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    Exercises Module 8 For Upload

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    The document contains financial information for multiple companies, including income statements, balance sheets, and calculations. Key figures include total assets of $8.5 million, total liabilities of $3 million, working capital of $1.6 million, a current ratio of 2.33, debt to total assets ratio of 0.35, and an interest coverage ratio of 5.6 times.

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    © All Rights Reserved
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    Exercises Module 8 For Upload

    Uploaded by

    jp
    7 views16 pages
    The document contains financial information for multiple companies, including income statements, balance sheets, and calculations. Key figures include total assets of $8.5 million, total liabilities of $3 million, working capital of $1.6 million, a current ratio of 2.33, debt to total assets ratio of 0.35, and an interest coverage ratio of 5.6 times.

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    ACCCOB2 Exercises-Module-8

    Original Title

    Exercises-Module-8-for-upload

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    © © All Rights Reserved

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    The document contains financial information for multiple companies, including income statements, balance sheets, and calculations. Key figures include total assets of $8.5 million, total liabilities of $3 million, working capital of $1.6 million, a current ratio of 2.33, debt to total assets ratio of 0.35, and an interest coverage ratio of 5.6 times.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    7 views16 pages

    Exercises Module 8 For Upload

    Uploaded by

    jp
    The document contains financial information for multiple companies, including income statements, balance sheets, and calculations. Key figures include total assets of $8.5 million, total liabilities of $3 million, working capital of $1.6 million, a current ratio of 2.33, debt to total assets ratio of 0.35, and an interest coverage ratio of 5.6 times.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 16

    Accounts payable 480,000.

    00
    Notes payable 858,000.00
    Accrued Interest payable 20,000.00
    Accrued Salaries expense 40,000.00
    Unearned rent Income 18,000.00
    1,416,000.00
    Unadjusted Balance
    Goods in transit FOB Shipping point

    8/1/2020 Unearned Subsciption Income


    Income realized
    (2000000*5/12)

    Balance

    (2,000,000 *7/12)
    1,400,000.00
    80,000.00
    1,480,000.00

    2,000,000.00 12 166,666.67
    833,333.33

    1,166,666.67

    1,166,666.67
    Number of Coupons Available 640,000.00
    Expected redemption 0.40
    Expected coupons to be redeemed 256,000.00
    Divided 2.00
    Estimated premiums/tickets 128,000
    Premiums redeemed already 125,000
    (250,000/2)
    Unredeemed Tickets 3,000
    Cost of the ticket 15.00
    Estimated Liability 45,000.00
    Beginning balance 120,000.00
    Additional liability 180,000.00
    (4000*3%*1500)
    Warranty honoured during the year - 120,000.00

    Remaining liability for warranty 180,000.00

    Interest Expense
    1/1/2020 Balance of the Notes Payable 9,000,000.00

    ### 900,000.00 9,900,000.00

    ### 990,000.00 10,890,000.00

    ### 1,089,000.00 11,979,000.00

    2,979,000.00 11,979,000.00

    (9,000,000*1.10*1.10*1.10) 11,979,000.00
    8% 10%
    CV x effective rate) FA x nominal rate
    Interest cash Premium
    Date Interest Expense Collection Amorization Carrying Value
    1/1/2020 3,405,000.00
    ### 272,400.00 300,000.00 27,600.00 3,377,400.00

    10% 9%
    Interest cash Discount
    Date Interest Expense Collection Amorization Carrying Value
    1/1/2020 4,695,000.00
    ### 469,500.00 450,000.00 19,500.00 4,714,500.00

    0
    5000
    4695
    305

    305,000.00
    19,500.00
    285,500.00
    Accounts payable 115,000.00
    Cash Dividend payable 30,000.00
    Income tax payable 18,000.00
    Accrued salaries payable 20,000.00
    Customer's deposits 9,900.00
    Provision for Warranty 5,200.00
    Mortgage payable 2,000,000.00
    2,198,100.00
    a Working Capital = Current Assets - Current Liabilities
    2,800,000.00 1,200,000.00

    Working Capital = 1,600,000.00

    b Current ratio = Current Assets


    Current Liabilities

    Current ratio = 2,800,000.00


    1,200,000.00

    Current ratio = 2.33

    c Yes, the Company is liquid

    d Debt to Total Asset ratio = Total Liabilities


    Total Assets

    Debt to Total Asset ratio = 3,000,000.00


    8,500,000.00

    Debt to Total Asset ratio = 0.35

    Earnings before Interest


    e and Taxes (EBIT) = 840,000.00
    Interest expense 150,000.00

    Times Interest earned = 5.6

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