Acc Homework

AC202 Homework

Problem #1

Comparative statements for Kool Corporation are shown below:
   

Calculate trend percentages for all income statement amounts shown. Use 2010 as the base year.

Problem #2

. Express the following income statement information in common-size percents (round to nearest whole percent).
   

Problem #3

Shown below are selected data from the balance sheet of Certain Value Hardware, a small retail store (dollar amounts are in thousands):

Cash $ 40

Accounts receivable 200

Inventory 390

Total assets 900

Current liabilities 300

Non-current liabilities 240

From this information, compute the

(a) acid test ratio

(b) the current ratio

(c) the working capital (in thousands)

Shown below are selected data from the financial statements of Beck Intelligent Systems (dollar amounts are in millions, except for the per-share data).

Income statement data:

Net sales $4,000

Cost of goods sold 1,800

Operating expenses 1,400

Net income 600

Balance sheet data:

Average total equity 3,000

Average total assets 5,000

Per share data (these amounts stated in actual dollars, not millions):

Beck Intelligent Systems reported earnings per share for the year of
$2
and paid cash dividends of
$1
per share. At year-end, the Wall Street Journal listed Beck Intelligent Systems’ capital stock as trading at
$100
per share.

From this information, compute the:

(d) Gross margin ratio

(e) Return on total assets

(f) Return on equity

(g) Price/earnings ratio at year end

Given below are comparative balance sheets and an income statement for Ringer Corporation

Ringer Corporation
Balance Sheets – 2011
Dec. 31 Jan. 1

Ringer Corporation
Income Statement for 2011

Cash

$ 15,000

$ 14,000

Sales

$205,000

Accounts receivable

45,000

37,000

Cost of goods sold

(117,250)

Inventory

32,000

35,000

Gross profit on sales

$ 87,750

Equipment (net)

55,000

65,000

Operating expenses

(57,950)

$147,000

$151,000

Operating income

$ 29,800

Accounts payable

25,000

28,000

Interest expense and income taxes

(6,225)

Dividends payable

8,000

4,000

Net income

$ 23,575

Long-term note
payable

14,000

14,000

Capital stock, $5 par

70,000

70,000

Retained earnings

30,000

35,000

$147,000

$151,000

All sales were made on account. Cash dividends declared during the year totaled $28,575.

From this information, compute the:

(h) Accounts receivable turnover

(i) Inventory turnover

(j) Debt ratio rounded to the nearest percent

(k) Earnings per share

(l) Return on common stockholders’ equity

Problem #4

Account balances from Jolly B Manufacturing Company’s accounting records for the month ended December 31, 2011 appear below:

Finished Goods Inventory, December 31

$ 15,600

Factory Supervisory Salaries

22,000

Income Tax Expense

12,000

Raw Materials Inventory, December 1

8,800

Work In Process Inventory, December 31

22,400

Sales Salaries Expense

12,300

Factory Depreciation Expense

2,000

Finished Goods Inventory, December 1

12,500

Raw Materials Purchases

234,000

Work In Process Inventory, December 1

16,000

Factory Utilities Expense

3,200

Direct Labor

54,000

Raw Materials Inventory, December 31

10,200

Sales Returns and Allowances

1,200

Indirect Labor

3,600

Instructions: Prepare a schedule of cost of goods manufactured for Jolly B Manufacturing Company for the month ended December 31, 2011.

Problem #5

The following cost items relate to the Brock Company. Classify each cost as a variable cost, a fixed cost, or a mixed cost by placing an X in the appropriate column. Each cost should be evaluated in terms of the volume of units of finished products produced. Also indicate with an X for each item if it is a product cost or a period cost. (if you click on the graph twice, you can mark on it)
 

Variable, fixed or mixed cost?Product or period cost?

Cost ItemVariableFixedMixedProductPeriod

Executive salary

Direct Labor

Direct Materials

Depreciation of

manufacturing equipment

Delivery Expense

Indirect labor

Factory utilities

Delivery Expense

Television Advertising

Sheet1

Variable, fixed or mixed cost? Product or period cost?
Cost Item Variable Fixed Mixed Product Period
Executive salary
Direct Labor
Direct Materials
Depreciation of manufacturing equipment
Delivery Expense
Indirect labor
Factory utilities
Delivery Expense
Television Advertising

Sheet2

Sheet3