1) The following information relates to The Roberta 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 current ratio for the current year?
2) The following information relates to Truman Unlimited for the past two years.
The book value per share of common stock for the current year is
A) $52.77.
B) $79.50.
C) $13.50.
D) $96.00.
3) The managerial accountant at Picture Frame Manufacturing reported that the
company plans to transfer $250,000 to the Finished Goods Inventory account for the
40,000 picture frames that were completed during the month of September. Compute
the cost to make one completed picture frame. Assume that the sales revenue per picture
frame is $12 per frame, what is the gross profit per picture frame?
A) $6.25, $5.75
B) $6.25, $10.00
C) $12.00, $5.75
D) $12.00, $6.25
4) The following information relates to Harris 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?
5) A company uses the direct method to prepare the statement of cash flows. It presents
the following amounts on its financial statements.
*Relates solely to the acquisition of inventory
What will appear in the operating activities section related to salaries payable?
A) The increase of $3,500 will be subtracted from salary expense to determine
payments to employees.
B) The increase of $3,500 will be subtracted from net income.
C) The increase of $3,500 will be added to salary expense to determine payments to
employees.
D) The increase of $3,500 will be added to net income.
6) R-Cubed manufactures custom playground equipment from recycled plastics for city
school districts. The school districts are required to use a certain percentage of recycled
materials to comply with its state grants. As a result, R-Cubed tracks both virgin
(non-recycled) and recycled materials used to manufacture its playground equipment.
R-Cubed uses a predetermined manufacturing overhead rate of $7.00 per direct labor
hour.
Here is a summary of the materials and labor used on a recent job for Stow City
Schools:
Calculate the percentage of recycled-content used in the Stow City Schools job (using
pounds).
A) 65%
B) 35%
C) 186%
D) 54%
7) The managerial accountant at Strategic Group Consulting reported the following
information about the sales budget for the period ending December 31, 20XX:
Observe the Sales Budget and determine which primary responsibility the managerial
accountant uses to
determine which quarter generated the most per-unit product sales data in order to
adjust the marketing strategy?
A) Planning
B) Controlling
C) Directing
D) Analyzing
E) Eliminating
8) The McCumber Corporation data for the current year:
With respect to current assets, what would a horizontal analysis report?
A) Inventory turnover of 9.34 times
B) Current ratio of 0.92
C) Current assets as 40.79% of total assets
D) A 27.00% increase in current assets
9) The Hummel 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 $28,000 of the current year’s current assets.
Average inventory for the current year is $12,000.
Average net accounts receivable for the current year is $32,000.
There are 40,000 shares of common stock outstanding.
Total dividends paid during the current year were $60,000.
The market price per share of common stock is $25.
What is the company’s times-interest-earned ratio for the current year?
A) 0.77 times
B) 2.50 times
C) 3.50 times
D) 1.00 times
10) The following data relate to Whitmore Enterprises for last year:
What is the net cash provided by operating activities for last year on the statement of
cash flows for Whitmore Enterprises?
A) $132,000
B) $133,000
C) $163,000
D) $152,000
11) Taylor Company reported the following information for the current year:
What would a vertical analysis report with respect to current year net income before
income tax and income tax expense?
A) An increase of $125,112 from prior to current year
B) An increase of both net income before income tax and income tax of 22%
C) A decrease of $29,112 in net income before tax
D) Net income before tax of 21% and income tax of 2.00% of net sales revenue
12) The following information relates to Truman Unlimited for the past two years.
The times-interest-earned ratio for the current year is
A) 13.5 times.
B) 16.0 times.
C) 2.0 times.
D) 3.8 times.
13) 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.
14) The following information relates to Woolf Unlimited for the past two years.
What is the inventory turnover for the current year?
A) 2.30 times
B) 0.78 times
C) 13.00 times
D) 2.20 times
15) Disadvantages of using standard costs and variances include all of the following
except
A) the excessive cost to keep standards up-to-date.
B) companies that pay employees a salary because direct labor is a fixed cost rather
than a variable cost.
C) those manufacturing costs that enter Work in Process Inventory are recorded at
standard cost, rather than actual cost.
D) traditional standards can promote unfavorable employee behavior.
16) Lighthouse Merchandise Group is a global operation that sells lighthouse
merchandise to consumers and groups in the marketplace. The managerial accountant
reported the following information:
Compute the cost of goods available for sale at Lighthouse Merchandise Group. What is
the cost of goods sold?
17) Briefly explain the flow of inventory through a manufacturing system into a
company’s job costing system from the purchase of materials to the sale of the products.
18) Buy the part and use facilities to make another product
19) Jasmine and Rosemary sell healthy spices to consumers at the county fair. Sally and
Rosemary only accept credit card purchases and cash from consumers. On Saturday,
they sold $350 in merchandise and all consumers used credit cards to purchase
merchandise at the fair. The bank charges 1.75% on total credit charges each day to
settle the credit charges on their business banking account. Compute the total charges
the bank will charge Jasmine and Rosemary on their account. How much will the bank
deposit into their account after all charges? How should Jasmine and Rosemary show
the sale and fees in the sales budget, the operating expense budget, and the cash
collections budget?
20) Ted’s Graduation Store sells graduation supplies to students through the college
bookstore. The bank charges Ted’s Graduation Store 3.25% on the total credit card sales
each day to settle the credit card transactions. The college bookstore reported that
consumers purchased $420 in credit card purchases. The managerial accountant needs
to update the sales budget, the operating expenses budget, and the cash collections
budget to account for the credit sales. What amount should the managerial accountant
use to complete the sales budget, the operating expenses budget, and the cash
collections budget? In which month should the managerial accountant show this data?
What should the managerial accountant consider when updating the master budget?
21) Use the direct method of cash flows to answer the question.
Compute the change in accounts payable during the year.
22) Use the direct method of cash flows to answer the question.
Compute the change in accounts receivable during the year.
23) The income statement and a partial balance sheet for Vespoint Company is
presented below. Prepare the operating activities section of the statement of cash flows
using the indirect method.
24) The income statement and a partial balance sheet for Regovich Company is
presented below. Prepare the operating activities section of the statement of cash flows
using the indirect method.