1) Josephine’s Bakery had the following assets and liabilities at the beginning and end
of the current year:
If Josephine made no investments in the business but withdrew $5,000 during the year,
what was the amount of net income earned by Josephine’s Bakery?
2) Information to prepare the statement of cash flows usually comes from three sources:
(1) ________________________, (2) _____________________, and (3)
__________________.
3) A company reported the following data:
Required:
1> Calculate the company’s merchandise inventory turnover for each year.
2> Comment on the company’s efficiency in managing its inventory.
4) What is a cash budget? How can management use a cash budget?
5) Investments in trading securities are always classified as ______________ and are
reported as _______________ on the balance sheet.
6) ______________________ capture information from source documents and enable
its transfer to the system’s information processing component.
7) A company borrowed $60,000 by signing a 60-day, 10% note payable from its bank.
Compute the total cash payment due on the note’s maturity date.
8) Based on predicted production of 25,000 units, Best Co. anticipates $175,000 of
fixed costs and $137,500 of variable costs. What are the flexible budget amounts of
total costs for 20,000 and 30,000 units?
9) Explain how the inventory turnover ratio and the days’ sales in inventory ratio are
used to evaluate inventory management.