The resources provided here are optional. You may use other resources of your choice to prepare for this assessment; However, you will need to ensure that they are appropriate, credible, and valid. They provide helpful information about the topics in this unit. The MBA-FP6014 – Financial Accounting Library Guide can help direct your research. The Supplemental Resources and Research Resources, both linked from the left navigation menu in your courseroom, provide additional resources to help support you.The following resources provide relevant financial accounting methods and practices.
Note: Some of the assessments in this course build upon each other, so you are strongly encouraged to complete them in the order in which they are presented.For this assessment, complete Problems 1 and 2. You may use Word or Excel to complete the assessments throughout this course, but you will find Excel to be most helpful for creating spreadsheets. Tutorials for using Excel are provided in the Supplemental Resources in the left navigation menu. If you use Excel, submit the assessment in one Excel document, using separate tabs for each spreadsheet.
The Sanchez Corporation is preparing its 2012 balance sheet. The company records show the following selected amounts at the end of the accounting period, December 31, 2012:
Account | Dollar Amount |
---|---|
Total assets | $600,000 |
Total noncurrent assets | $350,000 |
Liabilities | Dollar Amount |
---|---|
Notes payable (8%, due in 6 years) | $40,000 |
Accounts payable | $60,000 |
Income taxes currently payable | $15,000 |
Liability for withholding taxes | $4,000 |
Rent revenue collected in advance by up to four months | $8,000 |
Bonds payable (due in 15 years). | $100,000 |
Wages payable | $6,000 |
Property taxes payable | $3,000 |
Note payable (10%, due in 6 months) | $22,000 |
Interest payable | $1,200 |
Common stock | $200,000 |
Use the information provided in the table to compute and answer the following for the Sanchez Corporation:
Bring together various financial analysis measures and interpret their meaning in order to draw conclusions about hypothetical companies.Note that each situation provided is to be considered independently of the others.
The following tables represent selected data from recent financial statements of Lincoln and Samuelson, Inc. (dollars in thousands):
Assets (in thousands) | December 31, 2012 | December 31, 2011 |
---|---|---|
Current assets: Cash and cash equivalents | $4,000 | $3,400 |
Accounts receivable (net of allowances of $32 and $28, respectively) | $6,500 | $5,700 |
Account | 2012 | 2011 | 2010 |
---|---|---|---|
Net sales (in millions) | $6,020 | $5,425 | $5,000 |
Net income (in millions) | $300 | $285 | $220 |
The selected income statement data is for the year ended December 31. The company also reported bad debt expense of $62,000 in 2012; $55,000 in 2011; and $49,500 in 2010.Using the data provided, complete the following for Lincoln and Samuelson, Inc.:
The Israel Manners Entertainment Group uses the allowance approach to estimate bad debt expense, as is required of all companies with significant sales on accounts receivable. At the end of 2012, the Manners Group reported a balance in accounts receivable of $4,350,000 and estimated that $44,000 of its accounts receivable would likely be uncollectible. The allowance for doubtful accounts has a $1,500 debit balance at year-end, prior to the adjustment needed to raise it to the $44,000 desired amount. Use this information to answer the following questions for the Manners Group:
At the end of 2012, the unadjusted trial balance of Donovan, Inc. included $6,000,000 in accounts receivable, a credit balance of $50,000 in the allowance for doubtful accounts, and sales revenue (all on credit) of $200,000,000. Based on knowledge that the current economy is in distress, Donovan increased its bad debt rate estimate to 0.4 percent on credit sales. Use this information to answer the following questions for Donovan, Inc.:
BrightStar Company reported the following inventory records for June 2012:
Date | Activity | # of Units | Cost/Unit |
---|---|---|---|
June 1 | Beginning balance | 200 | $40 |
June 5 | Purchase | 600 | $42 |
June 8 | Sale @ $100 per unit | 500 | |
June 17 | Purchase | 400 | $45 |
June 23 | Sale @ $100 per unit | 500 |
Selling, administrative, and depreciation expenses for the month were $20,000. BrightStar’s tax rate is 35 percent. Use this information and the table above to complete the following for BrightStar Company:
BlackBurn Company purchased the following on January 1, 2012:
Use the information above to complete the following for BlackBurn Company:
VIEW SCORING GUIDEUse the scoring guide to enhance your learning.
WhatsApp us