ACCT 221 Assistanace
Flair4H
quiz_1_hwmarket.xlsB-15.03
| Melanie Mielke Construction Corporation is considering the appropriate accounting for two unrelated events during the year. The first event related to the effects of a labor strike that resulted in a work stoppage on a major construction project. $2,000,000 of building material that was left exposed to weather conditions during the strike was lost. The construction trade relies heavily on unionized labor and strikes are a common negotiating tool. The second event was a $3,000,000 gain related to the sale of valuable antiquities that were excavated at a construction site. This event was completely unexpected. |
| Melanie Mielke's annual sales were $9,000,000, at a gross margin of 15%. Selling expenses totaled $300,000, and administrative expenses totaled $800,000. Mielke is subject to a 30% income tax rate. |
| Prepare the 20XX income statement for Melanie Mielke Construction Corporation. |
&R&"Myriad Web Pro,Bold"&20B-15.03
B-15.03
Worksheet- B-15.03
| MELANIE MIELKE CONSTRUCTION COMPANY | ||||
| Income Statement | ||||
| For the Year Ending December 31, 20XX | ||||
| Sales | $ - | |||
| Cost of goods sold | - | |||
| Gross profit | $ - | |||
| Operating expenses | ||||
| $ - | ||||
| - | ||||
| - | - | |||
| $ - | ||||
| - | ||||
| $ - | ||||
| $ - | ||||
| - | ||||
| - | ||||
| Net income | $ - |
&L&"Myriad Web Pro,Bold"&12Name:
Date: Section: &R&"Myriad Web Pro,Bold"&20B-15.03
B-15.03
16.01
| Fairfield Corporation owns three separate subsidiaries. The Board of Directors is developing a strategy to withdraw $1,000,000 in cash from one of the subsidiaries to finance the acquisition of a fourth business. Prepare the current and quick ratio for each subsidiary, and rank order the subsidiaries based on their ability to pay a dividend to the parent company without jeopardizing liquidity. | |||||
| Sub A | Sub B | Sub C | |||
| Cash | $ 1,000,000 | $ 3,000,000 | $ 5,000,000 | ||
| Trading securities | 3,000,000 | 2,000,000 | 1,000,000 | ||
| Accounts receivable | 6,000,000 | 5,000,000 | 14,000,000 | ||
| Inventory | 4,000,000 | 8,000,000 | 7,000,000 | ||
| Prepaid rent | 2,000,000 | 2,000,000 | 3,000,000 | ||
| Accounts payable | 5,000,000 | 2,000,000 | 8,000,000 | ||
| Interest payable | 1,000,000 | 1,000,000 | 6,000,000 | ||
| Note payable (due in 6 months) | 4,000,000 | 1,500,000 | 4,000,000 | ||
| Unearned revenues | 3,000,000 | 500,000 | 2,000,000 |
B-16.01
Worksheet- B-16.01
| Sub A | Sub B | Sub C | |||
| Cash | $ 1,000,000 | $ 3,000,000 | $ 5,000,000 | ||
| Trading securities | 3,000,000 | 2,000,000 | 1,000,000 | ||
| Accounts receivable | 6,000,000 | 5,000,000 | 14,000,000 | ||
| Quick Assets | |||||
| Inventory | 4,000,000 | 8,000,000 | 7,000,000 | ||
| Prepaid rent | 2,000,000 | 2,000,000 | 3,000,000 | ||
| Current Assets | |||||
| Accounts payable | 5,000,000 | 2,000,000 | 8,000,000 | ||
| Interest payable | 1,000,000 | 1,000,000 | 6,000,000 | ||
| Note payable (due in 6 months) | 4,000,000 | 1,500,000 | 4,000,000 | ||
| Unearned revenues | 3,000,000 | 500,000 | 2,000,000 | ||
| Current Liabilities | |||||
| QUICK RATIO (quick assets ÷ current liabilities) | |||||
| CURRENT RATIO (current assets ÷ current liabilities) |
B-16.01
17.02
| The following draft comments were prepared by Robert Phoenix, president of Phoenix Island Sportsware. The comments are to be delivered in conjunction with the introduction of Bev Antilley, Phoenix's newly hired controller. Review these comments and prepare suggested corrections for the underlined words. | |
| Today, I am very happy to announce that our search for a new comptometre has ended with the successful hiring of Bev Antilley. Bev is very experienced and holds both the CMA and CFO designations issued by the IMA. | |
| Bev will be invaluable in our financial accounting function, as she focuses on our internal measurements and reporting. She has informed me that she wishes to shift our decision-making focus from one based on absorption costing theories to indirect costing methods. | |
| And, Bev has great experience in applying process costing methods . This knowledge will prove especially useful given the need to adequately measure costs for our variety of products and services that are being produced in a high-overhead environment. |
B-17.02
Worksheet- 17.02
| Today, I am very happy to announce that our search for a new comptometre has ended with the successful hiring of Bev Antilley. Bev is very experienced and holds both the CMA and CFO designations issued by the IMA. | |
| Bev will be invaluable in our financial accounting function, as she focuses on our internal measurements and reporting. She has informed me that she wishes to shift our decision-making focus from one based on absorption costing theories to indirect costing methods. | |
| And, Bev has great experience in applying process costing methods . This knowledge will prove especially useful given the need to adequately measure costs for our variety of products and services that are being produced in a high-overhead environment. |
B-17.02
