Fundamentals Of Financial Accounting
6th Edition
ISBN: 9781259864230
Author: PHILLIPS, Fred, Libby, Robert, Patricia A.
Publisher: Mcgraw-hill Education,
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Textbook Question
Chapter 1, Problem 16ME
Preparing an Income Statement, Statement of
The following information was reported in the December 31, 2017, financial statements of National Airways, Inc. (listed alphabetically, amounts in millions).
- 1. Prepare an income statement for the year ended December 31, 2017.
- 2. Prepare a statement of retained earnings for the year ended December 31, 2017.
TIP: Assume the balance in Retained Earnings was $5,370 (million) at January 1, 2017.
- 3. Prepare a balance sheet at December 31, 2017.
- 4. Using the balance sheet, indicate whether the total assets of National Airways at the end of the year were financed primarily by liabilities or stockholders’ equity.
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Using the information below calculate the ROC of the company
Years       Revenue ($M)         Net Income ($M)
2012Â Â Â Â Â Â Â Â Â Â 221.8 Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 2.9
2013Â Â Â Â Â Â Â Â Â Â Â 473.8 Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 20.2
2014 Â Â Â Â Â Â Â Â Â Â Â 627.7 Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 36.4
2015Â Â Â Â Â Â Â Â Â Â Â 947.8 Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 45.0
2016 Â Â Â Â Â Â Â Â Â Â 1,015.5Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 50.3
2017Â Â Â Â Â Â Â Â Â Â 1,046.2 Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 64.9
2018Â Â Â Â Â Â Â Â Â Â 1,293.2 Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 90.4
Â
Years    Â
Total Assets ($M)
Fixed Assets ($M)
Current Assets ($M)
Total Equity ($M)Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â
Retained Earnings ($M)
2012
430
286
144
293
12.8
2013
956
501
455
558
33.0
2014
922
668
324
620
69.4
2015
1103
796
307
665
114.4
2016
1120
835
285
729
164.7
2017
1294
738
556
805
229.6
2018
2053
703
1350
934
320
Abcde Trading has reported the following from its business operation from period 2008 through 2019:
Â
a. Sales (32,067, 35,422, 70,881, 95,519, 122,128, 165,654, 188,793, 232,834, 263,159, 273,046, 269,693, 294,619)
b. Expenses (28,320, 31,490, 69, 371, 84, 747, 105,310, 144,175, 164,799, 198,966, 224,105, 236,388, 240,171, 261,738)
c. Other Income (534, 849, 1,039, 2,103, 660, 662, 816, 829, 899, (932), 1,937, 4,509)
d. Interest (465, 913, 2,171, 2,465, 2,385, 2,982, 3,560, 4,749, 4,861, 4,889, 4,283, 4,682)
e. Prevailing tax rate is 28.23% (round off amount)
Â
Prepare the following:
1. Individual P & LÂ using multiple worksheets.
2. Consolidated P & L for the period 2008 - 2019.
Selected balance sheet and income statement information from Easton's, Inc. follows ($ millions).
2017 Net
2017
2016
2017
2016
2017
Stock-
Operating
Profit
Net
Net
Stock-
2017
Sales
holders'
Equity
Net
Operating
Assets
Operating
Assets
holders'
Company
Income
After Tax
Equity
Easton's...
$16,079
$834
$832
$3,389
$3,205
$4,425
$4,115
Compute the 2017 return on equity (ROE).
5.21%
19.10%
Đ°.
b.
c. 19.53%
d. 18.85%
Chapter 1 Solutions
Fundamentals Of Financial Accounting
Ch. 1 - Define accounting.Ch. 1 - Prob. 2QCh. 1 - Briefly distinguish financial accounting from...Ch. 1 - The accounting process generates financial reports...Ch. 1 - Explain what the separate entity assumption means...Ch. 1 - List the three main types of business activities...Ch. 1 - What information should be included in the heading...Ch. 1 - What are the purposes of (a) the balance sheet,...Ch. 1 - Explain why the income statement, statement of...Ch. 1 - Briefly explain the difference between net income...
Ch. 1 - Describe the basic accounting equation that...Ch. 1 - Describe the equation that provides the structure...Ch. 1 - Describe the equation that provides the structure...Ch. 1 - Prob. 14QCh. 1 - Prob. 15QCh. 1 - Prob. 16QCh. 1 - Briefly define what an ethical dilemma is and...Ch. 1 - Prob. 18QCh. 1 - Prob. 1MCCh. 1 - Which of the following is true regarding the...Ch. 1 - Which of the following is false regarding the...Ch. 1 - Which of the following regarding retained earnings...Ch. 1 - Prob. 5MCCh. 1 - Which of the following statements regarding the...Ch. 1 - Prob. 7MCCh. 1 - Which of the following is true? a. FASB creates...Ch. 1 - Which of the following would not be a goal of...Ch. 1 - Prob. 10MCCh. 1 - Prob. 1MECh. 1 - Matching Definitions with Terms or Abbreviations...Ch. 1 - Matching Definitions with Terms Match each...Ch. 1 - Matching Financial Statement Items to Balance...Ch. 1 - Matching Financial Statement Items to Balance...Ch. 1 - Matching Financial Statement Items to Balance...Ch. 1 - Matching Financial Statement Items to Balance...Ch. 1 - Matching Financial Statement Items to the Basic...Ch. 1 - Matching Financial Statement Items to the Four...Ch. 1 - Reporting Amounts on the Statement of Cash Flows...Ch. 1 - Prob. 11MECh. 1 - Preparing a Statement of Retained Earnings Stone...Ch. 1 - Relationships among Financial Statements Items...Ch. 1 - Prob. 14MECh. 1 - Relationships among Financial Statements Items...Ch. 1 - Preparing an Income Statement, Statement of...Ch. 1 - Reporting Amounts on the Four Basic Financial...Ch. 1 - Reporting Amounts on the Four Basic Financial...Ch. 1 - Preparing a Balance Sheet DSW, Inc., is a designer...Ch. 1 - Completing a Balance Sheet and Inferring Net...Ch. 1 - Labeling and Classifying Business Transactions The...Ch. 1 - Preparing an Income Statement and Inferring...Ch. 1 - Preparing an Income Statement Home Realty,...Ch. 1 - Prob. 8ECh. 1 - Preparing an Income Statement and Balance Sheet...Ch. 1 - Analyzing and Interpreting an Income Statement...Ch. 1 - Prob. 11ECh. 1 - Matching Cash Flow Statement Items to Business...Ch. 1 - Preparing an Income Statement. Statement of...Ch. 1 - Interpreting the Financial Statements Refer to...Ch. 1 - Reporting Amounts on the Four Basic Financial...Ch. 1 - Evaluating Financial Statements Refer to CP1-3....Ch. 1 - Preparing an Income Statement, Statement of...Ch. 1 - Prob. 2PACh. 1 - Reporting Amounts on the Four Basic Financial...Ch. 1 - Evaluating Financial Statements Refer to PA1-3....Ch. 1 - Preparing an Income Statement and Balance Sheet...Ch. 1 - Interpreting the Financial Statements Refer to PB...Ch. 1 - Reporting Amounts on the Four Basic Financial...Ch. 1 - Evaluating Financial Statements Refer to PB1-3....Ch. 1 - Finding Financial Information Answer the following...Ch. 1 - Comparing Financial Information Refer to the...Ch. 1 - Prob. 5SDCCh. 1 - Prob. 6SDCCh. 1 - Prob. 1CC
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