1) The following data is available for Osman Corp. for the current year:
Calculate the equivalent units of production for the year using the weighted average
method.
2) A company enters into an agreement to make 5 annual year-end payments of $3,000
each, starting one year from now. The annual interest rate is 6%. The present value of
an annuity factor for 5 periods, 6% is 4.2124. What is the present value of these five
payments?
3) What is the effect of dividend preferences on preferred stock? Explain how a
dividend is distributed in the case of cumulative preferred stock with dividends in
arrears.
4) The following special journal is taken from a merchandising company that uses the
perpetual inventory system:
1> What is the name of the journal shown above?
2> Write an explanation for each entry in this journal.
3> What do the numbers in parentheses at the bottom of the journal indicate?
5) Mansell reported net income of $233.4 million, net cash provided by operating
activities of $131.4 million, total cash flows of $187.7 million, and average total assets
of $2,040.8 million at the end of the year. Calculate the cash flow on total assets ratio
for Mansell.
6) A company reported the current month purchase and sales data for its only product
and uses the perpetual inventory system. Determine the cost assigned to ending
inventory and cost of goods sold using LIFO.
7) There are many differences between financial and managerial accounting. Identify
and explain at least three of these differences.
8) Explain how to calculate total asset turnover. Describe what it reveals about a
company’s financial condition, whether a higher or lower ratio is desirable, and how it
is best applied for comparative purposes.
9) In preparing a budget for the last three months of the current year, Urban Company is
planning the units of merchandise it must order each month. The company’s policy is to
have 15% of the next month’s sales in its inventory at the end of each month. Projected
sales for October, November, and December are 27,000 units, 29,500 units, and 32,500
units, respectively. How many units must be ordered in November?
10) In accounting, the rule that requires that assets, services, and liabilities be recorded
initially at the cash or cash-equivalent value of what was given up or of the item
received is called _____________________________.