Acc Homework
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ac202_homework.docxAC202 Homework
Comparative statements for Kool Corporation are shown below:
Calculate trend percentages for all income statement amounts shown. Use 2010 as the base year.
Problem #2
. Express the following income statement information in common-size percents (round to nearest whole percent).
Problem #3
Shown below are selected data from the balance sheet of Certain Value Hardware, a small retail store (dollar amounts are in thousands):
Cash $ 40
Accounts receivable 200
Inventory 390
Total assets 900
Current liabilities 300
Non-current liabilities 240
From this information, compute the
(a) acid test ratio
(b) the current ratio
(c) the working capital (in thousands)
Shown below are selected data from the financial statements of Beck Intelligent Systems (dollar amounts are in millions, except for the per-share data).
Income statement data:
Net sales $4,000
Cost of goods sold 1,800
Operating expenses 1,400
Net income 600
Balance sheet data:
Average total equity 3,000
Average total assets 5,000
Per share data (these amounts stated in actual dollars, not millions):
Beck Intelligent Systems reported earnings per share for the year of $2 and paid cash dividends of $1 per share. At year-end, the Wall Street Journal listed Beck Intelligent Systems’ capital stock as trading at $100 per share.
From this information, compute the:
(d) Gross margin ratio
(e) Return on total assets
(f) Return on equity
(g) Price/earnings ratio at year end
Given below are comparative balance sheets and an income statement for Ringer Corporation
|
Ringer Corporation Balance Sheets - 2011 Dec. 31 Jan. 1 |
|
Ringer Corporation Income Statement for 2011 |
|
||
|
Cash |
$ 15,000 |
$ 14,000 |
|
Sales |
$205,000 |
|
Accounts receivable |
45,000 |
37,000 |
|
Cost of goods sold |
(117,250) |
|
Inventory |
32,000 |
35,000 |
|
Gross profit on sales |
$ 87,750 |
|
Equipment (net) |
55,000 |
65,000 |
|
Operating expenses |
(57,950) |
|
|
$147,000 |
$151,000 |
|
Operating income |
$ 29,800 |
|
Accounts payable |
25,000 |
28,000 |
|
Interest expense and income taxes |
(6,225) |
|
Dividends payable |
8,000 |
4,000 |
|
Net income |
$ 23,575 |
|
Long-term note payable |
14,000 |
14,000 |
|
|
|
|
Capital stock, $5 par |
70,000 |
70,000 |
|
|
|
|
Retained earnings |
30,000 |
35,000 |
|
|
|
|
|
$147,000 |
$151,000 |
|
|
|
All sales were made on account. Cash dividends declared during the year totaled $28,575.
From this information, compute the:
(h) Accounts receivable turnover
(i) Inventory turnover
(j) Debt ratio rounded to the nearest percent
(k) Earnings per share
(l) Return on common stockholders’ equity
Problem #4
Account balances from Jolly B Manufacturing Company’s accounting records for the month ended December 31, 2011 appear below:
|
Finished Goods Inventory, December 31 |
$ 15,600 |
|
Factory Supervisory Salaries |
22,000 |
|
Income Tax Expense |
12,000 |
|
Raw Materials Inventory, December 1 |
8,800 |
|
Work In Process Inventory, December 31 |
22,400 |
|
Sales Salaries Expense |
12,300 |
|
Factory Depreciation Expense |
2,000 |
|
Finished Goods Inventory, December 1 |
12,500 |
|
Raw Materials Purchases |
234,000 |
|
Work In Process Inventory, December 1 |
16,000 |
|
Factory Utilities Expense |
3,200 |
|
Direct Labor |
54,000 |
|
Raw Materials Inventory, December 31 |
10,200 |
|
Sales Returns and Allowances |
1,200 |
|
Indirect Labor |
3,600 |
Instructions: Prepare a schedule of cost of goods manufactured for Jolly B Manufacturing Company for the month ended December 31, 2011.
Problem #5
Variable, fixed or mixed cost?Product or period cost?
Cost ItemVariableFixedMixedProductPeriod
Executive salary
Direct Labor
Direct Materials
Depreciation of
manufacturing equipment
Delivery Expense
Indirect labor
Factory utilities
Delivery Expense
Television Advertising
Sheet1
| Variable, fixed or mixed cost? | Product or period cost? | ||||
| Cost Item | Variable | Fixed | Mixed | Product | Period |
| Executive salary | |||||
| Direct Labor | |||||
| Direct Materials | |||||
| Depreciation of manufacturing equipment | |||||
| Delivery Expense | |||||
| Indirect labor | |||||
| Factory utilities | |||||
| Delivery Expense | |||||
| Television Advertising |
