Answer the following:
1. How does the automated system improve the efficiency and timeliness of financial Statements?
2. How does the automated system enhance the relevance of the information provided?
3. How does the automated system enhance the decision making process?
Select the correct answer and show your calculations for the following questions:
4. At the beginning of the year, a company s balance sheet reported the following balances: Total Assets = $125,000; Total Liabilities = $75,000; and Owner s Capital = $50,000. During the year, the company reported revenues of $46, 000 and expenses of $30, 000. In addition, owner s withdrawals for the year totaled $20,000. Assuming no other changes to owner s capital, the balance in the owner s capital account at the end of the year would be:
A. $66,000
B. $86,000
C. $(4,000)
D. $46,000
E. $54,000
5. A company had average total assets of $982,450 and net income of $190,700 and reports various segment information. Segment A had average total assets of $437,800 and segment operating income of $98,230. Segment B had average assets of $151,200 and segment operating income of $16,190. Calculate the segment return on assets for Segment A.
A. 19.4%
B. 22.4%
C. 26.1%
D. 10.7%
E. 20.2%
6. Use the information in the adjusted trial balance presented below to calculate current assets for Jones Company:
Account Title Dr. Cr.
Cash 23,000
Accounts receivable 16,000
Prepaid insurance 6,600
Equipment 100,000
Accumulated Depreciation Equipment 50,000
Land 95,000
Accounts payable 17,000
Interest payable 2,400
Unearned revenue 5,000
Long term notes payable 30,000
J. Jones, Capital 136,200
Totals 240,600 240,600
A. $21,200
B. $45,600
C. $24,400
D. $95,600
E. $41,200