Business, 19.02.2021 16:30, GreenHerbz206
Determining Financial Statement Effects of Various Transactions
Wolverine World Wide, Inc., manufactures military, work, sport, and casual footwear-and leather accessories under a variety of brand names, such as Hush Puppies, Wolverine, and Bates, to a global market. The following transactions occurred during a recent year. Dollars are in thousands.
a. Issued common stock to investors for $13,752 cash (example).
b. Purchased $723,261 of additional inventory on account.
c. Borrowed $61,685 on long-term notes.
d. Sold $1,141,887 of products to customers on account; cost of the products sold was $700,349.
e. Paid cash dividends of $16,079.
f. Purchased for cash $ 17,067 in additional property, plant, and equipment.
g. Incurred $318,240 in selling expenses, paying three-fourths in cash and owing the rest on account.
h. Earned $3,170 interest on investments, receiving 90 percent in cash.
i. Incurred $2,973 in interest expense to be paid at the beginning of next year.
Required:
For each of the transactions, complete the tabulation, indicating the effect (+ for increase and − for decrease) of each transaction. (Remember that A = L + SE, R − E = NI, and NI affects SE through Retained Earnings.) Write NE if there is no effect. The first transaction is provided as an example.
BALANCE SHEET
INCOME STATEMENT
Transaction
Assets
Liabilities
Stockholders’ Equity
Revenues
Expenses
Net Income
(a) (example)
+ 13,752
NE
+ 13,752
NE
NE
NE
Answers: 3
Business, 21.06.2019 12:30, nayely1020
Which certificate is the lowest level certification that a personal finance manager requires to sell mutual funds, trusts, and variable annuities? a. series 2 b. series 6 c. series 5 d. series 7 e. series 8
Answers: 3
Business, 21.06.2019 20:30, 7841784
Which of the following mechanisms would be most likely to motivate managers to act in the best interests of shareholders? a) decrease the use of restrictive covenants in bond agreements, b) take actions that reduce the possibility of a hostile takeover, c) elect a board of directors that allows managers greater freedom of action, d) increase the proportion of executive compensation that comes from stock options and reduce the proportion that is paid as cash salaries, e) eliminate a requirement that members of the board directors have a substantial investment in the firm's stocks
Answers: 2
Business, 22.06.2019 13:10, KillerSteamcar
A4-year project has an annual operating cash flow of $59,000. at the beginning of the project, $5,000 in net working capital was required, which will be recovered at the end of the project. the firm also spent $23,900 on equipment to start the project. this equipment will have a book value of $5,260 at the end of the project, but can be sold for $6,120. the tax rate is 35 percent. what is the year 4 cash flow?
Answers: 2
Business, 22.06.2019 19:30, kraigstlistt
Each row in a database is a set of unique information called a(n) table. record. object. field.
Answers: 3
Determining Financial Statement Effects of Various Transactions
Wolverine World Wide, Inc., manufac...
Biology, 16.12.2020 19:10
Mathematics, 16.12.2020 19:10
Mathematics, 16.12.2020 19:10
Mathematics, 16.12.2020 19:10
Mathematics, 16.12.2020 19:10
Health, 16.12.2020 19:10