Archives: Solution Manual
978-1259929441 Chapter 12 Part 2
Chapter 12 ‒ The Global Capital Market 12-8 from investors. When it launched on September 18, 2014, Alibaba’s IPO was the largest in history. Discussion of the case can begin with the following questions: QUESTION 1: Why did Jack Ma […]
978-1259929441 Chapter 12 Part 1
Chapter 12 ‒ The Global Capital Market 12-1 The Global Capital Market 12 Learning objectives • Describe the benefits of the global capital market. • Identify why the global capital diversify their portfolios, thereby reducing their risk. market has grown […]
978-1259929441 Chapter 11 Part 2
Chapter 11 ‒ The International Monetary System 11-8 A currency crisis occurs when a speculative attack on the exchange value of a currency results in a sharp depreciation in the value of the currency, or forces authorities to expend large […]
978-1259929441 Chapter 11 Part 1
Chapter 11 ‒ The International Monetary System 11-1 The International Monetary System Learning objectives • Describe the historical development of the modern global monetary system. • Explain the role played by the World Bank and the IMF in the international […]
978-1259929441 Chapter 10 Part 2
Chapter 10 ‒ The Foreign Exchange Market 10-8 Firms can reduce economic exposure by ensuring assets are not too concentrated in countries where likely rises in currency values will lead to damaging increases in the foreign prices of the goods […]
978-1259929441 Chapter 10 Part 1
Chapter 10 ‒ The Foreign Exchange Market 10-1 The Foreign Exchange Market Learning objectives • Describe the functions of the foreign exchange market. • Understand what is meant by spot exchange rates. • Recognize the role that foreign exchange rates […]
978-1259929441 Chapter 1 Part 2
Chapter 01 – Globalization 1-8 However, supporters of globalization contend that the power of these organizations is limited to what nation-states agree to grant, and that the power of the organizations lies in their ability to get countries to agree […]
978-1259929441 Chapter 1 Part 1
Chapter 01 – Globalization 1-1 Globalization Learning objectives • Understand what is meant by the term globalization. • Recognize the main drivers of barriers to cross-border trade and investment (distance, time zones, language, differences globalization. • Describe the changing nature […]
978-0077862374 Chapter 9 Solution Manual Part 2
Chapter 13 Financial Statement Analysis 9-1 The remaining figures can only be found by using the debt to assets ratio of 40% times total assets to determine total liabilities (0.40 x $675,000 = $270,000.) From this the remaining figures fall […]
978-0077862374 Chapter 9 Solution Manual Part 1
9-1 Answers to Questions 1. Ratios and trends are useful tools for analyzing financial statements because they give the analyst a basis for comparing companies of different sizes and characteristics. 2. “Liquidity” is the short-term ability to convert assets to […]
978-0077862374 Chapter 9 Lecture Note Part 2
9-9 Demonstration Problem 9-1 Solution b. continued Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Rosson Company Vertical Analysis of Balance Sheets 2015 2014 Amount % of Total […]
978-0077862374 Chapter 9 Lecture Note Part 1
Chapter 09 – Financial Statement Analysis 9-1 Teaching Notes for Chapter 9 We have provided a comprehensive demonstration problem for Chapter 9. The requirements of the demonstration problem coincide with the flow of material covered in the chapter. We suggest […]
978-0077862374 Chapter 8 Solution Manual Part 4
11-8 Investments 72,000 48,000 120,000 Net Income* 9,600 14,400 24,000 Withdrawals (3,500) (1,500) (5,000) Ending Capital Balances $78,100 $60,900 $139,000 *Moore: $24,000 x 40% = $9,600 Pounds: $24,000 x 60% = $14,400 PROBLEM 8-18 b. (cont.) Auto Spa Company Financial […]
978-0077862374 Chapter 8 Solution Manual Part 3
8-1 PROBLEM 8-22 a. NC = Net Change in Cash Concord Corp. Statements Model For 2014 Balance Sheet Income Statement Statement of Event Assets = Stockholders’ Equity Rev. − Exp. = Net Inc. Cash Flows Pfd. Stk. + Com. Stk. […]
978-0077862374 Chapter 8 Solution Manual Part 2
Stockholders’ Equity Common Stock, $10 par value, 10,000 shares issued and outstanding $100,000 Paid-In Capital in Excess of Par 60,000 Total Paid-In Capital 160,000 Retained Earnings 19,500 Total Liabilities and Stockholders’ Equity $179,500 Statement of Cash Flows For the Year […]
978-0077862374 Chapter 8 Solution Manual Part 1
ANSWERS TO QUESTIONS – CHAPTER 8 1. The three major forms of business organizations are the sole proprietorship, the partnership, and the corporation. The sole proprietorship is a business owned by one individual. The partnership is a business that is […]
978-0077862374 Chapter 8 Lecture Note
Chapter 08 – Proprietorships, Partnerships, and Corporations 8-1 General Comments for Chapter 8 Proprietorships, Partnerships, and Corporations Chapter 8 explains accounting for equity transactions. It describes the three primary forms of business organizations (sole proprietorship, partnership, and corporation), along with […]
978-0077862374 Chapter 7 Solution Manual Part 4
7-1 April $210,000 x 6% x 1/12 $1,050 May $380,000 x 7% x 1/12 2,217 June $250,000 x 7% x 1/12 1,458* *rounded b. The amount of cash paid for interest is the same as interest expense. Interest is paid […]
978-0077862374 Chapter 7 Solution Manual Part 3
$21,928 − $20,000 = $1,928 Beginning Discount − Amortization = Ending Discount $30,723 − $1,928 = $28,795 Bond Carrying Value as of December 31, 2014 Bond Payable (Face Value) $250,000 Discount on Bonds Payable 28,795 Carrying Value $221,205 EXERCISE 7-24 […]
978-0077862374 Chapter 7 Solution Manual Part 2
7-1 (3) Cash Flows From Financing Activities: Inflow from Issue of Note $50,000 Outflow to Repay Note (8,959) Net Cash Flow from Financing Activities $41,041 d. Principal 1/1/15: $41,041 (see schedule in book) Interest Expense: $41,041 x 5% = $2,052.05 […]
978-0077862374 Chapter 7 Solution Manual Part 1
7-1 ANSWERS TO QUESTIONS – CHAPTER 7 1. Cash payments to creditors is an asset use transaction. This type of transaction will reduce both assets and liabilities. 3. The entry to record accrued interest consists of an increase to Interest […]
978-0077862374 Chapter 7 Lecture Note Part 2
Chapter 07 – Accounting for Liabilities 7-1 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Operating Activities Inflow from Customers $ 7,000 $ 7,000 $ 7,000 Outflow for […]
978-0077862374 Chapter 7 Lecture Note Part 1
General Comments for Chapter 7 Accounting for Liabilities Chapter 7 introduces the accounting for both current and long-term liabilities and the preparation of a classified balance sheet. Throughout the chapter, the focus is on how liabilities and interest expense affect […]
978-0077862374 Chapter 6 Solution Manual Part 4
6-1 PROBLEM 6-30 a. Computations: Coal Mine – Depletion Cost $900,000 = $3.00 per ton Estimated Tons 300,000 2014 Tons extracted 68,000 Depletion per ton $3 2014 Depletion Expense $204,000 Timber – Depletion Cost $2,000,000 – 200,000 = $.60 per […]
978-0077862374 Chapter 6 Solution Manual Part 3
6-1 PROBLEM 6-25 Zhao Company Financial Statements For the Year Ended December 31 Income Statements 2014 2015 2016 2017 2018 Revenue $9,500 $10,000 $10,500 $8,500 $ -0– Depr. Expense* (9,000) (9,000) (9,000) (9,000) -0- Oper. Income (Loss) 500 1,000 1,500 […]
978-0077862374 Chapter 6 Solution Manual Part 2
6-1 2016: ($47,000 − $30,080) x (2 x .20) = 6,768 *Since the total depreciable cost is $40,000 ($47,000 − $7,000), the total depreciation taken in 2017 is $3,152 ($40,000 − $36,848). Consequently, there is no depreciation deducted in 2018. […]
978-0077862374 Chapter 6 Solution Manual Part 1
6-1 ANSWERS TO QUESTIONS – CHAPTER 6 1. Long-term operational assets are those assets that are used by a business to generate 2. Tangible assets are those assets that have a physical existence. Some examples include buildings and equipment. Intangible […]
978-0077862374 Chapter 6 Lecture Note Part 2
Chapter 06 – Accounting for Long-Term Operational Assets 6-1 Demonstration Problem 6-1: Work Paper, Scenario 2 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Double-Declining-Balance Depreciation Income Statements […]
978-0077862374 Chapter 6 Lecture Note Part 1
Chapter 06 – Accounting for Long-Term Operational Assets 6-1 General Comments for Chapter 6 Accounting for Long-Term Operational Assets This chapter explains how acquiring, using, and disposing of long-term operational assets affect financial statements. Because these activities span several accounting […]
978-0077862374 Chapter 5 Solution Manual Part 7
5-1 1 ACT 5-2 a. Robin Co. Goods Available for Sale Beginning Inventory 100 @ $50 = $ 5,000 70 @ 55 = 3,850 First Purchase 100 @ 54 = 5,400 Second Purchase 250 @ 58 = 14,500 Total 520 […]
978-0077862374 Chapter 5 Solution Manual Part 6
5-1 PROBLEM 5-30 b. (cont.) Iupe Supply Company Balance Sheet As of the End of the Year 2014 Assets Cash $51,350 Accounts Receivable $3,700 Less, Allowance for Doubtful Accounts (185) 3,515 Merchandise Inventory 25,000 Total Assets $79,865 Liabilities $ -0- […]
978-0077862374 Chapter 5 Solution Manual Part 5
5-1 PROBLEM 5-25 b. (cont.) Frankel Inc. Balance Sheet As of the End of the Year 2014 Assets Cash $ 40,000 Accounts Receivable $32,000 Less, Allowance for Doubtful Accounts (2,102) 29,898 Merchandise Inventory 45,000 Total Assets $114,898 Liabilities Accounts Payable […]
978-0077862374 Chapter 5 Solution Manual Part 4
5-1 Net Income $34,790 LIFO Sales (3,500 @ $50) $175,000 Cost of Goods Sold: From 10/1 Purchase 1,000 units @ $32 = $32,000 From 4/1 Purchase 2,500 units @ $30 = 75,000 Cost of Goods Sold (107,000) Gross Margin 68,000 […]
978-0077862374 Chapter 5 Solution Manual Part 3
5-1 EXERCISE 5-11 Balance Sheet Income Statement Statement of Date Assets = Equity Rev. − Exp. = Net Inc. Cash Flows Cash + Note Rec. + Int. Rec. = Ret. Ear. 1. 9/1/14 (30,000) 30,000 NA NA NA NA NA […]
978-0077862374 Chapter 5 Solution Manual Part 2
5-1 Cash + Acct. Rec. − Allow. Ret. Ear. 2015 Bal. 32,000 13,000 450 44,550 1. NA (320) (320) NA 2. NA 65,000 NA 65,000 Service Rev. 3. 66,000 (66,000) NA NA 4. NA NA 650 (650) Uncoll. Accts. Exp. […]
978-0077862374 Chapter 5 Solution Manual Part 1
5-1 ANSWERS TO QUESTIONS – CHAPTER 5 1. Accounts receivable are the expected future receipts that arise when a company permits its customers to buy now and pay later. rate, and other credit terms. 2. The net realizable value is […]
978-0077862374 Chapter 5 Lecture Note Part 2
Chapter 05 – Accounting for Receivables and Inventory Cost Flow 5-1 WORK PAPERS FOR DEMONSTRATION PROBLEMS Demonstration Problem 5-1: Work Paper, part a. Statements Model, 2014 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the […]
978-0077862374 Chapter 4 Solution Manual Part 2
4-1 1 EXERCISE 4-15 The three common features of ethical misconduct are: 1. The availability of an opportunity By arguing that gambling on sports is no different than using accounting information to buy stock, Jacob is rationalizing gambling, an activity […]
978-0077862374 Chapter 4 Solution Manual Part 1
ANSWERS TO QUESTIONS – CHAPTER 4 2. Internal control is the process designed to ensure reliable financial reporting, effective and efficient operations, and compliance with applicable laws and regulations. 3. Section 404 of Sarbanes-Oxley requires a statement of management’s responsibility […]
978-0077862374 Chapter 4 Lecture Note
Chapter 04 – Internal Controls, Accounting for Cash, and Ethics 4-1 General Comments for Chapter 4 Internal Controls, Accounting for Cash, and Ethics This chapter explains internal controls, which are the policies and procedures used to provide reasonable assurance that […]
978-0077862374 Chapter 3 Solution Manual Part 5
3-1 PROBLEM 3-28 (Appendix) a. Balance Sheet Income Statement Statement of Event No. Cash Accts. Rec. Mdse. Inv. Land = Accts. Pay + C. Stock Ret. Earn. Rev. − Exp. = Net Inc. Cash Flows Bal. 52,000 8,000 100,000 NA […]
978-0077862374 Chapter 3 Solution Manual Part 4
3-1 PROBLEM 3-23 (cont.) b. & c. Yang’s Imports Financial Statements For the Month Ended September 30, 2014 Income Statement Net Sales $19,000 Cost of Goods Sold (10,000) Gross Margin 9,000 Operating Expenses Selling and Adm. Expense (2,450) Net Income […]
978-0077862374 Chapter 3 Solution Manual Part 3
3-1 EXERCISE 3-12 a. Annual rate = Discount rate x (365 days ÷ Discount term*) b. Since the annualized discount rate (36.5%) is significantly higher than the cost of borrowing (7%) Jordan should borrow the money and payoff the liability […]
978-0077862374 Chapter 3 Solution Manual Part 2
3-1 EXERCISE 3-3 (cont.) b. Justin Swords Merchandising Income Statement For the Year Ended December 31, 2014 Net Sales $82,000 Cost of Goods Sold (48,000) Gross Margin 34,000 Operating Expenses -0- Net Income $34,000 c. Total assets: $104,000 (Cash $92,000 […]
978-0077862374 Chapter 3 Solution Manual Part 1
3-1 ANSWERS TO QUESTIONS – CHAPTER 3 1. Merchandise inventory is finished goods that are held for sale to customers. Costs that are 2. Product costs are costs associated with goods for resale, usually inventory costs. Selling and administrative expenses, […]
978-0077862374 Chapter 3 Lecture Note Part 2
Chapter 03 – Accounting for Merchandising Businesses 3-1 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of Quiz Questions for Chapter 3 1. Under the perpetual inventory method, a. assets increase […]
978-0077862374 Chapter 3 Lecture Note Part 1
General Comments for Chapter 3 Accounting for Merchandising Businesses Chapter 3 introduces accounting for inventory transactions using the perpetual method. In today’s high-technology environment, the perpetual system has become the predominant method of accounting for inventories. Because the periodic method […]
978-0077862374 Chapter 2 Solution Manual Part 5
2-1 PROBLEM 2-38. (cont.) Alabama Service Company Accounting Equation for 2015 Assets = Liabilities + Stk. Equity Event Type of Event Cash Accts. Rec. Supp. Prepd. Rent Int. Rec. Land = Accts. Pay. Salaries Payable Unearn. Revenue + Com. Stock […]
978-0077862374 Chapter 2 Solution Manual Part 4
2–1 SOLUTIONS TO PROBLEMS – CHAPTER 2 PROBLEM 2-32 James Cleaning Company Effect of Events on the Financial Statements Balance Sheet Income Statement Stmt. of Assets = Liabilities + Stock. Equity Rev. − Exp. = Net Inc. Cash Flows Even […]
978-0077862374 Chapter 2 Solution Manual Part 3
2-1 EXERCISE 2-16 a. Ed Arnold Personal Financial Planning Horizontal Statements Model for 2014 Assets = Liabilities + Stk. Equity Income Statement Statement Event Cash = Unearned Revenue + Retained Earnings Rev. − Exp. = Net Income of Cash Flows […]