Accounting answer sheet

Problem 1: 10 points, INCREMENTAL ANALYSIS

Part A)

	MAKE SUB-ASSEMBLY PART	BUY SUB-ASSEMBLY PART

Part B) Should the company make or buy the component part? Why?

Problem 2: 10 points, COST OF GOODS MANUFACTURED SCHEDULE

Problem 3: 15 points, STATEMENT OF CASH FLOWS

Cash flows from operating activities
Adjustments to reconcile net income to net cash provided by operating activities

Problem 4: 10 points, CASH BUDGET

Problem 5: 10 points, JOURNAL ENTRIES

DATE	ACCOUNT	DEBIT	CREDIT

Problem 6: 10 points, BREAK EVEN ANALYSIS & TARGET NET INCOME

Part A)

Break even in units =

Part B)

Break even in dollars =

Part C)

Required sales to meet target net income of $1,200,000 =