1. Beta Cassette Corporation has current assets of $180,000, total assets of $210,000, current liabilities of $110,000, and total liabilities of $115,000. The company is trying to obtain a bank loan for $40,000 which would be financed over six months. The terms of the loan agreement specify that the company?s current ratio cannot fall below 1.5. Calculate the current ratio before and after the loan. Do you think the loan will be granted? 2. Post ? Closing Trial Balance Selected accounts from the general ledger of Western Candle Company as of December 31, 2007, are shown below. Prepare a postclosing trial balance for Western Candle Company. Cash $23,000 Accounts receivable 7,800 Supplies 900 Prepaid insurance 1,750 Building 30,500 Accumulated depreciation-building 3,500 Office equipment 20,000 Accumulated depreciation-office equipment 4,500 Accounts payable 6,450 Unearned service revenue 3,500 Salary payable 2,900 Common stock 39,000 Retained earnings 9,800 Dividends 2,000 Service revenue 30,400 Depreciation expense-building 700 Depreciation expense-office equipment 400 Insurance expense 250 Supplies expense 300 Utilities expense 2,600 Salary expense 9,850 3.Feed the Birds Corporation reviewed the following account balances from its accounting records for the year ended December 31, 2006, before adjustment: Required: a. Uncollectible accounts are determined by the percent-of-sales method to be 2% of credit sales. Compute the uncollectible account expense for 2006. b. Uncollectible accounts are determined by the percent-of-sales method to be 2% of credit sales. c. Determine the balance in the Allowance for Uncollectible Accounts account after the adjusting entry is recorded. d. Uncollectible accounts are determined by the aging method to be $2,740. Compute the uncollectible account expense for 2006. e. Uncollectible accounts are determined by the aging method to be $2,740. Compute the net realizable value of accounts receivable on December 31, 2006. 4. Use the following data to compute the economic value added (EVA?) for Lyra Corporation. Assume a 10% cost of capital for the company. 5. Prepare vertical analysis calculations by filling in the far right column of the following balance sheet with the appropriate percentages, rounded to the nearest one-tenth percent.
Paper#1467 | Written in 18-Jul-2015Price : $25