In this chapter, you examined several short-term managerial decision tasks. Identify
(list) any three of these types of decision tasks:
_________________________
_________________________
_________________________
A company had net sales of $741,800. Its cost of goods sold must have been _________
to yield a gross profit of $282,884.
How are bond issue prices determined?
An employee is __________ when a company purchases an insurance policy against
losses from theft by that employee.
The ______________________ method of assigning costs to inventory and cost of
goods sold exactly matches the costs of items with the revenues they generate and
would be used when items can be easily traced to the purchase invoice cost.
________________________ is an activity that provides financial and nonfinancial
information to an organization’s managers and other internal decision makers.
The _________________________ is also called the check authorization.
A company’s only treasury stock transactions for the current year follow: (1) 1,000
shares of its common stock were purchased on June 1 for $40,000; (2) On July 1 it
reissued 500 of these shares at $45 per share; (3) On August 1 it reissued the 500
remaining treasury shares at $38 per share.
1) Prepare the journal entries required to record these transactions.
2) Calculate the balance in Paid-in Capital, Treasury Stock, on September 1 assuming
its beginning-year balance is zero.
What important information did Kevin Plank of UnderArmour learn from his business
partner Sal Fasciana regarding receivables. What are some of the receivables issues that
Kevin found to be important?
A company had net sales of $789,765 and average assets of $658,137. Calculate the
company’s total asset turnover.
What does FOB stand for? Differentiate between FOB shipping point (or FOB factory)
and FOB destination.
________________________ is the number of shares that a corporation’s charter allows
it to sell.
Slim Corp. requires a minimum $8,000 cash balance. If necessary, loans are taken to
meet this requirement at a cost of 1% interest per month (paid monthly). Loans are
repaid at month’s end from any excess cash. The cash balance on July 1 is $8,400. Cash
receipts other than for loans received for July, August, and September are forecasted as
$24,000, $32,000, and $40,000, respectively. Payments other than for loan or interest
payments for the same period are planned at $28,000, $30,000, and $32,000,
respectively at July 1, there are no outstanding loans.
Required:
Prepare a cash budget for July, August, and September.
Describe the accounting for intangible assets, including their acquisition, cost
allocation, and accounts involved.
A company inadvertently produced 6,000 defective portable CD players. The CD
players cost $20 each to be manufactured. A salvage company will purchase the
defective units as they are for $16 each. The production manager reports that the defects
can be corrected for $9 per unit, enabling the company to sell them at the regular price
of $30.00. The repair operations would not affect other production operations. Prepare
an analysis that shows which action should be taken.
Define variable cost, fixed cost, and mixed cost.