Test Bank for Financial Accounting

TEST BANK
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FINANCIAL ACCOUNTING, 11TH EDITION
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BY ROBERT LIBBY, PATRICIA LIBBY, FRANK HODGE, ALL C
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HAPTERS 1-13 t t

, TABLE OF CONTENTS
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CHAPTERt1:tFinancialtStatementstandtBusinesstDecisions
FocustCompany:tLe-Nature’stInc.
CHAPTERt2:tInvestingtandtFinancingtDecisionstandtthetAccountingtSystem
FocustCompany:tChipotletMexicantGrill
CHAPTERt3:tOperatingtDecisionstandtthetAccountingtSystem
FocustCompany:tChipotletMexicantGrill
CHAPTERt4:tAdjustments,tFinancialtStatements,tandtthetClosingtProcess
FocustCompany:tChipotletMexicantGrill
CHAPTERt5:tCommunicatingtandtAnalyzingtAccountingtInformation
FocustCompany:tAppletInc.
CHAPTERt6:tReportingtandtInterpretingtSalestRevenue,tReceivables,tandtCash
FocustCompany:tSkecherstU.S.A.
CHAPTERt7:tReportingtandtInterpretingtCosttoftGoodstSoldtandtInventory
FocustCompany:tHarley-Davidson,tInc.
CHAPTERt8:tReportingtandtInterpretingtProperty,tPlant,tandtEquipment;tIntangibles;tandtNat
uraltResources
FocustCompany:tFedExtCorporation
CHAPTERt9:tReportingtandtInterpretingtLiabilities
FocustCompany:tStarbucks
CHAPTERt10:tReportingtandtInterpretingtBondtSecurities
FocustCompany:tAmazon
CHAPTERt11:tReportingtandtInterpretingtStockholders’tEquity
FocustCompany:tMicrosoft
CHAPTERt12:tStatementtoftCashtFlows
FocustCompany:tNationaltBeveragetCorporation
CHAPTERt13:tAnalyzingtFinancialtStatements
FocustCompany:tThetHometDepot

,CHAPTERt1:tFINANCIALtSTATEMENTStANDtBUSINESStDECISIONS
FOCUStCOMPANY:tLE-NATURE’StINC.
AnswerstaretattthetendtofteachtChapter
Chaptert1

Studenttname:
1) Determinetthetmissingtamountstforteachtindependenttcasetbelow.tAssumetthetamountstsho
wntaretattthetendtoftthetcompany'stfirsttyeartoftoperation.
CompanytN TotaltRev TotaltA TotaltExp TotaltLiabiliti NettIncomet(L Stockholderst'tEq
ame enue ssets enses e oss) uity
s
Randolph $t $t $t $t
600,00 450,00 350,00 130,000
0 0 0
Newman $t $t $t $t75,000
105,00 80,000 10,000
0
Wiseman $t $t $(30,000 $t100,000
190,00 70,000 )
0
Martin $t $t $t $t
180,00 215,00 115,00 75,000
0 0 0
VanTasse $ $ $ $t79,000
l 55,000 75,000 19,000

, QuestiontDetails
AACSBt:tKnowledgetApplicationtA
ICPAt:tBBtCriticaltThinkingtAICP
At:tFNtMeasurementtBloom'st:tAp
ply
Difficultyt:t2tMedium
LearningtObjectivet:t01-
01tRecognizetthetinformationtconveyedtinteachtoftthetfourtbasictfinancialtstatTopict:tDistinguishtdifferenttfi
nancialtstatements
Typet:tStatic
Accessibilityt:tKeyboardtNavigationtAccessibilityt
:tScreentReadertCompatibletGradablet:tmanual




2) Frank’stFlowertCompany,tatsmalltretailtstoretthattsellstflowers,tstartedtbusinesstontJanua
ryt1,t2022.tAttthetendtoftJanuaryt2022,tthetfollowingtinformationtwastavailable:
Salestoftflowerstfortcash $t150,000
Salestoftflowerstfortcreditt(nottyettcollected) 30,000
CosttoftflowerstwhichtweretsoldtandtpaidtfortduringtJanuary 90,000
ExpensestduringtJanuarytincurred,tandtpaidtfor,tduringtJanuarytunlesstotherwisetnoted:
Salaries $t10,000
Telephone 500
Officetsuppliest(alltused) 300
Electricity 600
RenttontthetstoretfortJanuary,t2022t(willtnottbetpaidtuntil 2,000
February,t2022)
Required:A.Usingtthetabovetinformation,tpreparetthetincometstatementtfortFrank’stFlowertCompany
tfortthetmonthtendedtJanuaryt31,t2022.

B.Whattistthetamounttoftcashtflowstprovidedtbytoperatingtactivitiesttotbetpresentedtontthetstatementto
ftcashtflows?