Refer to the following selected financial information from Stellar Company. Compute the company’s debt to equity for Year 2.    Year 2 Year 1 Total assets $ 327,800   $ 301,000   Total liabilities   171,400     169,300   Total equity   156,400     131,700  

Subic Bay Company reports depreciation expense of $40,000 for Year 2. Also, equipment costing $240,000 was sold for a $10,000 loss in Year 2. The following selected information is available for Subic Bay Company from its comparative balance sheet. Compute the cash received from the sale of the equipment.  At December 31 Year 2 Year 1 Equipment $ 510,000   $ 750,000   Accumulated Depreciation-Equipment   328,000     500,000  

A customer’s promise to pay on credit is classified as an account payable by the seller.

Cash flow amounts and their timing should be considered when planning and analyzing operating activities.

A corporation reported cash of $14,000 and total assets of $178,300 on its balance sheet. Its common-size percent for cash equals:

The higher the accounts receivable turnover, the less quickly accounts receivable are collected.

Refer to the following selected financial information from Elvis Corp. Compute the company’s inventory turnover for Year 2.    Year 2   Year 1   Merchandise inventory 271,000   253,500   Cost of goods sold 486,400   433,100  

The purchase of long-term assets by issuing a note payable for the entire amount is reported on the statement of cash flows in the:

The purchase of supplies on credit should be recorded with a debit to Supplies and a credit to Accounts Payable.

When preparing the operating activities section of the statement of cash flows using the indirect method, expenses with no cash outflows are added back to net income.