170. A company had net income of $86,000 in Year 1 and $118,000 in Year 2. Its net sales were $640,000 in Year 1and $611,000 in Year 2. Its average total assets in Year 1 were $1,670,000 and $1,712,000 in Year 2. Calculate the profit margin, total asset turnover and return on total assets for both years. Comment on the results. 171. Hubbard Company had the following trading securities in its portfolio at December 31. The Fair Value Adjustment—Trading account had a balance of zero prior to year-end adjustment. Prepare the appropriate adjusting journal entry. Short-Term Investments Cost Fair Value XBM............................. $ 24,500 $ 25,900 Micro............................. 51,000 48,600 Outel............................. 62,300 61,000 Dull.............................. 29,900 30,200 Totals............................. $167,700 $165,700 172. Element Company had the following long-term available-for-sale securities in its portfolio at December 31 for each of the years listed. The year-end cost and fair values for its portfolio follow. Beginning with Year 1, prepare the appropriate journal entry to record each year-end market adjustment for these securities. Available-for-SaleSecurities Cost Fair Value Year 1............................ $ 404,500 $ 389,900 Year 2............................ 406,400 412,600 Year 3............................ 454,800 472,000

170. A company had net income of $86,000 in Year 1 and $118,000 in Year 2. Its net sales were $640,000 in Year 1and $611,000 in Year 2. Its average total assets in Year 1 were $1,670,000 and...

170. A company had net income of $86,000 in Year 1 and $118,000 in Year 2. Its net sales were $640,000 in Year 1and $611,000 in Year 2. Its average total assets in Year 1 were $1,670,000 and $1,712,000 in Year 2. Calculate the profit margin, total asset turnover and return on total assets for both years. Comment on the results.

171. Hubbard Company had the following trading securities in its portfolio at December 31. The Fair Value Adjustment—Trading account had a balance of zero prior to year-end adjustment. Prepare the appropriate adjusting journal entry.

Short-Term Investments	Cost	Fair Value
XBM.............................	$ 24,500	$ 25,900
Micro.............................	51,000	48,600
Outel.............................	62,300	61,000
Dull..............................	29,900	30,200
Totals.............................	$167,700	$165,700

172. Element Company had the following long-term available-for-sale securities in its portfolio at December 31 for each of the years listed. The year-end cost and fair values for its portfolio follow. Beginning with Year 1, prepare the appropriate journal entry to record each year-end market adjustment for these securities.

Available-for-SaleSecurities	Cost	Fair Value
Year 1............................	$ 404,500	$ 389,900
Year 2............................	406,400	412,600
Year 3............................	454,800	472,000

May 15, 2022

SOLUTION.PDF

170. A company had net income of $86,000 in Year 1 and $118,000 in Year 2. Its net sales were $640,000 in Year 1and $611,000 in Year 2. Its average total assets in Year 1 were $1,670,000 and...

Get Answer To This Question

Related Questions & Answers

Submit New Assignment