The balance sheet for Bostick Corporation follows:
Operating income during the period was $13,650, while cash dividends paid were
$3,770. The total sources of cash at Bostick Corporation during the year was
A) $39,070.
B) $32,320.
C) $13,800.
D) $46,120.
A company uses the indirect method to prepare the statement of cash flows. It presents
the following data on its financial statements:
*Relates solely to the acquisition of inventory
What will appear in the operating activities section related to inventory?
A) The decrease of $21,000 will be subtracted from net income.
B) The decrease of $21,000 will be subtracted from cost of goods sold.
C) The decrease of $21,000 will be added to net income.
D) The decrease of $21,000 will be added to cost of goods sold.
A company reported the following amounts of net income:
Which of the following is the percentage change from Year 1 to Year 2?
A) 150.00%
B) 110.00%
C) 40.00%
D) 50.00%
The following information relates to Woolf Unlimited for the past two years.
What is days’ sales in receivables for the current year?
A) 56.78 days
B) 69.20 days
C) 43.08 days
D) 10.00 days
Mr. Pattison is the managerial accountant at the Beach Bum Surf Shoppe. Mr. Pattison
advised the Sales Manager that budgeted sales at the store were 100 units, and the
store’s breakeven point is 14 units. What is the margin of safety in units at the Beach
Bum Surf Shoppe?
A) 84
B) 85
C) 86
D) 87
The managerial accountant at the Toy Factory presented the following information at a
meeting:
What type of statement did the managerial accountant present at the meeting?
A) Balance sheet
B) Statement of cash flows
C) Horizontal analysis
D) Common-size statement
The following information relates to Bennett Corporation.
Required:
a.What is the acid-test ratio for the current year?
b.What is the inventory turnover for the current year?
c.What is days’ sales in receivables for the current year?
d.What is the book value per share of common stock for the current year?
e.What is the price-earnings ratio for the current year?
f.What is the rate of return on total assets for the current year?
g.What is the times-interest-earned ratio for the current year?
h.What is the current ratio for the current year?
The managerial accountant at Print Manufacturing reported a grand opening at the new
facility in Virginia. According to the reports, the direct material costs reported in the
new operation are $1,750,000 and there are $1,900,000 total conversion costs. The
managerial accountant also reported that there were 600,000 parts started in the
operations in December and 500,000 parts completed during the month of December.
The ending Work In Process Inventory was 30% complete as to the conversion work.
Calculate (a) the equivalent units for direct materials and conversion costs; (b) calculate
the cost per equivalent unit; and, (c) assign the total costs to units completed and
transferred out and ending Work In Process Inventory.
Tasty Treats is a snow cone stand near the local park. To plan for the future, Tasty
Treats wants to determine its cost behavior patterns. It has the following information
available about its operating costs and the number of snow cones served.
The variable cost per snow cone using the high-low method is
A) $1.43.
B) $0.70.
C) $0.90.
D) $0.94.
A company uses the direct method to prepare the statement of cash flows. It presents
the following data on its financial statements:
*Relates solely to the acquisition of inventory
What will appear in the operating activities section related to accounts payable?
A) The increase of $15,000 will be subtracted from net income.
B) The increase of $15,000 will be added to net income.
C) The increase of $15,000 will be added to purchases to determine payments to
suppliers.
D) The increase of $15,000 will be subtracted from purchases to determine payments to
suppliers.
The Bedford Corporation reported the following income statement and balance sheet
amounts and additional information for the end of the current year.
Inventory and prepaid expenses account for $30,000 of the current year’s current assets.
Average inventory for the current year is $36,250.
Average net accounts receivable for the current year is $45,000.
There are 35,000 shares of common stock outstanding.
Total dividends paid during the current year were $17,000.
The market price per share of common stock is $20.
What is the rate of return on net sales for the current year?
A) 0.37
B) 0.03
C) 0.14
D) 1.46
The managerial accountant at the Bookcase Factory prefers regression analysis to the
high-low method because it is a more accurate method. The managerial accountant uses
regression output and analyzes the following data to predict future costs:
y =$250x + $625
where,
y = total monthly utility cost
x = number of guests
What is the intercept coefficient, or the vertical intercept of the fixed cost line, in the
equation listed above?
A) y
B) $250x
C) $625
D) $250x + $625
Serenity Now Industries manufactures custom fiberglass hulls for luxury yachts and
pleasure boats. The current cost accounting system uses machine hours to allocate
manufacturing overhead to each job. Serenity estimates that in the coming year it will
incur $600,000 in manufacturing overhead costs and use 8,000 machine hours.
Depending on the specifications requested by the customer, the hull may use hazardous
chemicals that incur greater disposal costs. Serenity’s traditional accounting system
includes the cost of hazardous waste disposal in with total manufacturing overhead.
Serenity is planning to implement an activity based costing system to more accurately
assign hazardous waste disposal costs to each job.
Expected usage and costs for manufacturing overhead are as follows:
During the year, Yacht #633 was started and completed:
Requirements:
a.Calculate the cost of Yacht #633 using the Serenity’s current method of allocating
manufacturing overhead.
b.Calculate the cost of Yacht #633 using the proposed activity based costing system.
How is this information useful to an environmental management accounting (EMA)
system?
