Must know how to - To record notes payable transactions -To prepare a vertical analysis schedule? -To calculate ratio Check the file I uplo

29 Apr Must know how to – To record notes payable transactions -To prepare a vertical analysis schedule? -To calculate ratio Check the file I uplo

Posted at 09:15h in Business & Finance / Accounting by

Must know how to

– To record notes payable transactions

-To prepare a vertical analysis schedule

-To calculate ratio

Check the file I uploaded to see if you can complete.

Grammar and punctuation is graded as well.

Assignment is due on 5-2

Problem 1 – Record notes payable transactions

Live Media Co. borrowed $125,000 on May 1, 2021 from OneUnited Bank by signing a $125,000 8-month note payable.

Purpose

The purpose of this problem is to demonstrate an understanding of recording notes payable transactions.

Instructions

After analyzing the information, prepare Live Media Co.'s journal entries to: (1) record the proceeds of the note, (2) record accrued interest

at December 31, 2021 and (3) record the payment of the note and interest at the note's maturity date of January 1, 2022.

Guidance

For formatting guidance, see the notes payable journal entry examples that are provided in Chapter 10 of the textbook.

Your Answers:

Problem 2 – Prepare a vertical analysis schedule
Here is the operating data for Yalis Cleaning, Inc.:
		2021	2020
	Service revenue	$ 523,000	$ 476,000
	Operating expenses	385,500	319,800
	Income tax expense	34,375	39,050
	Net income	$ 103,125	$ 117,150
Purpose
The purpose of this problem is to demonstrate an understanding of preparing a vertical analysis schedule.
Instructions
After analyzing the transactions, prepare a vertical analysis schedule for the company for 2021 and 2020 using service revenue
as the base amount. Round percentages to two decimal places.
Guidance
For formatting guidance, see the vertical analysis examples that are provided in Chapter 13 of the textbook.
Your Answer:

Problem 3 – Calculate ratios
Here is some financial statement data for Nestlé (in millions of Swiss francs):
			2021	2020
		Total current assets	39,257	34,068
		Inventory	11,982	10,101
		Total assets	139,142	124,028
		Net sales	87,088	84,343
		Cost of goods sold	45,468	42,971
		Gross profit	12,159	14,233
		Interest expense	753	815
		Net income	17,196	12,372
		Net cash provided by operating activities	16,645	17,157
		Capital expenditures	4,880	4,076
		Cash dividends	7,983	7,968
		Investing cash flow	3,044	5,667
Purpose
The purpose of this problem is to demonstrate an understanding of analyzing a company's performance using ratio analysis and calculating ratios.
Instructions
After reviewing the information, calculate the following ratios for Nestlé for 2021:
1) Inventory turnover
2) Profit margin
3) Return on assets
4) Free cash flow
Round all answers to two decimal places. Do not include dollar signs because Nestlé's accounting information is in Swiss Francs. Show the calculations
for each answer.
Guidance
For guidance, see the ratio analysis examples that are provided in Chapter 13 of the textbook.
Your Answers (show the calculations for each answer):
	Answer	Show Work for Answer
1) Inventory turnover
2) Profit margin
3) Return on assets
4) Free cash flow