ws 7 a4

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xs_supply_company.xlsx
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PA10-01

Student Name:
Class:
Problem 10-01
COOLBROOK COMPANY
Requirement 1:
Name of Variable #1 Operator Name of Variable #2
ROI = Operating Income /
Jack Terry: Select correct operator from drop-down list		 Average Invested Assets
River Division Stream Division
Amount of Variable #1 Amount of Variable #2 Amount of Variable #1 Amount of Variable #2
$300,000 / 1,200,000 $500,000 / 1,800,000
Result Result
25.0%
Jack Terry: Round to nearest whole unit using Excel's ROUND function 		27.8%
Jack Terry: Round to nearest whole unit using Excel's ROUND function
Correct! Correct!
Name of Variable #1 Operator Name of Variable #2 Operator Name of Variable #3
Residual = Net Operating Income - Average Invested Assets * Hurdle Rate
Income
River Division Stream Division
Amount of Variable #1 Amount of Variable #2 Amount of Variable #1 Amount of Variable #2
$300,000 - 1,200,000 * 6% $500,000 - 1,800,000 * 6%
Result Result
$228,000
Jack Terry: Round to nearest whole unit using Excel's ROUND function 		$392,000
Jack Terry: Round to nearest whole unit using Excel's ROUND function
Correct! Correct!
Requirement 2a:
ROI = River Division Stream Division
Amount of Variable #1 Amount of Variable #2 Amount of Variable #1 Amount of Variable #2
$330,000 / 1,200,000 $550,000 / 1,800,000
Result Result
27.5%
Jack Terry: Round to nearest whole unit using Excel's ROUND function 		30.56%
Jack Terry: Round to nearest whole unit using Excel's ROUND function
Correct! Correct!
Residual = River Division Stream Division
Income Amount of Variable #1 Amount of Variable #2 Amount of Variable #1 Amount of Variable #2
$330,000 - 1,200,000 * 6% $550,000 - 1,800,000 * 6%
Result Result
$258,000
Jack Terry: Round to nearest whole unit using Excel's ROUND function 		$442,000
Jack Terry: Round to nearest whole unit using Excel's ROUND function 		years
Correct! Correct!
Requirement 2b:
ROI = River Division Stream Division
Amount of Variable #1 Amount of Variable #2 Amount of Variable #1 Amount of Variable #2
$270,000 / 1,200,000 $450,000 / 1,800,000
Result Result
22.5%
Jack Terry: Round to nearest whole unit using Excel's ROUND function 		25.0%
Jack Terry: Round to nearest whole unit using Excel's ROUND function
Correct! Correct!
Residual = River Division Stream Division
Income Amount of Variable #1 Amount of Variable #2 Amount of Variable #1 Amount of Variable #2
$270,000 - 1,200,000 * 6% $450,000 - 1,800,000 * 6%
Result Result
$198,000
Jack Terry: Round to nearest whole unit using Excel's ROUND function 		$342,000
Jack Terry: Round to nearest whole unit using Excel's ROUND function 		years
Correct! Correct!
Requirement 2c:
ROI = River Division Stream Division
Amount of Variable #1 Amount of Variable #2 Amount of Variable #1 Amount of Variable #2
$400,000 / 1,450,000 $600,000 / 2,050,000
Result Result
27.59%
Jack Terry: Round to nearest whole unit using Excel's ROUND function 		29.27%
Jack Terry: Round to nearest whole unit using Excel's ROUND function
Correct! Correct!
Residual = River Division Stream Division
Income Amount of Variable #1 Amount of Variable #2 Amount of Variable #1 Amount of Variable #2
$400,000 - 1,450,000 * 6% $600,000 - 2,050,000 * 6%
Result Result
$313,000
Jack Terry: Round to nearest whole unit using Excel's ROUND function 		$477,000
Jack Terry: Round to nearest whole unit using Excel's ROUND function 		years
Correct! Correct!
Requirement 2d:
Residual = River Division Stream Division
Income Amount of Variable #1 Amount of Variable #2 Amount of Variable #1 Amount of Variable #2
$300,000 - 1,200,000 * 10% $500,000 - 1,800,000 * 10%
Result Result
$180,000
Jack Terry: Round to nearest whole unit using Excel's ROUND function 		$320,000
Jack Terry: Round to nearest whole unit using Excel's ROUND function
Jack Terry: Round to nearest whole unit using Excel's ROUND function
Jack Terry: Round to nearest whole unit using Excel's ROUND function
Jack Terry: Round to nearest whole unit using Excel's ROUND function
Jack Terry: Round to nearest whole unit using Excel's ROUND function
Jack Terry: Select correct operator from drop-down list
Jack Terry: Round to nearest whole unit using Excel's ROUND function
Jack Terry: Round to nearest whole unit using Excel's ROUND function
Jack Terry: Round to nearest whole unit using Excel's ROUND function
Jack Terry: Round to nearest whole unit using Excel's ROUND function
Jack Terry: Round to nearest whole unit using Excel's ROUND function
Jack Terry: Round to nearest whole unit using Excel's ROUND function
Jack Terry: Round to nearest whole unit using Excel's ROUND function
Jack Terry: Round to nearest whole unit using Excel's ROUND function
Jack Terry: Round to nearest whole unit using Excel's ROUND function
Jack Terry: Round to nearest whole unit using Excel's ROUND function
Jack Terry: Round to nearest whole unit using Excel's ROUND function
Jack Terry: Round to nearest whole unit using Excel's ROUND function 		years
Correct! Correct!

Given PA10-01

Given Data PA10-01:
COOLBROOK COMPANY
Information for past year:
River Stream
Division Division
Sales revenue $ 1,200,000 $ 1,800,000
Cost of goods sold and operating expenses 900,000 1,300,000
Net operating Income $ 300,000 $ 500,000
Average invested assets $ 1,200,000 $ 1,800,000
Additional Information:
Company's hurdle rate 6%
2a. Increase in operating income 10%
2b. Decrease in operating income 10%
2c. Amount of investment in each division $ 250,000
Additional income generated in each division $ 100,000
2d. Hurdle rate changed to: 10%

PA12-3

Student Name:
Class:
Problem A 12-3
Requirement 1:
Balance Sheet at December 31
2013 2012 Change
Cash
Accounts Receivable
Merchandise Inventory
Property and Equipment
Less: Accumulated Depreciation
$ - $ -
Accounts Payable
Wages Payable
Note Payable, Long-Term
Contributed Capital
Retained Earnings
$ - $ -
Income Statement for 2004
Sales
Cost of Goods Sold
Other Expenses
Net Income $ -
Try again!
XS SUPPLY COMPANY
Statement of Cash Flows
For the Year Ended December 31, 2013
Cash flows from operating activities:
Net Income
Jack Terry: Enter the appropriate data in the yellow cells. Your result for Dec. 31 cash balance will be verified. 		$ -
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation Expense $ -
Increase in Accounts Receivable -
Increase in Merchandise Inventory -
Increase in Accounts Payable -
Decrease in Wages Payable - -
Net cash provided by operating activities -
Cash flows from investing activities:
Cash Payments to purchase equipment -
Net cash usd by investing activities -
Cash flows from financing activities:
Cash Payments on long-term note -
Cash receipts from issuing stock -
Net cash provided by financing activities -
Net increase in cash during the year -
Cash balance, beginning -
Cash balance, Ending $ -
Try again!
Requirement 2:

x: Enter a short answer in the space provided.
Jack Terry: Enter given data and formulas to calculate changes. Your results for changes will be verified.

Given PA12-3

Given Data PA12-3:
XS SUPPLY COMPANY
Comparative Balance Sheets and Income Statement
For the Year Ended December 31, 2013
2013 2012
Balance Sheet at December 31
Cash $ 34,000 $ 29,000
Accounts Receivable 35,000 28,000
Merchandise Inventory 41,000 38,000
Property and Equipment 121,000 100,000
Less: Accumulated Depreciation (30,000) (25,000)
$ 201,000 $ 170,000
Accounts Payable $ 36,000 $ 27,000
Wages Payable 1,200 1,400
Note Payable, Long-Term 38,000 44,000
Contributed Capital 88,600 72,600
Retained Earnings 37,200 25,000
$ 201,000 $ 170,000
Income Statement for 2013
Sales $ 120,000
Cost of Goods Sold 70,000
Other Expenses 37,800
Net Income $ 12,200
Additional Data:
a. Cash paid for equipment. $ 21,000
b. Cash paid on long-term note payable. $ 6,000
c. Cash received from issuing new stock. $ 16,000
d. Cash dividend declared and paid. $ -
e. Other expenses:
Depreciation $ 5,000
Wages $ 20,000
Taxes $ 6,000
Other $ 6,800
f. Accounts payable includes only inventory
purchases on credit.
Taxes and other expenses paid fully in cash.