Accounting-Forcourseworkhero.co.uk only

Please see attachment, please do it on Microsoft word not excel.

 

Due tomorrow Thursday at 8a EST

 

Thank you.

Accounting Basics for Managers

Final Exam

Problem 1:

The balance sheet presents the following common stock information:
Common stock, $10 par value, 7,000,000 shares authorized, 5,700,000 shares issued, 5,500,000 shares outstanding.

(a.) Calculate the dollar amount that will be presented as Common stock.

(b.) Calculate the total amount of a cash dividend of $1.00 per share.

(c.) What accounts for the difference between issued shares and outstanding shares? 

Problem 2:

Presented below is the income statement for Smith Food Center for the month of July:

  

Based on an analysis of cost behavior patterns, it has been determined that the company’s contribution margin ratio is 15 percent.

(a.) Rearrange the above income statement to the contribution margin format.

Problem 2 (continued):

(b.) If sales increase by 10 percent, what will be the firm’s operating income?

(c.) Calculate the amount of revenue required for Smith’s Food Center to break even. 

Problem 3:

The cost formula for the maintenance department of the Eifel Co. is $6,500 per month plus $3.50 per machine hour used by the production department.

a. Calculate the maintenance cost that would be budgeted for the month of May in which 5,700 machine hours are planned to be used.

b. Prepare an appropriate performance report (contains columns for the original budget, flex budget, actual cost, variance) for the maintenance department assuming that 5,860 machine hours were actually used in the month of May, and the total maintenance cost incurred was $28,010. 

Problem 4:

Danzi, Inc., has budgeted sales for the month of July and estimated cost behavior patterns for a number of its expense items listed below. From this information prepare an operating expense budget for the month of July.