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4S-200 Topic Area: Equivalent Units - FIFO Method Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

4S-187 71. The following data pertain to the Milling Department of Vario Corporation for July. The company uses the FIFO method in its process costing. Percent Complete Units Materials Conversion Work in process, July 1 800 60%

4S-167 Units in beginning work in process inventory = 4,800 - 300 = 4,500 Materials Conversion To complete beginning work in process: Materials: 300 units  (100% – 85%) 45 Conversion: 300

4S-147 52. Quilling Corporation uses the FIFO method in its process costing system. Data concerning the first processing department for the most recent month are listed below: Beginning work in process inventory: Units in beginning work in process inventory

4S-107 Equivalent units of production 119,100 AACSB: Analytical Thinking AICPA: BB Critical Thinking AICPA: FN Measurement Blooms: Apply Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method. Level of Difficulty: 1 Easy Topic Area: Compute and Apply Costs Copyright

4S-87 21. Qart Corporation uses the FIFO method in its process costing system. Operating data for the Cutting Department for the month of March appear below: Units Percent Complete with Respect to Conversion Beginning work in process inventory 4,500 20% Transferred

Chapter 04 Supplement: Process Costing Using the FIFO Method Answer Key True / False Questions 1. FALSE AACSB: Reflective Thinking AICPA: BB Critical Thinking AICPA: FN Measurement Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 04-02 Compute the equivalent units of production using

13-661 284. Degollado Corporation's most recent income statement appears below: Sales (all on account) $140,000 Cost of goods sold 60,000 Gross margin 80,000 Selling and administrative expense

13-645 k. Dividend yield ratio = Dividends per share* ÷ Market price per share = $0.02 ÷ $1.49 = 1.34% (rounded) *Dividends per share = Common dividends ÷ Common shares (see above) = $2,000 ÷ 100,000 shares = $0.02 per share (rounded) l. Book value per share =

13-625 271. Sidell Corporation's most recent balance sheet and income statement appear below: Balance Sheet December 31, Year 2 and Year 1 (in thousands of dollars) Assets Year 2 Year 1 Current assets:

13-605 = £180 ÷ £900 = 20% Current ratio = Current assets* ÷ Current liabilities = £221 ÷ £147 = 1.5 *Current assets = £5 + £120 + £96 = £221 Inventory turnover = Cost of goods sold ÷ Average inventory

13-585 Level of Difficulty: 3 Hard Source: CMA, adapted Topic Area: Ratio Analysis - Asset Management Topic Area: Ratio Analysis - Debt Management Topic Area: Ratio Analysis - Profitability Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill

13-565 248. Data from Yochem Corporation's most recent balance sheet appear below: Cash $16,000 Marketable securities $24,000 Accounts receivables $39,000 Inventory $53,000 Prepaid expenses

Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 234. Sperle Corporation has provided the following data concerning its stockholders' equity accounts: Year 2 Year 1 Stockholders' equity:

Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Net operating income 51,308 Interest expense 19,000 Net income

13-505 AACSB: Analytical Thinking AICPA: BB Critical Thinking AICPA: FN Measurement Blooms: Apply Learning Objective: 13-04 Compute and interpret financial ratios that managers use for debt management purposes. Level of Difficulty: 2 Medium Topic Area: Ratio Analysis - Profitability Copyright © 2016 McGraw-Hill Education. All rights reserved. No

Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. (dollars in thousands) Sales (all on account) $1,770 Cost of goods sold 1,230 Gross margin 540 Selling and administrative expense

13-465 Sales (all on account) $1,370,000 Cost of goods sold 850,000 Gross margin 520,000 Operating expenses 482,692 Net operating income 37,308 Interest expense 21,000 Net income before taxes 16,308 Income taxes (35%)

Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 171. Ribaudo Corporation has provided the following financial data from its balance sheet and income statement: Year 2 Year 1 Cash $74,000 $130,000 Accounts

13-425 Blooms: Apply Learning Objective: 13-03 Compute and interpret financial ratios that managers use for asset management purposes. Level of Difficulty: 2 Medium Topic Area: Ratio Analysis - Debt Management Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of

Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. stockholders’ equity Income Statement For the Year Ended December 31, Year 2 (in thousands of dollars) Sales (all on account) $1,310 Cost of goods

13-385 137. Mayfield Corporation has provided the following financial data: Assets Current assets: Cash $223,000 Accounts receivable 236,000 Inventory 202,000 Prepaid expenses

13-365 122. Hernande Corporation has provided the following data: Year 2 Year 1 Common stock, $4 par value $400,000 $400,000 Net operating income $75,429 Net income before taxes $61,429 Net income $43,000 A. $4.25 per share

13-345 102. Crosswhite Corporation's sales last year were $1,270,000, its gross margin was $400,000, its net operating income was $53,769, and its net income was $26,500. The company's net profit margin percentage is closest to: A. 31.5% B. 3.2% C.

Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. AICPA: FN Measurement Blooms: Apply Learning Objective: 13-03 Compute and interpret financial ratios that managers use for asset management purposes. Level of Difficulty: 2 Medium Topic Area: Ratio Analysis -

Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 55. The gross margin percentage is equal to: A. (Net operating income + Selling and administrative expenses)/Sales B. Net operating income/Sales

Chapter 13 Financial Statement Analysis Answer Key True / False Questions 1. TRUE AACSB: Reflective Thinking AICPA: BB Critical Thinking AICPA: FN Measurement Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 13-01 Prepare and interpret financial statements in comparative and common-size form.

12-292 129. Beltram Corporation's balance sheet and income statement appear below: Comparative Balance Sheet Ending Balance Beginning Balance Assets: Cash and cash equivalents $30 $26 Accounts receivable

12-281 125. Thunder Corporation's balance sheet and income statement appear below: Comparative Balance Sheet Ending Balance Beginning Balance Assets: Cash and cash equivalents $28 $31 Accounts receivable

12-261 C. The change in Accounts Receivable will be added to net income; The change in Inventory will be added to net income D. The change in Accounts Receivable will be subtracted from net income; The change in Inventory will be subtracted from net income

12-241 D. ($15) Investing activities: Purchase of property, plant, and equipment ($386 – $360) ($26) Net cash provided by (used in) investing activities ($26) AACSB: Analytical Thinking AICPA: BB Critical Thinking AICPA: FN Measurement Blooms: Apply Learning

12-221 B. The change in Prepaid Expenses will be subtracted from net income; The change in Income Taxes Payable will be subtracted from net income C. The change in Prepaid Expenses will be subtracted from net income; The change in Income Taxes Payable will be added

12-201 C. $40,000 D. $52,000 Operating activities: Net income $11,000 Adjustments to convert net income to a cash basis: Depreciation ($207,000 – $177,000) $30,000 Increase

12-181 Level of Difficulty: 2 Medium Topic Area: Organizing the Statement of Cash Flows Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 12-182 73. Degeare Corporation's balance sheet and income statement appear below:

12-161 61. Autry Corporation's balance sheet and income statement appear below: Comparative Balance Sheet Ending Balance Beginning Balance Assets Current assets: Cash and cash equivalents $33 $26

Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 47. A. a net $9,000 increase. B. a net $29,000 decrease. C. a net $38,000 increase. D. a net $38,000 decrease.

Chapter 12 Statement of Cash Flows Answer Key True / False Questions 1. TRUE AACSB: Reflective Thinking AICPA: BB Critical Thinking AICPA: FN Measurement Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 12-01 Classify cash inflows and outflows as relating to operating,

12-175 Gross margin 160,000 Selling and administrative expense 158,000 Net income $2,000 Requirements a through d: Sales (as reported) $350,000 Adjustments to a cash basis:

12-160 Purchase of property, plant and equipment ($278,000 – $150,000) (128,000) Net cash provided by investing activities (92,500) Financing activities: Repaying principle on bonds payable (15,000) Issuance of bonds payable

12-140 40. The changes in Northrup Corporation's balance sheet account balances for last year appear below: Increases (Decreases) Asset and Contra-Asset Accounts: Cash $4,000 Accounts receivable ($4,000)

12-120 30. Kilduff Corporation's balance sheet and income statement appear below: Comparative Balance Sheet Ending Balance Beginning Balance Assets: Cash and cash equivalents $36 $38 Accounts receivable 36 32 Inventory 49 55 Property, plant and equipment 707 580 Less accumulated

Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Gross margin 235 Selling and administrative expense 158 Net operating income 77 Income taxes 23 Net income

Appendix 12A The Direct Method of Determining the Net Cash Provided by Operating Activities Answer Key True / False Questions 1. FALSE AACSB: Reflective Thinking AICPA: BB Critical Thinking AICPA: FN Measurement Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 12-04

11-208 112. Annual cash inflows $100,000 Annual cash outflows: Building rent $25,000 Other annual cash outflows 44,000 69,000 Annual net cash inflow

11-195 Learning Objective: 11-02 Evaluate the acceptability of an investment project using the net present value method. Level of Difficulty: 1 Easy Topic Area: The Net Present Value Method Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill

11-175 A. ($483,095) B. ($583,095) C. ($596,395) D. ($536,395) AACSB: Analytical Thinking AICPA: BB Critical Thinking AICPA: FN Measurement Blooms: Apply Learning Objective: 11-02 Evaluate the acceptability of an investment project using the net present value method.

11-155 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 11-156 78. Carlson Manufacturing has some equipment that needs to be rebuilt or replaced. The following information has been gathered relative to this decision:

11-135 58. The management of Edelmann Corporation is considering the following three investment projects: Project R Project S Project T Investment required $13,000 $59,000 $79,000 Present value of cash inflows $13,520 $66,080 $87,690 A. T, S, R B.

11-115 34. Correl Corporation has provided the following data concerning an investment project that it is considering: Initial investment $190,000 Annual cash flow $75,000 per year Salvage value at the end of the project $25,000 A. $38,500

Chapter 11 Capital Budgeting Decisions Answer Key True / False Questions 1. FALSE AACSB: Reflective Thinking AICPA: BB Critical Thinking AICPA: FN Measurement Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 11-01 Determine the payback period for an investment. Level of