(ACC 560 Week 10 Assignment) Nordstrom, Inc. operates department stores in numerous states

ACC 560 Week 10 Assignment

E14-5 Nordstrom, Inc. operates department stores in numerous states. Selected financial statement data for the year ending January 29, 2005, are as follows.

NORDSTROM, INC.
Balance Sheet (partial)
(in millions) End-of-Year Beginning-of-Year

Cash and cash equivalents $ 361 $ 340
Receivables (less allowance of 19 and 20) 646 667
Merchandise inventory 917 902
Prepaid expenses 53 46
Other current assets 595 570
Total current assets $2,572 $2,525
Total current liabilities $1,341 $1,123

For the year, net sales were $7,131, and cost of goods sold was $4,559 (in millions).

Instructions
(a) Compute the four liquidity ratios at the end of the year.
(b) Using the data in the chapter, compare Nordstrom’s liquidity with (1) that of J.C. Penney Company, and (2) the industry averages for department stores.


Click here for the solution: (ACC 560 Week 10 Assignment) Nordstrom, Inc. operates department stores in numerous states

For its fiscal year ending October 31, 2008, Molini Corporation reports the following partial data (ACC 560 Week 10 Assignment)

ACC 560 Week 10 Assignment

E14-12 For its fiscal year ending October 31, 2008, Molini Corporation reports the following partial data.

Income before income taxes $540,000
Income tax expense (30% $390,000) 117,000
Income before extraordinary items 423,000
Extraordinary loss from flood 150,000
Net income $273,000

The flood loss is considered an extraordinary item. The income tax rate is 30% on all items.

Instructions
a) Prepare a correct income statement, beginning with income before income taxes.
b) Explain in memo form why Molini's reported income statement data are incorrect


Click here for the solution: For its fiscal year ending October 31, 2008, Molini Corporation reports the following partial data (ACC 560 Week 10 Assignment)

Brainiac Company purchased a delivery truck for $30,000 on January 1, 2011 (ACC 291 Week 2 Assignment)

ACC 291 Week 2 Assignment

E9-7 Brainiac Company purchased a delivery truck for $30,000 on January 1, 2011. The truck has a expected salvage value of 2,000 and is expected to be driven 100,000 miles over its estimated useful life of 8 years. Actual miles driven were 15,000 in 2011 and 12,000 in 2012.

Instructions
a) compute depreciation expense for 2010 and 2011 using (1) the straight line method (2) the units of activity method and (3) the double declining balance method.
b) Assume that Brainiac uses the straight line method
(1) prepare the journal entry to record 2010 depreciation.
(2) Show how the truck would be reported in the December 31, 2010 balance sheet.


Click here for the solution: Brainiac Company purchased a delivery truck for $30,000 on January 1, 2011

(Week 5 Assignment ACC 291) Here are comparative balance sheets for Taguchi Company

ACC 291 Week 5 Assignment

E13-8 Here are comparative balance sheets for Taguchi Company.

TAGUCHI COMPANY
Comparative Balance Sheets
December 31
Assets 2011 2010
Cash $ 73,000 $ 22,000
Accounts receivable 85,000 76,000
Inventories 170,000 189,000
Land 75,000 100,000
Equipment 260,000 200,000
Accumulated depreciation (66,000) (32,000)
Total $597,000 $555,000

Liabilities and Stockholders’ Equity
Accounts payable $ 39,000 $ 47,000
Bonds payable 150,000 200,000
Common stock ($1 par) 216,000 174,000
Retained earnings 192,000 134,000
Total $597,000 $555,000

Additional information:
1. Net income for 2011 was $103,000.
2. Cash dividends of $45,000 were declared and paid.
3. Bonds payable amounting to $50,000 were redeemed for cash $50,000.
4. Common stock was issued for $42,000 cash.
5. No equipment was sold during 2011, but land was sold at cost.

Instructions
Prepare a statement of cash flows for 2011 using the indirect method.

Click here for the solution: (Week 5 Assignment ACC 291) Here are comparative balance sheets for Taguchi Company