Transcribed Text
1)The 2013 financial statements of Leggett Platt, Inc include the following information
footnote What are the company's gross accounts and other receivables at the end of 2013?
(in millions)
2013 2012
Allowance for doubtful accounts
$15.2 $19.2
Total accounts and other receivables net
$467.4 $446.2
A) $467. million
B) $471.4 million
c) $452 million
D) $482.6 million
E) None above
2)The 2013 income statements of Leggett & Platt. Inc reports net sales of $3, 746.0 million The
balanci sheet reports accounts receivable grosso $482.6 million December 31. 2013 and
$465. December 31, 2012. The average collection period 2013 was
A) 16 days
10 days
Di
8 days
E) Nome fthe above
3)The 2013 annual report of Oracle Corporation included ti the following ation relatinato
their allowance for doubtful accounts Balance allowance the beginning of the vear $323
million accounts written during year 145 million, balance allowance at the end of
the year $296 million What did Oracle Corporation report as bad debt expense for the year?
Al
7 million
$178 million
c)
$118 million
$151 million
E)
None of the above
4)CocoaBeach Sur Shop receives information that requires the company to increase its
expectations of incollectible accounts receivable Which of the following does not occur
on
the company financial statements?
A) Bad debt expense increased
B) Accounts receivables (gross)i reduced
incomeis reduced
D)
The allowance account increased
E) None o above
5)The 201: statements of BNSF Railway Company report total revenues $22,014
million accounts receivable 1,298 million 2013 and $1 168 million for 2012. The
company's accounts receivable turnover for the year is:
A) O days
B) 8.9times
D)
17.9 times
E) None above
Please put n the empty cells whether the statement True False?
Accounts
(net)
reported in
the
current
asset
section
company
s balance
sheet
the total
amount owed customers withir the next year.
Overestimating the allowance for uncollectible accounts
receivable can shift income from the current period into one or
more future periods
The financial statement effects for uncollectible accounts
occur when company writes the account because that
when the uncertainty resolved
In order b report receivable net, companies
estimate amount they do not expect collect from their
credit customers
Part Cost of Goods Sold Using FIFO and LIFO Methods
Fischer Inc. had fiscal 2013 Compute the cost goods
fiscal FIFO and LIFO methods of accounting
for
inventory PLEASE SHOW YOUR WORKINGS EXCEL
Beginning Inventory, January 2013: 130 units @ $10.00
Purchase 200 units $12.00
Purchase units $9.00
Purchase 110 units $10.50
Ending Inventory, December 31. 2013: 120 units
Part I Change of inventory method
Please put in the empty cells whether the statement True or False?
IFO inventory costino vields more accurate reporting of the
inventory balance on the balance sheet
Companies using LIFO are required to disclose the amoun at
which inventory would have been reported had used F
Similarly companies using FIFO required disclose what
their inventory would have been company had used
the
LIFO.
Ingeneral ina period offalling prices, LIFO produces higher
gross profits FIFO.
Increasing inventory turnover rate will improve profitability
Part A: Depreciation Expense Calculations
The Rialto Theatre purchased projector costing $7. on January 2012. Because of
echnologies, estimated to vears after which willbe obsolete
have salvage value as collectors item Compute the depreciatic expense
for ALL YEARS using
a.
The straight line method
b. Double-declining -balance method
Please show your workings Excel.
Computing and estimating usefullife
Please show your workings Excel.
Following are selected disclosures from Cabela's (an outdoor adventure superstore):
PROPERTY AND EQUPMENT (in
thousands)
Depreciable
Life in
Years
2013
2012
Land and improvements
Up to 20
$216,826
$185,916
Buildings and improvements
7to40
780,116
640,666
Furniture, fixtures and equipment
3to15
643,394
551,904
Assets held under capital lease
Up to 30
15,611
13.255
Property equipment
1,655,947
1,391,741
Less accumulated depreciation and
amortization
(550,101)
(473,847)
1,105,846
917.894
Construction in progress
181,699
103,762
$1,287,545
$1,021,656
a.
Compute the PPF turnover for 2013 (Total revenuei 2013 is $3 205 632 thousand)
Does suggest that Cabela capital intensive? (Hint: The
median approximately 1.3.)
b. believe sheet reflects all the company's operating
assets?
c.
Cabela': expense $93 407 thousand 2013 How much of this
related to Land and improvements? How much this expense related to Construction
in
progress?
Explain
d. Assuming Cabela's line depreciation estimate the usefu life its
depreciable
assets
e.
are Cabela's assets "used up" at vear end 2013? What implication
does the ratio have forecasting Cabela's cash flows?
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