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1) Identify and describe the two main components of stockholders' equity.
2) Eclectic Furniture Company allocates its indirect salaries of $12,500 on the basis of
sales. Determine the indirect salaries allocated to Departments 1 and 2 using the
following information.
Salaries allocated to Dept. 1 _______________
Salaries allocated to Dept. 2 _______________
3) Identify at least three reasons for managers to favor the internal rate of return (IRR)
over other capital budgeting approaches.
4) ________________ includes currency, coins, and amounts on deposit in checking
accounts and many savings accounts.
5) A _________________ is a factor that causes the cost of an activity to go up and
down.
6) Show the December 31 adjusting entry to record $750 of earned but unpaid salaries
of employees at the end of the current accounting period.
7) ________________________ is the number of shares that a corporation's charter
allows it to sell.
8) What is the acid-test ratio? How does it measure a company's liquidity?
9) Billabong Resources provides the following data to enable you to calculate overhead
rates: Machining Department Overhead is $16,000, which is to be allocated on
estimated machine hours of 25,000. The rate per Machine Hour would be
_________________. If Machining cost is to be allocated to three jobs which consumed
A = 3,000 hours, B = 6,000 hours, and C = 1,000 hours respectively; then Job A should
be charged $__________________; Job B should be charged $___________________;
and Job C $_______________.
10) Based on the information in the following income statement and balance sheet for
Montego Bay Corporation, determine the cash flows from operating activities using the
direct method.
