Plastics, Inc. is a company that operates in 4 different divisions

Question # 00005306 Posted By: expert-mustang Updated on: 12/14/2013 12:51 AM Due on: 12/14/2013
Subject Accounting Topic Accounting Tutorials:
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Can you assist me with these 2 problems? Accountant (Bizhelp)
Problem #1:
Plastics, Inc. is a company that operates in 4 different divisions. The following information relating to each segment is available for 2013.
Sales Cost of Operating Total Operating Identifiable
Revenue Goods Sold Expenses Expenses Profit (Loss) Assets
Bottles $6,000 $26,000 $8,000 $34,000 $31,000 $66,000
Containers$95,000 $62,000 $48,000 $110,000 ($15,000) $80,000
Dollhouses$620,000 $353,000 $140,000 $493,000 $127,000 $640,000
Silverware$18,000 $8,000 $6,500 $14,500 $3,500 $36,000

Sales of Segments "Containers" & "Dollhouses" included intersegment sales of $30,000 and $150,000 respectively.

Required: Determine which of the segments are reportable based on the following:
Revenue test
Operating Profit (Loss) Test
Identifiable Assets Test

Problem 2:
The following information pertains to Walrus Inc.
Cash $60,000
Accounts receivable 170,000
Inventory 100,000
Plant assets (net) 582,000
Total assets $912,000

Accounts payable $110,000
Accrued taxes and expenses payable 42,000
Long-term debt 120,000
Common stock ($10 par) 260,000
Paid-in capital in excess of par 50,000
Retained earnings 330,000
Total equities $912,000

Net sales (all on credit) $2,000,000
Cost of goods sold 1,400,000
Net income 120,000

Compute the following:
(ignore Average for balance sheet accounts)
(a) Current ratio
(b) Inventory turnover
(c) Receivables turnover
(d) Book value per share
(e) Earnings per share
(f) Debt to total assets
(g) Profit margin on sales
(h) Return on common stock equity
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Tutorials for this Question
  1. Tutorial # 00005121 Posted By: expert-mustang Posted on: 12/14/2013 12:53 AM
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    The solution of Plastics, Inc. Solution...
    Plastics,_Inc._Solution_.xlsx (12.54 KB)

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