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Intermediate Accounting




(Worksheet Attached);Complete the following activities and submit your answers to your instructor in a Word document formatted to proper APA specifications. Include any relevant supporting calculations.;E3-18;The current asset section of the Excalibur Tire Company?s balance sheet consists of cash, marketable securities, accounts receivable and inventories. The December 31, 2011 balance sheet revealed the following;Inventories $ 840,000;Total Assets $2,800,000;Current Ratio 2.25;Acid-test Ratio 1.2;Debt to Equity Ratio 1.8;Required;Determine the following 2011 balance sheet items;Current assets;Shareholders? equity;Noncurrent assets;Long-term liabilities;E3-20;Most decisions made by management impact the ratios analysts use to evaluate performance. Indicate (by letter) whether each of the actions listed below will immediately increase (I), decrease (D), or have no effect (N) on the ratios shown. Assume each ratio is less than 1.0 before the action is taken.;Action;Current;Ratio;Acid-Test;Ratio;Debt to;Equity Ratio;1. Issuance of long-term bonds;2. Issuance of short-term notes;3. Payment of accounts payable;4. Purchase of inventory on account;5. Purchase of inventory for cash;6. Purchase of equipment with a 4-year note;7. Retirement of bonds;8. Sale of common stock;9. Write-off of obsolete inventory;10. Purchase of short-term investment for cash;11. Decision to refinance on a long-term basis some currently maturing debt;Judgment Case 3-5;You recently joined the internal auditing department of Marcus Clothing Corporation. As one of your first assignments, you are examining a balance sheet prepared by a staff accountant.;MARCUS CLOTHING CORPORATION;Balance Sheet;At December 31, 2011;Assets;Current Assets;Cash;$137,000;Accounts receivable, net;80,000;Note receivable;53,000;Inventories;240,000;Investments;66,000;Total current assets;576,000;Other Assets;Land;200,000;Equipment, net;320,000;Prepaid expenses;27,000;Patent;22,000;Total other assets;569,000;Total Assets;$1,145,000;Liabilities and Shareholders? Equity;Current liabilities;Accounts payable;$125,000;Salaries payable


Paper#76786 | Written in 18-Jul-2015

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