Create an Account

Already have account?

Forgot Your Password ?

Home / Questions / Barry’s BBQ had sales revenue for the year of $200 million and net income of $20 million.....

Barry’s BBQ had sales revenue for the year of $200 million and net income of $20 million.. Total assets were $70 million at the beginning of the year, and $80 million at the end of the year

Barry’s BBQ had sales revenue for the year of $200 million and net income of $20 million.. Total assets were $70 million at the beginning of the year, and $80 million at the end of the year. Calculate Barry’s return on assets, profit margin, and asset turnover ratios.             

 

 

134. Paul Pierce Enterprises reports net income of $800,000, average total assets of $2,400,000, and average total liabilities of $400,000. Calculate the return on assets and return on equity ratios.      

 

 

135. Phillip’s Fun Center has go-karts, miniature golf, bumper boats, paintball, and laser tag. Determine whether the company should report each of the following items as discontinued operations, extraordinary items, or other expenses:

1.   Uninsured losses of $200,000 were incurred due to a hurricane that swept through the area for the first time in 50 years.

2.   The company sold its old go-karts at a loss of $25,000 and replaced them with all new go-karts.

3.   The company sold its laser tag center at a loss of $10,000 to focus on the other more profitable segments. Laser tag is considered to be a separate business segment.

4.   The company restructured its business at a cost of $75,000, replacing some employee positions with automated equipment.

Answer:

1. Extraordinary items.

2. Other expenses.

3. Discontinued operations.

4. Other expenses.

Learning Objective: 05

Difficulty: Medium

AACSB: Reflective Thinking

AICPA: FN Reporting

Blooms: Understand 

Jan 27 2020 View more View Less

Answer (UnSolved)

question Get Solution

Related Questions