1) Espat Corp. reported net sales (all on credit) of $1,600,000 and cost of goods sold of $1,100,000 for 2016. Its beginning balance of Accounts Receivable was $150,000. The accounts receivable balance decreased by $10,000 during 2016. Rounded to two decimal places, what is Espat's accounts receivable turnover rate for 2016?
2) Beatrice Equipment sells merchandise only on credit. For the year ended December 31, 2016, the following data is available:
Sales returns and allowances 60,000
Accounts Receivable - January 1, 2016 270,000
Allowance for doubtful accounts - January 1, 2016 25,600
Collections during 2016 2,426,300
Accounts written off as uncollectible during 2016 23,700
Determine the balance of Accounts Receivable at December 31, 2016.
3) If current assets amount to $150, total assets $350, current liabilities $65, and total liabilities $100, then the current ratio is
4) On January 2, 2016, Roof Master Construction, Inc. issued $500,000, 10-year bonds for $574,540. The bonds pay interest on June 30 and December 31. The face rate is 8% and the market rate is 6%. At the maturity date, besides an interest payment, Roof Master would repay the bondholders
5) Bennington Corp. issued a $40,000, 10-year bond at the face rate of 8%, paid semiannually. How much cash will the bond investors receive at the end of the first interest period?
6) Mendes Charters reported the following information at December 31, 2016:
Preferred stock, $100 par, 500 shares authorized, and outstanding; cumulative; nonparticipating; callable at par value $ 50,000
Common stock, $12 par, 50,000 shares authorized and outstanding 600,000
Additional paid-in capital—Common 25,000
Retained earnings 825,000
Mendes' total contributed capital is
7) Walton Corporation shows the following in the stockholders' equity section of its balance sheet: The stated value of its common stock is $0.50 and the total balance in the common stock account is $37,500. Also noted is that 5,000 shares are currently designated as treasury stock. The number of shares outstanding is
8) Aliquippa Co. purchased equipment at the beginning of 2016 for $60,000. In addition, Aliquippa paid $2,000 for delivery of the equipment to its plant and $1,000 for installation of the equipment. The equipment has an estimated residual value of $7,000 and an estimated life of 7 years or 70,000 hours of operation. Aliquippa is looking at alternative depreciation methods for the equipment. Calculate the following:
a. The depreciation expense for the year 2016 using the straight-line depreciation method.
b. The total accumulated depreciation at December 31, 2017, using the units-of-production depreciation method. Assume that the equipment is operated for 15,000 hours in 2016 and 12,000 hours in 2017.
c. The book value of the equipment at December 31, 2016, using the double-declining-balance depreciation method.
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