TEST BANK
Financial Accounting, 11th Edition
by Robert Libby, Patricia Libby, Frank Hodge, All Chapters 1-13
, TABLE OF CONTENTS ys ys
CHAPTER 1: Financial Statements and Business Decisions
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Focus Company: Le-Nature’s Inc.
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CHAPTER 2: Investing and Financing Decisions and the Accounting System
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Focus Company: Chipotle Mexican Grill
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CHAPTER 3: Operating Decisions and the Accounting System
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Focus Company: Chipotle Mexican Grill
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CHAPTER 4: Adjustments, Financial Statements, and the Closing Process
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Focus Company: Chipotle Mexican Grill
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CHAPTER 5: Communicating and Analyzing Accounting Information
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Focus Company: Apple Inc.
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CHAPTER 6: Reporting and Interpreting Sales Revenue, Receivables, and Cash
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Focus Company: Skechers U.S.A.
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CHAPTER 7: Reporting and Interpreting Cost of Goods Sold and Inventory
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Focus Company: Harley-Davidson, Inc.
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CHAPTER 8: Reporting and Interpreting Property, Plant, and Equipment; Intangibles; and Natural Resour
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ces
Focus Company: FedEx Corporation
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CHAPTER 9: Reporting and Interpreting Liabilities
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Focus Company: Starbucks
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CHAPTER 10: Reporting and Interpreting Bond Securities
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Focus Company: Amazon
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CHAPTER 11: Reporting and Interpreting Stockholders’ Equity
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Focus Company: Microsoft
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CHAPTER 12: Statement of Cash Flows
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Focus Company: National Beverage Corporation
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CHAPTER 13: Analyzing Financial Statements
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Focus Company: The Home Depot
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, CHAPTER 1: Financial Statements and Business Decisions
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Focus Company: Le-Nature’s Inc. ys ys ys
Answers are at the end of each Chapter
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Chapter 1 ys
Student name: ys
1) Determine the missing amounts for each independent case below. Assume the amount
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s shown are at the end of the company's first year of operation.
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Company N ys Total Rev ys Total As ys Total Exp Total Liabilitie NetIncome (Lo Stockholders ' Eq
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ame enue sets enses s ss) uity
Randolph $ ys $ ys $ ys $ys
600,00 450,00 350,00 130,000
0 0 0
Newman $ ys $ys $
ys $ 75,000
ys
105,00 80,000 10,000
0
Wiseman $ ys $ ys $(30,000 $ 100,000
ys
190,00 70,000 )
0
Martin $ ys $ ys $ ys $ys
180,00 215,00 115,00 75,000
0 0 0
VanTasse $ $ $ $ 79,000
ys
l 55,000 75,000 19,000
, Question Details ys
AACSB : Knowledge Application AI
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CPA : BB Critical Thinking AICPA :
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FN Measurement Bloom's : Appl
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y
Difficulty : 2 Medium ys ys ys
Learning Objective : 01- ys ys ys
01 Recognize the information conveyed in each of the four basic financial sta Topic : Distinguish differ
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ent financial statements
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Type : Static ys ys
Accessibility : Keyboard Navigation Accessibili ys ys ys ys
ty : Screen Reader Compatible Gradable : man
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ual
2) Frank’s Flower Company, a small retail store that sells flowers, started business on
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January 1, 2022. At the end of January 2022, the following information was available:
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Sales of flowers for cash
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Sales of flowers for credit (not yet collected)
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Cost of flowers which were sold and paid for during January
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Expenses during January incurred, and paid for, during January unless otherwise noted:
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Salaries $ 10,000
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Telephone 500
Office supplies (all used) ys ys ys 300
Electricity 600
Rent on the store for January, 2022 (will not be paid until
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February, 2022) ys
Required:A.Using the above information, prepare the income statement for Frank’s Flower Com ys ys ys ys ys ys ys ys ys ys ys
pany for the month ended January 31, 2022.
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B.What is the amount of cash flows provided by operating activities to be presented on the state
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ment of cash flows? ys ys ys
Financial Accounting, 11th Edition
by Robert Libby, Patricia Libby, Frank Hodge, All Chapters 1-13
, TABLE OF CONTENTS ys ys
CHAPTER 1: Financial Statements and Business Decisions
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Focus Company: Le-Nature’s Inc.
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CHAPTER 2: Investing and Financing Decisions and the Accounting System
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Focus Company: Chipotle Mexican Grill
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CHAPTER 3: Operating Decisions and the Accounting System
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Focus Company: Chipotle Mexican Grill
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CHAPTER 4: Adjustments, Financial Statements, and the Closing Process
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Focus Company: Chipotle Mexican Grill
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CHAPTER 5: Communicating and Analyzing Accounting Information
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Focus Company: Apple Inc.
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CHAPTER 6: Reporting and Interpreting Sales Revenue, Receivables, and Cash
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Focus Company: Skechers U.S.A.
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CHAPTER 7: Reporting and Interpreting Cost of Goods Sold and Inventory
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Focus Company: Harley-Davidson, Inc.
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CHAPTER 8: Reporting and Interpreting Property, Plant, and Equipment; Intangibles; and Natural Resour
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ces
Focus Company: FedEx Corporation
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CHAPTER 9: Reporting and Interpreting Liabilities
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Focus Company: Starbucks
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CHAPTER 10: Reporting and Interpreting Bond Securities
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Focus Company: Amazon
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CHAPTER 11: Reporting and Interpreting Stockholders’ Equity
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Focus Company: Microsoft
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CHAPTER 12: Statement of Cash Flows
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Focus Company: National Beverage Corporation
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CHAPTER 13: Analyzing Financial Statements
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Focus Company: The Home Depot
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, CHAPTER 1: Financial Statements and Business Decisions
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Focus Company: Le-Nature’s Inc. ys ys ys
Answers are at the end of each Chapter
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Chapter 1 ys
Student name: ys
1) Determine the missing amounts for each independent case below. Assume the amount
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s shown are at the end of the company's first year of operation.
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Company N ys Total Rev ys Total As ys Total Exp Total Liabilitie NetIncome (Lo Stockholders ' Eq
ys ys ys ys ys ys
ame enue sets enses s ss) uity
Randolph $ ys $ ys $ ys $ys
600,00 450,00 350,00 130,000
0 0 0
Newman $ ys $ys $
ys $ 75,000
ys
105,00 80,000 10,000
0
Wiseman $ ys $ ys $(30,000 $ 100,000
ys
190,00 70,000 )
0
Martin $ ys $ ys $ ys $ys
180,00 215,00 115,00 75,000
0 0 0
VanTasse $ $ $ $ 79,000
ys
l 55,000 75,000 19,000
, Question Details ys
AACSB : Knowledge Application AI
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CPA : BB Critical Thinking AICPA :
ys ys ys ys ys ys y
FN Measurement Bloom's : Appl
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y
Difficulty : 2 Medium ys ys ys
Learning Objective : 01- ys ys ys
01 Recognize the information conveyed in each of the four basic financial sta Topic : Distinguish differ
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ent financial statements
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Type : Static ys ys
Accessibility : Keyboard Navigation Accessibili ys ys ys ys
ty : Screen Reader Compatible Gradable : man
ys ys ys ys ys ys ys
ual
2) Frank’s Flower Company, a small retail store that sells flowers, started business on
ys ys ys ys ys ys ys ys ys ys ys ys ys
January 1, 2022. At the end of January 2022, the following information was available:
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Sales of flowers for cash
ys ys ys ys $ 150,000
ys
Sales of flowers for credit (not yet collected)
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Cost of flowers which were sold and paid for during January
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Expenses during January incurred, and paid for, during January unless otherwise noted:
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Salaries $ 10,000
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Telephone 500
Office supplies (all used) ys ys ys 300
Electricity 600
Rent on the store for January, 2022 (will not be paid until
ys ys ys ys ys ys ys ys ys ys ys 2,000
February, 2022) ys
Required:A.Using the above information, prepare the income statement for Frank’s Flower Com ys ys ys ys ys ys ys ys ys ys ys
pany for the month ended January 31, 2022.
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B.What is the amount of cash flows provided by operating activities to be presented on the state
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ment of cash flows? ys ys ys
