basic accounting work / 1 HOUR

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Exercise 1-5

Suppose the following information was taken from the 2017 financial statements of pharmaceutical giant Bramble Corp. (All dollar amounts are in millions.)

Retained earnings, January 1, 2017		$46,836.3
Cost of goods sold		9,460.6
Selling and administrative expenses		8,592.7
Dividends		3,387.0
Sales revenue		38,203.8
Research and development expense		5,960.5
Income tax expense		2,691.2

After analyzing the data, prepare an income statement for the year ending December 31, 2017. (Enter amounts in millions upto 1 decimal place, e.g. 45.5 million.)

Bramble Corp. Income Statement (in millions)

		$

	$




		$

SHOW LIST OF ACCOUNTS
LINK TO TEXT

After analyzing the data, prepare a retained earnings statement for the year ending December 31, 2017. (List items that increase retained earnings first. Enter amounts in millions upto 1 decimal place, e.g. 45.5 million.)

Bramble Corp. Retained Earnings Statement (in millions)
	$
:

:
	$

Exercise 1-11

Wildhorse Co. is the world’s leading producer of ready-to-eat cereal and a leading producer of grain-based convenience foods such as frozen waffles and cereal bars. Suppose the following items were taken from its 2017 income statement and balance sheet. (All dollars are in millions.)

Retained earnings		$4,800
Cost of goods sold		6,860
Selling and administrative expenses		3,640
Cash		340
Notes payable		40
Interest expense		340
Bonds payable		4,700
Inventory		740
Sales revenue		12,400
Accounts payable		1,070
Common stock		140
Income tax expense		430

In each case, identify whether the item is an asset, liability, stockholders’ equity, revenue, or expense.

		Retained earnings
		Cost of goods sold
		Selling and administrative expenses
		Cash
		Notes payable
		Interest expense
		Bonds payable
		Inventory
		Sales revenue
		Accounts payable
		Common stock
		Income tax expense

SHOW LIST OF ACCOUNTS
LINK TO TEXT

Prepare an income statement for Wildhorse Co. for the year ended December 31, 2017. (Enter amounts in millions, e.g. 45.)

Wildhorse Co. Income Statement (in millions)

		$

	$




		$

Exercise 1-14

Wayne Holtz is the bookkeeper for Windsor, Inc.. Wayne has been trying to get the balance sheet of Windsor, Inc. to balance. It finally balanced, but now he’s not sure it is correct.

Windsor, Inc. Balance Sheet December 31, 2017
Assets	Liabilities and Stockholders’ Equity
Cash	$12,400	Accounts payable	$10,400
Supplies	15,100	Accounts receivable	(17,600	)
Equipment	34,400	Common stock	45,600
Dividends	13,600	Retained earnings	37,100
Total assets	$75,500	Total liabilities and stockholders’ equity	$75,500

Prepare a correct balance sheet. (List assets in order of liquidity.)

Windsor, Inc. Balance Sheet
Assets
		$



		$
Liabilities and Stockholders' Equity

		$

	$


		$

Exercise 2-2

Classify each of the following financial statement items based upon the major balance sheet classifications.

		Prepaid advertising
		Equipment
		Trademarks
		Salaries and wages payable
		Income taxes payable
		Retained earnings
		Accounts receivable
		Land (held for future use)
		Patents
		Bonds payable
		Common stock
		Accumulated depreciation—equipment
		Unearned sales revenue
		Inventory

Exercise 2-4

Suppose the following information (in thousands of dollars) is available for Swifty Corporation—famous for ketchup and other fine food products—for the year ended April 30, 2017.

Prepaid insurance	$ 140,700	Buildings	$4,002,900
Land	72,200	Cash	360,900
Goodwill	3,980,400	Accounts receivable	1,146,100
Trademarks	770,800	Accumulated depreciation—buildings	2,144,500
Inventory	1,269,500

Prepare the assets section of a classified balance sheet. (List current assets in order of liquidity.)

Swifty Corporation Partial Balance Sheet (in thousands)
Assets

		$



			$


	$
:




			$

Exercise 2-8

These financial statement items are for Novak Corp. at year-end, July 31, 2017.

Salaries and wages payable		$ 3,980
Salaries and wages expense		58,900
Supplies expense		16,800
Equipment		20,400
Accounts payable		4,100
Service revenue		67,500
Rent revenue		9,700
Notes payable (due in 2020)		3,000
Common stock		16,000
Cash		30,300
Accounts receivable		10,980
Accumulated depreciation—equipment		7,700
Dividends		4,000
Depreciation expense		5,700
Retained earnings (beginning of the year)		35,100

Prepare an income statement for the year. Novak Corp. did not issue any new stock during the year.

Novak Corp. Income Statement

	$

		$

	$



		$

SHOW LIST OF ACCOUNTS

LINK TO TEXT

Prepare a retained earnings statement for the year. Novak Corp. did not issue any new stock during the year.

Novak Corp. Retained Earnings Statement
		$
:	$
:

		$

SHOW LIST OF ACCOUNTS

LINK TO TEXT

Prepare a classified balance sheet at July 31. (List current assets in order of liquidity.)

Novak Corp. Balance Sheet
Assets

	$

		$


:
		$
Liabilities and Stockholders' Equity

	$

		$







		$

SHOW LIST OF ACCOUNTS

LINK TO TEXT

Compute the current ratio and debt to assets ratio. (Round answers to 1 decimal place, e.g. 15.2.)

Current ratio			:1
Debt to assets ratio			%