Reference no: EM131500006

Assignment

Walmart had income before interest expense and income taxes of $12,581 million and interest expense of $1,063 million. Sears had income before interest expense and income taxes of $3,596 million and interest expense of $1,143 million. Calculate the time interest earned for each company and comment on the results.

1) Harriet's Toy Shop had net sales of $852,000. The gross profit was $230,000. Calculate Harriet's cost of goods sold.

2) Leonard Matson completed these transactions during December of the current year:

1 Began a financial services practice by investing $15,000 cash and office equipment having a $5,000 value.
2 Purchased $1,200 of office supplies on credit.
3 Purchased $300 of office supplies on credit.
4 Completed work for a client and immediately received a Payment of $900 cash.
8 Completed work for Acme Loan Co. on credit, $1,700.
10 Paid for the supplies purchased on credit on December 3.
14 Paid for the annual $960 premium on an insurance policy.
18 Received payment in full from Acme Loan Co. for the work completed on December 8.
27 Leonard withdrew $650 cash from the practice to pay personal expenses.
30 paid $175 cash for the December utility bills.
30 Received $2,000 from a client for financial services to be rendered next year.

Prepare general journal entries to record these transactions.

1) The following information is available for some of Coca-Cola's segments (all amounts are in millions):

                                                                           North America      Africa      Latin America
Segment sales                                                         $6,264             $694         $2,089
Segment operating income                                        1,494               224          1,033
Segment average assets                                           4,869               541          1,443

a) Determine the segment return on assets for each geographic segment.

b) Comment on the results. How do the segments compare with respect to profitability?

1) A company allows its customers to use bank cards to charge purchases. When customers use the credit cards, the net amount is deposited in the company's checking account. The company also is charged a 2.5% service charge for these credit card sales. Assume that on April 13, the company sold $25,000 worth of merchandise to customers who used credit cards. Prepare the company's journal entry to record the credit card sales for April 13 assuming the company deposited the receipts that same day.