final accounts for 113 berkeleycollege

The first budget to be prepared when making a master budget is the

1 points   

Question 2

1.  

J.         J. Johnson has decided to supplement his income by selling beehives. He expects to sell 25,000 hives in 2010. He ended 2009 with 2,500 completed hives in inventory and would like to complete operations in 2010 with at least 2,800 completed hives in inventory. There is no ending work in process inventory. One beehive holds about 250 bees. The bees are purchased for $4.00 per 1,000 bees. The hives sell for $15.00 each.

How many beehives would the 2010 production budget identify as needing to be produced?

1 points   

Question 3

1.  

J.        J. Johnson has decided to supplement his income by selling beehives. He expects to sell 25,000 hives in 2010. He ended 2009 with 2,500 completed hives in inventory and would like to complete operations in 2010 with at least 2,800 completed hives in inventory. There is no ending work in process inventory. One beehive holds about 250 bees. The bees are purchased for $4.00 per 1,000 bees. The hives sell for $15.00 each.

What would be the total of the 2010 period sales budget?

1 points   

Question 4

1.  

           Fantastic Futons goes through two departments in the production process. Each futon requires two direct labor hours in Department A and one hour in Department B. Labor cost is $8 per hour in Department A and $10 per hour in Department B.

 Assuming the amount budgeted to be produced in January is 30,000 units, what is the budgeted direct labor cost for January?

1 points   

Question 5

1.  

           Selling and administrative expenses are billed and paid the month after they occur. Selling and administrative expenses have both a fixed and a variable component. The fixed component is a constant $4,700 a month. The variable component equals 5 percent of revenues. Given revenues of $300,000 for January, $350,000 for February, and $400,000 for March, what would be the budgeted selling and administrative expenses that would be paid in March?

1 points   

Question 6

1.  

 The projections of direct materials purchases that follow are for the Sombo Corporation.

The company pays for 60 percent of purchases on account in the month of purchase and 40 percent in the month following the purchase. What is the expected cash payment for direct materials for the month of February?

1 points   

Question 7

1.  

           Smile Industries capital structure consists of $1,000,000 of debt at 6 percent interest and 1,500,000 of stockholders equity at 2 percent.

 The average cost of capital of Smile Industries is

1 points   

Question 8

1.  

            Discounting calculates the __________ value of an amount to be received.

1 points   

Question 9

1.  

            The net present value method of evaluating proposed investments

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Question 10

1.  

            A company is considering a project with annual after-tax cash flows of $5,700.00 per year for six years. The company's cost of capital is 14 percent. Present and future value factors for a 14 percent interest rate for six years are as follows:

Using the net present value method, what is the maximum amount that the company should invest?

1 points   

Question 11

1.  

            When using the net present value method to compare keeping an old building or disposing of it and acquiring a new building, the current cash residual value of the old building should be

1 points   

Question 12

1.  

           Chicago Co. is interested in purchasing a machine that would improve its operational efficiency. The cost is $200,000 with an estimated residual value of $20,000 and a useful life of eight years. Cash inflows are expected to increase by $40,000 a year. The company's minimum rate of return is 10 percent. The present value of $1 for eight years at 10 percent is 0.467, and the present value of an annuity of $1 at 10 percent and eight years is 5.335.

The net present value of the project is

1 points   

Question 13

1.  

           Seattle, Inc., is contemplating a project that costs $190,000. Expectations are that annual cash revenues will be $70,000 and annual expenses (including depreciation) will total $30,000. The project has a six-year useful life and a residual value of $40,000. Assume Seattle Inc. uses straight line method of depreciation.

 The project's payback period is

1 points   

Question 14

1.  

The primary purpose of the statement of cash flows is to provide information

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Question 15

1.  

            Royer Corporation engaged in this transaction:

Purchased inventory with cash.

Indicate which section, if any,  the above transaction would appear in, or relate to, on a statement of cash flows.

1 points   

Question 16

1.  

            Royer Corporation engaged in this transaction:

Sold buildings and equipment for cash.

Indicate which section, if any,  the above transaction would appear in, or relate to, on a statement of cash flows.

1 points   

Question 17

1.  

           If the indirect method is used to prepare a statement of cash flows, which of the following would be added to net income to arrive at net cash flows from operating activities?

1 points   

Question 18

1.  

            Assume the indirect method is used to compute net cash flows from operating activities. For this item extracted from the financial statements—Increase in Accounts Receivable—indicate the effect on net income in arriving at net cash flows from operating activities by choosing one of the following:

1 points   

Question 19

1.  

            Use this information to answer the following question.

 Northbrook Corporation is preparing a statement of cash flows. The following transactions occurred during the year:

 1. Sold machinery for $9,000 cash.

2. Purchased a building for $80,000 cash.

3. Issued $70,000 worth of stock to acquire an airplane.

4. Converted long-term bonds by issuing $100,000 worth of stock.

5. Declared and paid a $10,000 cash dividend.

 Transaction 2 would be found on the statement of cash flows in the

1 points   

Question 20

1.  

 In a common-size balance sheet for a retail store, the 100 percent amount is for

1 points   

Question 21

1.  

            Use the following information to answer questions 21 – 25.

 Following are the financial statements for Jasmin Corporation for the year ended December 31, 2009. Assume that all balance sheet amounts represent both average and ending figures.

What is the current ratio for this corporation? Round your answer to two decimal places.

1 points   

Question 22

1.  

What is the receivable turnover for Jasmin corporation? Round your answer to one decimal place.

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Question 23

1.  

What is the inventory turnover for Jasmin Corporation? Round your answer to one decimal place.

1 points   

Question 24

1.  

What is the return on assets for Jasmin Corporation? Round your answer to one decimal place.

1 points   

Question 25

1.  

What is the profit margin for Jasmin Corporation? Round your answer to one decimal place.