1) Cooper Tools produces scissors in a two-stage production process. The following
production times are provided:
Required:
1) Identify the non-value-added activities.
2) What percentage of the total time to complete is actually value-added time?
3) How could this production operation be improved?
2) What is a common size income statement? Explain the benefit of the common size
income statement to financial statement users.
3) What does the present value index tell about a capital investment?
4) Which financial statements are affected by the entry to record the payment of bond
interest? Indicate how each statement is affected.
5) In a company’s annual report, the reader will find a company’s income statement,
statement of changes in stockholders’ equity, balance sheet, and statement of cash flows.
These financial statements can help the reader to answer specific questions. Identify
which financial statement would be most useful in answering the following questions. If
more than one financial statement can answer the question, please identify all
applicable statements.
1) What was the amount of cash dividends paid to the stockholders during the most
recent year?
2) What was the total amount of land owned by the company?
3) What was the total amount of cash borrowed by the company during the most recent
year?
4) What were the types of claims that the company had against its assets?
5) What was the total amount of cash received by the issuance of common stock in the
current year?
6) Was the company profitable during the most recent year?
7) How much cash was collected from accounts receivable during the current year?
8) What was the total revenue earned by the company during the most recent year?
9) What was the ending balance of retained earnings?
10) What was the amount of change in the cash balance during the current year?
6) Company A has variable costs per unit of $20, fixed costs of $300,000, and a
break-even sales volume of 60,000 units.
What happens to the break-even volume if the sales price/unit increases by $2 and the
variable cost/unit increases by $2?
7) Eisenberg Corporation reported the following financial information for 2012:
How many times did Eisenberg’s inventory turn over during the year?