,750)where value of fiitiires position = $1,000,000 x [1-(0.073/4)]« 102 contractsTlicreforc on September 20, Johnson would sell ICO (or 102) December Eurodollar futures contracts at the 7.3 percent yield. The imp： iedL1BOR rate in December is 7・3 percent as indicated by the December Eiuofiitiu'es discount yield of 7.3 percent・ fhus a boniowing rate of 9・3 percent (7.3 percent + 200 basis points) can be locked in if tlie hedge is cciTcctly implemented.A rise in the rate to 7.8 percent represents a 50 basis point (bp) increase over tlie implied LIBOR rate. For s 50 basis point increase in LIBOR, the cash flow on the short futures position is:o = ($25 per basis point per contract) x 50 bp x 100 contractsx$125,000.However, the cash flow on die floating rate liabi lity is:x -0.098x ($100,000,000/4)=・ S2,45O, 000.Combining the cash flow fiom tlie hedge with the cash flcwfi-om the loan results in a net outflow of S2?325,GOO, which translates into an annual rate of 9.3 percent：=($2,325,000x4) / $100,000,030 = 0.093This is precisely the implied bor rowii^ rate that Johnson locked in on September 2(). Regardless of the LIBOR rate on December 20. the net outflow will be $ 2,325,000, which translates into ail annualized rate of 9.3 percent. Consequently, tlie floating rate liability 1ms been converted to a fixed rate liabil ity i n the sense tliat tlie interest rate imcertaintv associated with tlie March 20 payine nt (using tlie December 20 contiact) has been removed as of Sepzember 20・ b・【1】a strip hedge, Johnson would sell 100 December futiues (for the March payment), 100 March fiitiires (lor the June payment)、and 100 June firtiu'es (for the September payment)・ The objective is to hedge each interest rate psynient sepaiately using tlie appropriate muiiber of contiacts. The probl em is the same as in Pai! A except here tlii ee cash flows sie subject to rising rat es and a strip of fiitu res is used to hedge this interest rate risk. Tliis pi obi em is simplified somewhat because the cash flow mismatch behveen the fiitiires and the loan payment is ignored ・ Therefore, in ord er to hedge each cash flow, Johnson simply sells 100 contracts far each payment・The strip hedge traiisfbrrns the floating rate loan into a strip of fixed rWc payments・As was done in Part A、the f xed rates are found by adding 200 basis points to tlie imp I icd Foiwar d LIBOR rate indicated by tile dis count yield of the tlirce diiFcrcnt Eiu^odollar fiitiires contracts・ Tlic fixed pajments will be equal wlicn the LIBOR temi structure is flat for the first year ・7.Jacob Bower has a liability that:•has a pnncipal balance of S1 DO million on June 30,1998,•accrues interest quarterly stalling on June 30. 1998.•pf^s interest quarterly、•has a one-yeai' tenn to maturity, end•calculates interest due based on 90-day LIBOR (die London Intel bank Offeredo Rate.)Bower wishes to hedge hi s remaining i nterest payments against changes in interest rates・Bower has coircctly cal cul ated that he needs to sell (short) 300 Eurodollar fhturcs contracts to accomplish the hedge ・ He is considei*ing the altemative hedging strategies out I inedin the following table.Initial Position(6/30/98) in90 Day LlBOR Eurodollai- Contracts曰Explanwhy strategy B is a more effective hedge than strategy A when the yield curve undergoes em instant aiieous iionparallel shift.b・ Discuss ail interest rate scenario in which strategy A would be superior to strates^/ B・CFA Guide! ine Answei*a.^Strategy, B's SuperiorityStrategy B is a strip hedge that is constructed by selling (shoiiiiig) 1 OO Bjtures contracts m aturiiig in each of the next three quailers. With tlie strip liedge in place, each qiiaiter of the coming year is hedged against shifts in interest rates for th at qnailei*. The r eason Strategy B will be a more effective hedge than Strategy A for Jacob Bower is that Strategy B is likely to work well whether a parallel shift or a nonpai'allcl shift occurs over th ㊁onc-yeat' term of Bow er 7s liability. That is, regardless of what happens to the term structiwc, Strategy B structures the fiihires hedge sc that the rates reflected by the Einodollar fiihwcs cash price match the applicable fates forthe undciiying liability-tlic 90day LIBOR-based rate on Bower's liability. The same is net true forStrategy A. Because Jacob Bowers liability cemcs a floating interest rate that resets quaitcrly ・ he needs a sti ategy that provides a series of th rec-month hedges ・ Strategy A will need to be re^triictm'ed when tlie three -montii September contract expires. In particular, if the yield curve twists upward (fijtures yields rise more for distant expirations than for neai' expirstious), Strategy A will produce iiife ioi hedge results・b. Scenaiio in Which Stiategy A is SuperiorStrategy A is a stack hedge stiategy that initially involves selling (sliortirig) 300 September contracts・ Strategy A is raiely better than Stiategy B as a hedging orrisk-nediiction strategy. Only from the perspecti ve of faxorable cnsh flows is Strategj r A better than Strategy B. Such cash flows occur only in certain interest rate scenarbs・For example Strategy A wil 1 work aswclI ss Strategy B for Bowct^s liability if interc^z rates (inst antatieously) change in parallel fashion. Another interest rate scenario where Sfratcgy A outpctioniis Strategy B is one in which tlie yield ciuve rises but witli ahvist so that futures yields rise more for neai' expi rations than for distant expirations. Upon expiration of the September co厂tract. Bower will have to rol 1 out his hedge by selling 200 December contracts to hedge the remaining interest payments. Tliis action will have the effect tliat tlie cash flow from Stiat 已gy A wi 11 be larger than the cash flow from Strategy B b©cause tlie appreciation ou the 300 slioi! September fiitures contracts will be larger tliaii the cumulative appreciation in the 300 contracts shorted in Strategy B (i.e., 100 Septem ber, 100 Deceinber, and 100 Mauch). Consequently, the cash flow fi-oni Strategy A will more thai offset the increase in the intei est payment on the liability, whereas the cash ilowfi-om Strategy B wil I exactly offset the increase in the interest payment on the I lability・e the quotations in Exliibit 7.7 to calcinate the intrinsic value and the time value of the 97 September Japanese yen Amet iceii call arid put options.Solution: Premium- Intrinsic Value = Time Value97 Sep Call 2.08 -Max [95.80 -97.00= - 1.20. o] =2.08 cents per 100 yen97Sep Put 2.47 - Ma>c[97.C0 - 95.80 =1. 20, 0] = 1.27 cents per 1 OOyen9.Assume spot Swiss franc is $ 0.7000 and the six-month fbrwaid rate is $0.6950. What is tlie minitnuni price that a six-month Ametican call option with a striking price of SO.6800 should sellFor in a rational market f Assume the aimualizcdsix-niontii Ewodollar rate is 3 % percent・ Solution:Note to Instnictor: A complete solution to this problem relies on the boiindaiy expressions presented in footnote 3 of the text 济Chapter 7.C a>Mzx[(70 — 68)、(6950 - 68)/(1.0175), O]>Zl4zx[ 2. 1.47. 0] = 2 cents10・ Do problem 9 again assimiing ail American put option instead of a call option・Solution：心必4(68 -70), (68-69. 50)/(1.0175), 0]-2, -1.47. 0] = 0 cents1 1 ・ Use tlie European option-pii ci ng models developed in tlie chapter to value the cal 1 of probl an 9 and tlie put of problem 1 0・ Assume the aimualized volatility of the Swiss fi*anc is 14.2 percent. This problem can be solved using tlie FXOPM.xJ s spreadsheet・Solution:^ = [/n(69.50/68)+.5(. 142)2(.50)]/(.142)心O=.2675<4= £・.142*50 =・ 2765 ・.1004 = .1671N(di) = .6055N(d^ =・ 5664M呦= .3945N(-d^) = .4336Q 二[69.50(.6055)・ 68(・5664)]e"3%j°)= 3.51 centsP. - [68(.4336)-69.50(. 3945张心珈刘=2.03 cents12. Use the binomial option-pricing model developed in the chapter to value the call of problem 9・ Tlie volatility of tlie Swissiiaiic is 14.2 percent・Solut ion: Tlie spot rate at T will be either 77.390 = 70・00c(l・ 1056) or 63.32 0 = 70.00^(.9045), where u = &*灼=1. 1056 and a? = 7血=・©045. At the exerci se price of E =6& the option wi II only be exercised at time T if the Swi ss franc appreciates; its exercise value would be C u f= 9.390 = 77.39^ - 68. If tlie Swiss franc depreciates it would not be rational to exercise the opti on ； its value woul cl be C dT = O.TVie hedge ratio is% = (9.39 一0)/(7739-63 J2)=・ 6674・Thus, the call premium is:=?k^{[69.50(.6674)-68((70/681 (. 6674 - 1)+])]/(1.0175), 70 -68}= Max[l. 64, 2] = 2 cctits per SF.国际财务管理课后习题答案chapter 711/11GMINI CASE ： THE OPTIONS SPECULATORA speciil at or is ccnsid ering the purchase of five three - month Japanese yen call options with a strikingprice of 96 cents per 100 yeti. Tlie premium is 1.35 cents per 100 yen ・ Tlie spot price is 95.28 cents per 100 yen and tlie 90・day forward rate is 95.71 cents. The speculator believes tlie yen will ^Jpreciate to $ 1.00 per 1 00 yen ovei the next du es months. As tlie speculator's assistant, you liavebeen asked to prepare the following ：1 ・ Graph the call option cash flow schedule.2. Det 已 rmine the speculator's profit if the yen appreciates to $1. 00/100 yen.3. Det 曰 Triine the speculators profit if the yen only appreciates to the fonvaid rate.4. Determine the fiitiu c spot price at which the speculator will only break wen.Suggested Solution to tlie Options Speculator:2. (5 x¥6,250000) x [(1 00 - 96)- 1. 35]/1 0000 = $&281・25・3. Sin c e the oprj on expi res out — of-the — money, the -s p ec u lator will let the opt ion expi leworthless ・ He uvill only lose tlie option pi emium ・4. = E +C=96 + 1.35 = 97.35 ceiitsper 100 yen.。

（财务会计）西方财务会计课后习题答案

（财务会计）西⽅财务会计课后习题答案Chapter 6Merchandise Inventory and Cost of Goods SoldCheck Points(10 min.) CP 6-1Nissan North AmericaBalance SheetDecember 31, 20X6Current assets:Inventory (300 @ $80)…………………..$24,000Nissan North AmericaIncome StatementYear Ended December 31, 20X6Sales revenue [700 ($80 + $40)]……….$84,000Cost of goods sold (700 @ $80)………… 56,000Gross profit………………………………….$28,000Chapter 6 Merchandise Inventory and Cost of Goods Sold 379(10-15 min.) CP 6-2 1. (Journal entries) Inventory…………………………………..100,000Accounts Payable…………………….100,000 Cash ($140,000 ?.20)……………………28,000 Amounts Receivable ($140,000 ? .80).. 112,000Sales Revenue………………………...140,000 Cost of Goods Sold……………………..60,000 Inventory ($100,000 ?.60)…………..60,000 2. (Financial statements)BALANCE SHEETCurrent assets:Inventory ($100,000 –$60,000)……………….$40,000 INCOME STATEMENTSales revenue………………………………………$140,000Cost of goods sold……………………………….. 60,000Gross profit…………………………………………$ 80,000 380Financial Accounting 6/e Solutions Manual(10 min.) CP 6-3Billions Inventory………………………… 6.4Cash…………………………... 6.4 Accounts Receivable………….28.5Sales Revenue……………….28.5Cost of Goods Sold…………… 6.2Inventory……………………... 6.2 Cash………………………………26.3Accounts Receivable……….26.3Chapter 6 Merchandise Inventory and Cost of Goods Sold 381(10 min.) CP 6-41. I nventory costs are increasing from $10 to $14 to $18 per unit.2. FIFO results in the highest cost of ending inventory($360)because under FIFO the ending inventory is costed at the last costs incurred during the period. When costs are increasing, the last costs are the highest costs.FIFO results in the lowest cost of goods sold. This occurs because the oldest costs are assigned to cost of goods sold. When costs are increasing, the oldest costs are the lowest.FIFO results in the highest gross profit because cost of goods sold, the expense, is the lowest. (Sales revenue is unaffected by the inventory costing method.)3. LIFO results in the lowest cost of ending inventory($240)because under LIFO, the ending inventory is costed at the oldest costs. When costs are increasing, the oldest costs are the lowest costs.LIFO results in the highest cost of goods sold. This occurs because the last costs of the period are assigned to cost of goods sold. When costs are increasing, the last costs are the highest.LIFO results in the lowest gross profit because cost of goods sold, the expense, is the highest. (Sales revenue is unaffected by the inventory costing method.)382Financial Accounting 6/e Solutions Manual(10 min.) CP 6-5a b cAverageCost FIFO LIFO Cost of goods sold:Average (50 @ $15*) $750FIFO (10 @ $10) + (25 @ $14) + (15 @ $18) $720LIFO (25 @ $18) + (25 @ $14) $800 Ending inventory:Average (10 @ $15*) $150FIFO (10 @ $18) $180LIFO (10 @ $10) $100 _____*Average cost= ($100 + $350 + $450)= $15per unit (10 + 25 + 25)Chapter 6 Merchandise Inventory and Cost of Goods Sold 383(10-15 min.) CP 6-6Kinko’sIncome StatementYear Ended December 31, 20XXAverage FIFO LIFO Sales revenue (600 ? $20) $12,000 $12,000 $12,000 Cost of goods sold (600 ? $9.90*)5,940(100 ? $9) + (500 ? $10) 5,900(600 ? $10) 6,000 Gross profit 6,060 6,100 6,000 Operating expenses 4,000 4,000 4,000 Net income $ 2,060 $ 2,100 $ 2,000 _____*Beginning inventory (100 @ $9.20)…………..$ 920 Purchases (700 @ $10)………………………… 7,000Goods available…………………….……………$7,920 Average cost per unit $7,920 / 800 units…$ 9.90384Financial Accounting 6/e Solutions Manual(10 min.) CP 6-7Kinko’sIncome StatementYear Ended December 31, 20XXAverage FIFO LIFO Sales revenue (600 ? $20) $12,000 $12,000 $12,000 Cost of goods sold (600 ? $9.90*)5,940(100 ? $9) + (500 ? $10) 5,900(600 ? $10) ______ ______ 6,000 Gross profit 6,060 6,100 6,000 Operating expenses 4,000 4,000 4,000 Income before income tax $ 2,060Income tax expense (40%) $ 824*From CP 6-6(5 min.) CP 6-8 Lands’ End managers can delay purchases of inventory until the next year. Under LIFO, high inventory costs that would have been paid for inventory do not become expense as cost of goods sold in the current year. As a result, the current year’s income statement reports a higher net income than Lands’ End would have reported if the company had replaced inventory before year end.Chapter 6 Merchandise Inventory and Cost of Goods Sold 385(5-10 min.) CP 6-9Millions BALANCE SHEETCurrent assets:Inventories, at market (which is lower than cost).. $ 330 INCOME STATEMENTCost of goods sold [$1,001 + ($333 – $330)]…………$1,004 386Financial Accounting 6/e Solutions Manual(10 min.) CP 6-101. FIFO2. LIFO Gross profitpercentage:Gross profit= $460*= 46%$340**= 34%Net sales revenue $1,000 $1,000 _____* $1,000 – $540 = $460** $1,000 – $660 = $340Inventory turnover:Cost of goods sold= $540 $660Average inventory ($100 + $360) / 2 ($100 + $240) / 2= 2.3 times = 3.9 times3. Gross profit percentage — FIFO looks better.4. Inventory turnover — LIFO looks better.Chapter 6 Merchandise Inventory and Cost of Goods Sold 387(10-15 min.) CP 6-11 1. Beginning inventory……………………………... $ 300,000+ Purchases……………………………………….… 1,600,000 = Goods available…………………………………... 1,900,000 –Cost of goods sol d………………………………. (1,800,000) = Ending inventory……………………………….…2. Beginning inventory……………………………..+ Purchases……………………………………….…= Goods available…………………………………...–Cost of goods sold:Sales revenue……………………….$3,000,000Less estimated gross profit (40%) (1,200,000)Estimated cost of goods sold……………….= Estimated cost of ending inventory…………... $ 100,000 388Financial Accounting 6/e Solutions Manual(5-10 min.) CP 6-12CorrectAmount(Millions)a. Inventory ($333 + $3)…………………………………$ 336b. Net sales (unchanged)……………………………….$1,755c. Cost of goods sold ($1,001 –$3)…………………...$ 998d. Gross profit ($754 + $3)……………………….……..$ 757(10 min.) CP 6-13 1. Last year’s reported g ross profit was understated.Correct gross profit last year was $5.6 million ($4.0 + $1.6). 2. This year’s gross profit is overstated.Correct gross profit for this year is $3.2 million ($4.8 – $1.6).3. Lang’s perspective is better because correcting the errorchanges the trend of correct gross profit from up (good) to down (bad), as follows:MillionsLast Year This Year Trend Reported gross profit……..$4.0 $4.8 Up (Good) Correct gross profit……….$5.6 $3.2 Down (Bad) Chapter 6 Merchandise Inventory and Cost of Goods Sold 389(5-10 min.) CP 6-14 1. Ethical. There is nothing wrong with buying inventorywhenever a company wishes.2. Ethical. Same idea as 1.3. Unethical. The company falsified its reported amounts ofinventory and net income.4. Unethical. The company falsified its reported inventorypurchases, cost of goods sold, and net income in order to cheat the government (and the people) out of income tax.5. Unethical. The company falsified its reported amount ofinventory in order to cheat the government (and the people) out of taxes.390Financial Accounting 6/e Solutions ManualExercises(15-20 min.) E 6-1 Req. 1 (journal entried)Perpetual System1. Purchases: ThousandsInventory…………………….……….… 2,200Accounts Payable………………….2,2002. Sales:Cash ($3,500 ?.20) (700)Accounts Receivable ($3,500 ? .80). 2,800Sales Revenue…………….……….3,500 Cost of Goods Sold………………….. 2,100 Inventory………………….………....2,100Req. 2 (financial statement amounts)BALANCE SHEET Thousands Current assets:Inventory ($370 + $2,200 – $2,100)... $ 470 INCOME STATEMENTSales revenue…………………………….$3,500Cost of goods sold……………………… 2,100Gross profit……………………………….$1,400Chapter 6 Merchandise Inventory and Cost of Goods Sold 391(15-25 min.) E 6-2JournalDATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT1 Inventory ($640 + $1,870 + $900)……….3,410Accounts Payable………………………3,4102 Accounts Receivable (17 @ $500)……...8,500Sales Revenue…………………………..8,500 Cost of Goods Sold……………………….2,800* Inventory…………………………………2,8003 Sales revenue………………………………$8,500Cost of goods sold……………………….. 2,800Gross profit…………………………………$5,700Ending inventory ($800 + $3,410 –$2,800)……...$1,410 _____*(9 @ $160) + (8 @ $170) = $2,800392Financial Accounting 6/e Solutions Manual(10-15 min.) E 6-3 1.Cost of Goods Sold Ending Inventory(a) Specificunit cost (6 @ $160) + (11 @ $170) = $2,830 (3 @ $160) + (5 @ $180) = $1,380 (b) Averagecost 17 ? $168.40* = $2,863 8 ? $168.40* = $1,347 _____*Average cost per unit = ($800 + $640 + $1,870 + $900)= $168.40(5 + 4 + 11 + 5)(c) FIFO (9 @ $160) + (8 @ $170) = $2,800 (5 @ $180) + (3 @ $170) $1,410(d) LIFO (5 @ $180) + (11 @ $170) + (1 @ $160) $2,930 (8 @ $160) $1,2802. LIFO produces the highest cost of goods sold.FIFO produces the lowest cost of goods sold.The increase in inventory cost from $160 to $170 to $180 per unit causes the difference in cost of goods sold. Chapter 6 Merchandise Inventory and Cost of Goods Sold 393(15-20 min.) E 6-4 Cost of goods sold:LIFO ($2,930) –FIFO ($2,800)…………………………$130 Incom e tax rate……………………………………….. .35 LIFO advantage in tax savings…………………………..$ 46(15 min.) E 6-51. a. FIFOCost of goods sold:(5 @ $90) + (5 @ $95)……………...$925Ending inventory:7 @ $95………………………………$665b. LIFOCost of goods sold:10 @ $95……………………………..$950Ending inventory:(5 @ $90) + (2 @ $95)……………...$6402.VPA, Inc.Income StatementMonth Ended May 31, 20XXSales revenue (3 @ $150) + (7 @ $155)................$1,535 Cost of goods sold. (925)Gross profit (610)Operating expenses (310)Income before income tax (300)Income tax expense (40%) (120)Net income………………………………………………$ 180 394Financial Accounting 6/e Solutions Manual(15 min.) E 6-6Millions1. Gross profit: FIFO LIFOSales revenue……………………………………$4.9 $4.9 Cost of goods soldFIFO: 600,000 ?$7…………………………… 4.2LIFO: (400,000 ? $5) + (100,000 ? $6)+ (100,000 ?$7)……………………… 3.3 Gross profit………………………………………$ .7 $1.6 2. Gross profit under FIFO and LIFO differ because inventorycosts decreased during the period.If you base your prediction on the decrease in inventory unit cost, then, yes, you would predict that LIFO gross profit would be higher.But if you assume that FIFO produces higher gross profit, then, no, the actual result does not follow your prediction. Chapter 6 Merchandise Inventory and Cost of Goods Sold 395(15-20 min.) E 6-7 DATE: _____________TO: Rick TaborFROM: Student NameSUBJECT: Proposal for Saving Income TaxWe can save income tax by buying above-normal quantities of inventory before the end of the year. Inventory costs are rising, and the company uses the LIFO inventory method. Under LIFO, the higher cost of year-end purchases of inventory goes straight into cost of goods sold. This increases cost of goods sold and decreases net income and income taxes. Because our inventory levels are lower than normal, we need the inventory anyway. In effect, we can use our cash to buy inventory or to pay income taxes. I think it would be wiser to buy inventory.396Financial Accounting 6/e Solutions Manual(10-15 min.) E 6-8 Specificunit cost 1. Used to account for automobiles, jewelry, and art objects.Average 2. Provides a middle-ground measure of ending inventory and cost of goods sold.FIFO 3. Maximizes reported income.LIFO 4. Matches the most current cost of goods sold against sales revenue.LIFO 5. Results in an old measure of the cost of ending inventory.LIFO 6. Generally associated with saving income taxes. FIFO 7. Results in a cost of ending inventory that is close to the current cost of replacing the inventory.LIFO 8. Enables a company to buy high-cost inventory at year end and thereby to decrease reportedincome.LIFO 9. Enables a company to keep reported income from dropping lower by liquidating older layers ofinventory.LCM 10. Writes inventory down when replacement cost drops below historical cost.Chapter 6 Merchandise Inventory and Cost of Goods Sold 397。

会计学原理FinancialAccountingbyRobertLibby第八版第七章答案

会计学原理FinancialAccountingbyRobertLibby第⼋版第七章答案Chapter 7Reporting and Interpreting Cost of Goods Sold and InventoryANSWERS TO QUESTIONS1. Inventory often is one of the largest amounts listed under assets on the balancesheet which means that it represents a significant amount of the resources available to the business. The inventory may be excessive in amount, which is a needless waste of resources; alternatively it may be too low, which may result in lost sales. Therefore, for internal users inventory control is very important. On the income statement, inventory exerts a direct impact on the amount of income.Therefore, statement users are interested particularly in the amount of this effect and the way in which inventory is measured. Because of its impact on both the balance sheet and the income statement, it is of particular interest to all statement users. 2. Fundamentally, inventory should include those items, and only those items,legally owned by the business. That is, inventory should include all goods that the company owns, regardless of their particular location at the time.3. The cost principle governs the measurement of the ending inventory amount.The ending inventory is determined in units and the cost of each unit is applied to that number. Under the cost principle, the unit cost is the sum of all costs incurred in obtaining one unit of the inventory item in its present state.4. Goods available for sale is the sum of the beginning inventory and the amount ofgoods purchased during the period. Cost of goods sold is the amount of goods available for sale less the ending inventory.5. Beginning inventory is the stock of goods on hand (in inventory) at the start of theaccounting period. Ending inventory is the stock of goods on hand (in inventory) at the end of the accounting period. The ending inventory of one period automatically becomes the beginning inventory of the next period.6. (a) Average cost–This inventory costing method in a periodic inventorysystem is based on a weighted-average cost for the entire period. At theend of the accounting period the average cost is computed by dividing thegoods available for sale in units into the cost of goods available for salein dollars. The computed unit cost then is used to determine the cost ofgoods sold for the period by multiplying the units sold by this average unitcost. Similarly, the ending inventory for the period is determined bymultiplying this average unit cost by the number of units on hand.(b) FIFO–This inventory costing method views the first units purchased as thefirst units sold. Under this method cost of goods sold is costed at theoldest unit costs, and the ending inventory is costed at the newest unitcosts.(c) LIFO–This inventory costing method assumes that the last unitspurchased are the first units sold. Under this method cost of goods sold iscosted at the newest unit costs and the ending inventory is costed at theoldest unit costs.(d) Specific identification–This inventory costing method requires that eachitem in the beginning inventory and each item purchased during the periodbe identified specifically so that its unit cost can be determined byidentifying the specific item sold. This method usually requires that eachitem be marked, often with a code that indicates its cost. When it is sold,that unit cost is the cost of goods sold amount. It often is characterized asa pick-and-choose method. When the ending inventory is taken, thespecific items on hand, valued at the cost indicated on each of them, is theending inventory amount.7. The specific identification method of inventory costing is subject to manipulation.Manipulation is possible because one can, at the time of each sale, select (pick and choose) from the shelf the item that has the highest or the lowest (or some other) unit cost with no particular rationale for the choice. The rationale may be that it is desired to influence, by arbitrary choice, both the amount of income and the amount of ending inventory to be reported on the financial statements. To illustrate, assume item A is stocked and three are on the shelf. One cost $100;the second one cost $115; and the third cost $125. Now assume that one unit is sold for $200. If it is assumed arbitrarily that the first unit is sold, the gross profit will be $100; if the second unit is selected, the gross profit will be $85; or alternatively, if the third unit is selected, the gross profit will be $75. Thus, the amount of gross profit (and income) will vary significantly depending upon which one of the three is selected arbitrarily from the shelf for this particular sale. This assumes that all three items are identical in every respect except for their unit costs. Of course, the selection of a different unit cost, in this case, also will influence the ending inventory for the two remaining items.8. LIFO and FIFO have opposite effects on the inventory amount reported underassets on the balance sheet. The ending inventory is based upon either the oldest unit cost or the newest unit cost, depending upon which method is used.Under FIFO, the ending inventory is costed at the newest unit costs, and under LIFO, the ending inventory is costed at the oldest unit costs. Therefore, when prices are rising, the ending inventory reported on the balance sheet will be higher under FIFO than under LIFO. Conversely, when prices are falling the ending inventory on the balance sheet will be higher under LIFO than under FIFO.9. LIFO versus FIFO will affect the income statement in two ways: (1) the amount ofcost of goods sold and (2) income. When the prices are rising, FIFO will give a lower cost of goods sold amount and hence a higher income amount than will LIFO. In contrast, when prices are falling, FIFO will give a higher cost of goods sold amount and, as a result, a lower income amount.10. When prices are rising,LIFO causes a lower taxable income than does FIFO.Therefore, when prices are rising, income tax is less under LIFO than FIFO. A lower tax bill saves cash (reduces cash outflow for income tax). The total amount of cash saved is the difference between LIFO and FIFO inventory amounts multiplied by the income tax rate.11. LCM is applied when market (defined as current replacement cost) is lower thanthe cost of units on hand. The ending inventory is valued at market (lower), which (a) reduces net income and (b) reduces the inventory amount reported on the balance sheet. The effect of applying LCM is to include the holding loss on the income statement (as a part of CGS) in the period in which the replacement cost drops below cost rather than in the period of actual sale.12. When a perpetual inventory system is used, the unit cost must be known for eachitem sold at the date of each sale because at that time two things happen: (a) the units sold and their costs are removed fromthe perpetual inventory record and the new inventory balance is determined; (b) the cost of goods sold is determined from the perpetual inventory record and an entry in the accounts is made as a debit to Cost of Goods Sold and a credit to Inventory. In contrast, when a periodic inventory system is used the unit cost need not be known at the date of each sale. In fact, the periodic system is designed so that cost of goods sold for each sale is not known at the time of sale. At the end of the period, under the periodic inventory system, cost of goods sold is determined by adding the beginning inventory to the total goods purchased for the period and subtracting from that total the ending inventory amount. The ending inventory amount is determined by means of a physical inventory count of the goods remaining on hand and with the units valued on a unit cost basis in accordance with the cost principle (by applying an appropriate inventory costing method). ANSWERS TO MULTIPLE CHOICE1. c)2. d)3. a)4. a)5. c)6. c)7. a)8. c)9. c) 10. a)Authors' Recommended Solution Time(Time in minutes)* Due to the nature of these cases and projects, it is very difficult to estimate the amount of time students will need to complete the assignment. As with any open-ended project, it is possible for students to devote a large amount of time to these assignments. While students often benefit from the extra effort, we find that some become frustrated by the perceived difficulty of the task. You can reduce student frustration and anxiety by making your expectations clear. For example, when our goal is to sharpen research skills, we devote class time to discussing research strategies. When we want the students to focus on a real accounting issue, we offer suggestions about possible companies or industries.MINI-EXERCISESM7–1.Type of BusinessType of Inventory Merchandising ManufacturingWork in process XFinished goods XMerchandise XRaw materials XM7–2.To record the purchase of 90 new shirts in accordance with the cost principle (perpetual inventory system):Inventory (+A) .............................................................. 2,150Cash ( A) .......................................................... 2,150 Cost: $1,800 + $185 + $165 = $2,150.The $108 interest expense is not a proper cost of the merchandise; it is recorded as prepaid interest expense and later as interest expense.M7–3.(1) Part of inventory (2) Expense as incurreda. Wages of factory workers Xb. Costs of raw materials purchased Xc. Sales salaries Xd. Heat, light, and power for the factory building Xe. Heat, light, and power for the headquartersoffice buildingXComputation: Simply rearrange the basic inventory model (BI + P – EI = CGS): Cost of goods sold ................................................. $11,042 million + Ending inventory .................................................... 2,916 million –Beginning inventory ............................................... (3,213) million Purchases .............................................................. $10,745 millionM7–5.(a) Declining costsHighest net income LIFOHighest inventory LIFO(b) Rising costsHighest net income FIFOHighest inventory FIFOM7–6.LIFO is often selected when costs are rising because it reduces the company’s tax liability which increases cash and benefits shareholders. However, it also reduces reported net income.M7–7.Quantity Cost perItem ReplacementCost per ItemLower of Costor MarketReported onBalance SheetItem A 70 $ 110 $100 $100 70 x $100 = $7,000 Item B 30 60 85 60 30 x $60 = $1,800 Total $8,800 M7–8.+ (a) Parts inventory delivered daily by suppliers instead of weekly.NE (b)Extend payments for inventory purchases from 15 days to 30 days.+ (c) Shorten production process from 10 days to 8 days.Understatement of the 2014 ending inventory by $50,000 caused 2014 pretax income to be understated and 2015 pretax income to be overstated by the same amount. Overstatement of the 2014 ending inventory would have the opposite effect; that is, 2014 pretax income would be overstated by $50,000 and 2015 pretax income understated by $50,000. Total pretax income for the two years combined would be correct.EXERCISESE7–1Item Amount ExplanationEnding inventory (physical count onDecember 31, 2014)$34,500 Per physical inventory.a. Goods purchased and in transit + 700 Goods purchased and in transit,F.O.B. shipping point, are ownedby the purchaser.b. Samples out on trial tocustomer + 1,800 Samples held by a customer ontrial are still owned by the vendor;no sale or transfer of ownershiphas occurred.c. Goods in transit to customer Goods shipped to customers,F.O.B. shipping point, are ownedby the customer becauseownership passed when they weredelivered to the transportationcompany. The inventory correctlyexcluded these items.d. Goods sold and in transit + 1,500 Goods sold and in transit, F.O.B.destination, are owned by the selleruntil they reach destination.Correct inventory, December 31, 2014 $38,500E7–2.(Italics for missing amounts only.)Case A Case B Case CNet sales revenue .......... $7,500 $4,800$5,000 Beginning inventory ........ $11,200 $ 7,000 $ 4,000 Purchases .................. 4,500 8,050 9,500Goods available for sale . 15,700 15,050 13,500Ending inventory ............ 9,000 11,050 9,300Cost of goods sold.......... 6,700 4,000 4,200 Gross profit .................. 800 800 800 Expenses .................. 300 1,000 700 Pretax income ................ $ 500 $ (200) $ 100E7–3.E7–4.Computations:Simply rearrange the cost of goods sold equationBI + P – EI = CGSP = CGS – BI + EICost of goods sold ................................... $1,639,188,000 –Beginning inventory .................................. (385,857,000) + Ending inventory ...................................... 569,818,000 Purchases ................................................ $1,823,149,000AverageUnits FIFO LIFO Cost Cost of goods sold:Beginning inventory ($5) ............. 2,000 $10,000 $10,000 $10,000 Purchases (March 21) ($6) ......... 5,000 30,000 30,000 30,000 (August 1) ($8) .......... 3,000 24,000 24,000 24,000Goods available for sale .. 10,000 64,000 64,000 64,000 Ending inventory* ....................... 4,000 30,000 22,000 25,600 Cost of goods sold** ........ 6,000 $34,000 $42,000 $38,400 *Ending inventory computations:FIFO: (3,000 units @ $8) + (1,000 units @ $6) = $30,000.LIFO: (2,000 units @ $5) + (2,000 units @ $6) = $22,000.Average: [(2,000 units @ $5) + (5,000 units @ $6) + (3,000 units @ $8)] =$64,000 ÷ 10,000 units = $6.40 per unit.4,000 units @ $6.40 = $25,600.**Cost of goods sold computations:FIFO: (2,000 units @ $5) + (4,000 units @ $6) = $34,000.LIFO: (3,000 units @ $8) + (3,000 units @ $6) = $42,000.Average: [(2,000 units @ $5) + (5,000 units @ $6) + (3,000 units @ $8)] =$64,000 ÷ 10,000 units = $6.40 per unit.6,000 units @ $6.40 = $38,400.AverageUnits FIFO LIFO Cost Cost of goods sold:Beginning inventory ($5) ............. 2,000 $10,000 $10,000 $10,000 Purchases (March 21) ($4) ......... 6,000 24,000 24,000 24,000 (August 1) ($2) .......... 4,000 8,000 8,000 8,000Goods available for sale .. 12,000 42,000 42,000 42,000 Ending inventory* ....................... 3,000 6,000 14,000 10,500 Cost of goods sold ........... 9,000 $36,000 $28,000 $31,500 *Ending inventory computations:FIFO: (3,000 units @ $2) = $6,000.LIFO: (2,000 units @ $5) + (1,000 units @ $4) = $14,000.Average: [(2,000 units @ $5) + (6,000 units @ $4) + (4,000 units @ $2)] =$42,000 ÷ 12,000 units = $3.50 per unit.3,000 units @ $3.50 = $10,500.**Cost of goods sold computations:FIFO: (2,000 units @ $5) + (6,000 units @ $4) + (1,000 units @ $2) = $36,000.LIFO: (4,000 units @ $2) + (5,000 units @ $4) = $28,000.Average: [(2,000 units @ $5) + (6,000 units @ $4) + (4,000 units @ $2)] =$42,000 ÷ 12,000 units = $3.50 per unit.9,000 units @ $3.50 = $31,500.E7–7.Req. 1BROADHEAD COMPANYIncome StatementFor the Year Ended December 31, 2015Case A Case BFIFO LIFOSales revenue1 .............................. $500,000 $500,000 Cost of goods sold:Beginning inventory ................ $ 27,000 $ 27,000Purchases .............................. 195,000 195,000Goods available for sale2 222,000 222,000 Ending inventory3 .................. 125,000 87,000Cost of goods sold4......... 97,000 135,000 Gross profit .................................. 403,000 365,000 Expenses .................................. 195,000 195,000 Pretax income ................................ $208,000 $170,000 Computations:(1) Sales: (10,000 units @ $50) = $500,000(2) Goods available for sale (for both cases):Units Unit Cost Total Cost Beginning inventory 3,000 $9 $ 27,000Purchase, April 11, 2015 9,000 10 90,000Purchase, June 1, 2015 7,000 15 105,000 Goods available for sale 19,000 $222,000 (3) Ending inventory (19,000 available – 10,000 units sold = 9,000 units):Case A FIFO:(7,000 units @ $15 = $105,000) +(2,000 units @ $10 = $20,000) = $125,000.Case B LIFO:(3,000 units @ $9 = $27,000)+(6,000 units @ $10 = $60,000) = $87,000.E7–7. (continued)Req. 1 (continued)(4) Cost of goods sold (10,000 units sold):Case A FIFO:(3,000 units @ $9 = $27,000) +(7,000 units @ $10 = $70,000) = $97,000Case B LIFO:(7,000 units @ $15 = $105,000) +(3,000 units @ $10 = $30,000) = $135,000Req. 2Comparison of AmountsCase A Case BFIFO LIFOPretax Income $208,000 $170,000Difference $38,000Ending Inventory 125,000 87,000Difference 38,000The above tabulation demonstrates that the pretax income difference between the two cases is exactly the same as the inventory difference. Differences in inventory have a dollar-for-dollar effect on pretax income.Req. 3LIFO may be preferred for income tax purposes because it reports less taxable income (when prices are rising) and hence (a) reduces income tax and (b) as a result reduces cash outflows for the period.E7–8.Req. 1BECK INC.Income StatementFor the Year Ended December 31, 2015Case A Case BFIFO LIFOSales revenue1 .............................. $704,000 $704,000 Cost of goods sold:Beginning inventory ................ $ 35,000 $ 35,000Purchases .............................. 281,000 281,000Goods available for sale2 316,000 316,000 Ending inventory3 .................. 128,000 80,000Cost of goods sold4......... 188,000 236,000 Gross profit .................................. 516,000 468,000 Expenses .................................. 500,000 500,000 Pretax income ................................ $16,000 $(32,000) Computations:(1) Sales: (8,000 units @ $28) + (16,000 units @ $30) = $704,000(2) Goods available for sale (for both cases):Units Unit Cost Total Cost Beginning inventory 7,000 $5 $ 35,000Purchase, March 5, 2015 19,000 9 171,000Purchase, September 19, 2015 10,000 11 110,000 Goods available for sale 36,000 $316,000 (3) Ending inventory (36,000 available – 24,000 units sold = 12,000 units):Case A FIFO:(10,000 units @ $11 = $110,000) +(2,000 units @ $9 = $18,000) = $128,000.Case B LIFO:(7,000 units @ $5 = $35,000)+(5,000 units @ $9 = $45,000) = $80,000.E7–8. (continued)Req. 1 (continued)(4) Cost of goods sold (24,000 units sold):Case A FIFO:(7,000 units @ $5 = $35,000) +(17,000 units @ $9 = $153,000) = $188,000Case B LIFO:(10,000 units @ $11 = $110,000) +(14,000 units @ $9 = $126,000) = $236,000Req. 2Comparison of AmountsCase A Case BFIFO LIFOPretax Income $16,000 $(32,000)Difference $48,000Ending Inventory 128,000 80,000Difference 48,000The above tabulation demonstrates that the pretax income difference between the two cases is exactly the same as the inventory difference. Differences in inventory have a dollar-for-dollar effect on pretax income.Req. 3LIFO may be preferred for income tax purposes because it reports less taxable income (when prices are rising) and hence (a) reduces income tax and (b) as a result reduces cash outflows for the period.E7–9.Req. 1AverageUnits FIFO LIFO Cost Cost of goods sold:Beginning inventory .................... 2,000 $ 76,000 $ 76,000 $ 76,000Purchases................................... 8,000 320,000 320,000 320,000 Goods available for sale .. 10,000 396,000 396,000 396,000 Ending inventory* ....................... 1,800 72,000 68,400 71,280 Cost of goods sold** ........ 8,200 $324,000 $327,600 $324,720Average Income statement FIFO LIFO Cost Sales revenue ....................................... $615,000 $615,000 $615,000 Cost of goods sold................................. 324,000 327,600 324,720 Gross profit ......................................... 291,000 287,400 290,280 Expenses ......................................... 194,500 194,500 194,500 Pretax income ....................................... 96,500 92,900 95,780 Income tax expense (30%) ......... 28,950 27,870 28,734 Net income ......................................... $ 67,550 $ 65,030 $ 67,046*Ending inventory computations:FIFO: 1,800 units @ $40 = $72,000.LIFO: 1,800 units @ $38 = $68,400.Average: [(2,000 units @ $38) + (8,000 units @ $40)] ÷ 10,000 units =$396,000 ÷ 10,000 units = $39.60 per unit.$39.60 x 1,800 units = $71,280.**Cost of goods sold computations:FIFO: (2,000 units @ $38) + (6,200 units @ $40) = $324,000.LIFO: (8,000 units @ $40) + (200 units @ $38) = $327,600.Average: [(8,000 units @ $38) + (8,000 units @ $40)] =$396,000 ÷ 10,000 units = $39.60 per unit.8,200 units @ $39.60 = $324,720.Req. 2FIFO produces a more favorable (higher) net income because when prices are rising it gives a lower cost of goods sold amount. FIFO allocates the old (lower) unit costs to cost of goods sold.LIFO produces a more favorable cash flow than FIFO because, when prices are rising, it produces a higher cost of goods sold amount and lower taxable income and, therefore, lower income tax expense for the period. Cash outflow is less under LIFO by the amount of income tax reduction. LIFO causes these comparative effects because it allocates the new (higher) unit costs to cost of goods sold.E7–9. (continued)Req. 3When prices are falling, the opposite effect occurs–LIFO produces higher net income and less favorable cash flow than does FIFO.E7–10.Req. 1AverageFIFO LIFO Cost Cost of goods sold:Beginning inventory (400 units @ $28) ... $11,200 $11,200 $11,200 Purchases (475 units @ $35) ................. 16,625 16,625 16,625 Goods available for sale ......................... 27,825 27,825 27,825 Ending inventory (525 units)*.................. 18,025 15,575 16,695 Cost of goods sold (350 units)** ............. $ 9,800 $12,250 $ 11,130 *Computation of ending inventory:FIFO: (475 units x $35) + (50 units x $28) = $18,025LIFO: (400 units x $28) + (125 units x $35) = $15,575Average: [(400 units @ $28) + (475 units @ $35)] ÷ 875 units =$27,825 ÷ 875 units = $31.80 per unit.$31.80 x 525 units = $16,695.**Cost of goods sold computations:FIFO: (350 units @ $28) = $9,800.LIFO: (350 units @ $35) = $12,250.Average: [(400 units @ $28) + (475 units @ $35)] ÷ 875 units =$27,825 ÷ 875 units = $31.80 per unit.$31.80 x 350 units = $11,130.Req. 2AverageFIFO LIFO Cost Sales revenue ($50 x 350) ............................... $17,500 $17,500 $17,500 Cost of goods sold............................................. 9,800 12,250 11,130 Gross profit ..................................................... 7,700 5,250 6,370 Expenses ..................................................... 1,700 1,700 1,700 Pretax income ................................................... $ 6,000 $ 3,550 $ 4,670E7–10. (continued)Req. 3Ranking in order of favorable cash flow: The higher rankings are given to the methods that produce the lower income tax expense because the lower the income tax expense the higher the cash savings.(1) LIFO–produces the lowest pretax income, hence the lowest amount of cash to bepaid for income tax.(2) Weighted average–produces next lower pretax income.(3) FIFO–produces the highest pretax income and as a result the highest income tax.This result causes the lowest cash savings on income tax.The above comparative effects occurred because prices were rising. If prices were falling the three methods would have produced the opposite ranking.。

西方财务会计课后习题答案-精品

西方财务会计课后习题答案-精品2020-12-12【关键字】财务会计The Financial StatementsCheck Points(5 min.) CP 1-1 Store manager decisions:a.What food items to offer and how to market the goodsb.Where to locate a restaurantc.How to finance operationsAccounting helps managers measure the revenue from food sales, the cost of the food, and the profit (or loss) on each food item. Accounting also helps measure which Taco Bells are most profitable and which are losing money. Finally, accounting helps managers decide how to finance operations. Items on YUM! Brands’ income statement that help decide whether to invest in the company:The company earned a net income (rather than a net loss).This year’s net income is more than last year’s.Net sales revenue is increasing from year to year. Student responses may vary.(5 min.) CP 1-2 Accounting is the information system that measures business activities, processes data into reports, and communicates results to people.Bookkeeping is only a part of accounting. Bookkeeping is related to accounting as arithmetic is related to mathematics.(5 min.) CP 1-3Standards of professional conduct are designed to produce relevant and reliable information for decision making. People need relevant and reliable information in order to make wise decisions.If accountants had no ethical guidelines, companies could report inaccurate information. This could cause people to invest in the wrong companies and lose money.(5 min.) CP 1-4 1. Novak can be misled into believing that YUM! Brands ownsmore assets than it actually has.2. The entity concept applies.3. Application of the entity concept will separate Novak’spersonal assets from the assets of YUM! Brands. This will help Novak, investors, and lenders know how much in assets the business controls, and this knowledge will help all parties evaluate the business realistically.(5 min.) CP 1-5 1. Owners’ Equity = Assets – LiabilitiesThis way of determining the amount of owners’ equity applies to eBay, Coca-Cola, your household, a Pizza Hut restaurant, or any other organization.2. Liabilities = Assets –Owners’ Equity3. Total Assets = Total Liabilities + Total Owners’ Equity(5 min.) CP 1-6 1. Assets are the economic resources of a business that areexpected to produce a benefit in the future.Owners’ equity represents the insider claims of a business, the owners’ interest in its assetsAssets and owners’ equity differ in that owners’ equity is a claim to assets, whereas assets are resources.Assets must be at least as large as owners’ equity, so equity can be smaller than assets.2. Both liabilities and owners’ equity are claims to assets.Liabilities are the outsider claims to the assets of a business;they are obligations to pay creditors. Owners’ equity represents the insider claims to the assets of the business, the owners’ interest in its assets.(5-10 min.) CP 1-7a. Accounts receivable A g. Accounts payable Lb. Long-term debt L h. Common stock Ec. Merchandise inventory A i. Supplies Ad. Notes payable L j. Retained earnings Ee. Expenses payable L k. Land Af. Equipment A l. Prepaid expenses A(5 min.) CP 1-81. Revenues and expenses2. Net income (or net loss)3. Total assets are not used to measure net income. Onlyrevenues and gains, expenses and losses enter into the measurement of net income.(10 min.) CP 1-9 2003 2002Percentage of cost= $2,300$7,441= 30.9%$2,109$6,891= 30.6%of goods sold tocompany salesThis trend is unfavorable for YUM because cost of goods sold (an expense) consumed a higher percentage of sales revenue in 2003. That could cause a decrease in profits.(5 min.) CP 1-10IHOP Corp.Statement of Retained EarningsYear Ended December 31, 2003Millions Retained earnings:Balance, beginning of year…………...$274Net income ($405 –$368) (37)Less: Dividends (16)Balance, end of year…………………...$295(10-15 min.) CP 1-11Toby Landscaping ServicesBalance SheetDecember 31, 2008ASSETSCurrent assets:Cash……………………………………………………$ 13,000 Receivables…………………………………………...2,000 Inventory……………………………………………… 40,000 Total current assets…………………………………55,000 Equipment……………………………………………….85,000 Other assets…………………………………………….. 10,000 Total assets……………………………………………...$150,000 LIABILITIESCurrent liabilities:Accounts payable……………………………………$ 8,000 Short-term notes payable…………………………. 12,000 Total current liabilities……………………………...20,000 Long-term liabilities:Long-term debt………………………………………80,000 STOCKHOLDERS’ EQUITYCommon stock………………………………………….15,000 Retained earnings……………………………………… 35,000* Total stockholders’ equity………………………… 50,000 Total liabilities and stockholders’ equity…………..$150,000 _____*Computation:Total assets ($150,000) – current liabilities ($20,000) – long-term debt ($80,000) – common stock ($15,000) = $35,000(10-15 min.) CP 1-12Clearsource Cable, Inc.Statement of Cash FlowsYear Ended December 31, 2006Cash flows from operating activities:Net income………………………………………...$ 88,000 Adjustments to reconcile net income to netcash provided by operating activities…. (20,000) Net cash provided by operating activities.. 68,000 Cash flows from investing activities:Purchases of equipment…………$(300,000)Sale of equipment………………… 90,000Net cash used for investing activities……..(210,000) Cash flows from financing activities:Borrowing…………………………..$150,000Payment of dividends……………. (10,000)Net cash provided by financing activities. 140,000 Net increase (decrease) in cash………………….(2,000) Cash balance, December 31, 2005………………. 24,000 Cash balance, December 31, 2006……………….$ 22,000(10 min.) CP 1-131. Cash BS, SCF2. Net cash used for financing activities SCF3. Accounts payable BS4. Common stock BS5. Interest revenue IS6. Long-term debt BS7. Increase or decrease in cash SCF8. Dividends SRE, SCF9. Salary expense IS10. Inventory BS11. Sales revenue IS12. Retained earnings SRE, BS13. Net cash provided by operating activities SCF14. Net income (or net loss) IS, SRE, SCFExercises(10-15 min.) E 1-1 a. Proprietorship. There is a single owner of the business, sothe owner is answerable to no other owner.b. Partnership. If the partnership fails and cannot pay itsliabilities, creditors can force the partners to pay the business’s debts from their personal assets. A partnership affords more protection for creditors than a proprietorship because there are two or more owners to share this liability.c. Corporation. If the corporation fails and cannot pay itsliabilities, creditors cannot force stockholders to pay theb usiness’s debts from their personal assets. Therefore, themost an investor can lose on an investment in a corporation is the amount invested.d. Corporation. Most investors are willing to invest more in acorporation than in a proprietorship or a partnership because of their limited personal liability for a corporation’s debts.(continued) E 1-1 What form of business organization would you choose?The answer depends on your objective. If you want to maintain absolute control of the business, you may prefer to organize as a proprietorship. If your objective is to maintain a high degree of control but you need additional money or expertise, a partnership may work for you. If you want the business to grow large, or if you wish to avoid personal liability for business debts, you should organize as a corporation.Student responses may vary.(10 min.) E 1-2The income statement reports the revenues and expenses of a particular entity for a period such as a month or a year. Total revenues minus total expenses equals net income, or profit. A lender would require this information in order to predict whether the borrower can generate enough income to repay the loan.The balance sheet reports the assets, liabilities, and owners’ equity of the entity at a particular point in time. The assets show the resources that the business has to work with. Because borrowers pay loans with assets, a lender wants to know the business’s assets (especially cash). Liabilities—debts —represent creditors’ claims to the business’s assets. Owners’ equity is the portion of the business assets owned outright by the owners.Student responses may vary.(5-10 min.) E 1-3a. Entity conceptb. Going-concern conceptc. Cost principled. Entity concept (No, Comer could not determine the successor failure of the business solely from his checkbook.)e. Reliability (Objectivity) principle (PepsiCo. should wait torecord a gain or loss after it sells the land.)(5-15 min.) E 1-4 (Amounts in billions)Assets = Liabilities + Owners’ Equity Dell $19 $13 $ 6Pier 1 Imports 0.9 0.3 0.6 Boeing 53 45 8Pier 1 appears to have the strongest financial position because its liabilities make up the smallest percentage of company assets ($3 / $9 = .333). Stated differently, Pier 1’s equity is the highest percentage of company assets ($6 / $9 = .667).(10-15 min.) E 1-5 Req. 1(Amounts in millions)Assets = Liabilities + Stockholders’Equity$141 $ 60202 7767Total $410 = $137 + $273Resources to workwithcreditors stockholdersReq. 5Krispy Kreme appears able to pay current liabilities of $60 million because current assets are over twice as large as current liabilities.Krispy Kreme also appears able to pay total liabilities because total assets far exceed total liabilities.(10-20 min.) E 1-6Situation1 2 3BillionsTotal stockholders’ equit yJanuary 31, 2003 ($30 –$10)………….. $20 $20 $20 Add: Issuances of stock……………….. 1 -0- 5 Net income…………………………. 1* 4*Less: Dividends…………………………... -0- (2) (1) Net loss…………………………….. (2)* Total stockholders’ equity,January 31, 2004 ($34 –$12)………….. $22 $22 $22 Situation 2 indicates the strongestis the highest.Situation 3 is the weakest because of the net loss._____*Must solve for these amounts.(10-15 min.) E 1-7 1. Fossil Inc.(Amounts in millions)Assets = Liabilities + Stockholders’EquityBeginning $ 483 = $142 + $341 Multiplier for increase 1.217Ending $ 5882. Bed Bath & Beyond(Amounts in billions)Assets –Liabilities = Stockholders’EquityBeginning amount $2.2 –$0.7 = $1.5 Net income 0.4 Ending amount $1.9(10-15 min.) E 1-8a. Balance sheetb. Income statementc. Balance sheetd. Balance sheete. Statement of retained earnings, Statement of cash flowsf. Income statementg. Balance sheet, Statement of retained earningsh. Income statementi. Balance sheetj. Statement of cash flowsk. Income statementl. Statement of cash flowsm. Balance sheet, Statement of cash flowsn. Balance sheeto. Income statement, Statement of retained earnings, Statement of cash flows(10-20 min.) E 1-9Wells Fargo & CompanyBalance Sheet (Adapted; Amounts in billions)December 31, 2003ASSETS LIABILITIESCash $ 16 Current liabilities $290 Receivable 253 Long-term liabilities 64 Investment assets 72 Total liabilities 354 Property andequipment, net 4 STOCKHOLDERS’Other assets 43EQUITYCommon stock 12Retained earnings 22*Total stockholders’ equity 34Total liabilities andTotal assets $388 stockholders’ equity$388 _____*Computation of retained earnings:Total assets ($388) – Total liabilities ($354) – Common stock ($12) = $22(15-25 min.) E 1-10 Req. 1Wells Fargo & CompanyIncome Statement (Adapted)Year Ended December 31, 2003Billions Total revenue……………………………………….$32 Expenses:Interest expense………………………………..$ 3Salary and other employee expenses (9)Other expenses (14)Total expenses (26)Net income………………………………………….$ 6 Req. 2The statement of retained earnings helps to compute dividends, as follows:Statement of Retained Earnings (Adapted)Billions Retained earnings, beginning of year..................... $19 Add: Net income for the year (Req. 1) (6)25 Less: Dividends (3)Retained earnings, end of year (from Exercise 1-9)…… $22 earnings.(15-20 min.) E 1-11ADP, Inc.Statement of Cash FlowsYear Ended December 31, 2004Millions Cash flows from operating activities:Net income………………………………………...$ 395Adjustments to reconcile net income tonet cash provided by operating activities….. 2,330 Net cash provid ed by operating activities………… $2,725 Cash flows from investing activities:Net cash used for investing activities…………... (3,140) Cash flows from financing activities:Net cash provided by financing activities (420)Net incr ease in cash (5)Beginning cash balance (145)Ending cash balance……………………………………….. $ 150Total assets –Balance sheetTotal liabilities –Balance sheetNet income…………………………………………. $ 7,500 Adjustments to reconcile net incometo net cash provided by operations……………. 2,000 Net cash provided by operating activit ies… 9,500 Cash flows from investing activities:Acquisition of equipment………………………… $(36,000) Net cash used for investing activities………(36,000) Cash flows from financing activities:Issuance (sale) of stock to owners…………….. $ 35,000Payment of dividends................................... (2,000) Net cash provided by financing activities.... 33,000 Net increase in cash.........................................$ 6,500 Cash balance, June 30, 20X6.. 0Cash balance, July 31, 20X6…………………………$ 6,500(10-15 min.) E 1-15 TO: Owner of Kinko’s storeFROM: Student NameSUBJECT: Opinion of operating results, dividends, financial position, a nd cash flowsYour first month of operations appears to have been successful. Revenues totaled $12,400 and net income was $7,500. These operating results look very strong.The company was able to pay a $2,000 dividend, and this should make you happy with so quick a return on your investment.Your financial position looks secure, with assets of $43,700 and liabilities of only $3,200. Your stockholders’ equity is $40,500.Operating activities generated cash of $9,500, which is respectable. You ended the month with cash of $6,500. Based on the above facts, I believe you should stay in business. Student responses may vary.(15-20 min.) E 1-16 a. The single best source of cash for a business is net incomeand the related cash receipts. This source of cash is best because it results from the core operations of the business.b. Borrowing, issuing stock, and selling land, buildings, andequipment can bring in cash even when the company has losses.c. P aying large dividends will cause retained earnings to be low.d. Heavy investing activity and paying off debts can result in acash shortage even if net income has been high.e. You can finance the payment of current liabilities in severalways: Borrow money, issue (sell) stock to stockholders, or sell long-term assets such as land, buildings, and equipment.Practice Quiz1. d2. a3. b4. b5. d6. a7. b8. c9. d10. c ($140,000 – $22,000 – $8,000 – $3,000 = $107,000)11. d ($110,000 + $95,000 – $30,000 = $175,000)12. d13. b14. aBegin.ChangesEnd._____15. cBegin.–End.ProblemsGroup A(15-30 min.) P 1-1A TO: Investment committeeSUBJECT: Genome Science Corporation request for us to buy its stockI recommend purchasing Genome Science stock because:1. Operations are the main source of Genome’s cash, and thecompany is increasing cash without a lot of borrowing.Moreover, Genome has been investing lots of money in long-term assets, as shown by its investing cash flows.2. Net income has increased dramatically during the past twoyears.3. Total assets have grown from $590,000 to $990,000 duringthe past two years, and liabilities have risen more slowly.I believe Genome has a bright future and that its stock islikely to increase in value.Student responses may vary.(15-20 min.) P 1-2A Req. 1General Electric CompanyIncome StatementYear Ended December 31, 20X5Billions Sales revenue………………………..$ 53Other revenue (73)Total revenue………………………...$126Cost of goods sold (36)Other expenses (70)Total expenses (106)Income before income tax (20)Income tax expense ($20 .30) (6)Net income……………………………$ 14(continued) P 1-2A Req. 2a. Reliability (objectivity) principle. Report revenues at theiractual sale value because that amount is more reliable than what management believes the goods are worth.b. Cost principle. Account for expenses at their actual cost, nota hypothetical amount that the company might have incurredif the products were purchased outside.c. Cost principle. Account for expenses at their actual cost.d. Entity concept. Each division of the company is a separateentity, and the company as a whole constitutes an entity for accounting purposes.e. Stable-monetary-unit concept. Accounting in the UnitedStates ignores the effect of inflation.f. Going-concern concept. There is no evidence that GeneralElectric is going out of business, so it seems safe to assume that the company is a going concern.(30-40 min.) P 1-3Abillions .FedEx Corp. Coca-Cola Ford Company Corp.Beginning :Assets $12 $17 $279 – Liabilities (7) (10) (228) = Owners’ equity $ 5 $ 7 $ 51Ending :Assets$13 $19 – Liabilities (7) (11) (204) = Owners’ Equity$ 6 $ 8 $ 65Owners’ Equity :Issuance of stock $ 1 – DividendsIncome Statement :Revenues$20 $119– Expenses(19) (97) = Net income$ 1 $ 4 $ 22Statement of owners’ equi ty :Beginning owners’ equity+ Issuance of stock+ Net income– Dividends(1) (3) (9) = E nding owners’ equity$ 6 $ 8 $ 65 __________ 1$5 + Issuance of stock2Net income = $4 3Assets = liabilities + OE + $1 – $1 = $6Revenue – expenses = net income Assets = $204 + $65 Issuance of stock = $1$19 – expenses = $4 Assets = $269 Expenses = $15(continued) P 1-3AFedEx Coca-Cola FordCorp. Company Corp.Percentage of liabilities to assets = $ 7 $11 $204$13 $19 $269= 53.8% = 57.9% = 75.8% Lowest 2nd LowestPercentage of net income to revenues = $ 1 $ 4 $ 22 $20 $19 $119= 5% = 21.1% = 18.5%HighestOn these measures, Coca-Cola looks the strongest. Coca-Cola has the second lowest percentage of liabilities to assets and the highest percentage of net income to revenues.(20-25 min.) P 1-4A Req. 1ICON, Inc.Balance SheetJuly 31, 20X7ASSETS LIABILITIESCash $15,000 Accounts payable $ 9,000 Accounts receivable 12,000 Note payable 16,000 Office supplies 1,000 Total liabilities 25,000 Office furniture 10,000 STOCKHOLDERS’Land 44,000 EQUITYStockholders’ equity 57,000*Total liabilities andTotal assets $82,000 stockholders’ equity $82,000 _____*Total assets ($82,000) – Total liabilities ($25,000) = Stockholders’ equity ($57,000).Req. 2ICON, Inc., is in better financial position than the erroneous balance sheet reports. True, assets are lower than reported, but by only $10,500 ($92,500 –$82,000). But liabilities are much lower, and owne rs’ equity is $36,300 higher than reported originally. Overall, ICON has less debt and more equity than first reported.Req. 3The following accounts are not reported on the balance sheet because they are revenues or expenses. These accounts are reported on the income statement.Rent expenseAdvertising expenseService revenueProperty tax expense(20-25 min. P 1-5A Req. 1Marjorie Caballero, Realtor, Inc.Balance SheetNovember 30, 2004ASSETS LIABILITIESCash $ 6,000 Accounts payable $ 6,000 Office supplies 1,000 Note payable 40,000 Franchise 20,000 Total liabilities 46,000 Furniture 17,000 STOCKHOLDERS’Land 120,000 EQUITYCommon stock 50,000Retained earnings 68,000*Total stockholders’ equity 118,000Total liabilities and ________ Total assets $164,000 stockholders’ equity$164,000 _____*Total assets ($164,000) – Total liabilities ($46,000) – Common stock ($50,000) = $68,000.Req. 2It appears that Caballero’s realty business can pay its debts. Total assets far exceed total liabilities.Req. 3Personal items not reported on the balance sheet of the business: a. Personal cash ($10,000)b. Personal account payable ($1,800)g. Personal residence ($160,000) and mortgagepayable ($100,000)(30-45 min.) P 1-6A Req. 1Hercules, Inc.Income StatementYear Ended December 31, 20X8RevenueService revenue…………………$220,000 ExpensesSalary expense………………….$63,000Rent expense…………………….23,000Advertising expense……………13,000Interest expense………………...9,000Property tax expense………….. 4,000Total expenses………………….. 112,000 Net income………………………….$108,000 Req. 2Hercules, Inc.Statement of Retained EarningsYear Ended December 31, 20X8Retained earnings, be ginning of year…… $ 10,000Add: Net income for the year…………… 108,000118,000 Less: Dividends……………………………. (70,000)Retained earnings, end of year…………… $ 48,000(continued) P 1-6A Req. 3Hercules, Inc.Balance SheetDecember 31, 20X8ASSETS LIABILITIESCash $ 10,000 Accounts payable $ 19,000 Accounts receivable 12,000 Salary payable 1,000 Supplies 3,000 Note payable 185,000 Furniture 20,000 Total liabilities 205,000 Building 150,000 STOCKHOLDERS’Land 98,000 EQUITYCommon stock 40,000Retained earnings 48,000Total stockholders’ equity 88,000Total liabilities andTotal assets $293,000 stockholders’ equity$293,000 Req. 4a. Hercules was profitable; net income was $108,000.b. Retained earnings increased by $38,000 —from $10,000 to$48,000.c. Total liabilities ($205,000) exceeds stockholders’ equity($88,000).The creditors own more of Hercules’ assets than do the company’s stockholders.(20 min.) P 1-7A Req. 1Nike, Inc.Statement of Cash FlowsYear Ended May 31, 20X4Millions Cash flows from operating activities:Net income…………………………………………. $796 Adjustments to reconcile net incometo cash provided by operations (473)Net cash provided by op erating activities (323)Cash flows from investing activities:Purchases of property, plant, and equipment.. $(510)Sales of property, plant, and equipment (24)Other investing cash receipts (33)Net cash used for investing activities (453)Cash flows from financing activities:Borrowing………………………………………….$ 388Issuance of common stock (26)Payment of dividends (101)Net cash provided by financing activities 313 Net increase in cash....................................... $ 183 Cash, beginning (262)Cash, ending………………………………………….. $ 445 Req. 2Operations and financing provided roughly equal amounts of cash. This signals a little financial weakness. Operations should be the main source of cash.(40-50 min.) P 1-8A Req. 120X6 20X5(Thousands)STATEMENT OF OPERATIONSRevenues $94,749 = $ k $88,412Cost of goods sold (74,564) (a) = 65,586 Other expenses (15,839) (13,564)Income before income taxes 4,346 9,262Income taxes (36.95% in 20X6) 1,606 = (l) (1,581)Net income 2,740 = $ m $ b = 7,681 STATEMENT OF RETAINED EARNINGSBeginning balance 17,213 = $ n $ 9,987Net income 2,740 = o c = 7,681 Dividends (559) (455)Ending balance 19,394 = $ p $ d = 17,213 BALANCE SHEETAssets:Cash 83 = $ q $ e = 45 Property, plant and equipment 23,894 20,874Other assets 18,564 = r 16,900 Total assets 42,541 = $ s $37,819Liabilities:Current liabilities 11,454 = $ t $ 9,973Long-term debt and other liabilities 11,331 10,120 Total liabilities 22,785 f = 20,093 Shareholders’ Equity:Common stock $ 229 $ 230Retained earnings 19,394 = u g = 17,213 Other shareholders’ equity 133 283 Total shareholders’ equity19,756 = v 17,726Total liabilities and shareholders’ equity42,541 = $ w $ h = 37,819 STATEMENT OF CASH FLOWSNet cash provided by operating activities 2,383 = $ x $ 2,906Net cash used for investing activities (3,332) (3,792)Net cash provided by financing activities 987 911 Increase (decrease) in cash 38 i = 25 Cash at beginning of year 45 = y 20Cash at end of year 83 = $ z $ j = 45(continued) P 1-8A Req. 2a. Operations deteriorated during 20X6. Revenues increased,but net income fell from $7,681 thousand to $2,740 thousand.b. The company retains most of its net income for use in thebusiness. Dividends were much less than net income.c. Total assets at the end of 20X6 were $42,541 thousand. Thisis the amount of total resources that the company has towork with as it moves into the year 20X7.d. At the end of 20X5, the company owed total liabilities of$20,093 thousand. At the end of 20X6, the company owed $22,785 thousand.e. The company’s major source of cash is operating activities,and cash is increasing. Based on these two facts, it appears that the comp any’s ability to generate cash is strong despite the dip in 20X6 net income. The company is using most of its cash to expand. This is clear from the large amounts of cash used for investing activities, which indicate that the company is growing.ProblemsGroup B(15-30 min.) P 1-1B TO: Edward Jones loan committeeSUBJECT: Kaiser Corporation loan requestI recommend not lending $50 million to Kaiser because:1. Operations are generating less and less of the company’scash, and the cash balance has decreased by $120 million during the past three years.2. Revenues decreased in 2007, and net income has decreasedfor the past two years.3. Dividends have exceeded net income for the past two years.As a result, stockholders’ equity has decreased from $400 million to $330 million.4. Liabilities have increased from $260 million to $390 million,which exceeds stockholders’ equity. A $50 million loan to Kaiser would make this situation worse.I doubt Kaiser could repay this loan.Student responses may vary.(15-20 min.) P 1-2B Req. 1Chrysler Division of DaimlerChrysler CorporationIncome StatementYear Ended December 31, 20X5Billions Sales revenue……………………………..$69.4Other revenue…………………………….. 5.8Total revenue……………………………...$75.2Cost of g oods sold……………………….$59.0Selling and administrative expenses… 3.7Other expenses……………………….….. 4.5Total operating expenses………………. 67.2Income before income tax………………8.0Income tax expense ($8.0 .35)………. 2.8Net income………………………………... $ 5.2(continued) P 1-2B Req. 2a. Reliability (objectivity) principle. Report revenues at theiractual sale value because that amount is more reliable than what management believes the good are worth.b. Cost principle. Account for expenses at their actual cost, nota hypothetical amount that the company might have incurredif the products were purchased outside.c. Cost principle. Account for expenses at their actual cost.d. Entity concept. Each division of the company is a separateentity, and the company as a whole constitutes an entity for accounting purposes.e. Stable-monetary-unit concept. Accounting in the UnitedStates ignores the effect of inflation.f. Going-concern concept. There is no evidence that Chrysler isgoing out of business, so it seems safe to assume that the division is a going concern.(30-40 min.) P 1-3BAmounts in billionsBest Buy Pier 1 Wal-Mart Beginning:Assets $ 3.0 $ 0.7 $ 78–Liabilities (1.9) (0.2) (47)= Owners’ equity $ 1.1 $ 0.5 $ 31 Ending:Assets $ 4.8 $ 0.9–Liabilities (3.0) (0.3) (48)= Owners’ Equity $ 1.8 $ 0.6 $ 35 Owners’ Equity:Issuance of stock $ 0 $ 0–Dividends (0)Income Statement:Revenues $218–Expenses (211)= Net income $ 7 Statement of owners’ equity:Beginning owners’ equity+ Issuance of stock+ Net income–Dividends (0) (0) (3)= En ding owners’ equity $ 1.8 $ 0.6 $ 35。

财务管理基础第七章课后题答案斯坦利.B.布洛克

ChProblems1. City Farm Insurance has collection centers across the country to speed up collections. Thecompany also makes its disbursements from remote disbursement centers. The collection time has been reduced by two days and disbursement time increased by one day because of these policies. Excess funds are being invested in short-term instruments yielding12 percent per annum.a. If City Farm has $5 million per day in collections and $3 million per day indisbursements, how many dollars has the cash management system freed up?b. How much can City Farm earn in dollars per year on short-term investments madepossible by the freed-up cash?7-1. Solution:City Farm Insurancea. $5,000,000 daily collections× 2.0 days speed up = $10,000,000 additional collections$3,000,000 daily disbursements× 1.0 days slow down = $ 3,000,000 delayed disbursements$13,000,000 freed-up fundsb. $13,000,000 freed-up funds12% interest rate$1,560,000 interest on freed-up cash2. Nicholas Birdcage Company of Hollywood ships cages throughout the country. Nicholashas determined that through the establishment of local collection centers around thecountry, he can speed up the collection of payments by one and one-half days. Furthermore, the cash management department of his bank has indicated to him that he can defer hispayments on his accounts by one-half day without affecting suppliers. The bank has aremote disbursement center in Florida.a. If the company has $4 million per day in collections and $2 million per day indisbursements, how many dollars will the cash management system free up?b. If the company can earn 9 percent per annum on freed-up funds, how much will theincome be?c. If the annual cost of the new system is $700,000, should it be implemented?7-2. Solution:Nicholas Birdcage Company of Hollywooda. $4,000,000 daily collections× 1.5 days speed up = $6,000,000 additional collections$2,000,000 daily disbursements× .5 days slow down = $1,000,000 delayed disbursements$7,000,000 freed-up fundsb. $7,000,000 freed-up funds9% interest rate$630,000 interest on freed-up cashc. No. The annual income of $630,000 is $70,000 less than theannual cost of $700,000 for the new system.3. Megahurtz International Car Rentals has rent-a-car outlets throughout the world. It alsokeeps funds for transactions purposes in many foreign countries. Assume in 2003, it held 100,000 reals in Brazil worth 35,000 dollars. It drew 12 percent interest, but the Brazilian real declined 20 percent against the dollar.a. What is the value of its holdings, based on U.S. dollars, at year-end (Hint: multiply$35,000 times 1.12 and then multiply the resulting value by 80 percent.)b. What is the value of its holdings, based on U.S. dollars, at year-end if it drew9 percent interest and the real went up by 10 percent against the dollar?7-3. Solution:Megahurtz International Car Rentala. $35,000 × 1.12 = $39,200$39,200 × 80% = $31,360 dollar value of real holdingsb. $35,000 × 1.09 = $38,150$38,150 × 110% = $41,965 dollar value of real holdings4. Thompson Wood Products has credit sales of $2,160,000 and accounts receivableof $288,000. Compute the value of the average collection period.7-4. Solution:Thompson Wood ProductsAccounts Receivable Average collection period Average daily credit sales$288,000$2,160,000/360$288,00048days $6,000====5. Lone Star Petroleum Co. has annual credit sales of $2,880,000 and accounts receivableof $272,000. Compute the value of the average collection period.7-5. Solution:Lone Star Petroleum Co.Accounts Receivable Average collection period Average daily credit sales$272,000$2,288,000/360$272,0008,00034days ====6. Knight Roundtable Co. has annual credit sales of $1,080,000 and an average collectionperiod of 32 days in 2008. Assume a 360-day year. What is the company ’s averageaccounts receivable balance? Accounts receivable are equal to the average daily credit sales times the average collection period.7-6. Solution:Knight Roundtable Co.$1,080,000annual credit sales $3,000credit sales a day 360days per year=$3,000 average 32 average $96,000 average accounts daily credit sales collection period receivable balance=⨯7.Darla ’s Cosmetics has annual credit sales of $1,440,000 and an average collection period of 45 days in 2008. Assume a 360-day year.What is the company ’s average accounts receivable balance? Accounts receivable are equal to the average daily credit sales times the average collection period. 7-7. Solution:Darla ’s Cosmetic Company$1,440,000 annual credit sales/360 = $4,000 per day credit sales $4,000 credit sales × 45 average collection period = $180,000average accounts receivable balance8. In Problem 7, if accounts receivable change to $200,000 in the year 2009, while credit salesare $1,800,000, should we assume the firm has a more or a less lenient credit policy? 7-8. Solution:Darla ’s Cosmetics (Continued)To determine if there is a more lenient credit policy, compute the average collection period.Accounts ReceivableAverage collection period Average daily credit sales$200,000$1,800,000/360$200,00040 days $5,000====Since the firm has a shorter average collection period, it appears that the firm does not have a more lenient credit policy.9. Hubbell Electronic Wiring Company has an average collection period of 35 days. Theaccounts receivable balance is $105,000. What is the value of its credit sales?7-9. Solution:Hubbell Electronic Wiring CompanyAccounts receivable Average collection period Average daily credit sales$105,00035 days credit sales 360$105,000Credit sales/36035 daysCredit sales/360$3,000 credit sales per dayCredit sales $3,==⎛⎫ ⎪⎝⎭===000360$1,080,000⨯=10. Marv ’s Women ’s Wear has the following schedule for aging of accounts receivable.Age of Receivables, April 30, 2004(1)(2) (3) (4)Month of SalesAge of Account Amounts Percent of Amount Due April .................................0–30 $ 88,000 ____ March ...............................31–60 44,000 ____ February ...........................61–90 33,000 ____ January .............................91–120 55,000 ____ Total receivables ...........$220,000 100%a . Fill in column (4) for each month.b . If the firm had $960,000 in credit sales over the four-month period, compute the average collection period. Average daily sales should be based on a 120-day period.c . If the firm likes to see its bills collected in 30 days, should it be satisfied with the average collection period?d . Disregarding your answer to part c and considering the aging schedule for accounts receivable, should the company be satisfied? e . What additional information does the aging schedule bring to the company that theaverage collection period may not show?7-10. Solution:Marv’s Women’s WearAge of Receivables, April 30, 2004a.(1)(2)(3)(4)Month of SalesAge ofAccount AmountsPercent ofAmount DueApril 0-30 $ 88,000 40% March 31-60 44,000 20% February 61-90 33,000 15% January 91-120 55,000 25% Total receivables $220,000 100%b.Accounts receivable Average Collection PeriodAverage daily credit sales$220,000$960,000/120$220,000$8,00027.5 days====c. Yes, the average collection of 27.5 days is less than 30 days.d. No. The aging schedule provides additional insight that 60percent of the accounts receivable are over 30 days old.e. It goes beyond showing how many days of credit salesaccounts receivables represent, to indicate the distribution of accounts receivable between various time frames.11. Nowlin Pipe & Steel has projected sales of 72,000 pipes this year, an ordering cost of$6 per order, and carrying costs of $2.40 per pipe.a . What is the economic ordering quantity?b . How many orders will be placed during the year?c . What will the average inventory be?7-11. Solution:Nowlin Pipe and Steel Companya. EOQ 600 units =====b. 72,000 units/600 units = 120 ordersc. EOQ/2 = 600/2 = 300 units (average inventory)12. Howe Corporation is trying to improve its inventory control system and has installed anonline computer at its retail stores. Howe anticipates sales of 126,000 units per year, an ordering cost of $4 per order, and carrying costs of $1.008 per unit.a . What is the economic ordering quantity?b . How many orders will be placed during the year?c . What will the average inventory be?d . What is the total cost of inventory expected to be?7-12. Solution:Howe Corp.a. EOQ 1,000 units ===b. 126,000 units/1,000 units = 126 orders7-12. (Continued)c. EOQ/2 = 1,000/2 = 500 units (average inventory)d. 126 orders × $4 ordering cost= $ 504 500 units × $1.008 carrying cost per unit = 504 Total costs = $1,00813. (See Problem 12 for basic data.) In the second year, Howe Corporation finds it can reduceordering costs to $1 per order but that carrying costs will stay the same at $1.008 per unit. a . Recompute a, b, c , and d in Problem 12 for the second year.b . Now compare years one and two and explain what happened.7-13. Solution:Howe Corp. (Continued)a. EOQ 500 units =====126,000 units/500 units = 252 ordersEOQ/2 = 500/2 = 250 units (average inventory)252 orders × $1 ordering cost= $252 250 units × $1.008 carrying cost per unit = 252 Total costs = $504b. The number of units ordered declines 50%, while the numberof orders doubles. The average inventory and total costs both decline by one-half. Notice that the total cost did not decline in equal percentage to the decline in ordering costs. This isbecause the change in EOQ and other variables (½) isproportional to the square root of the change in orderingcosts (¼).14. Higgins Athletic Wear has expected sales of 22,500 units a year, carrying costs of $1.50per unit, and an ordering cost of $3 per order.a. What is the economic order quantity?b. What will be the average inventory? The total carrying cost?c. Assume an additional 30 units of inventory will be required as safety stock. What willthe new average inventory be? What will the new total carrying cost be?7-14. Solution:Higgins Athletic Weara. EOQ==300 units===b. EOQ/2 = 300/2 = 150 units (average inventory)150 units × $1.50 carrying cost/unit = $225 total carrying costc.EOQAverage inventory Safety Stock230030150301802=+=+=+= 180 inventory × $1.50 carrying cost per year = $270 total carrying cost15. Dimaggio Sports Equipment, Inc., is considering a switch to level production. Costefficiencies would occur under level production, and aftertax costs would decline by$35,000, but inventory would increase by $400,000. Dimaggio would have to finance the extra inventory at a cost of 10.5 percent.a. Should the company go ahead and switch to level production?b. How low would interest rates need to fall before level production would be feasible? 7-15. Solution:Dimaggio Sports Equipment, Inc.a. Inventory increases by $400,000× interest expense 10.5%Increased costs $ 42,000Less: Savings 35,000Loss ($ 7,000)Don’t switch to level production. Increased ROI is less thanthe interest cost of more inventory.b. If interest rates fall to 8.75% or less, the switch would befeasible.$35,000 Savings8.75%$400,000 increased inventory16. Johnson Electronics is considering extending trade credit to some customers previouslyconsidered poor risks. Sales will increase by $100,000 if credit is extended to these new customers. Of the new accounts receivable generated, 10 percent will prove to beuncollectible. Additional collection costs will be 3 percent of sales, and production and selling costs will be 79 percent of sales. The firm is in the 40 percent tax bracket.a. Compute the incremental income after taxes.b. What will Johnson’s incremental return on sales be if these new credit customers areaccepted?c. If the receivable turnover ratio is 6 to 1, and no other asset buildup is needed to servethe new customers, what will Johnson’s incremental return on new averageinvestment be?7-16. Solution:Johnson Electronicsa. Additional sales .................................................... $100,000Accounts uncollectible (10% of new sales) ......... – 10,000Annual incremental revenue ................................ $ 90,000Collection costs (3% of new sales) ...................... – 3,000Production and selling costs (79% of new sales) .– 79,000Annual income before taxes ................................. $ 8,000Taxes (40%) ......................................................... – 3,200Incremental income after taxes ............................ $ 4,800b.Incremental income Incremental return on salesIncremental sales$4,800/$100,000 4.8%===c. Receivable turnover = Sales/Receivable turnover = 6xReceivables = Sales/Receivable turnover= $100,000/6= $16,666.67Incremental return on new average investment =$4,800/$16,666.67 = 28.80%17. Collins Office Supplies is considering a more liberal credit policy to increase sales, butexpects that 9 percent of the new accounts will be uncollectible. Collection costs are5 percent of new sales, production and selling costs are 78 percent, and accounts receivableturnover is five times. Assume income taxes of 30 percent and an increase in sales of$80,000. No other asset buildup will be required to service the new accounts.a. What is the level of accounts receivable to support this sales expansion?b. What would be Collins’s incremental aftertax return on investment?c. Should Collins liberalize credit if a 15 percent aftertax return on investment isrequired?Assume Collins also needs to increase its level of inventory to support new sales and that inventory turnover is four times.d. What would be the total incremental investment in accounts receivable and inventoryto support a $80,000 increase in sales?e. Given the income determined in part b and the investment determined in part d,should Collins extend more liberal credit terms?7-17. Solution:Collins Office Suppliesa.$80,000 Investment in accounts receivable$16,0005==b. Added sales .......................................................... $ 80,000Accounts uncollectible (9% of new sales) ........... – 7,200 Annual incremental revenue ................................ $ 72,800 Collection costs (5% of new sales) ...................... – 4,000 Production and selling costs (78% of new sales) – 62,400 Annual income before taxes ................................. $ 6,400 Taxes (30%) ......................................................... – 1,920 Incremental income after taxes ............................ $ 4,480Return on incremental investment = $4,480/$16,000 = 28% c. Yes! 28% exceeds the required return of 15%.7-17. (Continued)d.$80,000 Investment in inventory =$20,0004Total incremental investmentInventory $20,000Accounts receivable 16,000Incremental investment $36,000 $4,480/$36,000 = 12.44% return on investmente. No! 12.44% is less than the required return of 15%.18. Curtis Toy Manufacturing Company is evaluating the extension of credit to a new group ofcustomers. Although these customers will provide $240,000 in additional credit sales,12 percent are likely to be uncollectible. The company will also incur $21,000 in additionalcollection expense. Production and marketing costs represent 72 percent of sales. Thecompany is in a 30 percent tax bracket and has a receivables turnover of six times. No other asset buildup will be required to service the new customers. The firm has a 10 percentdesired return on investment.a. Should Curtis extend credit to these customers?b. Should credit be extended if 14 percent of the new sales prove uncollectible?c. Should credit be extended if the receivables turnover drops to 1.5 and 12 percent ofthe accounts are uncollectible (as was the case in part a).Curtis Toy Manufacturing Companya. Added sales ............................................................. $240,000Accounts uncollectible (12% of new sales) ............ 28,800 Annual incremental revenue ................................... 211,200 Collection costs ....................................................... 21,000 Production and selling costs (72% of new sales) .... 172,800 Annual income before taxes .................................... 17,400 Taxes (30%) ............................................................ 5,220 Incremental income after taxes ............................... $ 12,180 $240,000Receivable turnover 6.0x 6.040,000 in new receivables ==$12,180Return on incremental investment 30.45%$40,000== b. Added sales ..........................................................$240,000 Accounts uncollectible (14% of new sales) .........– 33,600 Annual incremental revenue ................................$206,400 Collection costs ....................................................– 21,000 Production and selling costs (72% of new sales) .–172,800 Annual income before taxes .................................$ 12,600 Taxes (30%) .........................................................– 3,780 Incremental income after taxes ............................ $ 8,820$8,820Return on incremental investment 22.05%$40,000== Yes, extend credit.c. If receivable turnover drops to 1.5x, the investment inaccounts receivable would equal $240,000/1.5 = $160,000.The return on incremental investment, assuming a 12%uncollectible rate, is 7.61%.$12,180==Return on incremental investment7.61%$160,000The credit should not be extended. 7.61% is less than thedesired 10%.19. Reconsider problem 18. Assume the average collection period is 120 days. All other factorsare the same (including 12 percent uncollectibles). Should credit be extended?7-19. Solution:Curtis Toy Manufacturing Company (Continued) First compute the new accounts receivable balance.Accounts receivable = average collection period × average dailysales240,000120 days120$667$80,040⨯=⨯=360 daysorAccounts receivable = sales/accounts receivable turnover360 days==Accounts receivable turnover3x120 days=$240,000/3$80,000Then compute return on incremental investment.$12,18015.23%=$80,000Yes, extend credit. 15.23% is greater than 10%.20. Apollo Data Systems is considering a promotional campaign that will increase annualcredit sales by $600,000. The company will require investments in accounts receivable, inventory, and plant and equipment. The turnover for each is as follows:Accounts receivable (5x)Inventory (8x)Plant and equipment (2x)All $600,000 of the sales will be collectible. However, collection costs will be 3 percent of sales, and production and selling costs will be 77 percent of sales. The cost to carryinventory will be 6 percent of inventory. Depreciation expense on plant and equipment will be 7 percent of plant and equipment. The tax rate is 30 percent.a. Compute the investments in accounts receivable, inventory, and plant and equipmentbased on the turnover ratios. Add the three together.b. Compute the accounts receivable collection costs and production and selling costsand add the two figures together.c. Compute the costs of carrying inventory.d. Compute the depreciation expense on new plant and equipment.e. Add together all the costs in parts b, c, and d.f. Subtract the answer from part e from the sales figure of $600,000 to arrive at incomebefore taxes. Subtract taxes at a rate of 30 percent to arrive at income after taxes.g. Divide the aftertax return figure in part f by the total investment figure in part a. If thefirm has a required return on investment of 12 percent, should it undertake thepromotional campaign described throughout this problem.7-20. Solution:Apollo Data Systemsa. Accounts receivable = sales/accounts receivable turnover=$120,000$600,000/5Inventory = sales/inventory turnover=$75,000$600,000/8Plant and equipment = sales/(plant and equipment turnover)=$600,000/2$300,000Total investment$495,0007-20. (Continued)b. Collection cost = 3% × $600,000 $ 18,000Production and selling costs = 77% × $600,000 = 462,000Total costs related to accounts receivable $480,000c. Cost of carrying inventory6% × inventory6% × $75,000 $4,500d. Depreciation expense7% × Plant and Equipment7% × $300,000 $21,000e. Total costs related to accounts receivable $480,000Cost of carrying inventory 4,500Depreciation expense 21,000Total costs $505,500f. Sales $600,000– total costs 505,500Income before taxes 94,500Taxes (30%) 28,350Income after taxes $ 66,150g. Income after taxes$66,15013.36%Total investment495,000==Yes, it should undertake the campaignThe aftertax return of 13.36% exceeds the required rate of return of 12%21. In Problem 20, if inventory turnover had only been 4 times:a. What would be the new value for inventory investment?b. What would be the return on investment? You need to recompute the total investmentand the total costs of the campaign to work toward computing income after taxes.Should the campaign be undertaken?7-21. Solution:Apollo Data Systems (Continued)a. Inventory = sales/inventory turnover$150,000 = $600,000/4b. New Total InvestmentAccounts receivable $120,000Inventory 150,000Plant and equipment 300,000$570,000Total Cost of the CampaignCost of carrying inventory6% × $150,000 = $9,000 ($4,500 more than previously)New Income After TaxesSales $600,000– total costs 510,000 ($505,500 + 4,500)Income before taxes 90,000Taxes (30%) 27,000Income after taxes $ 63,000Income after taxes$63,000==11.05%Total investment570,000No, the campaign should not be undertakenThe aftertax return of 11.05% is less than the required rate ofreturn of 12%(Problems 22–25 are a series and should be taken in order.)22. Maddox Resources has credit sales of $180,000 yearly with credit terms of net 30 days,which is also the average collection period. Maddox does not offer a discount for early payment, so its customers take the full 30 days to pay.What is the average receivables balance? What is the receivables turnover?7-22. Solution:Maddox ResourcesSales/360 days = average daily sales$180,000/360 = $500Accounts receivable balance = $500 × 30 days = $15,000Receivable turnover =Sales$180,00012x Receivables$15,000==or360 days/30 = 12x23. If Maddox were to offer a 2 percent discount for payment in 10 days and every customertook advantage of the new terms, what would the new average receivables balance be?Use the full sales of $180,000 for your calculation of receivables.7-23. Solution:Maddox Resources (Continued)$500 × 10 days = $5,000 new receivable balance24. If Maddox reduces its bank loans, which cost 12 percent, by the cash generated from itsreduced receivables, what will be the net gain or loss to the firm?7-24. Solution:Maddox Resources (Continued)Old receivables – new receivables with discount = Funds freed by discount$15,000 – $5,000 ................................... = $10,000Savings on loan = 12% × $10,000 .......... = $ 1,200Discount on sales = 2% × $180,000 ........ = (3,600)Net change in income from discount ...... $(2,400) No! Don’t offer the discount since the income from reduced bankloans does not offset the loss on the discount.25. Assume that the new trade terms of 2/10, net 30 will increase sales by 20 percent becausethe discount makes the Maddox price competitive. If Maddox earns 16 percent on salesbefore discounts, should it offer the discount? (Consider the same variables as you did for problems 22 through 24.)7-25. Solution:Maddox Resources (Continued)New sales = $180,000 × 1.20 = $216,000 Sales per day = $216,000/360 = $600 Average receivables balance = $600 × 10 = $6,000 Savings in interest cost ($15,000 – $6,000) × 12% = 1,080 Increase profit on new sales = 16% × $36,000* = $5,760 Reduced profit because of discount = 2% × $216,000 = (4,320) Net change in income ............................................ $2,520 Yes, offer the discount because total profit increases.*New Sales $36,000 = $216,000 – $180,000COMPREHENSIVE PROBLEMBailey Distributing Company sells small appliances to hardware stores in the southern California area. Michael Bailey, the president of the company, is thinking about changing the credit policies offered by the firm to attract customers away from competitors. The current policy calls for a1/10, net 30, and the new policy would call for a 3/10, net 50. Currently 40 percent of Bailey customers are taking the discount, and it is anticipated that this number would go up to50 percent with the new discount policy. It is further anticipated that annual sales would increase from a level of $200,000 to $250,000 as a result of the change in the cash discount policy.The increased sales would also affect the inventory level. The average inventory carried by Bailey is based on a determination of an EOQ. Assume unit sales of small appliances will increase from 20,000 to 25,000 units. The ordering cost for each order is $100 and the carrying cost per unit is $1 (these values will not change with the discount). The average inventory is based on EOQ/2. Each unit in inventory has an average cost of $6.50.Cost of goods sold is equal to 65 percent of net sales; general and administrative expenses are 10 percent of net sales; and interest payments of 12 percent will be necessary only for the increase in the accounts receivable and inventory balances. Taxes will equal 25 percent of before-tax income.a. Compute the accounts receivable balance before and after the change in the cashdiscount policy. Use the net sales (Total sales – Cash discounts) to determine theaverage daily sales and the accounts receivable balances.b. Determine EOQ before and after the change in the cash discount policy. Translate thisinto average inventory (in units and dollars) before and after the change in the cashdiscount policy.c. Complete the income statement.Before Policy Change After Policy ChangeNet sales (Sales – Cash discounts)Cost of goods soldGross profitGeneral and administrativeexpenseOperating profitInterest on increase in accountsreceivable and inventory (12%)Income before taxesTaxesIncome after taxesd. Should the new cash discount policy be utilized? Briefly comment.Bailey Distributing Companya. Accounts receivable = average collection × averageperiod daily sales Before Policy ChangeAverage collection period .40 × 10 days = 4 .60 × 30 days = 18 22 days Average daily sales()()()$200,000.01.40$200,000Credit sales Discount 360360$200,000$800360$199,200360Average daily sales $553.33--=-===22 days × $553.33 = $12,173.26 accounts receivable before policy changeAfter Policy Change Average collection period .50 × 10 days = 5 .50 × 50 days = 25 30 days。

西方财务会计课后习题答案

Chapter 2Check Points(5 min.) CP 2-1 Hickman’s payment was not an expense.Hickman acquired an asset, Equipment, because the computer is an economic resource of the business.(5 min.) CP 2-2a. $12,800b. $ 3,000c. $56,300d. $ 500e. $ 5,800 [Service revenue of $8,500 ($5,500 + $3,000) – Total expenses of $2,700 ($1,100 +$1,200 + $400) = Net income of $5,800]e. $ 500(5-10 min.) CP 2-3Cash Accounts Receivable 30,000 4,000 6,0002,000 Bal. 6,000Bal. 28,000(5 min.) CP 2-4 Increased total assets: May 1 (Cash)May 1 (Medical supplies)May 3 (Cash, Accounts receivable)Increased total liabilities: M ay 1 (Accounts payable)Decreased total assets: May 2 (Cash)(10 min.) CP 2-5JournalDATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT Apr. 15 Cash……………………………………50,000Note Payable………………………50,000 Borrowed money from the bank.22 Accounts Receivable……………….9,000Service Revenue………………….9,000 Performed service on account.28 Cash……………………………………6,000Accounts Receivable…………….6,000 Received cash on account.29 Utilitie s Expense (600)Accounts Payable (600)Received utility bill.30 Salary Expense………………………3,000Cash…………………………………3,000 Paid salary expense.Chapter 2 Transaction Analysis 5730 Interest Expense (300)Cash (300)Paid interest expense.(10-15 min.) CP 2-6Req. 1JournalDATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT Supplies………………………………..2,000Accounts Payable…………………2,000 Purchased supplies on account.Accounts Payable (500)Cash (500)Paid cash on account.Req. 2Accounts Payable500 2,000Bal. 1,500Req. 3Biaggi’s business owes $1,500, as shown in the Accounts Payable account.(10-15 min.) CP 2-7Req. 1JournalDATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT Accounts Receivable………………..1,200Service Revenue…………………..1,200 Performed service on account.Cash (500)Accounts Receivable (500)Received cash on account.Req. 2Cash Accounts Receivable Service Revenue500 1,200 500 1,200 Bal. 500 Bal. 700 Bal. 1,200 Req. 3a. The Center earned $1,200: S ervice Revenueb. Total assets $1,200: C ash………………….. $ 500Accounts receivable. 700Total assets…………. $1,20058Financial Accounting 6/e Solutions Manual(10 min.) CP 2-8Old NavyTrial BalanceDecember 31, 20X8ACCOUNT DEBIT CREDITMillionsCash……………………….…...$ 2Other assets (9)Accounts payable……………$ 1Other liabilities (2)Stockholders’ equity (2)Revenues (30)Expenses……………………... 24 ___Total……………………….……$35 $35Old Navy’s net income:$6 million ($30 – $24)(10 min.) CP 2-9 1. Total assets = $53,800 ($33,300 + $2,000 + $500 +$18,000)2. Total liabilities = $1003. Total stockholders’ equity = $53,700 ($53,800 – $100)4. Net income = $5,800 ($8,500 – $1,100 – $1,200 – $400)(10 min.) CP 2-101. Total debits = $121,600 ($58,600 + $81,000 – $18,000)Total credits = $ 58,600Difference = $ 63,000 ($121,600 – $58,600)$63,000 / 9 = $7,000 (an integer), which suggests either atransposition or a slide2. Total debits = $76,600 ($58,600 + $20,000 – $2,000)Total credits = $58,600Difference = $18,000 ($76,600 – $58,600)$18,000 / 9 = $2,000 (original amount of accountsreceivable)3. Total debits = $56,600 ($58,600 – $ 2,000)Total credits = $60,600 ($58,600 + $ 2,000)Difference = $ 4,000 ($60,600 – $56,600)$4,000 / 2 = $2,000 (original amount of accounts receivable)Chapter 2 Transaction Analysis 59(5 min.) CP 2-12Cash Computer Equipment250,000 100,000Accounts Payable Common Stock100,000 250,000Total debits = $350,000 ($250,000 + $100,000)Total credits = $350,000 ($100,000 + $250,000)Exercises(10-15 min.) E 2-1 TO: Home OfficeFROM: Store ManagerDuring the first week, I borrowed $320,000 on a note payable. I used the store’s beginning cash plus the borrowed money to purchase land, a building, copy equipment, and supplies. After all these transactions, the store’s balance sheet appears as follows:Kinko’sOklahoma City StoreBalance SheetDateASSETS LIABILITIESCash $ 80,000* Note payable $320,000 Supplies 10,000Copy equipment 60,000 STOCKHOLDERS’ EQUITYLand 90,000 Common stock 40,000 Building 120,000 Total liabilities and ________ Total assets $360,000 stockholders’ equity $360,000 _____*$40,000 + $320,000 – $90,000 – $120,000 – $60,000 – $10,000 = $80,000(5-10 min.) E 2-2 a. Issuance of stockRevenue transactionb. Purchase of asset on accountBorrow moneyc. Purchase of asset for cashSale of asset for cashCollection of an account receivabled. Payment of dividends to ownersExpense transactione. Pay a liability60Financial Accounting 6/e Solutions Manual(10-20 min.) E 2-4 Req. 1Analysis of TransactionsASSETS = LIABILITIES + STO CKHOLDERS’ EQUITYDate Cash + AccountsReceivable +MedicalSupplies + Land =AccountsPayable +NotePayable +CommonStock +RetainedEarningsType of Stockholders’Equity TransactionOct. 6 40,000 40,000 Issued stock9 (30,000) 30,00012 2,000 2,00015 Not a transaction of the business.15-31 4,000 4,000 8,000 Service revenue 15-31 (1,400) (1,400) Salary expense (1,000) (1,000) Rent expense(300) (300) Utilities expense31 500 (500)31 10,000 10,00031 (1,500) (1,500)Bal. 20,300 4,000 1,500 30,000 500 10,000 40,000 5,30055,800 55,800Chapter 2 Transaction Analysis 61(continued) E 2-4 Req. 2a. $55,800b. $4,000c. $10,500 ($500 + $10,000)d. $45,300 ($55,800 – $10,500, or $40,000 + $5,300)e. $5,300 (Revenue, $8,000 minus total expenses of $2,700, equals net income, $5,300.)62Financial Accounting 6/e Solutions Manual(10-15 min.) E 2-5JournalDATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT Oct. 6 Cash………………………………………..40,000Common Stock……………………….40,000 Issued stock to owner.9 Land………………………………………...30,000Cash…………………………………….30,000 Purchased land.12 Medical Supplies…………………………2,000Accounts Payable……………………2,000 Purchased supplies on account.15 Not a transaction of the business.15-31 Cash………………………………………..4,000Accounts Receivable……………………4,000Servi ce Revenue……………………..8,000 Performed service for cash and on account.15-31 Salary Expense…………………………..1,400Rent Expense……………………………..1,000Utilities Expense (300)Cash…………………………………….2,700 Paid expenses.31 Cash (500)Medical Supplies (500)Sold supplies.31 Cash………………………………………..10,000Note Payable…………………………..10,000 Borrowed money.31 Accounts Payable……………………….1,500Cash…………………………………….1,500 Paid on account.(10-15 min.) E 2-6 Req. 1Total assets = $145 million ($100 + $60 – $55 + $35 + $26 – $21)Req. 2Company owes $41 million [$60 – $55 + $35 + $22 – $21]Req. 3Net income = $4 million ($26 – $22)Chapter 2 Transaction Analysis 63(10-20 min.) E 2-7 Req. 1 (journal entries)JournalDATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT Aug. 1 Cash……………………………………………19,500Common Stock…………………………...19,500 Issued common stock to owner.2 Office Supplies (800)Accounts Payable (800)Purchased office supplies on account.4 Land……………………………………………14,000Cash………………………………………..14,000 Paid cash for land.6 Cash……………………………………………2,000Service Revenue…………………………2,000 Performed services for cash.9 Accounts Payable (100)Cash (100)Paid cash on account.17 Accounts Receivable……………………….1,200Service Revenue…………………………1,200 Performed service on account.23 Cash (900)Accounts Receivable (900)Received cash on account.31 Salary Expense………………………………1,000Rent Expense (500)Cash………………………………………..1,500 Paid cash expenses.(continued) E 2-7Req. 2Ending cash = $6,800($19,500 – $14,000 + $2,000 – $100 + $900 – $1,500)Expects to collect on account = $300 ($1,200 – $900)Total liabilities = $700 ($800 – $100)Net income (profit) = $1,700 ($2,000 + $1,200 – $1,000 – $500)64Financial Accounting 6/e Solutions Manual(20-30 min.) E 2-8 Req. 1Cash Accounts ReceivableAug. 1 19,500 Aug. 4 14,000 Aug. 17 1,200 Aug. 23 9006 23 2,0009009311001,500Aug. 31 300Aug. 31 6,800Office Supplies LandAug. 2 800 Aug. 4 14,000Aug. 31 800 Aug. 31 14,000Accounts Payable Common StockAug. 9 100 Aug. 2 800 Aug. 1 19,500 Aug. 31 700 Aug. 31 19,500 Service Revenue Salary ExpenseAug. 6 2,000 Aug. 31 1,00017 1,200 Aug. 31 1,000Aug. 31 3,200Rent ExpenseAug. 31 500Aug. 31 500(continued) E 2-8Req. 2Coaxial Electronic Systems, Inc.Trial BalanceAugust 31, 20X6ACCOUNT DEBIT CREDITCash…………………………...$ 6,800Accounts receivable (300)Office supplie s (800)Land…………………………...14,000Accounts payable…………..$ 700Common stock………………19,500Service revenue……………..3,200Salary expense………………1,000Rent expense (500)Total…………………………...$23,400 $23,400Req. 3Total a ssets ($6,800 + $300 + 800 + $14,000)……..$21,900Total liabilities (700)Total stockholders’ equity ($21,900 –$700)………$21,200Chapter 2 Transaction Analysis 65(10-15 min.) E 2-9JournalDATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT1. Cash…………………………………..10,000Common Stock…………………..10,000 Issued common stock.2. Cash…………………………………..7,000Note Payable……………………..7,000 Borrowed money; signed note payable.3. Land…………………………………..31,000Cash………………………………..8,000Note Payable……………………..23,000 Purchased land by paying cashand signing a note payable.4. Supplies (600)Accounts Payable (600)Purchased supplies on account.5. Cash (100)Su pplies (100)Sold supplies for cash.6. Equipment……………………………6,000Cash………………………………..6,000 Paid cash for equipment.7. Accounts Payable (300)Cash (300)Paid cash on account.Cash balance = $2,800 ($10,000 + $7,000 – $8,000 + $100 – $6,000 – $300)Company owes $30,300 ($7,000 + $23,000 + $600 – $300)(10-20 min.) E 2-10Req. 1Whirlpool Appliance ServiceTrial BalanceJune 30, 20X6ACCOUNT DEBIT CREDIT Cash…………………………...$ 9,000Accounts receivable………..15,500Building……………………….40,250Land…………………………...29,000Accounts payable………….. $ 4,300Note payable………………… 13,000Common stock……………… 48,800Retained earnings………….. 21,350*Dividends……………………..6,000Service revenue…………….. 22,00066Financial Accounting 6/e Solutions ManualSalary expense………………8,000Utilities expense…………….1,400Delivery expense (300)Total…………………………...$109,450 $109,450 *Total debits…………………………………………$109,450 Total credits, ex cluding retained earnings…… (88,100) Retained earnings…………………………………$ 21,350 (continued) E 2-10Req. 2Whirlpool Appliance ServiceIncome StatementMonth Ended June 30, 20X6Service revenue………………...$22,000Salary expense…………………$8,000Ut ilities expense………………..1,400Delivery expense (300)Total expenses…………………. 9,700Net income………………………$12,300 (15-25 min.) E 2-11Car Connection, Inc.Trial BalanceDecember 31, 20X3ACCOUNT DEBIT CREDIT Cash…………………………...$ 4,600*Accounts receivable……….. 12,600*Inventory……………………... 17,000Supplies (600)Land…………………………... 55,000Accounts payable…………..$13,100*Common stock………………48,300*Sales revenue……………….. 35,700Cost of goods sold…………. 3,900Salary expense……………… 1,700Rent expense (800)Utilities expense……………. 900* _______Total…………………………...$97,100 $97,100_____*Explanations:Cash: $4,200 + $400 = $4,600Accounts Receivable: $13,000 – $400 = $12,600Accounts Payable: $12,000 + $1,000 – $100 + $200 = $13,100Common Stock: $47,900 + $400 = $48,300Utilities Expense: $700 + $200 = $900(5-15 min.) E 2-12 Cash Accounts Receivable(a) 12,500 (b) 1,500 (f) 8,300(d) 1,800 Bal. 8,300(e) 400(g) 2,000Bal. 6,800Office Supplies Office Furniture(c) 800 (a) 9,000Bal. 800 Bal. 9,000Accounts Payable Common Stock(e) 400 (c) 800 (a) 21,500Bal. 400 Bal. 21,500 Dividends Service Revenue(g) 2,000 (f) 8,300 Bal. 2,000 Bal. 8,300 Salary Expense Rent Expense(d) 1,800 (b) 1,500Bal. 1,800 Bal. 1,500(10-20 min.) E 2-13Req. 1LaVell Oxford, AttorneyTrial BalanceJuly 31, 20X8ACCOUNT DEBIT CREDITCash…………………………...$ 6,800Accounts receivable………..8,300Office supplies (800)Office furniture………………9,000Accounts payable…………..$ 400Common stock………………21,500Dividends……………………..2,000Service revenue……………..8,300Salary expense………………1,800Rent expense……………….. 1,500Total…………………………...$30,200 $30,200Req. 2The business performed well during July. The result of operations was net income of $5,000, as shown by the income statement accounts:Service revenue………………….$ 8,300Salary expense………..$1,800Rent expense…………. 1,500Total expenses……………….. (3,300)Net income……………………….. $ 5,000(20-30 min.) E 2-14Reqs. 1 and 3Cash Accounts ReceivableDec. 2 7,000 Dec. 2 500 Dec. 18 1,7009 800 3 3,00012 200Bal. 4,100Supplies EquipmentDec. 5 300 Dec. 3 3,000Furniture Accounts PayableDec. 4 3,600 Dec. 4 3,6005 300Bal. 3,900 Common Stock DividendsDec. 2 7,000Service Revenue Rent ExpenseDec. 9 800 Dec. 2 50018 1,700Bal. 2,500Utilities Expense Salary ExpenseDec. 12 200(continued) E 2-14Req. 2JournalDATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT Dec. 2 Cash……………………………………..7,000Common Stock……………………..7,0002 Rent Expense (500)Cash (500)3 Equipment……………………………...3,000Cash………………………………….3,0004 Furniture………………………………..3,600Accounts Payable………………….3,6005 Supplies (300)Accounts Payable (300)9 Cash (800)Service Revenue (800)12 Utilities Expense (200)Cash (200)18 Accounts Receivable…………………1,700Service Revenue…………………...1,700 (continued) E 2-14Req. 4Matthew Rogers, Certified Public Accountant, P.C.Trial BalanceDecember 18, 20XXACCOUNT DEBIT CREDIT Cash…………………………...$ 4,100Accounts receivable………..1,700Supplies (300)Equipment……………………3,000Furniture……………………...3,600Accounts payable…………..$ 3,900Common stock………………7,000Dividends……………………..—Service revenue……………..2,500Rent expense (500)Utilities expense (200)Salary expense………………—Total…………………………...$13,400 $13,400(20-40 min.) E 2-15a. Net income for March – Given as follows:Retained EarningsFeb. 28 Bal. 7,000MarchMarch dividends 15,800 net income X = $19,300Mar. 31 Bal. 10,500$7,000 + X – $15,800 = $10,500X = $19,300b. Total cash paid during March:CashFeb. 28 Bal. 11,600March receipts 81,200 March payments X = $87,800Mar. 31 Bal. 5,000$11,600 + $81,200 – X = $ 5,000X = $87,800 (continued) E 2-15c. Cash collections from customers during March:Accounts ReceivableFeb. 28 Bal. 24,300March saleson account 49,400 March collections X = $47,000 Mar. 31 Bal. 26,700$24,300 + $49,400 – X = $26,700X = $47,000d. Cash paid on a note payable during March:Note PayableFeb. 28 Bal. 13,900 March MarchX =17,500 payments on note X new borrowing 25,000Mar. 31 Bal. 21,400 $13,900 + $25,000 – X = $21,400X = $17,500(20-30 min.) E 2-16Req. 1Road Runner, Inc.Trial BalanceDecember 31, 20X5Cash…………………………...$ 4,200Accounts receivable………..7,200Supplies (800)Land…………………………...34,000Accounts payable…………..$ 5,800Note payable…………………5,000Common stock………………20,000Retained earnings…………..7,300Service revenue……………..9,100Salary expense………………3,400Advertising expense………. 900 _______Totals………………………….$50,500 $47,200Out of balanceby $3,300The correct balance of Accounts Receivable is $3,900 ($7,200 – $3,300). After this correction, total debits will be $47,200 ($50,500 – $3,300), the same as total credits.(continued) E 2-16Req. 2Road Runner, Inc.Trial BalanceDecember 31, 20X5Cash ($4,200 –$400)……………………$ 3,800Accounts receivable($7,200 –$3,300 + $7,000)..............10,900 Supplies.. (800)Land ($34,000 + $80,000)………………114,000Accounts payable ($5,800 + $2,000)…$ 7,800 Note payable ($5,000 + $80,000)……...85,000 Common stock…………………………..20,000 Retained earnings………………………7,300 Service revenue ($9,100 + $7,000)……16,100 Salary expense ($3,400 + $400)………3,800Advertising expense ($900 + $2,000). 2,900Tot als……………………………………...$136,200 $136,200Req. 3a. Total assets = $129,500 ($3,800 + $10,900 + $800 + $114,000).b. Road Runner is profitable, as indicated by the excess of revenue ($16,100) over totalexpenses ($6,700 = $3,800 + $2,900).(10-15 min.) E 2-17San Francisco:Income statement June July Medical expense…………..$40,000 $ -0- Balance sheet June 30 July 31 Cash…………………………$55,000 $23,000*Accounts payable…………40,000 8,000** Bay Area:Income statement June July Service revenue…………..$40,000 $ -0- Balance sheet June 30 July 31 Cash………………………… $ -0- $32,000Accounts receivable……..40,000 8,000**Explanation:San Francisco’s expense is Bay Area’s revenue.San Francisco’s cash payment is Bay Area’s cash receipt.San Francisco’s account payable is Bay Area’s account receivable. __________*$55,000 – $32,000 = $23,000**$40,000 – $32,000 = $ 8,000。

西方财务会计课后习题答案

Chapter 9Stockholders’ EquityCheck Points(5 min.) CP 9-11. The stockholders hold ultimate power in a corporation.2. The chairperson of the board of directors is usually the mostpowerful person in a corporation.3. The president is in charge of day-to-day operations.4. The treasurer has primary responsibility for cash.5. The controller manages the accounting.(5-10 min.) CP 9-2 1. The right to vote on management matters clearly separates astockholder from a creditor.2. The common stockholders are the real owners of a corporation3. Preferred stockholders have priority over commonstockholders in (1) receipt of dividends and (2) receipt of assets if the corporation liquidates.4. Common stockholders benefit more from a successfulcorporation because the preferred stockholders’ dividends are limited to a specified amount. The common stockholders’ potential for gains through an increase in the company’s stock price is unlimited.(5-10 min.) CP 9-3 1. The $61,938,000 was paid-in capital. It was not a profit andtherefore had no effect on net income.2. The par value of stock has no effect on total paid-in capital.Total paid-in capital is the total amount that stockholders have invested in (paid into) a corporation, including the par value of stock issued plus any additional paid-in capital.(10 min.) CP 9-4Thousands1. Common stock, December 31, 2003………………$ 649Common stock, December 31, 2002 (623)Increase during 2003…………………………….. $ 26 Additional paid-in capital, December 31, 2003….$3,937,160Additional paid-in capital, December 31, 2002…. 3,108,131 Increase during 2003…………………………….. 829,029 Total increase in paid-in capital during 2003…… $829,055 eBay must have issued common stock during 2003,as shown by the increase in the Common Stock account.JournalDATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDITThousands 2. Cash……………………………………………………829,055Common Stock (26)Additional Paid-in Capital ……………………...829,029 Issued stock.3. eBay had a profit during 2003, as indicated by theincrease in Retained Earnings.(10 min.) CP 9-5 Case A — Issue stock and buy the assets in separatetransactions:JournalDATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT Cash………………………………………500,000Common Stock (10,000 ⨯$5)……...50,000Paid-in Capital in Excess of Par….450,000 Issued stock.Building…………………………………..400,000Equipment……………………………….100,000Cash……………………………………500,000 Purchased plant assets.Case B — Issue stock to acquire the assets:JournalDATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT Building………………………………….400,000Equipment……………………………….100,000Common Stock (10,000 ⨯$5)……..50,000Paid-in Capital in Excess of Par….450,000 Issued stock to acquire building and equipment.The balances in all accounts are the same:Building…………………………………… $400,000Equipment……………………………….… 100,000Common Stock…………………………... 50,000Paid-in Capital in Excess of Par……… 450,000(5-10 min.) CP 9-6Millions Stockholders’ equity:Common stock, $.01 par, 376 million shares issued... $ 4 Paid-in capital in excess of par. (198)Retained earnings (846)Other stockholders’ equity (29)Total stockholders’ equity……………………………….. $1,077(10 min.) CP 9-7Millions a. Total revenues……………………………………………….. $1,099Total expe nses (805)Net income………………………………….………………. $ 294 b. Accounts payable…………………………………………. $ 22Other current liabilities.......................................... 2,566 Long-term liabilities. (25)Total liabilities……………………………………………… $2,613 c. Total liabilities (from Req. b)……………………………. $2,613Total stockholders’ equity (from CP 9-6)……………… 1,077 Total assets………………………………………………… $3,690(5 min.) CP 9-8JournalDATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDITMillions Treasury Stock (28)Cash (28)Cash (7)Treasury Stock (3)Paid-in Capital from Treasury StockTransactions (4)Overall, stockholders’ equity decreased by $21 million ($28 million paid out minus $7 million received).(5-10 min.) CP 9-9 General Dynamics does not have more treasury stock than the amount of stock the company has issued. That would be impossible, because treasury stock is also issued stock.A company’s balance of Treasury Stock can exceed the sum of Common Stock and Additional Paid-In Capital because treasury stock is accounted for at cost whenever it is purchased. Common Stock and Additional Paid-In Capital hold historical balances that arose from the original issuance of the stock, which may have occurred when the stock price was much lower.(10 min.) CP 9-10JournalDATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT20X6Dec. 15 Retained Earnings($50,000 ⨯ .045) + (25,000 ⨯$.50)…..14,750Dividends Payable…………………14,750 Declared a cash dividend……………20X7Jan. 4 Dividends Payable……………………14,750Cash………………………………….14,750 Paid the cash dividend.During 20X6, Retained Earnings increased by $46,000 (net income of $60,750 – dividends of $14,750).(5-10 min.) CP 9-111. $150,000 (100,000 shares ⨯ $1.50 per share)2. Preferred: $150,000Common: $150,0003. Cumulative, because it is not labeled noncumulative4. Preferred: $450,000 ($150,000 ⨯ 3)Common: $200,000 ($650,000 – $450,000)(5-10 min.) CP 9-12 Req. 1JournalDATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT Aug. 12 Retained Earnings (60,000 ⨯ .05 ⨯$11.50)………34,500Common Stock (60,000 ⨯ .05 ⨯$1)…………... 3,000Paid-in Capital in Excess of Par-Common…..31,500Req. 2No effect on total assets.No effect on total liabilities.No effect on total stockholders’ equity.(10 min.) CP 9-13 Total stockholders’ equity…………………………….$4,053,000 Less: Preferred stock…………………………………(310,000) Preferred dividends in arrears(30,000 ⨯ $10 ⨯.08)……………………………. (24,000) Common equity…………………………………………$3,719,000 Number of common shares outstanding(60,000 –1,400)……………………………………….) 58,600 Book value per share of common stock…………… $ 63.46(5-10 min.) CP 9-14 (a) Rate of returnon common= Net income – Preferred dividendsstockholders' Average common stockholders’ equity equity(b) Rate of returnon total assets =Net income + Interest expenseAverage total asssets1. Preferred stockholders have the first claim on the company’snet income through preferred dividends. Therefore, preferred dividends are subtracted from net income to compute ROE.Preferred dividends are not subtracted in computing ROA because the preferred stockholders have invested in the company. Net income includes both the preferred stockholders’ and the common stockhold ers’ returns on their investments.2. Creditors have loaned money to the company and earn interest.Stockholders have invested in the corporation’s stock and thus own the company’s net income. The sum of interest expense plus net income is the return to the two groups that have financed the company.(5-10 min.) CP 9-15Rate of return on totalassetsNet Interest=income + expense=$1,221 + $276 Average total assets ($15,084 + $13,753) / 2=$1,497= 10.4%$14,419Note: 10% is considered good in most industries. Therefore, Sara Lee’s 10.4% return is good.Rate of return Net Preferredon common= income – dividends=$1,221 – $0stockholders’ Average common ($2,052 + $1,742) / 2 equity stockholders’ equity= $1,221= 64.4% $1,897Note: 15% is considered good in most industries, so Sara Lee’s return on equity is outstanding!(5-10 min.) CP 9-16Millions Cash flows from financing activities:Borrowed money.............................................$397 Paid off debt (151)Issued common stock (53)Purchased treasury stock (139)Net cash provided by financing activities………$160Exercises(5-10 min.) E 9-1 DATE: _____________TO: Katy Jax and Marta FraserFROM: Student NameRE: Steps in forming a corporationThe first step in organizing a corporation is to obtain a charter from the state. The charter authorizes the corporation to issue a certain number of shares of stock to the owners of the business, who are called stockholders. The incorporators (Jax and Fraser) will need a set of bylaws to determine how the corporation is to be governed internally. The stockholders will elect a board of directors who in turn appoint officers to manage the corporation on a day-to-day basis.Student responses may vary.(10-15 min.) E 9-2 Req. 1JournalDATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT Feb. 19 Cash (1,000 ⨯ $6.50) ............................ 6,500Common Stock (1,000 ⨯ $2.50) ..... 2,500Paid-in Capital in Excess ofPar — Common ........................... 4,000Mar. 3 Cash ..................................................... 50,000Preferred Stock .............................. 50,00011 Inventory .............................................. 11,000Equipment ........................................... 8,500Common Stock (3,300 ⨯ $2.50) ..... 8,250Paid-in Capital in Excess ofPar — Common ........................... 11,250Req. 2Stockholders’ equity:Preferred stock, $1.50, no par5,000 shares authorized, 500 shares issued………$50,000 Common stock, $2.50 par,100,000 sha res authorized, 4,300 shares issued…10,750 Paid-in capital in excess of par-common($4,000 + $11,250)……………………………………….15,250 Retained earnings (deficit)………………………….……(42,000) Total stockholders’ equity……………………….……$34,000(10-15 min.) E 9-3Stockholders’ EquityPreferred stock, $4.50 no-par, 5,000 sharesauthorized, 300 shares issued ................................. $ 20,000 Common stock, $1 par, 10,000 shares authorized,4,000 shares issued .................................................. 4,000 Paid-in capital in excess of par — common ................ 86,000* Retained earnings .......................................................... 88,000 Total stockholders’ equity ....................................... $198,000_____*Computation:June 23: 1,000 shares ⨯ ($22 –$1) =………………………………$21,000 July 12: $25,000 + $43,000 – (3,000 shares ⨯$1.00) =………... 65,000$86,000(10 min.) E 9-4Paid-in capital consists of:Preferred equity:Issued for cash (5,000 shares ⨯ $110) ........ $ 550,000 Common equity:Issued for cash (50,000 shares ⨯ $15) ....... 750,000 Issued for organization cost ....................... 20,000 Issued for patent .......................................... 150,000 Total paid-in capital ............................................... $1,470,000Unused data:Net incomeDividends declared(10-15 min.) E 9-5Stockholders’ Equity (Millions)Common stock, $0.25 par, 800 sharesauthorized, 361 shares i ssued..............................$ 90 Paid-in capital in excess of par................................. 1,188 Retained earnings................................................... 2,202 Other stockholders’ equity (729)Less: Treasury stock, common, 126 shares at cost….. (2,380) Tota l stockholders’ equity……………………………..$ 371Avon paid a higher price to acquire treasury stock than the price Avon received when it issued its stock. This explains why Treasury Stock has a greater balance than the sum of Common Stock plus Paid-in Capital in Excess of Par.(10-15 min.) E 9-6JournalDATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT Jan. 19 Cash (10,000 ⨯$5)…………………………50,000Common Stock (10,000 ⨯$1)………...10,000Paid-in Capital in Excess of Par…….40,000To issue common stock.Oct. 22 Treasury Stock — Common (900 ⨯ $7)... 6,300Cash……………………………………...6,300 To purchase treasury stock.Dec. 11 Cash (800 ⨯$12)…………………………...9,600Treasury Stock — Common (800 ⨯ $7)5,600Paid-in Capital from TreasuryStock Transactions………………..4,000 To sell treasury stock.Overall effect on stockholders’ equity($50,000 –$6,300 + $9,600)……………………………. $53,300(10 min.) E 9-7JournalDATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDITMillions b. Cash (6 million ⨯$15.50) (93)Common Stock (6 million ⨯$1.50) (9)Capital in Excess of Par Value (84)c. Treasury Stock (14)Cash (14)d. Retained Earnings (30)Dividends Payable (30)Dividends Payable (30)Cash (30)or one entry only:Retained Earnings (30)Cash (30)(10 min.) E 9-8DollarsinMillions Stockholders’ Equity:Common stock, $1.50 par value,1,835 million shares issued ($2,744 + $9)...........$ 2,753 Capital in excess of par value ($10,076 + $84)........ 10,160 Retained earnings ($261 + $440 –$30) (671)Treasury stock, 1 million shares at cost (14)Total stockholders’ equity…………………………..$13,570(20-30 min.) E 9-9 Req. 1Conversion of preferred stock into common stockRetirement of preferred stockReq. 2Issuance of common stock:a. To preferred stockholders who converted their preferredstock into common stockb. For cash or other assetsc. Stock dividendReq. 3(Millionsof sharesof stock)Dec. 31, 20X4 Common shares is sued (408)Less: Treasury stock, number of shares (29)379 Common sharesoutstanding……………………...(continued) E 9-9 Req. 4 (All amounts in millions)December 31, Purchases20X4 20X3 During 20X4 Cost of treasu ry stock……………….$1,235 –$215 = $1,020 Treasury stock, number of shares…29 –9 = 20 Average price per share paid fortreasury stock purchased during 20X4. $ 51 This price falls near the high end of the range during 20X4 (low of $38.25; high of $53.13).Req. 5Retained Earnings (Millions)Dividends Dec. 31, 20X3 Bal. 5,006 during 20X4 406 Net income 20X4 1,680Dec. 31, 20X4 Bal. 6,280(15 min.) E 9-10PREFERRED COMMON TOTAL 20X4 Total divi dend…………….$100,000 Preferred dividendsin arrears:20X2: $60,000 ⨯ .06 = $ 3,60020X3: $60,000 ⨯ .06 = 3,600Current year —20X4: $60,000 ⨯ .06 = 3,600Total to preferred………...$10,800Remainder to common….$89,20020X5 Total dividend…………….$100,000 Preferred dividends:Current year —20X5: $60,000 ⨯ .06 = $ 3,600Remainder to common….$96,400(15-20 min.) E 9-11 Req. 1 (All amounts in millions, except par value per share and market value per share.)JournalDATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDITMillions Apr. 15 Retained Earnings (500 ⨯ .10 ⨯ $51.50) ..... 2,575 Common Stock (500 ⨯ .10 ⨯$0.10) (5)Paid-in Capital in Excess ofPar — Common ................................. 2,570To distribute a common stock dividend.Req. 2Stockholders’ equity Millions Common stock, $0.10 par, 2,000 shares authorized, 550 issued ($50 + $5)………………………………. $ 55 Paid-in capital in excess of par — common($962 + $2,570)………………………………………. 3,532 Retained earnings ($7,122 –$2,575)………………... 4,547 Other……………………………………………………… (1,643) Total stockholders’ equity………………………... $6,491(continued) E 9-11 Req. 3The stock dividend did not change total stockholders’ equity because the company gave its stockholders no assets. The company merely transferred $2,575 million from Retained Earnings to Common Stock ($5 million) and Paid-in Capital in Excess of Par ($2,570 million).Req. 4EMS’s maximum cash dividend is limited to $3,000 million, the balance of its cash account.(10-15 min.) E 9-12a. No effect.b. No effect.c. Decrease stockholders’ equity by $8,500 (2,000 ⨯ $4.25).d. Increase stockholders’ equity by $3,000 (600 ⨯ $5).Note: Some students may think that the increase is $450 [600 ⨯($5.00 –$4.25)], but that is incorrect. To seethis, examine the entry to record sale of the treasurystock:Cash (600 ⨯$5)…………………………………..3,000Treasury Stock (600 ⨯$4.25)……………….2,550 Paid-in Capital from Treasury StockTransactions (or Additional Paid-in Capital) 450Observe that the sale of the treasury stock brought in $3,000. Also, the two credits to stockholders’ equity t otal $3,000, not $450.e. No effect.(10-15 min.) E 9-13Stockholders’ equity:Millions Common stock, $0.025 par, 1 billion shares(500 million ⨯ 2) authorized,880 million shares (440 million ⨯2) issued...... $ 22 Additional paid-in capital. (318)Retained earnings…………………………………….. 2,393 Other…………………………………………………….. (1,149) Total stockholders’ equity………………………. $1,584(10-15 min.) E 9-14 Req. 1Common:Total stockholders’ equity………………………….$92,000 Less: Preferred equity —redemption value……. (5,900) Total common equity………………………………..$86,100 Book value per share ($86,100 / 10,500 shares).. $ 8.20 Req. 2Common:Total stockh olders’ equity………………………….$92,000 Less: Preferred equity [$5,900 + ($4,800 ⨯ .06 ⨯3)]… (6,764) Total common equity………………………………..$85,236 Book value per share ($85,236 / 10,500 shares)…….. $ 8.12 Req. 3Frost’s stock is no t necessarily a good buy. Investment decisions should be based on more than one ratio.(10-15 min.) E 9-15 Rate of Net income +return= Interest expense=$2,662 + $219=$2,881= .136on assets Average total assets ($21,695 + $20,757) / 2 $21,226Net incomeRate of return – Preferredon common= dividends=$2,662 – $0=$2,662= .328stockholders' Average common ($8,648* + $7,604**) / 2 $8,126 equity stockholders’equity*$ 43 + $11,519 – $2,914 = $8,648**$388 + $16,510 – $9,294 = $7,604These profitability measures suggest strength because (1) Elsimate’s 32.8% return on stockholders’ equity is very good and (2) it exceeds return on assets by a wide margin.(10-15 min.) E 9-16 Net income +Return= Interest expense=$1,882 + $1,437=$3,319= .062on assets Average total assets ($55,798* + $52,071**) / 2 $53,935 *$32,320 + $23,478 = $55,798**$38,023 + $14,048 = $52,071Net income –Return= Preferred dividends=$1,882 – $0=$1,882= .100on equity Average commonequity($23,478 + $14,048) / 2 $18,763These rates of return are low —below the targets of most companies — but not terribly weak. The company is profitable, and return on equity exceeds return on assets. But both return measures could stand to be improved.(10 min.) E 9-17Cash flows from financing activities:Payment of long-term debt.............................$(17,055) Proceeds from issuance of common stock....... 8,425 Borrowings................................................... 6,582 Dividends paid. (225)(20-25 min.) E 9-18JournalDATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT Cash (50,000* ⨯ $5) ..................................... 250,000Common Stock ...................................... 50,000Additional Paid-in Capital ..................... 200,000Issued stock.Treasury Stock (800 ⨯$4)……………...3,200Cash…………………………………….3,200 Purchased treasury stock.Cash………………………………………..1,800Treasury Stock ($3,200 –$2,000)….1,200Additional Paid-in Capital (or Paid-inCapital from Treasury Stock Transactions)($200,600 –$200,000) (600)Resold treasury stock.Revenues………………………………….171,000Expenses………………………………115,000Retained Earnings…………………...56,000 Closed net income to Retained Earnings.Retained Earnings ($56,000 – $38,000) 18,000Cash…………………………………….18,000 Decleared and paid dividends._____*$50,000 ) $1 par value per share = 50,000 shares issued.(15 min.) E 9-19Preferred stock:Gemini retired preferred stock of $82 million ($686 – $604).Common stock and Additional paid-in capital:Gemini issued 3 million shares of commonstock for $107 million, computed as follows: Millions Common stock ($894 –$891)……………………………..$ 3Additional paid-in capital ($1,572 –$1,468) (104)Total received for issuance of common stock………...$107Retained earnings: Millions Beginning balance……………………………………………... $19,108 Add: Net income…………………………………………….3,604 Less: Dividends……………………………………………… (2,051*) Ending balance………………………………………………….$20,661*$19,108 + $3,604 – $20,661 = $2,051Treasury stock:Gemini purchased treasury stock for $200 million ($2,843 – $2,643).(15 min.) E 9-20 AdditionalAmounts in Millions CommonStockPaid-inCapitalRetainedEarningsTreasuryStock TotalBalance, Dec. 31, 20X5… $ 81 $13 $40 $61 Issuance of stock………. 22 22 4 S tock dividend………….. 13 25(3)4—Purchase of treasurystock…………………..$(2) (2) Net income……………….26 26 Cash dividends………….(17) (17) Balance, Dec. 31, 20X6… $11 $17 $46 $(2) $72 Computations (not required):18,000,000 ⨯ $1 par = $8,000,00022,000,000 ⨯ $1 par = $2,000,0002,000,000 ⨯ ($2 – $1) = $2,000,0003(8,000,000 + 2,000,000) ⨯ .10 ⨯ $1 par = $1,000,0004(8,000,000 + 2,000,000) ⨯ .10 ⨯ $3 market value = $3,000,0005$3,000,000 market value – $1,000,000 par value = $2,000,000Practice Quiz1. b2. a3. d4. c ($313,000 + $280,285 + $12,160 + $89,000= $694,445)5. a ($694,445 + $71,890 – $5,000 = $761,335)6. b {($119,600 – $8,900) / [($681,425 + $766,335) ) 2] =.153}7. a8. c 20,000 ⨯ $100 ⨯ .08 = $160,0009. b ($350,000 – $160,000) / 20,000 = $9.5010. a11. b12. d13. e14. b15. d16. b17. d [($44,000 + $4,000) ) X = .125; X = $384,000]18. b19. a20. d21. b22. dProblemsGroup A(20-30 min.) P 9-1A 1. One important reason businesses organize as corporationsis the limited personal liability of stockholders for the obligations of the corporation. In a business organized as a proprietorship or a partnership, the owners are personally liable for the debts of the business. Another advantage of the corporation is its continuous life and the ease of transferring ownership from one stockholder to another. This feature allows the business to raise more money from more people than with a partnership and enables the corporation to grow larger than a partnership or a proprietorship.These advantages outweigh the disadvantage of paying additional income tax.2. Preferred stock is similar to common stock in that thecorporation is not obligated to pay the preferred or the common stockholders for their stocks. Preferred stock is similar to debt in that preferred stock specifies an annual dividend rate and debt specifies an annual interest rate. Both interest on debt and preferred dividends must be paid before paying dividends on common stock.(continued) P 9-1A 3. A gain on the sale of treasury stock is not profit to bereported on the income statement because the company is trading its stock back and forth with its stockholders. These transactions create paid-in capital from the stockholders, not profits from the sale of goods and services to customers.The two categories of ―gains‖ are different.4. Most stockholders prefer to receive cash dividends becausecash is an asset. By contrast, stock dividends transfer no cash or other assets of the corporation to the stockholders.In most cases the market price per share of common stock decreases after a stock dividend and leaves the stockholder with stock of the same overall market value as before the dividend.(30-45 min.) P 9-2A Req. 1JournalDATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT Feb. 2 Organization Cost………………………………...1,800 Common Stock (300 ⨯$5)…………………...1,500Paid-in Capital in Excess ofStated Value —Common (300)Issued stock to promoter for assisting withissuance of stock.2 Cash (21,000 ⨯$6)………………………………..126,000Common Stock (21,000 ⨯$5)……………….105,000Paid-in Capital in Excess ofStated Value —Common………………..21,000Issued common stock to the incorporators.10 Patent……………………………………………….40,000Preferred Stock (400 ⨯$100)………………..40,000Issued preferred stock to acquire a patent.16 Cash…………………………………………………12,000Common Stock (2,000 ⨯$5)…………………10,000Paid-in Capital in Excess ofStated Value —Common………………..2,000Issued common stock for cash.(continued) P 9-2A Req. 2GH, Inc.Balance Sheet (partial)February 28, 20XXStockholders’ equity:Preferred stock, 6%, $100 par, 10,000 shares authorized, 400 shares issued………………………………………..$ 40,000 Common stock, no-par with $5 stated value, 100,000shared autho rized, 23,300 shares issued*………….. 116,500 Paid-in capital in excess of stated value —common… 23,300** Retained earnings…………………………………………… 119,000 Total stockholders’ equity……………………………...$298,800_____*300 + 9,000 + 12,000 + 2,000 = 23,300 shares**$300 + $21,000 + $2,000 = $23,300(10-15 min.) P 9-3AEli Jackson CompanyBalance Sheet (partial)December 31, 20X4Stockholders’ equity:Preferred stock, 5%, $100 par, 5,000 shares authorized,1,000 shares issued……………………………………...$100,000 Paid-in capital in excess of par, preferred………………5,000 Common stock, no-par, 500,000 shares authorized,100,000 shares issued…………………………………..519,000 Retained earnings…………………………………………… 131,000 Total stock holders’ equity……………………………...$755,000_____Computations:Preferred stock: 1,000 ⨯ $100 = $100,000Paid-in capital in excess of par, preferred:1,000 ⨯ ($105 – $100) = $5,000Common stock: Balance given as $519,000Retained earnings: $61,000 + $80,000 – ($100,000 ⨯ 0.05 ⨯ 2) = $131,000(30-40 min.) P 9-4A MEMORANDUMTO: Guilford Board of DirectorsFROM: Student NameRE: Proposal to fight off hostile takeover of the companyThe company should buy back enough of its stock (as treasury stock) that the outside investment group would find it difficult to obtain 51% of the outstanding stock. We should also announce to the stockholders that Guilford stands ready to match the offer made by the outside investment group. That is, the company would be willing to pay the stockholders as much as the outsiders would pay.Unfortunately, purchase of the treasury stock would decrease company assets and stockholders’ equity. It would leave liabilities unchanged.Student responses may vary.(20-30 min.) P 9-5A Common stock [(500,000 + 400,000) ⨯$1 + $35,000]….. $ 935,000 Additional paid-in capital —From issuance of stock:500,000 ⨯ ($5.00 –$1.00)……………..$2,000,000400,000 ⨯ ($8.50 –$1.00)…………….. 3,000,000 From sale of treasury stock[40,000 ⨯ ($8 –$7)]…………………….40,000 From stock dividend…………………….. 185,000 5,225,000 Retained earnings ($1,020,000 – $640,000 – $220,000). 160,000 Treasury stock [(60,000 – 40,000) ⨯$7]…………………. (140,000) Total stockholders’ equity………………………………….$ 6,180,000Total assets………………………………………………..$13,100,000 –Total liabilities…………………………………………….. (6,920,000) = Total stockholders’ equity………………………………$ 6,180,000(15-25 min.) P 9-6A Req. 1Bethlehem has $5.00 cumulative convertible preferred stock, $2.50 cumulative convertible preferred stock, and common stock outstanding.Req. 2Bethlehem issued the preferred stock at stated value and the common stock at a premium. This can be determined by dividing the balance of the three stock accounts by the number of shares issued, as follows:$5.00 preferred: $125,000,000 / 2,500,000 shares = $50 stated value.$2.50 preferred: $100,000,000 / 4,000,000 shares = $25 stated value.Common: $621,000,000 / 48,308,516 shares = $12.85, which is more than $8 par.We see that Bethlehem issued only its common stock at a price above par.Req. 3Bethlehem would have to pay preferred dividends in arrears before paying dividends to common stockholders because the preferred stock is cumulative.(continued) P 9-6A Req. 4Bethlehem must pay preferred dividends of $22,500,000 each year to avoid having preferred dividends in arrears._____Computations:$5.00 Preferred: 2,500,000 shares ⨯ $5.00 = $12,500,000 $2.50 Preferred: 4,000,000 shares ⨯ $2.50 = 10,000,000 Total preferred dividends………………………….$22,500,000 Req. 5JournalDATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT Retained Earnings………………………..61,000,000Dividends Payable, $5.00 Preferred(2,500,000 shares ⨯ $5.00 ⨯2)…...25,000,000Dividends Payable, $2.50 Preferred(4,000,000 ⨯ $2.50 ⨯2)…………….20,000,000Dividends Payable, Common($61,000,000 – $25,000,000 –$20,000,000) ……………………….16,000,000。

西方财务会计课后习题答案

Chapter 5Short-Term Investments and Receivables Check Points(5 min.) CP 5-1 1. Trading investments are reported at their current marketvalue.2. A trading investment is always a current asset because theinvestor intends to sell the trading investment in the very near future — days, weeks, or only a few months. A current asset is to be sold within one year or within the company’s operating cycle if longer than a year.(10 min.) CP 5-2 BALANCE SHEETCurrent assets:Short-term trading investments, at market value.. $74,000 INCOME STATEMENTOther revenue and gains (losses):Unrealized loss on investment……………………...$ (6,000)(10 min.) CP 5-3 1. Paid $100,0002. Unrealized Loss on Investment ($100,000 – $98,000)…2,000Short-Term Investment……………………………….. 2,000 Adjusted investment to market value.BALANCE SHEETCurrent assets:Short-term trading investment, at market value……….$98,000 INCOME STATEMENTOther revenue (loss):Unrealized loss on investment……………………………$ (2,000)(5 min.) CP 5-4 Jennings, the accountant, should not handle the company’s cash. With cash-handling duties, the accountant can steal cash and hide the theft by writing off a customer’s acc ount receivable as uncollectible.(5 min.) CP 5-5 1. Uncollectible-Account Expense ($900,000 ⨯.01)…..9,000Allowance for Uncollectible Accounts……………9,000 2. Balance sheetAccounts receivable…………………………………$90,000Less Allowance fo r uncollectible accounts…….. (9,000)Accounts receivable, net……………………………$81,000(5-10 min.) CP 5-6 1. Accounts Receivable…………………………………. 800,000Sales Revenue………………………………………800,000 2. Cash………………………………………………………780,000Accou nts Receivable………………………………780,000 3. Allowance for Uncollectible Accounts…………….. 5,000Accounts Receivable……………………………….5,000 4. Uncollectible-Account Expense ($800,000 ⨯.01)… 8,000Allowance for Uncollectible Accounts………….8,000(10 min.) CP 5-7 1.Accounts ReceivableBeg. bal. 90,000Net credit sales 800,000 Collections 780,000Write-offs 5,000 End. bal. 105,000Amount customersowe the company2.Allowance for Uncollectible AccountsBeg. bal. 9,000 Write-offs 5,000 Uncollectible-account expense 8,000End. bal. 12,000Amount Spitzerexpects not tocollect3. and4.BALANCE SHEET:Accounts receivable, net($105,000 –$12,000)…………………………$93,000Amount Spitzerexpects tocollect INCOME STATEMENT:Sales revenue…………………………………...$800,000Uncollectible-account expense………………8,000(5-10 min.) CP 5-8 (a) Accounts Receivable………………………..700,000Sales Revenue…………………………….700,000 (b) Cash…………………………………………….720,000Accounts Receivable…………………….720,000 (c) Allowance for Uncollectible Accounts…..6,000Accounts Receivable…………………….6,000 (d) Uncollectible-Account Expe nse…………..7,000Allowance for Uncollectible Accounts.. 7,000 Allowance for Uncollectible AccountsBeg. bal. 8,000 Write-offs 6,000 Uncollectible –account expense X = 7,000End. bal. 9,000(10 min.) CP 5-9 1. and 2.Accounts ReceivableBeg. bal. 100,000Net credit sales 700,000 Collections 720,000Write-offs 6,000 End. bal. 74,000Allowance for Uncollectible AccountsBeg. bal. 8,000 Write-offs 6,000 Uncollectible –account expense 7,000End. bal. 9,0003.BALANCE SHEETAccounts receivable…………………………….$74,000Less Allowance for uncollectible accounts… (9,000)Accounts receivable, net……………………….$65,000(5-10 min.) CP 5-10 a. May 19 Note Receivable —R. Kroll……..100,000Cash………………………………100,000 b. Nov. 19 Cash…………………………………103,000Note Receivable —R. Kroll…..100,000Interest Revenue($100,000 ⨯ .06 ⨯6/12)………3,000(10 min.) CP 5-11 1. Interest for:20X7 ($200,000 ⨯ .09 ⨯8/12)……………….$12,00020X8 ($200,000 ⨯.09)……………………….18,00020X9 ($200,000 ⨯ .09 ⨯4/12)……………….6,0002. Tradewinds Bank has a note receivable and interest revenue.Mike Toby has a note payable and interest expense.3. Payoff at November 30, 20X7:Principal………………………………………….$200,000Interest ($200,000 ⨯ .09 ⨯7/12)………………. 10,500Total……………………………………………….$210,500(10 min.) CP 5-1220X5a. Aug. 31 Note Receivable —L. Holland……………1,000Cash………………………………….…….1,000 To lend money.20X6b. June 30 Interest Receivable ($1,000 ⨯ .09 ⨯ 10/12).75Interest Revenue (75)To accrue interest revenue.20X6c. Aug. 31 Cash ($1,000 + $90)………………………...1,090Interest Receivable (75)Interest Revenue ($1,000 ⨯ .09 ⨯ 2/12). 15Note Receivable…………………………1,000 To collect on note receivable.(5-10 min.) CP 5-13 a. BALANCE SHEETJune 30, 20X6Current assets:Note receivable…………………………………… $1,000Interest receivable (75)b. INCOME STATEMENTYear ended June 30, 20X6Revenues:Interest revenue……………………………….….$ 75 c. BALANCE SHEETJune 30, 20X7Nothing to report because the note wascollected on August 31, 20X6.d. INCOME STATEMENTYear ended June 30, 20X7Revenues:Interest revenue……………………………….….$ 15(10 min.) CP 5-14 Req. 120X6Cash + Short-term investments $4,000 + $15,000Acid-test ratio =+ Net current receivables=+ $73,000 Total current liabilities $101,000= .91The company’s acid-test ratio compares favorably to the industry average of .90.Req. 2One day’s sales= $743,000 = $2,036365Days’ sales in average accounts receivableAverage net=accounts receivable=($73,000 + $68,000) / 2 One day’s sales$2,036= 35 daysThe company’s days’-sales-in-receivables ratio (35) is okay relative to the 30-day period of the credit terms.(10-15 min.) CP 5-15Income Statement Balance SheetDebit Credit Debit Credit 1. Classifications Balance Balance Balance BalanceService revenue (X)Other assets (X)Property, plant, andequipment (X)Cost of services sold.. XCash (X)Notes payable (X)Unearned revenues (X)Allowance fordoubtful accounts (X)Other expenses (X)Accounts receivable (X)Accounts payable (X)Millions 2. Service revenue………………………………………$23,613Cost of services sold……………………………….. (11,620) Other expenses………………………………………. (12,569) Net income (net loss)………………………………..$ (576)3. Current ratio = $239 + $4,417 – $389= 1.48 $607 + $2,285Exercises(10-15 min.) E 5-1 1. This is a trading investment because Exxonintends to sell the stock within a short time.2. Dec. 20 Short-Term Investment (10,000 ⨯$60)….600,000Cash……………………………………….600,000 Purchased investment.Dec. 31 Short-Term Investment[(10,000 ⨯ $63) –$600,000]………………..30,000Unrealized Gain on Investment………30,000 Adjusted investment to market value.3. BALANCE SHEETCurrent assets:Short-term trading investment, at market value……….$630,000 INCOME STATEMENTOther revenue and gains:Unrealized gain on investment……………………………$ 30,000(10-20 min.) E 5-2 INCOME STATEMENTOther revenue and (expense):Dividend revenue………………………………………$ 500 Unrealized gain on investment ($101,000 – $98,000).3,000 BALANCE SHEETCurrent assets:Short-term investments, at market value………….$101,000(15-30 min.) E 5-3 Req. 1Cash Short-TermInvestmentDividendRevenue110,000 67,000 67,000 2,000 1,700* 1,700* 65,00072,000Unrealized Gain (Loss) On InvestmentGain on Sale Of Investment2,000 7,000 _____*2,000 shares $.85 = $1,700Req. 2December 31 BALANCE SHEET 20X3 20X4 Current assets:Short-term investments…………………… $65,000 $ —Year Ended INCOME STATEMENT 20X3 20X4 Other revenue and expense:Dividend revenue…………………………… $ 1,700 $ —Unrealized (loss) on investment………….(2,000) —Gain on sale of investment………………..— 7,000(5-10 min.) E 5-4 MEMORANDUMDATE:TO: Bob O’ReillyFROM: Student NameRE: Essential element of internal control over collection from customersSeparation of duties is the essential element in a system to ensure that cash received by mail from customers is properly handled and accounted for. It is very important to separate cash-handling duties from accounting duties. Otherwise, an employee can steal a cash receipt from a customer and cover the theft by writing off the customer account as uncollectible.Student responses may vary.(15-20 min.) E 5-5JournalDATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT 20X8Dec. 31Year-end entry:Doubtful-Account Expense($600,000 .01)………………………...6,000Allowance for Doubtful Accounts. 6,000 BALANCE SHEETCurrent assets:Accounts receivable, net of allowancefor doubtful accounts of $6,9001…………... $84,1002 _____ _____1$900 + $6,000 = $6,900 2$91,000 – $6,900 = $84,100(15 min.) E 5-6 Req. 1JournalDATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT Oct. Accounts Receivable……………………...100,000Sales Revenue…………………………..100,000 Oct. Cash…………………………………………..94,000Accounts Receivable…………………...94,000 Oct. Allowance for Uncollectible Accounts…1,700Accounts Receivable…………………...1,700 Oct. Uncollectible-Account Expense($100,000 .02)……………………………..2,000Allowance for Uncollectible Accounts 2,000 Req. 2Accounts ReceivableAllowance for Uncollectible Accounts28,000 94,000 1,600100,000 1,700 1,700 2,00032,300 1,900 Net accounts receivable = $30,400 ($32,300 – $1,900)The store expects to collect an amount approximating the net receivable.Req. 3BALANCE SHEETCurrent assets:Accounts receivable, net of allowance foruncollectible accounts of $1,900…………………$30,400(10-15 min.) E 5-7 Req. 1JournalDATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT Oct. Uncollectible-Account Expense…..1,700Accounts Receivable……………..1,700Req. 2Net accounts receivable is $32,300, the balance in Accounts Receivable, computed as follows:Accounts ReceivableBeg. bal. 28,000Cr. sales 100,000 Collections 94,000Write-offs 1,700End. bal. 32,300The store does not expect to collect the full $32,300 because some credit customers are likely not to pay their accounts.(15-30 min.) E 5-8 Req. 1The credit balance at December 31 in Allowance for Doubtful Accounts should be $13,400.($106,000 ⨯ .005) + ($78,000 ⨯ .015) + ($70,000 ⨯ .06) + ($15,000 ⨯.50) = $13,400. The current balance is $7,400. Thus, the balance of the allowance account is too low.Req. 2JournalDATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT Doubtful-Account Expense……………..6,000Allowance for Doubtful Accounts….6,000 Allowance for Doubtful Accounts7,4006,00013,400Req. 3BALANCE SHEETCurrent assets:Cash.................................................. $ XX Short-term investments (XX)Accounts receivable, net of allowancefor doubtful accounts of $13,400……..255,600* _____*Another way to report accounts receivable isAccounts receivable……………………….$269,000Less All owance for doubtful accounts… (13,400) 255,600(15-20 min.) E 5-9 Req. 12% is reasonable because for each year’s sales and for the entire three-year period, the ratio of total write-offs to sales is very close to 2%.(Dollars in thousands) 20X4 20X5 20X6 TotalWrite offs= $139 $138 $144 $421Sales $6,800 $7,000 $7,100 $20,900= .0204 = .0197 = .0203 = .0201Req. 2Thousands20X6 Accounts Receivable……………………7,100Sales Revenue………………………...7,100 Recorded sales on account.20X6 Bad-Debt Expense ($7,100 .02) (142)Allowance for Bad Debts (142)Recorded expense for the year.20X6 Allowance for Bad Debts (144)Accounts Receivable (144)Wrote off uncollectible receivables.(10-15 min.) E 5-10JournalDATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT Nov. 1 Note Receivable —Al Sperry………… 40,000Cash…………………………………….40,000 Dec. 3 Note Receivable —Acura, Inc……….. 5,000Ser vice Revenue……………………..5,00016 Note Receivable —Vanguard Co……. 2,000Accounts Receivable — Vanguard Co. 2,00031 Interest Receivable…………………….. 656*Interest Revenue (656)_____($40,000 ⨯ .09 ⨯ 2/12) + ($5,000 ⨯ .12 ⨯ 28/365) + ($2,000 ⨯ .12 ⨯ 15/365**) = $645 $600 $46 $10**Fraction can also be stated as .5/12Harrison earned interest revenue of $656 this year.(15 min.) E 5-1120X8 20X9 BALANCE SHEETCurrent assets:Note receivable…………………………….…$100,000 $ —Interest receivable ($100,000 ⨯ .08 ⨯ 9/12). 6,000 —INCOME STATEMENTInterest revenue…………………………………6,000 2,000* _____*$100,000 ⨯ .08 ⨯ 3/12 = $2,000(10 min.) E 5-12 1. Stockton Bank has interest receivable and interest revenue.California Company has interest payable and interestexpense.Interest for one month ($100,000 ⨯ .06 ⨯1/12)……… $5002. Stockton Bank: Assets = Liabilities + Equity Affected By0 Interest revenueCalifornia Company: 0 Interest expense3. True4. The net amount of receivables —the amount the companyexpects to collect —is more interesting because the company will probably collect this amount in cash.5. Accounts receiva ble…………………….$XXXLess Allowance for uncollectibles (X)Accounts receivable, net……………….$ XXBALANCE SHEETCurrent assets:CashShort-term investmentsAccounts receivable, net6. False. The direct write-off method overstates assets becauseit fails to show the amount of the receivables the company expects to collect.(10-15 min.) E 5-13 Amounts in millions of dollarsShort-term Net current(a) Acid-test= Cash + investments + receivablesratio Total current liabilities= $137 + $30 + $37 $40 + $158= $204 $198= 1.03An acid-test ratio of 1.03 is normal.(b) One Sales andday's= service revenue=$415= $1.137sales 365 365 Days’ sales Average netin average= accounts receivable=($37 + $42) / 2receivables One day’s sales$1.137= 35 days35 days’ sales in average receivables is okay relative to credit terms of net 30 days.(10-15 min.) E 5-14 Req. 1Average collection period: Millions of dollarsOne day’s sales= $256,329= $702.3 365Days’ sales in average receivables= ($1,254 + $1,569) / 2= 2 days(average collection period) $702.3Req. 2Wal-Mart’s collection period is short because Wal-Mart sells for cash and on credit cards and bank cards. Receivables are very low.(15-20 min.) E 5-15 Actualwithout BankCards Expected with Bank CardsSales revenue ……………………...$400,000 $440,000* Cos t of goods sold……………….$210,000 $231,000** Uncollectible-account expense…6,000 —Bank-card discount expense……4,800*** Other expenses…………………… 68,000 66,000**** Total expenses……………………. 284,000 301,800 Ne t income………………………….$116,000 $138,200 Decision: Accept bank cards because of the expected increase in net income._____*$400,000 ⨯ 1.10 = $440,000**$210,000 ⨯ 1.10 = $231,000***$440,000 – $200,000 = $240,000 ⨯ .02 = $4,800The switch to bank cards should produce bankcard discount expense on only the portion of sales that are made on bank cards.****$68,000 – $2,000 = $66,000(15-20 min.) E 5-16 Analysis of T-accounts is helpful, as follows (in millions):AllowancesBeg. bal. 68(a) Write-offs 351 Expense 354End. bal. 71(b) Total revenue = $35,400 ($354 .01)Trade ReceivablesBeg. bal. ($2,269 + $68) 2,337Total revenue 35,400 Write-offs 351Collections 34,729 (c) End. bal. ($2,586 + $71) 2,657(10-15 min.) E 5-17ReceivablesBeg. bal. 80,000Sales on account 950,000 Collections must be X = $940,000 Maximum acceptable bal. 90,000Collections= $940,000=$940,000= .91Beg. bal. + Sales on account $80,000 + $950,000 $1,030,000Therefore, the percentage discount that Columbia should be willing to absorb is 9% (100% – 91%).Practice Quiz1. c2. d3. c4. b [($150,000 ⨯ .02) + ($60,000 ⨯ .08) + ($10,000 ⨯ .20) –$3,200 = $6,600]5. $210,200 ($220,000 – $9,800)6. a ($1,000,000 ⨯ .03 = $30,000)7. b ($2,000 + $30,000 = $32,000)8. $7,000 ($2,000 + $30,000 – $25,000 = $7,000)9. c ($6,000 ⨯ .07 ⨯ 5/12 = $175)10. d11. b ($6,000 ⨯ .07 ⨯ 8/12 = $280)12. d13. Cash………………………….Note Receivable………...Interest Receivable……..Interest Revenue………..6,2806,00017510514. d15. a [($90,000 + $110,000) / 2] ) ($730,000 / 365 days) =50 d ays16. aProblemsGroup A(20-30 min.) P 5-1A Reqs. 1 and 2Cash Short-Term Investment 400,000 25,500* 25,500*900** 5,500+31,000Dividend Revenue Unrealized Gain (Loss) on Investment900** 5,500+ _____*2,000 ⨯ $12.75 = $25,500**2,000 ⨯ $.45 = $900+$31,000 – $25,500 = $5,500(continued) P 5-1A Req. 2JournalDATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT 20X4Dec. 2 Short-Term Investment………………..25,500Cash (2,000 ⨯$12.75)………………..25,500 Purchased investment.21 Cash (2,000 ⨯$0.45) (900)Dividend Revenue (900)Received cash dividend.31 Short-Term Investment($31,000 –$25,500)……………………..5,500Unrealized Gain (Loss) on Investment 5,500 Adjusted investment to market value.Req. 3BALANCE SHEETCurrent assets:Short-term investment, at market value………$31,000 Req. 4INCOME STATEMENTOther revenue and gain:Dividend revenue…………………………………… $ 900 Unrealized gain on investment…………………… 5,500(continued) P 5-1A Req. 5JournalDATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT 20X5Jan. 9 Cash……………………………………….29,000Loss on Sale of Investment…………..2,000Short-Term Investment……………..31,000 Sold investment at a loss.(10-15 min.) P 5-2A MEMORANDUMDATE: _________________TO: Company EmployeesFROM: Akbar Kuwaja, PresidentRE: Procedures to ensure that all cash receipts are deposited in the bank and that each day’s total cashreceipts are posted to accounts receivable.1. Someone other than the accountant opens the mail. Thisperson separates customer checks from the accompanying remittance slips.2. An employee with no access to the accounting recordsdeposits the cash in the bank immediately.3. The remittance slips go to the accountant, who uses them forposting credits to the customer accounts. The accountant adds up the total of the credits for the day.4. A third person, such as the manager or the president,compares the amount of the bank deposit to the total of the customer credits posted by the accountant. This gives some assurance that the day’s cash receipts went into the bank and that the same amount was posted to customer accounts.5. Someone other than the accountant should prepare the bankreconciliation.Student responses may vary.(15-20 min.) P 5-3A(All amounts in millions)Reqs. 1, 3, and 4Accounts Receivable Allowance for Uncollectibles 443 7,316 587,703 269* 269* 308561 97 These balances agree with the actual AOL amounts._____*Must solve for write offs, $269, through the Allowanceaccount.Req. 2JournalDATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDITa. Accounts Receivable……………….7,703Service Revenue………………….7,703b. Cash……………………………………7,316Accounts Receivable…………….7,316c. Uncollectible-Account Expense (308)Allowance for Uncollectibles($7,703 .04) (308)d. Allowance for Uncollectibles……...269*Accounts Receivable…………….269*(continued) P 5-3A Req. 5Customers owed AOL $561.AOL expected to collect $464 ($561 – $97).Req. 6INCOME STATEMENTService revenue……………………….$7,703Uncollectible-account expense (308)(25-35 min.) P 5-4A Req. 1JournalDATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT Nov. 22 Allowance for Doubtful Accounts………4,100Accounts Receivable — Monet Corp.. 1,300Accounts Receivable — Blocker, Inc.. 2,100Accounts Receivable — M Street Plaza 700 Dec. 31 Doubtful-Account Expense………………7,800Allowance for Doubtful Accounts……7,800* _____*Computation:Required credit balance in Allowance for Doubtful Accounts based on aging of AccountsReceivable ($160,000 ⨯ .005) + ($80,000 ⨯ .01) +($34,000 ⨯ .05) + ($15,000 ⨯.50)……………………..$10,800 Credit balance in Allowance for Doubtful Accounts before the December 31 entry — (see theT-acccount in the answer to Req. 2;$7,100 –$4,100)……………………………………….. 3,000 Credit entry needed to produce the required credit balance in Allowance for Doubtful Accounts…….$ 7,800(continued) P 5-4A Req. 2Allowance for Doubtful AccountsNov. 22 Write-offs 4,100 Sept. 30 Balance 7,100Dec. 31 Adjusting 7,800Dec. 31 Balance 10,800Req. 3Dodge Ram Auto SupplyComparative Balance SheetDecember 31, 20X8 and December 31, 20X720X8 20X7 Accounts receivable………………………$289,000 $271,000 Less: Allowance for doubtful accounts. (10,800) (8,700) Accounts receivable, net…………………$278,200 $262,300(20-25 min.) P 5-5A Req. 1Cash ($18,000 –$8,000)……………………..$ 10,000 Short-term trading investments,at market value…………………………….22,000 Accounts receivable…………………………$49,000 Less: Allowance for uncollectibles……. (4,000) 45,000 Inventory……………………………………….54,000 Prepaid expenses……………………………. 5,000 Total current assets……………………….$136,000 Total current liabilities……………………$145,000 Req. 2As reported CorrectedCurrent= $202,000= 1.39$136,000= 0.94ratio $145,000 $145,000 ($18,000 + $34,000Acid-test= + $49,000 + $42,000)= 0.99$10,000 + $22,000 + $45,000= 0.53ratio $145,000 $145,000(continued) P 5-5A Req. 3Net income, as reported…………………..$65,000 –Unrealized loss on trading investments($34,000 –$22,000)……………………... (12,000) –Correction for conversion to theallowance method —Uncollectible-account expenseshould be ($400,000 .03)……….…$12,000Uncollectible-account expense bythe direct write-off method………… 7,000 (5,000) Net income, corrected…………………….$48,000 Req. 4KPMG’s suggestions make Bzensky look much less successful, decreasing the current ratio, the acid-test ratio, and net income.(20-30 min.) P 5-6A Req. 1JournalDATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT 20X4Nov. 30 Note Receivable —Kelly Moore Paint Co…..60,000Sales Revenue………………………………..60,000Dec. 31 Interest Receivable ($60,000 ⨯ .10 ⨯ 1/12) (500)Interest Revenue (500)20X5Feb. 18 Note Receivable —Altex Co…………………..5,000Accounts Receivable —Altex Co…………5,000Feb. 20 Cash………………………………………………..4,600Financing Expense (400)Note Receivable —Altex Co……………….5,000Feb. 28 Cash………………………………………………..61,500Note Receivable — Kelly Moore Paint Co.. 60,000Interest Receivable (500)Interest Revenue ($60,000 ⨯ .10 ⨯2/12)…..1,000(continued) P 5-6AJournalDATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT 20X5Nov. 11 Note Receivable — Consolidated, Inc... 50,000Cash……………………………………...50,000Dec. 31 Interest Receivable (616)Interest Revenue ($50,000 ⨯ .09 ⨯ 50/365) 616Req. 2December 31 BALANCE SHEET 20X5 20X4 Current assets:Note receivable…………………………$50,000 $60,000 Interest receivable……………………...616 500(30-40 min.) P 5-7AReq. 1Dollar amounts in millions20X6 20X5a. Current = Total current assets = $766 = 1.42$695 = 1.56ratio Total current liabilities$540$446Cash + Short-term investmentsb. Acid-testratio=+ Net current receivables = $27+$93+$206 $26+$101+$154Total current liabilities$540$446 = .60 = .63c. One day’s sales=Net sales = $2,671 = $7.32 $2,505 = $6.86365365365Days’ sales in average receivables= Average net receivables= ($206+$154)/2 ($154+$127)/2One day’s sales$7.32$6.86= 25 days= 20 days(continued) P 5-7A Req. 2MEMORANDUMDATE: _________________TO: Top management of Crain’s Stationery Company FROM: Student NameRE: Changes in ratio values from 20X5 to 20X6The current ratio deteriorated from 1.56 to 1.42. The acid-test ratio dropped from .63 to .60, and days’ sales in receivables rose to 25 days.All three ratio values deteriorated during the current year. This is an unfavorable trend because it indicates that the company may find it more difficult to collect its receivables and pay its bills.Student responses may vary.ProblemsGroup B(20-30 min.) P 5-1B Reqs. 1 and 2Cash Short-Term Investment 400,000 46,250* 46,250* 9,250+1,600** 37,000Dividend Revenue Unrealized Gain (Loss) on Investment1,600** 9,250+ _____*5,000 ⨯ $9.25 = $46,250**5,000 ⨯ $.32 = $1,600+$46,250 – (5,000 ⨯ $7.40) = $9,250(continued) P 5-1B Req. 2JournalDATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT 20X8Nov. 3 Short-Term Investment…………………46,250Cash (5,000 ⨯$9.25)………………….46,250 Purchased investment.14 Cash (5,000 ⨯$0.32)……………………..1,600Dividend Revenue…………………….1,600 Received cash dividend.Dec. 31 Unrealized Gain (Loss) on Investment. 9,250Short-Term Investment[$46,250 – (5,000 ⨯$7.40)].…………..9,250 Adjusted investment to market value.Req. 3BALANCE SHEETCurrent assets:Short-term investment, at market value(5,000 ⨯$7.40)……………………………………..$37,000 Req. 4INCOME STATEMENTOther revenue and (loss):Dividend revenue…………………………………… $ 1,600 Unrealized (loss) on investment…………………. (9,250)(continued) P 5-1B Req. 5JournalDATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT 20X9Jan. 6 Cash……………………………………….39,000Short-Term Investment……………..37,000Gain on Sale of Investment………..2,000 Sold investment at a gain.(10-15 min.) P 5-2B MEMORANDUMDATE: _________________TO: Management of Tony the Tiger, Inc.FROM: Student NameRE: Evaluation of internal control over cash receipts from customersBy opening the mail, the accountant has direct access to cash. This creates an internal control weakness because the accountant also posts credits to customer accounts. She can steal a cash receipt from a customer and write off the customer account as uncollectible. The theft is hard to detect because the customer’s account gets zeroed out, and the company does not pursue collection.To correct this internal control weakness, the accountant should be denied access to cash. Someone else in the organization should open the mail and separate cash receipts from the accompanying remittance slips. The cash should be deposited in the bank immediately, and only the remittance slips should go to the accountant.Student responses may vary.(15-20 min.) P 5-3B(All amounts in millions)Reqs. 1, 3, and 4Accounts Receivable Allowance for Uncollectibles 1,635 9,343 659,489 88* 88* 951,693 72 These balances agree with the actual Nike amounts._____*Must solve for write-offs, $88, through the Allowance account.Req. 2JournalDATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDITa. Accounts Receivable………………9,489Sales Revenue……………………9,489b. Cash…………………………………..9,343Accounts Receivable……………9,343c. Uncollectible-Account Expense (95)Allowance for Uncollectibles($9,489 .01) (95)d. Allowance for Uncollectibles……..88*Accounts Receivable……………88*(continued) P 5-3B Req. 5Customers owed Nike $1,693.Nike expected to collect $1,621 ($1,693 – $72).Req. 6INCOME STATEMENTSales revenue………………………….$9,489Uncollectible-account expense (95)(25-35 min.) P 5-4B Req. 1JournalDATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT Nov. 18 Allowance for Doubtful Accounts………1,100Accounts Receivable —Bliss Co (700)Accounts Receivable — Micro Data (400)Dec. 31 Doubtful-Account Expense……………...1,600Allowance for Doubtful Accounts…... 1,600* _____*Computation:Required credit balance in Allowance for Doubtful Accounts based on aging of AccountsReceivable ($100,000 ⨯ .001) + ($40,000 ⨯ .005) +($14,000 ⨯ .05) + ($9,000 ⨯.30)………………………$3,700 Credit balance in Allowance for Doubtful Accounts before the December 31 adjusting entry — (seethe T-acccount in the answer to Req. 2;$3,200 –$1,100)……………………………………….. 2,100 Credit entry needed to produce the required credit balance in Allowance for Doubtful Accounts…….$1,600。

第七章会计学

判断题：1、一般企业是以盈利为其主要经营目标的经济组织。

正确答案：对2、进行产品销售是产品生产企业的主要经营活动。

正确答案：对3、企业的应付账款和应付票据等也可增加企业的资金来源，因而也属于筹资活动中的交易和事项。

正确答案：错4、企业发生的所有借款利息都应记入“财务费用”账户。

正确答案：错5、在采用信用结算方式结算贷款时，企业会产生应付账款和预付账款等，形成供应过程的储备资金。

正确答案：错6、企业发行债券会增加企业资产，也会形成企业负债。

正确答案：对7、材料采购的实际成本由买价和采购费用两个部分组成。

正确答案：对8、生产成本是对象化了的生产费用。

正确答案：对9、直接材料、直接人工和制造费用通常称为产品的成本项目。

正确答案：对10 、“制造费用”账户在月末一般没有余额。

（结转至生产成本）正确答案：对11 、应交税费中的销项税额，可以确认为企业当期的收入。

正确答案：错12 、产品生产企业的商品销售成本是指销售商品本身的生产成本。

正确答案：对13 、销售费用是企业筹集生产经营所需资金所发生的各种费用。

正确答案：错14 、财务成果仅仅是指企业在一定会计期间实现的营业利润。

正确答案：错15 、企业的投资仅仅是指其对外投资。

正确答案：错16 、对内投资是指企业固定资产的构建。

正确答案：错17 、长期待摊费用属于企业的其他资产，也是企业的非实物资产投资。

正确答案：对18 、固定资产的后续计量是指企业在固定资产的存续期间考虑其使用状况以及与固定资产成本相关的市场价格变化等因素对固定资产价值的重新确认。

正确答案：对19 、“工程物资”账户核算企业为在建工程准备的各种物资的成本，包括工程用材料、尚未安装的设备以及为生产准备的工器具等。

正确答案：对20 、“累计折旧”账户属于资产类账户，其账户结构与一般的资产类账户完全相同。

正确答案：错21 、对使用寿命不确定的无形资产需要在其使用寿命内采用系统合理的方法进行摊销。

正确答案：错22 、交易性金融资产是企业为近期出售而持有的、以公允价值计量且其变动计入当期损益的金融资产。

财务会计课后习题答案(英文原版)第7单元

(b) 2.
The FASB’s conceptual framework consists of the following: (1) Objectives of Financial Reporting. (2) Qualitative Characteristics of Accounting Information. (3) Elements of Financial Statements. (4) Operating Guidelines (Assumptions, Principles, and Constraints). (a) According to the FASB in its development of the conceptual framework, the objectives of financial reporting are to provide information that: (1) is useful to those making investment and credit decisions, (2) is helpful in assessing future cash flows, and (3) identifies the economic resources (assets), the claims to those resources (liabilities), and the changes in those resources and claims. (b) The qualitative characteristics are: (1) relevance, (2) reliability, (3) comparability, and (4) consistency. Curtis is correct. Consistency means using the same accounting principles and accounting methods from period to period within a company. Without consistency in the application of accounting principles, it is difficult to determine whether a company is better off, worse off, or the same from period to period. Comparability results when different companies use the same accounting principles. Consistency means using the same accounting principles and methods from year to year within the same company. The going concern assumption is necessary because otherwise depreciation and amortization policies would not be justifiable and appropriate. Also, the current-noncurrent classification of assets and liabilities would lose much of its significance. Labeling anything as fixed or long-term would be difficult to justify. In addition, the going concern assumption lends credibility to the cost principle. Revenue should be recognized in the accounting period in which it is earned. The sales basis involves an exchange transaction between the seller and buyer and the sales price provides an objective measure of the amount of revenue realized. Expired costs generate revenues only in the current period and therefore are expensed immediately. Unexpired costs will generate revenues in current and future periods and are recorded as assets. (a) The accountant discloses information about an entity’s financial position, operations, and cash flows in the financial statements, or in the notes that accompany the statements. (b) The trade-offs involved with disclosure balance the costs of preparing additional information and the benefits from using it.

财务会计第七章固定资产试题题库

财务会计第七章固定资产试题题库固定资产是指企业为生产产品、提供劳务、出租或者经营管理而持有的、使用时间超过12个月的，价值达到一定标准的非货币性资产。

本试卷分为单项选择题、多项选择题与判断题，各10道，每道题1分，共30分。

一、单项选择题1、为反映企业固定资产的（），应设置“固定资产”账户。

【单选题】（1.0分）A.A、净值B.B、磨损价值C.C、原始价值D.D、可收回金额正确答案: C答案解析: 固定资产科是原值。

就是初始价值, 累计折旧才是反映折旧,是固定资产的抵减科目。

固定资产-累计折旧=固定资产的净值2、购入需要安装的固定资产，为归集该固定资产的入账价值，购入时应先计入的账户是( )。

【单选题】（1.0分）A.A、固定资产B.B、生产成本C.C、在建工程D.D、材料采购正确答案: C答案解析: 购入该类固定资产，必须安装后才能交付使用。

因此，应通过“在建工程”账户核算其成本，待到达预定可使用状态交付使用时，再按其总成本从“在建工程”账户转入“固定资产”账户。

3、甲公司以银行存款购入不需要安装的生产设备一台，增值税专用发票上注明价款20000元，增值税进项税额3400元，另支付设备运杂费500元，该设备的入账价值为( )元。

【单选题】（1.0分）A.A、20000B.B、20500C.C、23400D.D、23900正确答案: D4、固定资产应计折旧总额等于( )。

【单选题】（1.0分）A.A、固定资产原值-清理费用B.B、固定资产原值+清理费用C.C、固定资产原值+预计净残值D.D、固定资产原值-预计净残值正确答案: D答案解析: 固定资产的折旧是指固定资产在使用过程中，逐渐损耗而消失的那部分价值。

固定资产损耗的这部分价值，应当在固定资产的有效使用年限内进行分摊，形成折旧费用，计入各期成本。

应提折旧总额=固定资产原价-预计净残值+预计清理费用5、基本生产车间使用的固定资产计提折旧时，应借记( )科目。

(财务会计)西方财务会计课后习题答案

Chapter 6Merchandise Inventory and Cost of Goods SoldCheck Points(10 min.) CP 6-1Nissan North AmericaBalance SheetDecember 31, 20X6Current assets:Inventory (300 @ $80)…………………..$24,000Nissan North AmericaIncome StatementYear Ended December 31, 20X6Sales revenue [700 ($80 + $40)]……….$84,000Cost of goods sold (700 @ $80)………… 56,000Gross profit………………………………….$28,000(10-15 min.) CP 6-2 1. (Journal entries)Inventory…………………………………..100,000Accounts Payable…………………….100,000 Cash ($140,000 ⨯.20)……………………28,000Amounts Receivable ($140,000 ⨯ .80).. 112,000Sales Revenue………………………...140,000 Cost of Goods Sold……………………..60,000Inventory ($100,000 ⨯.60)…………..60,000 2. (Financial statements)BALANCE SHEETCurrent assets:Inventory ($100,000 –$60,000)……………….$40,000 INCOME STATEMENTSales revenue………………………………………$140,000Cost of goods sold……………………………….. 60,000Gross profit…………………………………………$ 80,000(10 min.) CP 6-3Billions Inventory………………………… 6.4Cash…………………………... 6.4 Accounts Receivable………….28.5Sales Revenue……………….28.5Cost of Goods Sold…………… 6.2Inventory……………………... 6.2 Cash………………………………26.3Accounts Receivable……….26.3(10 min.) CP 6-41. I nventory costs are increasing from $10 to $14 to $18 per unit.2. FIFO results in the highest cost of ending inventory($360)because under FIFO the ending inventory is costed at the last costs incurred during the period. When costs are increasing, the last costs are the highest costs.FIFO results in the lowest cost of goods sold. This occurs because the oldest costs are assigned to cost of goods sold.When costs are increasing, the oldest costs are the lowest.FIFO results in the highest gross profit because cost of goods sold, the expense, is the lowest. (Sales revenue is unaffected by the inventory costing method.)3. LIFO results in the lowest cost of ending inventory($240)because under LIFO, the ending inventory is costed at the oldest costs. When costs are increasing, the oldest costs are the lowest costs.LIFO results in the highest cost of goods sold. This occurs because the last costs of the period are assigned to cost of goods sold. When costs are increasing, the last costs are the highest.LIFO results in the lowest gross profit because cost of goods sold, the expense, is the highest. (Sales revenue is unaffected by the inventory costing method.)(10 min.) CP 6-5a b cAverageCost FIFO LIFO Cost of goods sold:Average (50 @ $15*) $750FIFO (10 @ $10) + (25 @ $14) + (15 @ $18) $720LIFO (25 @ $18) + (25 @ $14) $800 Ending inventory:Average (10 @ $15*) $150FIFO (10 @ $18) $180LIFO (10 @ $10) $100 _____*Average cost= ($100 + $350 + $450)= $15per unit (10 + 25 + 25)(10-15 min.) CP 6-6Kinko’sIncome StatementYear Ended December 31, 20XXAverage FIFO LIFO Sales revenue (600 ⨯ $20) $12,000 $12,000 $12,000 Cost of goods sold (600 ⨯ $9.90*)5,940(100 ⨯ $9) + (500 ⨯ $10) 5,900(600 ⨯ $10) 6,000 Gross profit 6,060 6,100 6,000 Operating expenses 4,000 4,000 4,000 Net income $ 2,060 $ 2,100 $ 2,000 _____*Beginning inventory (100 @ $9.20)…………..$ 920 Purchases (700 @ $10)………………………… 7,000Goods available…………………….……………$7,920 Average cost per unit $7,920 / 800 units…$ 9.90(10 min.) CP 6-7Kinko’sIncome StatementYear Ended December 31, 20XXAverage FIFO LIFO Sales revenue (600 ⨯ $20) $12,000 $12,000 $12,000 Cost of goods sold (600 ⨯ $9.90*)5,940(100 ⨯ $9) + (500 ⨯ $10) 5,900(600 ⨯ $10) ______ ______ 6,000 Gross profit 6,060 6,100 6,000 Operating expenses 4,000 4,000 4,000 Income before income tax $ 2,060Income tax expense (40%) $ 824*From CP 6-6(5 min.) CP 6-8 Lands’ End managers can delay purchases of inventory until the next year. Under LIFO, high inventory costs that would have been paid for inventory do not become expense as cost of goods sold in the current year. As a result, the current year’s income statement reports a higher net income than Lands’ End would have reported if the company had replaced inventory before year end.(5-10 min.) CP 6-9Millions BALANCE SHEETCurrent assets:Inventories, at market (which is lower than cost).. $ 330 INCOME STATEMENTCost of goods sold [$1,001 + ($333 – $330)]…………$1,004(10 min.) CP 6-101. FIFO2. LIFO Gross profitpercentage:Gross profit= $460*= 46%$340**= 34%Net sales revenue $1,000 $1,000 _____* $1,000 – $540 = $460** $1,000 – $660 = $340Inventory turnover:Cost of goods sold= $540 $660Average inventory ($100 + $360) / 2 ($100 + $240) / 2= 2.3 times = 3.9 times3. Gross profit percentage — FIFO looks better.4. Inventory turnover — LIFO looks better.(10-15 min.) CP 6-11 1. Beginning inventory……………………………... $ 300,000+ Purchases……………………………………….… 1,600,000 = Goods available…………………………………... 1,900,000 –Cost of goods sol d………………………………. (1,800,000) = Ending inventory……………………………….…2. Beginning inventory……………………………..+ Purchases……………………………………….…= Goods available…………………………………...–Cost of goods sold:Sales revenue……………………….$3,000,000Less estimated gross profit (40%) (1,200,000)Estimated cost of goods sold……………….= Estimated cost of ending inventory…………... $ 100,000(5-10 min.) CP 6-12CorrectAmount(Millions)a. Inventory ($333 + $3)…………………………………$ 336b. Net sales (unchanged)……………………………….$1,755c. Cost of goods sold ($1,001 –$3)…………………...$ 998d. Gross profit ($754 + $3)……………………….……..$ 757(10 min.) CP 6-13 1. Last year’s reported g ross profit was understated.Correct gross profit last year was $5.6 million ($4.0 + $1.6). 2. This year’s gross profit is overstated.Correct gross profit for this year is $3.2 million ($4.8 – $1.6).3. Lang’s perspective is better because correcting the errorchanges the trend of correct gross profit from up (good) to down (bad), as follows:MillionsLast Year This Year Trend Reported gross profit……..$4.0 $4.8 Up (Good) Correct gross profit……….$5.6 $3.2 Down (Bad)(5-10 min.) CP 6-14 1. Ethical. There is nothing wrong with buying inventorywhenever a company wishes.2. Ethical. Same idea as 1.3. Unethical. The company falsified its reported amounts ofinventory and net income.4. Unethical. The company falsified its reported inventorypurchases, cost of goods sold, and net income in order to cheat the government (and the people) out of income tax.5. Unethical. The company falsified its reported amount ofinventory in order to cheat the government (and the people) out of taxes.Exercises(15-20 min.) E 6-1 Req. 1 (journal entried)Perpetual System1. Purchases: ThousandsInventory…………………….……….… 2,200Accounts Payable………………….2,2002. Sales:Cash ($3,500 ⨯.20) (700)Accounts Receivable ($3,500 ⨯ .80). 2,800Sales Revenue…………….……….3,500 Cost of Goods Sold………………….. 2,100Inventory………………….………....2,100Req. 2 (financial statement amounts)BALANCE SHEET Thousands Current assets:Inventory ($370 + $2,200 – $2,100)... $ 470 INCOME STATEMENTSales revenue…………………………….$3,500Cost of goods sold……………………… 2,100Gross profit……………………………….$1,400(15-25 min.) E 6-2JournalDATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT1 Inventory ($640 + $1,870 + $900)……….3,410Accounts Payable………………………3,4102 Accounts Receivable (17 @ $500)……...8,500Sales Revenue…………………………..8,500 Cost of Goods Sold……………………….2,800*Inventory…………………………………2,8003 Sales revenue………………………………$8,500Cost of goods sold……………………….. 2,800Gross profit…………………………………$5,700Ending inventory ($800 + $3,410 –$2,800)……...$1,410 _____*(9 @ $160) + (8 @ $170) = $2,800(10-15 min.) E 6-3 1.Cost of Goods Sold Ending Inventory(a) Specificunit cost (6 @ $160) + (11 @ $170) = $2,830 (3 @ $160) + (5 @ $180) = $1,380 (b) Averagecost 17 ⨯ $168.40* = $2,863 8 ⨯ $168.40* = $1,347 _____*Average cost per unit = ($800 + $640 + $1,870 + $900)= $168.40(5 + 4 + 11 + 5)(c) FIFO (9 @ $160) + (8 @ $170) = $2,800 (5 @ $180) + (3 @ $170) $1,410(d) LIFO (5 @ $180) + (11 @ $170) + (1 @ $160) $2,930 (8 @ $160) $1,2802. LIFO produces the highest cost of goods sold.FIFO produces the lowest cost of goods sold.The increase in inventory cost from $160 to $170 to $180 per unit causes the difference in cost of goods sold.(15-20 min.) E 6-4 Cost of goods sold:LIFO ($2,930) –FIFO ($2,800)…………………………$130 Incom e tax rate……………………………………….. .35 LIFO advantage in tax savings…………………………..$ 46(15 min.) E 6-51. a. FIFOCost of goods sold:(5 @ $90) + (5 @ $95)……………...$925Ending inventory:7 @ $95………………………………$665b. LIFOCost of goods sold:10 @ $95……………………………..$950Ending inventory:(5 @ $90) + (2 @ $95)……………...$6402.VPA, Inc.Income StatementMonth Ended May 31, 20XXSales revenue (3 @ $150) + (7 @ $155)................$1,535 Cost of goods sold. (925)Gross profit (610)Operating expenses (310)Income before income tax (300)Income tax expense (40%) (120)Net income………………………………………………$ 180(15 min.) E 6-6Millions1. Gross profit: FIFO LIFOSales revenue……………………………………$4.9 $4.9 Cost of goods soldFIFO: 600,000 ⨯$7…………………………… 4.2LIFO: (400,000 ⨯ $5) + (100,000 ⨯ $6)+ (100,000 ⨯$7)……………………… 3.3 Gross profit………………………………………$ .7 $1.6 2. Gross profit under FIFO and LIFO differ because inventorycosts decreased during the period.If you base your prediction on the decrease in inventory unit cost, then, yes, you would predict that LIFO gross profit would be higher.But if you assume that FIFO produces higher gross profit, then, no, the actual result does not follow your prediction.(15-20 min.) E 6-7 DATE: _____________TO: Rick TaborFROM: Student NameSUBJECT: Proposal for Saving Income TaxWe can save income tax by buying above-normal quantities of inventory before the end of the year. Inventory costs are rising, and the company uses the LIFO inventory method. Under LIFO, the higher cost of year-end purchases of inventory goes straight into cost of goods sold. This increases cost of goods sold and decreases net income and income taxes. Because our inventory levels are lower than normal, we need the inventory anyway. In effect, we can use our cash to buy inventory or to pay income taxes. I think it would be wiser to buy inventory.(10-15 min.) E 6-8 Specificunit cost 1. Used to account for automobiles, jewelry, and art objects.Average 2. Provides a middle-ground measure of ending inventory and cost of goods sold.FIFO 3. Maximizes reported income.LIFO 4. Matches the most current cost of goods sold against sales revenue.LIFO 5. Results in an old measure of the cost of ending inventory.LIFO 6. Generally associated with saving income taxes. FIFO 7. Results in a cost of ending inventory that is close to the current cost of replacing the inventory.LIFO 8. Enables a company to buy high-cost inventory at year end and thereby to decrease reportedincome.LIFO 9. Enables a company to keep reported income from dropping lower by liquidating older layers ofinventory.LCM 10. Writes inventory down when replacement cost drops below historical cost.(5-10 min.) E 6-9Jeffrey CorporationIncome Statement (partial)Year Ended December 31, 20X4Sales revenue ………………………………………………$225,000 Cost of goods sold [$110,000 + ($18,000 – $17,000)].. 111,000 Gross profit…………………………………………………$114,000 Note: Cost was used for beginning inventory because cost was lower than market. Market (replacement cost) wasused for ending inventory because market was lowerthan cost.(20-25 min.) E 6-10(15-20 min.) E 6-11 (Amounts in millions)a. $ 1,055 (Let a = beginning inventory;a + $7,344 – $1,294 = $7,105a = $1,055)b. $ 12,459 ($19,564 – $7,105)d. $150,255 ($191,329 – $41,074)c. $151,904 (Let c = Purchases;$19,793 + c– $21,442 = $150,255c = $151,904)e. $ 12,650 ($33,726 – $21,076)f. $ 4,367 ($972 + $3,395)g. $ 546 ($513 + $1,005 – $972)The Coca-Cola CompanyIncome StatementYear Ended December 31, 20XX(Millions) Net sales $19,564Cost of goods soldBeginning inventory $1,055Net purchases 7,344Goods available 8,399Ending inventory (1,294)Cost of goods sold 7,105 Gross profit 12,459Operating and other expenses 7,886Income before tax 4,573Income tax expense ($4,573 .333) 1,523Net income $ 3,050(20-30 min.) E 6-12Company Gross ProfitPercentage Inventory TurnoverCoca-Cola $12,459= 63.7%$7,105= 6.0 times $19,564 ($1,055 + $1,294) / 2Wal-Mart$41,074= 21.5%$150,255= 7.3 times $191,329 ($19,793 + $21,442) / 2Intel $21,076= 62.5%$12,650= 6.8 times $33,726 ($1,478 + $2,241) / 2Estée Lauder $3,395= 77.7%$972= 1.8 times $4,367 ($513 + $546) / 2These ratio values explain the merchandising philosophies of these companies. Wal-Mart has the lowest gross profit percentage (21.5%) and the fastest rate of inventory turnover (7.3 times per year). This makes sense for a volume discounter.Estée Lauder has the highest gross profit percentage (77.7%) and the slowest inventory turnover (1.8 times per year). High markups and low turnover go hand-in-hand.Coca-Cola’s and Intel’s ratios fall between these extremes. These ratio data suggest that Intel is the most profitable company of this group.(10 min.) E 6-13Billions Sales……………………………………………...$45.7 Cost of goods soldBeginning inventory………………………..$ 5.5Purchases……………………………………. 33.2Goods available……………………………..38.7Ending inventory…………………………… (6.6)Cost of goods sold…………………………. 32.1 Gross profit……………………………………..$13.6Gross profit percentage = $13.6= 29.8% $45.7Inventory turnover =$32.1= 5.3 times ($5.5 + $6.6) / 2(10-15 min.) E 6-14 Year ended January 31, 20X4: Millions Budgeted cost of goods sold ($6,500 1.08)………... $7,020 Budgeted ending inventory…………………………….. 2,200 Budgeted goods available………….…………………… 9,220 Actual beginning inventory…………………………….. (1,900) Budgeted purch ases…………………………………….. $7,320(10-15 min.) E 6-15 Beginning inventory………………………$ 48,000 Net purchases……………………………… 136,000 Goods available……….…………………...184,000 Cost of goods sold:Net sales revenue……………………… $200,000Less estimated g ross profit of 40%… (80,000)Estimated cost of goods sold………... 120,000 Estimated cost of inventory destroyed.. $ 64,000Another reason managers use the gross profit method to estimate ending inventory is to test the reasonableness of ending inventory from (a) the perpetual inventory records or (b) a physical count.(10-15 min.) E 6-16Allergan, Inc.Income StatementYear Ended September 30,20X5 20X4Sales revenue $149,000 $122,000 Cost of goods sold:Beginning inventory $27,000 $12,000Net purchases 72,000 66,000 Goods available 99,000 78,000 Ending inventory (16,000) (27,000)*Cost of goods sold 83,000 51,000 Gross profit 66,000 71,000 Operating expenses 30,000 20,000 Net income $ 36,000 $ 51,000 *$18,000 + $9,000 = $27,000Allergan actually performed poorly in 20X5, compared to 20X4, with net income down from $51,000 to $36,000. The understatement of inventory at the end of 20X4 caused 20X4 net income to be understated. Then this same error caused 20X5 net income to be overstated, giving the false impression that profits were higher in 20X5. In reality, net income was down in 20X5.(10 min.) E 6-17Millions INCOME STATEMENTSales revenue…………………………………………..$18,144 Cost of goods sold ($5,456 –$100)………………... 5,356 Gross profit……………………………………………..$12,788(5-10 min.) E 6-18a. Use average cost.b. Use FIFO.c. Use FIFO.d. Use any method. They all produce the same resultsbecause costs are stable.e. Buy inventory late in the year.f. Company is using LIFO.(20-30 min.) E 6-19 Req. 1Actual cost of goods sold =1. From purchase in December (30 @ $1,300)……..$ 39,0002. From purchase in June (50 @ $1,200)…………….60,0003. From purchase in February (20 @ $1,100)……….22,0004. From beginning inventory (30 @ $1,000)………... 30,000Actual cost of goods sold………………………..$151,000Req. 2Cost of goods sold with the additional year-end purchase (this would have avoided a LIFO liquidation) =1. From purchase in December (60* @ $1,300)…….$ 78,0002. From purchase in June (50 @ $1,200)…………….60,0003. From purchase in February (20 @ $1,100)………. 22,000Cost of goods sold (with no LIFO liquidation). $160,000 _____*Must purchase a total of 60 units in December to keep ending inventory at 40 units, which was the level of beginninginventory.(continued) E 6-19 Req. 3The LIFO liquidation•Boosted gross profit by $9,000 ($160,000 – $151,000).•Cost the company $3,600 ($9,000 ⨯ .40) in income tax.•Boosted net income by $5,400 ($9,000 – $3,600).•Was bad for the company because the additional income tax drained off valuable cash. Paying the added tax was not worth the boost in net income because the company would have to replenish its inventory anyway, so it’s better to go ahead and buy the goods before year end. That action would save the cash that was wasted on taxes.(20-30 min.) E 6-20 Sales, gross profit, net income, the gross profit percentage, and inventory turnover showed the following trends:Dollars in millions 20X7 20X6 20X5 Sales $37.0 $35.9 $33.7 Cost of sales 29.7 28.1 26.3 Gross profit 7.3 7.8 7.4Net income (net loss) (0.2) 0.4 0.5Gross profit= $7.3= .197$7.8= .217$7.4= .220percentage $37.0 $35.9 $33.7Inventory= $29.7= 4.4$28.1= 4.1$26.3= 4.1turnover ($7.1 + $6.4) / 2 ($6.5 + $7.1) / 2 ($6.4 + $6.5) / 2The gross profit percentage dropped significantly while the rate of inventory turnover improved. This suggests that Zmart was having to discount its merchandise more and more just to sell the goods. The end result was a net loss in 20X7.Selling, general and administrative expenses increased significantly, which suggests that Zmart was having to advertise heavily in order to sell its inventory.Chapter 6 Merchandise Inventory and Cost of Goods Sold 409Practice Quiz1. d ($7,200 – $5,500 = $1,700)2. b ($2,000 + $6,000 – $5,500 = $2,500)3. a4. c [(3,400 @ $10.75) + (100 @ $10.30) = $37,580]5. d (3,400 @ $10.75 = $36,550)6. a7. d ($144,000 + $216,000 = $360,000)8. c9. c10. c [$620,000 – ($70,000 + $400,000 – $40,000) =$190,000]11. b ($10,000 + X – $15,000 = $90,000; X = $95,000)12. c13. d [($500,000 – $200,000) ($25,000 + $35,000) / 2] =10 times14. a Net sales = $480,000 ($490,000 – $10,000)COGS = $50,000 + ($230,000 + $20,000 – $6,000–$4,000) – $40,000 = $250,000GP% = ($480,000 – $250,000) / $480,000 = 47.9%15. b $53,500 + $75,500 – $93,000 (1 – .30) = $63,90016. b17. a410Financial Accounting 6/e Solutions ManualProblemsGroup A(20-30 min.) P 6-1A Req. 1Inventory……………………………………..9,580,000 Accounts Payable……………………….9,580,000Accounts Payable………………………….9,110,000 Cash……………………………………….9,110,000Cash…………………………………………..4,700,000Accounts Receivable………………………8,700,000 Sales Revenue…………………………… 13,400,000 Cost of Goods Sold………………………...9,880,000Inventory…………………………………..9,880,000 [$6,300,000 + $1,360,000 + $1,920,000 + (10,000 units ⨯ $30*)]_____*$1,500,000 / 50,000 units = $30 per unit.Operating Expenses………………………..2,130,000 Cash ($2,130,000 ⨯2/3)………………….1,420,000 Accrued Liabilities ($2,130,000 ⨯ 1/3)... 710,000 Income Tax Exp ense……………………….556,000 Income Tax Payable……………………..556,000 [($13,400,000 – $9,880,000 – $2,130,000) ⨯ .40 = $556,000]Chapter 6 Merchandise Inventory and Cost of Goods Sold 411(continued) P 6-1A Req. 2Req. 3Lord & Taylor - AtlantaIncome StatementYear Ended January 31, 20X0Sales revenue ……………………………$13,400,000Cost of goods sold…………………….. 9,880,000Gross profit………………………………3,520,000Operating expenses…………………… 2,130,000Income before tax………………………1,390,000Income tax expense (40%)……………. 556,000Net income……………………………….$ 834,000412Financial Accounting 6/e Solutions Manual(20-30 min.) P 6-2A Req. 1The store uses FIFO.This is apparent from the flow of costs out of inventory. For example, the March 8 sale shows a unit cost of $19, which came from the beginning inventory. This is how FIFO, and only FIFO, works.Req. 2Cost of goods sold:27 ⨯$19 = $ 51323 ⨯ 19 = 4371 ⨯ 20 = 2025 ⨯ 20 = 500$1,470Sales 27 + 23 = 50 units ⨯ $36 = $1,8001 + 25 = 26 units ⨯ $37 = 962 $2,762 Cost of goods sold……………………………………. (1,470) Gross profit……………………………………………...$1,292 Req. 3Cost of March 31 inventory (24 ⨯ $21) + (10 ⨯ $20). $ 704Chapter 6 Merchandise Inventory and Cost of Goods Sold 413(20-30 min.) P 6-3A Req. 1Cost of Goods Sold Ending Inventory Average cost 696 ⨯ $82.6626* $57,533 214 ⨯ $82.6626* $17,690 ____*Average cost= ($10,640 + $17,577 + $7,790 + $17,640 + $21,576)= $82.6626per unit (140 + 217 + 95 + 210 + 248)FIFO (140 @ $76) + (217 @ $81)+ ( 95 @ $82) + (210 @ $84)+ ( 34 @ $87) = $56,605 214 @ $87 = $18,618 LIFO (248 @ $87) + (210 @ $84)+ ( 95 @ $82) +(143 @ $81) = $58,589 140 @ $76 +(74 @ $81) = $16,634Financial Accounting 6/e Solutions Manual 414(continued) P 6-3A Req. 2LIFO’s cost of goods sold is highest for Hot Wheels because (a) the company’s prices are rising and (b) LIFO assigns to cost of goods sold the cost of the latest inventory purchases. When costs are rising, these latest inventory costs are the highest, and that makes cost of goods sold the highest under LIFO.Req. 3Hot Wheels Motorcycles, Inc.Income StatementMonth Ended December 31, 20XXSales revenue (696 @ $130)……………………..$90,480Cost of goods sol d……………………………….. 58,589Gross profit…………………………………………31,891Operating expenses……………………………… 22,000Income before income taxes…………………….9,891Income tax expense (40%)………………………. 3,956Net income………………………………………….$ 5,935Chapter 6 Merchandise Inventory and Cost of Goods Sold 415(30-40 min.) P 6-4A Req. 1 (partial income statementsBlockbuster Digital ImagesIncome StatementYear Ended December 31, 20XXAVERAGE FIFO LIFOSales revenue $11,200 $11,200 $11,200Cost of goods sold 8,392 8,255 8,520 Gross profit $ 2,808 $ 2,945 $ 2,680 Computations of cost of goods sold:Average cost= ($1,215 + $2,520 + $2,010 + $1,400 + $2,590)= $3.3569per unit (400 + 800 + 600 + 400 + 700)COGS at average cost = 2,500 $3.3569 = $8,392 FIFO COGS = (300 @ $3.00) + (900 @ $3.15) + (600 @ $3.35) + (400 @ $3.50)+ (300 @ $3.70)= $8,255 LIFO COGS = (700 @ $3.70) + (400 @ $3.50) + (600 @ $3.35) + (800 @ $3.15) = $8,520Financial Accounting 6/e Solutions Manual416(continued) P 6-4A Req. 2Use the FIFO method to report the highest net income because cost of goods sold is lowest (gross profit is highest) under FIFO when inventory costs are rising.Chapter 6 Merchandise Inventory and Cost of Goods Sold 417(15-20 min.) P 6-5A LM Electronics should apply the lower-of-cost-or-market rule to account for inventories. The current replacement cost of ending inventory is less than LM’s actual cost, so LM must write the inventory down to current replacement cost, with the following journal entry:Cost of Goods Sold…………1,500,000Inventory…………………..1,500,000 To write inventory down to market value.LM should report the following amounts in its financial statements:BALANCE SHEETInventory ($8,900,000 –$1,500,000)……………..$ 7,400,000 INCOME STATEMENTCost of goods sold ($27,400,000 + $1,500,000). $28,900,000 Accounting conservatism is the reason to account for inventory at the lower of cost or market value. Conservatism directs accountants to write inventory down if cost appears unrealistically high. In this case conservatism comes into play because the current replacement cost (marke t value) of LM’s ending inventory is less than cost. Under the lower-of-cost-or-market rule, this requires a write-down of the inventory value to current replacement cost.Student responses may vary.418Financial Accounting 6/e Solutions Manual(20-30 min.) P 6-6A Req. 1Hershey TargetMillionsGross profit percentage:Sales……………………$4,221 $36,362 Cost of sales………….. 2,471 25,295 Gross profit……………$1,750 $11,067Gross profit $1,750= 41.5% $11,067= 30.4%percentage: $4,221 $36,362 Inventory turnover:Cost of goods sold= $2,471 $25,295Average inventory ($605 + $602) / 2 ($4,248 + $3,798) / 2= 4.1 times = 6.3 timesReq. 2These statistics do not indicate which company should be more profitable. Hershey has a higher gross profit percentage, but Target turns its inventory over more rapidly. On one measure Hershey looks better; on the other measure Target is better. Another factor that makes it difficult to tell which company should be more profitable is that the gross profit percentage and inventory turnover do not take into account operating expenses.Chapter 6 Merchandise Inventory and Cost of Goods Sold 419(25-30 min.) P 6-7A Req. 1 (estimate of ending inventory by the gross profit method)Beginning inventory………………………$1,292,000 Purchases…………………………………..$6,585,000 Less: Purchase discou nts…………..(149,000)Purchase returns……………… (8,000) Net purchases…………………………... 6,428,000 Goods available……………………………7,720,000 Cost of goods sold:Sales revenue…………………………… $8,657,000Less: Sales returns…………………. (17,000) Net sales………………………………….8,640,000Less: Estimated gross profit of 40%.. (3,456,000)Estimated cost of goods sold………... 5,184,000 Estimated cost of ending inventory……$2,536,000 420Financial Accounting 6/e Solutions Manual(continued) P 6-7A Req. 2 (income statement through gross profit)Kinko’sIncome Statement (partial)Month of March, 20XXSales revenue…………………………..$8,657,000 Less: Sales returns………………… (17,000)Net sales revenue…………………...8,640,000 Cost of goods sold……………………. 5,184,000*Gross profit……………………………..$3,456,000_____*Cost of goods sold:Beginning inventory………………………...$1,292,000Purchases……………………...$6,585,000Less: Purchases discounts. (149,000)Purchase returns……. (8,000)Net purchas es……………………………….. 6,428,000Goods available……………………………...7,720,000Less: Ending inventory……………………. (2,536,000)Cost of goods sold………………………….$5,184,000Chapter 6 Merchandise Inventory and Cost of Goods Sold 421(20-30 min.) P 6-8A Req. 1Cost of sales, budgeted ($720,000 ⨯ 1.05).. $756,000+ Ending inventory, budgeted………………... 80,000= Cost of goods available……………………...836,000–Beginning inventory…………………………. (70,000)= Purchases, budgeted ………………………..$766,000Req. 2Stop-n-Go StoreBudgeted Income StatementYear Ended December 31, 20X4Sales ($960,000 ⨯1.05)……………………..$1,008,000Cost of sales ($720,000 ⨯1.05)…………… 756,000Gross profit…………………………………...252,000Operating expenses………………………… 102,000Net income……………………………………$ 150,000422Financial Accounting 6/e Solutions Manual(15-20 min.) P 6-9A Req. 1 (corrected income statements)Monaco Gemstones, Inc.Income Statement (adapted; amounts in thousands)Years Ended 2007, 2006, and 20052007 2006 2005Net sales revenue……………...$1,412 $1,231 $1,138 Cost of goods sold:Beginning i nventory………..$ 249 $ 309 $ 234Purchases…………………… 859 729 663Goods available……………..1,108 1,038 897Ending inventory…………… (311) (249) (309)Cost of goods sold………… 797 789 588 Gross pro fit……………………..615 442 550 Operating expenses…………... 500 437 420 Net income………………………$ 115 $ 5 $ 130 Chapter 6 Merchandise Inventory and Cost of Goods Sold 423。

财务会计--第七章--财务会计学[美]瓦尔特

第七章固定资产，无形资产与相关费用学习目标学习完本章后，应该能够做到：1.确定固定资产的成本2.计算折旧3.从所得税的角度考虑，选择最佳折旧方法4.分析固定资产清理的影响5.自然资源资产及其损耗的会计处理6.无形资产的会计处理与摊销7.在现金流量表中报告固定资产交易事项The Home Depot, Inc.于1978年成立于乔治亚州的亚特兰大，该公司是世界最大的家居装修用品零售商，是美国10大零售商之一。

1999年1月31日，公司在包括加拿大及智利的地方一共开了761家店。

如果能够保持当前的增长率，到2002年，The Home Depot公司就将拥有超过1600家店了。

The Home Depot公司已经连续六年被《财富》杂志评为美国most admired specialty的零售公司了。

The Home Depot公司是怎样实现如此快的增长的？他们的年度报告给出了答案：是通过大步伐的开设新店实现的。

在最近的几年里，公司的总资产从112亿美元增长到了135亿美元（第20行）——这一增幅达到了20%。

资产增长的大部分表现为不动产和设备（Property and Equipment）我们将其总称为固定资产（plant assets），我们在本章里就将重点学习这部分内容。

本章内容也涵盖了无形资产（intangible assets）——就是那些没有实在的物理形体的资产，例如，超过了所拥有的净资产的公平价值的那部分价值，也就是我们通常所说的商誉（goodwill）。

这在The Home Depot公司的资产负债表重视放在倒数第二项来报告的（第18行）。

在本章的最后，我们讨论的自然资源资产（像是石油、天然气、木材和砂砾等）以及与固定资产、自然资源、无形资产相关的费用：折旧，损耗，和摊销。

检查点7-1除了长期投资以外，第七章将结束我们的资产专题，长期资产我们将放在第十章讲述。

学习完本章后，你应该会有一些成就感，因为你已经理解了企业中的各种资产以及公司管理、组织和对这些资产进行会计处理的方法。

财务会计学：第7-9章课后答案

□教材练习题解析1.甲企业IK 务处理如*: (1) fit ：原材料应交楼费一应交WffiK (遊段税篠》贷，at 行存款<2) fft ：匝材料应仝税费一应交mtrtft 《进项贷：银行存款<3)in ： (rtt r^Vf ：竦材料应交税费一应交iflffttt 《进项ftWHJH)<4) fft ：长期股权投资一投资成本贷，其他业务收入应交税费一应交iflffttt«h 氏他业务成本贷：联材料<5) ffh 应收煤款贷：主营业务收人应交視费一应交WffiW «侑项ft»)无形资产与投资性房地产200 930 34 070 235 000 8 700 I 300 10 000 23 400 20 000 3 400702 000 600 000 102 000 500 000 500 000 468 000 400 000 68 000m：主营业务成本<财务贪计学（第七版”学习播异书贷，库存商必360000 （6） fit. AtfcT程48 500贷：阵存商P 40000 应交咬费一应交Wffttt （楠项税额》8500 （7> fff：待处理财产报溢30 000 贷：原材料30000 借：管用费用30 000 ◎处理财产損溢30 000 <8）借，应交税费一应交增値税（巳交税金）80 000 贷，tti行存款80 000 <9）本月应交席值ft = （102 000+68 000+8 500）-（34 070+1 300-3 400）■146 530（ jt）本月应交来交增債税■ 146 530-80000・66 530（元）借‘应交税费一应交堆值税（转出未交Itttftft）66 530 应交税费一未交堆值税66 5302.甲公司IK务处理如F：（1）（ft：委托加工拐资170000 贷：原材料170000 （«：姿托加工務资30 000 应交税费一应交堆（ft税（进项税徹》1700Vft IS 行存Sk 31 700 fft：原材料200 000 贷*委托J»工拐资200 000 <2） fff,很行“款257 400 Vf：其他业务收人220000应交税费一应交Wfftft《销项«»!）37 400 fft：其他业务成本200 000 贷"原材料200 000第九章非流动负债（点击图片放大查看口）□教材练习题解析1.（D方法一：运用蔓備法计韓实际利率r虫付借侏的入账金M = 11 000-500=10500（万元〉険确认的利息调金g* i - 10 500- 10 000-500（万元）设实际利率为C WJW10 500-10 000XDF r.s + 10 000X4%XA DF,.i采用播備法踊足債养的实际利甲r为2. 92%.利息调滋贷总展傍见灰9一 1.期次（初丈付利息Uftft/HMM余蕪(2)««M(5)X2.92% ⑶■⑴一⑵-<3) + (4>n Son io Soo1 100 306.60 93. 40 4OG.6O 10 406. 602 100 303.8796. 13 310.4? 10 310.473 too301.07 9& 93 211. 54 10 211.544 100 298. 18 101. 82109.72 10 109. 725 100 290.28 •109. 72 0 10 000从农9一1中町他・该种債券第1年的利息iW整金簾为93.40万元.第2年为96.13万尤.第3年为9&93万尤.第4年为101.82万尤.第5年为109. 72非流动负债万元.方法二《采用Excel IRR公式计并实际利华八其利息洌滋贷茏據吊见茨9—2.r-2.911%«*—2(2)方法-的会计处理如下*1> 20X7年1月1日.fit：很行仔款105 000 000贷：应付債券——面值100 000 000——利 5 000 0002)20X7 年12 月31 日.fit：财务费用 4 000 000银行存款 4 000 000 m：应付價界一利XlMft 931 000贷*财务费用934 0003)20X8 年】2 月31 R.Iff：财务费用 4 000 000仏银行存款 1 000 000 flh应付債养——利息调滋961 300 贷：财务费用961 3004)20X9 年12 J] 3) R.借：财务费用 4 000 000 Cf： tuff 存款I 000 000 借：应付债养——利恳州戲989 300财务费川989 3005)2X10 年12 月31 U.fit：财务费用 4 000 00023贷：银行存款tth应付债养一利W：财务费用4 000 000 1 018 2001 018 2006）2X11 年12 月31 日.借：财务费用贷，俶行存款借：应付债券——利总调整贷，财务费用7）2X12年1月1日.应付債券——面值货：银行存款4 000 0001 000 000 1 097 2001 097 200100 000 000100 000 000方法二F的会计处理此处从略.2 •计算如下，<1）计韓20X7年专门儁款利息费用资本化金觸.20X7年专门催款发生的利息舍额■2OOOX5% + 1 5OOX6%X6/12+1 000X4% X3/12・ 155（万元）20X7 年翅納投许牧 tt = l 500X0. 3% X3 + 5OOXO. 3% X3= 18（万元）20X7年专门借款利息许木化金義・155—18・137（万元）<2）计算20X7年一般借款利息费用資本化金20X7年一般偌款资本化率-（1 OOOX4%+1OOOOX5%X6/12）/（1 000+10000X6/12）-4. 83%20X7年一般催款專计资产支出加权平均敦-500X180/360 + 1 000X90/360-500（^ 元）20X7年一般借款利息昏水化金«=5OOX I.83% = 21.15（万元）20X7年实际发生的一僉借款利息竇用-1 000X l% + 10000X5%X6/I2®290（万元》上述计秣的利Q資本化金牍没右超过啊范一股借款实际发生的利息费用.4 以资本化・综上所述.20X7年公冈建适该条生产线应予资本化的利0费川金额为161. 15 万元（137 + 24. 15）e。

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