Managerial exam 1
Which of the following is a reason why a job order costing system is appropriate for a custom furniture manufacturer?
The cost incurred for each job will differ as per the order specifications. 17.1-7
Arabica Manufacturing uses a predetermined overhead allocation rate based on the number of machine hours. At the beginning of the year, it estimated total manufacturing overhead costs to be $1,050,000, total number of direct labor hours to be 5,000, and total number of machine hours to be 26,000 hours. What was the predetermined overhead allocation rate? (Round your answer to the nearest cent.)
$40.38 per machine hour 17.3-16a 1,050,000/26000= 40.38
A company reports total assets of $870,000 and stockholders' equity of $560,000. Calculate the debt ratio. (Round your answer to two decimal places.)
35.63% E.4-41 1.Total assets $870,000 Less: Stockholders' equity (560,000 ) = Total liabilities $310,000 Debt ratio* 35.63% 2.Debt ratio = Total liabilities / Total assets = $310,000 / $870,000 = 35.63%
Archangel Manufacturing calculated a predetermined overhead allocation rate at the beginning of the year based on a percentage of direct labor costs. The production details for the year are given below: Total manufacturing overhead estimated at the beginning of the year $140,000. Total direct labor costs estimated at the beginning of the year $350,000. Total direct labor hours estimated at the beginning of the year 12,000 direct labor hours. Actual manufacturing overhead costs for the year $159,000. Actual direct labor costs for the year $362,000. Actual direct labor hours for the year 12,400 direct labor hours. Calculate the allocation rate for the year based on the above data.
40% 17.3-18 Total manufacturing overhead estimated at the beginning of the year $140,000 ÷ Total direct labor costs estimated at the beginning of the year 350,000 = Predetermined overhead allocation rate 40% Diff: 1
Archangel Manufacturing calculated a predetermined overhead allocation rate at the beginning of the year based on a percentage of direct labor costs. The production details for the year are given below: Total manufacturing overhead estimated at the beginning of the year $140,000 Total direct labor costs estimated at the beginning of the year $350,000 Total direct labor hours estimated at the beginning of the year 12,000 direct labor hours Actual manufacturing overhead costs for the year $159,000 Actual direct labor costs for the year $362,000 Actual direct labor hours for the year 12,400 direct labor hours Calculate the allocation rate for the year based on the above data
40.00% 17.3-18 Total manufacturing overhead estimated at the beginning of the year $140,000 ÷ Total direct labor costs estimated at the beginning of the year 350,000 = Predetermined overhead allocation rate 40%
Coleman, Inc. provides the following data from its income statement for 2017: Net Sales $500,000 Cost of Goods Sold (200,000) Gross Profit $300,000 Calculate the gross profit percentage. (Round your answer to two decimal places.)
60.00% E.4-34 http://www.calculatorsoup.com/calculators/financial/margin-calculator.php use net sales and cost of goods
Period costs are the ________.
@@A. costs that are incurred and expensed during the same accounting period This is the correct answer.B. costs related to production of products the company purchases and sells C. product costs that must be paid in the accounting period in which they are incurred D. same as manufacturing overhead costs 16.3-34
KRD Supplies Corporation provided the following information for the year: Beginning Balance—Work-in-Process Inventory $24,000 Ending Balance—Work-in-Process Inventory 56,000 Beginning Balance—Raw Materials Inventory 83,000 Ending Balance—Raw Materials Inventory 60,000 Purchases—Raw Materials 362,000 Direct Labor 470,000 Indirect Labor 18,000 Depreciation on Factory Plant and Equipment 24,000 Plant Utilities and Insurance 272,000 What was the amount of the manufacturing overhead costs?
@A) $314,000 B) $42,000 C) $296,000 D) $488,000 Explanation: +Plant Utilities and Insurance 272,000 +Depreciation on Factory Plant and Equipment 24,000 +Indirect Labor 18,000 = Total Manufacturing Overhead Costs $314,000
Robbinsdale, Inc. is a merchandiser of stone ornaments. The company sold 8,000 units during the year. The company has provided the following information: Sales Revenue $593,000 Purchases (excluding freight in) 300,000 Selling and Administrative Expenses 66,000 Freight In 15,000 Beginning Merchandise Inventory 46,000 Ending Merchandise Inventory 43,000 What is the cost of goods available for sale for the year?
@A) $361,000 B) $318,000 C) $346,000 D) $331,000 16.2-33 A) Cost of goods available for sale = Beginning Merchandise Inventory + Purchases + Freight In = $46,000 + $300,000 + $15,000 = $361,000
Partridge, Inc. provides the following information for 2017: Net income $33,000 Market price per share of common stock $13/share Dividends paid $0.90/share Common stock outstanding at Jan. 1, 2017 110,000 shares Common stock outstanding at Dec. 31, 2017 155,000 shares The company has no preferred stock outstanding. Calculate the dividend yield for common stock. (Round your answer to two decimal places.)
@A) 6.92% B) 1.92% C) 5.00% D) 7.44% E.4-60 Dividend yield = Annual dividend per share / Market price per share of common stock = $0.90 per share / $13 per share = 6.92%
Crystal, Inc. is a merchandiser of stone ornaments. The company sold 8,000 units during the year. The company has provided the following information: Sales Revenue $593,000 Purchases (excluding Freight In) 304,000 Selling and Administrative Expenses 68,000 Freight In 14,000 Beginning Merchandise Inventory 46,000 Ending Merchandise Inventory 42,000 What is the operating income for the year? (Round your answer to the nearest whole dollar.)
@A. $203,000 B. $271,000 C. $525,000 D. $322,000 16.2-15 Cost of Goods Sold = Beginning Merchandise Inventory + Purchases + Freight In - Ending Merchandise Inventory = $46,000 + $304,000 + $14,000 - $42,000 = $322,000 Operating Income = Sales Revenue - Cost of Goods Sold - Selling and Administrative Expenses = $593,000 - $322,000 - $68,000 = $203,000
The following information was obtained from MCB Manufacturing, Inc.: Advertising Costs $9,900 Indirect Labor 53,000 CEO's Salary 620,000 Direct Labor 40,000 Indirect Materials Used 7,500 Direct Materials Used 65,000 Factory Utilities 760 Factory Janitorial Costs 1,200 Manufacturing Equipment Depreciation 3,100 Delivery Vehicle Depreciation 1,000 Administrative Wages and Salaries 24,000 Calculate MCB Manufacturing's total product costs.
@A.$190,520 B.$106,000 C.$676,500 D.$186,500 16.3-54 Explanation: +Indirect labor $72,000 +Direct Labor 43,000 +Indirect Materials 72,000 +Direct Materials Used 63000 +Factory Utilities 920 +Factory Janitorial Costs 1,300 +Manufacturing Equipment Depreciation 1,800 = Total Product Costs $190,520
The Carlin Fabrication Plant suffered a fire incident at the beginning of the year, which resulted in the loss of property including the accounting records. Some data for the year were retrieved, and extracts from it are shown below: Total manufacturing overhead costs estimated at the beginning of the year $100,700 Total direct labor costs estimated at the beginning of the year $185,000 Total direct labor hours estimated at the beginning of the year 3,000 direct labor hours Total machine hours estimated at the beginning of the year 9,600 machine hours Actual manufacturing overhead costs for the year $96,900 Actual direct labor costs for the year $147,000 Actual direct labor hours for the year 2,900 direct labor hours Actual machine hours for the year 10,000 machine hours The company's manufacturing overhead allocation is based on the number of machine hours. What is the amount of manufacturing overhead cost allocated to Work-in-Process Inventory during the year? (Round any intermediate calculations to two decimal places, and your final answer to the nearest dollar.)
@A.$104,900 B.$30,419 C.$335,666 D.$192,708 17.3-39 ?
The financial statements for Watertown Service Company include the following items: 2017 2016 Cash $46,500 $41,000 Shortminus−term Investments 24,000 13,000 Net Accounts Receivable 57,000 50,000 Merchandise Inventory 158,000 49,000 Total Assets 535,000 551,000 Accounts Payable 133,500 126,000 Salaries Payable 17,000 20,000 Long-term Note Payable 57,000 50,000 Compute working capital for 2017
@A.$135,000 .B.$27,000 C.$78,000 D.$128,000 E.4-10 Working capital = Current assets - Current liabilities Working capital = (Cash $46,500 + Short-term Investments $24,000 + Net Accounts Receivable $57,000 + Merchandise Inventory $158,000 ) - (Accounts Payable $133,500 + Salaries Payable $17,000 ) Working Capital = $285,500 - 150,500 Working Capital = $135,000
Josiah, Inc. provides the following information for 2017: Net income $350,000 Market price per share of common stock $50 per share Dividends paid $180,000 Common stock outstanding at Jan. 1, 2017 160,000 shares Common stock outstanding at Dec. 31, 2017 250,000 shares The company has no preferred stock outstanding. Calculate the earnings per share for 2017. (Round your answer to two decimal places.)
A) $0.83 per share B) $2.19 per share @C) $1.71 per share D) $1.40 per share Net income $350,000 Avg. number of common shares outstanding / 205,000 Earnings per share* $1.71 * Earnings per share = (Net income - Preferred dividend) / Weighted average number of common shares outstanding = Average number of common shares outstanding = (160,000 + 250,000 ) / 2 Average number of common shares outstanding = 205,000 shares
A.S. Design Corporation reports the following cost information for March: Cost of Goods Manufactured $80,000 Finished Goods Inventory, March 1 4,500 Finished Goods Inventory, March 31 2,700 Work-in-Process Inventory, March 1 9,670 Work-in-Process Inventory, March 31 1,000 Direct Labor 36,300 Direct Materials Used 16,900 What is the amount of manufacturing overhead incurred by the company in March?
A) $35,030 B) $143,870 @C) $18,130 D) $17,130 16.4-18 Explanation: +Cost of Goods Manufactured $80,000 -Direct Labor (36,300) -Direct Materials Used (16,900) -Work-in-Process Inventory, March 1 (9,670) +Work-in-Process Inventory, March 31 1,000 = Manufacturing Overhead $18,130
Bloomington, Inc. is a merchandiser of stone ornaments. The company sold 6,000 units during the year. The company has provided the following information: Sales Revenue $566,000 Purchases (excluding freight in) 300,000 Selling and Administrative Expenses 69,000 Freight In 13,000 Beginning Merchandise Inventory 44,000 Ending Merchandise Inventory 43,000 What is the cost of goods sold for the year?
A) $357,000 @B) $314,000 C) $312,000 D) $301,000 Answer: B 16.3-34 Explanation: B) Cost of goods sold = Beginning Merchandise Inventory + Purchases + Freight In - Ending Merchandise Inventory = $44,000 + $300,000 + $13,000 - $43,000 = $314,000
The accounts of Delphinia Dreams, Inc. showed the following balances at the beginning of October: Account Debit Raw Materials Inventory $31,000 Work−in−Process Inventory 40,000 Finished Goods Inventory 52,000 Manufacturing Overhead 24,000 During the month, direct materials amounting to $22,000 and indirect materials amounting to $5,000 were issued to production. What is the ending balance in the Work−in−Process Inventory account following these two transactions?
A.$40,000 @B.$62,000 C.$29,000 D.$12,000 17.2-15a +Beginning balance in WIP $40,000 +Add: Direct Materials transferred 22,000 = Ending balance $62,000
Daryl Corporation reports costs for the year as follows: Direct Materials Used $555,000 Wages to Line Workers 125,000 Office Rent 46,500 Indirect Materials Used 595,000 How much is the total product costs for the year?
A.$595,000 B.680,000 @C.$1,275,000 D.$1,321,500 16.3-44a Explanation: Total product costs = Raw Materials + Wages to Line Workers + Indirect Materials = $555,000 + $125,000 + $595,000 = $1,275,000
The financial statements of Weston Office Supply include the following items: 2017 2016 Cash $43,500 $50,000 Shortminus−term Investments 27,000 17,000 Net Accounts Receivable 102,000 97,000 Merchandise Inventory 125,000 119,000 Total Assets 527,000 554,000 Total Current Liabilities 251,000 242,000 Long-term Note Payable 59,000 51,000 What is 2017 current ratio? (Round your answer to two decimal places.
A.0.56 @B.1.19 C.0.84 D.1.70 E.4-12 Current Ratio = Total current assets / Total current liabilities Current Ratio = (Cash $43,500 + Short-term Investments $27,000 + Net Accounts Receivable $102,000 + Merchandise Inventory $125,000 ) / $251,000 Current Ratio = $297,500 / $251,000 Current Ratio = 1.19
e-Shop, Inc. has net sales on account of $1,500,000. The average net accounts receivable are $610,000. Calculate the days' sales in receivables. (Round your answer to two decimal places.)
A.365.00 days B.2.46 days C.897.90 days @D.148.37 days E4-29 Accounts receivable turnover ratio = Net credit sales / Average net accounts receivable = $1,500,000 / $610,000 = 2.46 Days' sales in receivables = 365 / Accounts receivable turnover ratio = 365 / 2.46 = 148.37
Wilson, Inc. provides the following data: 2017 2016 Cash $41,000 $25,000 Accounts Receivable, Net 128,000 62,000 Merchandise Inventory 71,000 50,000 Property, Plant, and Equipment, Net 195,000 120,000 Total Assets $435,000 $257,000 Net Credit Sales $280,000 Cost of Goods Sold (130,000) Gross Profit $150,000 Calculate accounts receivable turnover ratio form 2017. (Round your answer to two decimal places.)
A.5.60 times B.3.40 times @C.2.95 times D.2.19 times E4-32 Accounts receivable turnover ratio = Net credit sales / Average net accounts receivable = $280,000 / $95,000 = 2.95 times
Sheehan, Inc. provides the following income statement for 2017: Net Sales $240,000 Cost of Goods Sold 110,000 Gross Profit $130,000 Operating Expenses: Selling Expenses 45,000 Administrative Expenses 12,000 Total Operating Expenses 57,000 Operating Income $73,000 Other Revenues and (Expenses): Loss on Sale of Capital Assets (27,000) Interest Expense (1,000) Total Other Revenues and (Expenses) (28,000) Income Before Income Taxes $45,000 Income Tax Expense 5,300 Net Income $39,700 Calculate the times-interest-earned ratio. (Round your answer to two decimal places.)
A.73.00 times @B.46.00 times C.39.70 times D.45.00 times ??
Pretty, Inc. provides the following data: 2017 2016 Cash $28,000 $21,000 Accounts Receivable, Net 40,000 40,000 Merchandise Inventory 53,000 30,000 Property, Plant, and Equipment, Net 124,000 91,000 Total Assets $245,000 $182,000 Net Credit Sales $240,000 Cost of Goods Sold (130,000 ) Gross Profit $110,000 Calculate days' sales in inventory for 2017. (Round any intermediate calculations and your final answer to two decimal places.)
A.84.23 @B.116.61 C.63.11 D.148.81 E.4-31 Inventory turnover ratio = Cost of Goods Sold / Average Merchandise Inventory = $130,000 / [(53,000 + 30,000 ) / 2] = $130,000 / $41,500 = 3.13 times Days' sales in inventory = 365 / Inventory turnover ratio = 365 / 3.13 = 116.61
Zebra, Inc. cost of goods sold for the year is $2,300,000, and the average merchandise inventory for the year is $139,000. Calculate the inventory turnover ratio of the company. (Round your answer to two decimal places.)
A.93.96 times B.6.04 times C.8.27 times @D.16.55 times Inventory turnover ratio = Cost of Goods Sold / Average Merchandise Inventory = $2,300,000 / 139,000 = 16.55 times
Adelphia Manufacturing issued $70,000 of direct materials and $10,000 of indirect materials for production. Which of the following journal entries would correctly record the transaction?
A.Raw Materials Inventory 80,000 Finished Goods Inventory 70,000 Work-in-Process Inventory 10,000 @@B.Work-in-Process Inventory 70,000 (Left) Manufacturing Overhead10,000 (Left) Raw Materials Inventory 80,000 (right) C.Manufacturing Overhead 80,000 Raw Materials Inventory 80,000 D.Work-in-Process Inventory 80,000 Raw Materials Inventory 80,000 17.2-13
Underallocated overhead occurs when ________.
allocated overhead costs are less than actual overhead costs 17.5-9
At the end of the year, Beta, Inc. has an unadjusted debit balance in the Manufacturing Overhead account of $3,990. The adjusting journal entry needed to adjust the balance to zero will include a ________.
debit to Cost of Goods Sold $3,990 and credit to Manufacturing Overhead $3,990 17.5-12a
Jeremy Corporation estimated manufacturing overhead costs for the year to be $500,000. Jeremy also estimated 8,000 machine hours and 2,000 direct labor hours for the year. It bases the predetermined overhead allocation rate on machine hours. On January 31, Job 25 was completed. It required 6 machine hours and 1 direct labor hour. What is the amount of manufacturing overhead allocated to the completed job? (Round your intermediate calculations to one decimal place.)
A) $1,500.00 B) $437.50 @C) $375.00 D) $350.00 17.3-23 Predetermined overhead allocation rate = Total estimated overhead costs ÷ Total estimated quantity of the overhead allocation base Predetermined overhead allocation rate = $500,000 ÷ 8,000 machine hours = $62.50 per machine hour Allocated manufacturing overhead cost = Predetermined overhead allocation rate × Actual quantity of the allocation base used by each job Allocated manufacturing overhead cost = $62.50 × 6 machine hours = $375.
The following information relates to Carried Away Hot Air Balloons, Inc.: Advertising Costs $16,800 Sales Salary 15,200 Sales Revenue 570,000 President's Salary 51,000 Office Rent 55,000 Manufacturing Equipment Depreciation 1,500 Indirect Materials Used 5,700 Indirect Labor 10,300 Factory Repair and Maintenance 860 Direct Materials Used 23,710 Direct Labor 34,600 Delivery Vehicle Depreciation 930 Administrative Salaries 22,400 How much was Carried Away's manufacturing overhead?
A) $16,000 B) $16,860 @C) $18,360 D) $58,310 16.3-52 Explanation: +Indirect Labor $10,300 +Indirect Materials 5,700 +Factory Repair and Maintenance 860 +Manufacturing Equipment Depreciation 1,500 = Total Manufacturing Overhead $18,360
Jasper, Inc. reports the following cost information for March: Cost of Goods Manufactured $74,100 Manufacturing Overhead 18,800 Finished Goods Inventory, March 1 4,500 Finished Goods Inventory, March 31 2,000 Work-in-Process Inventory, March 1 9,100 Work-in-Process Inventory, March 31 1,100 Direct Materials Used 25,600 What is the cost of goods sold for March?
A) $2,300 B) $71,600 @C) $76,600 D) $78,600 16.4-2 Explanation: +Finished Goods Inventory, March 1 $4,500 +Cost of Goods Manufactured 74,100 -Finished Goods Inventory, March 31 (2,000) = Cost of Goods Sold $76,600
New Hope, Inc. is a merchandiser of stone ornaments. It sold 15,000 units during the year. The company has provided the following information: Sales Revenue $535,000 Purchases (excluding Freight In) 347,000 Selling and Administrative Expenses 32,500 Freight In 15,200 Beginning Merchandise Inventory 43,000 Ending Merchandise Inventory 56,500 How much is the gross profit for the year?
A) $218,800 B) $348,700 @@C) $186,300 D) $188,000 16.2-32 Explanation: C) Cost of Goods Sold = Beginning Merchandise Inventory + Purchases + Freight In - Ending Merchandise Inventory = $43,000 + $347,000 + $15,200 - 56,500 = $348,700 Gross Profit = Sales Revenue - Cost of Goods Sold = $535,000 - $348,700 = $186,300
) The following information was obtained from Fizz, Inc.: Advertising Costs $10,600 Indirect Labor 7,000 CEO's Salary 500,000 Direct Labor 56,000 Indirect Materials Used 7,500 Direct Materials Used 370,000 Factory Utilities 800 Factory Janitorial Costs 2,500 Manufacturing Equipment Depreciation 2,500 Delivery Vehicle Depreciation 2,600 Administrative Wages and Salaries 33,900 How much were Fizz's period costs?
A) $446,300 @B) $547,100 C) $13,200 D) $544,500 16.3-53 Explanation: +Advertising Costs $10,600 +CEO's Salary 500,000 +Delivery Vehicle Depreciation 2,600 +Administrative Wages and Salaries 33,900 =Total Period Costs $547,100
The financial statements of Harbor Furniture Company include the following items: 2017 2016 Cash $43,500 $42,000 Short-term Investments 27,000 12,500 Net Accounts Receivable 93,000 100,000 Merchandise Inventory 162,000 149,000 Total Assets 533,000 547,000 Total Current Liabilities 304,000 293,000 Long-term Note Payable 62,000 59,000 What is 2017 acid-test ratio? (Round your answer to two decimal places.)
A) 0.23 B) 1.07 C) 1.86 @D) 0.54 E.4-16 Acid-test ratio = (Cash + Short-term investments + Net current receivables) / Total current liabilities Acid-test ratio = (Cash $43,500 + Short-term investments $27,000 + Net current receivables $93,000 ) / $304,000 Acid-test ratio = $163,500 / $304,000 Acid-test ratio = 0.54
Urban, Inc Comparative Balance Sheet Year Ended Dec. 31, 2017 Assets Current Assets: Cash and Cash Equivalents $29,000 Account Receivable, Net 31,000 Merchandise Inventory 53,000 Total Current Assets $113,000 Property, Plant, and Equipment, Net 120,000 Total Assets $233,000 Liabilities Current Liabilities: Accounts Payable $4,300 Notes Payable 2,900 Total Current Liabilities $7,200 Long-term Liabilities 84,000 Total Liabilities $91,200 Stockholders' Equity Common Stock $37,000 Retained Earnings 104,800 Total Stockholders' Equity $141,800 Total Liabilities and Stockholders' Equity $233,000 Calculate the debt to equity ratio. (Round your answer to two decimal places.)
A) 0.39 B) 0.05 C) 1.24 @D) 0.64 E.4-42a Debt to equity ratio = Total liabilities / Total equity = $84,000 / $141,800 = 0.64
Edelman, Inc. provides the following information for 2017: Net income $190,000 Market price per share of common stock $20.00/share Dividends paid $2.00/share Common stock outstanding at Jan. 1, 2017 140,000 shares Common stock outstanding at Dec. 31, 2017 180,000 shares The company has no preferred stock outstanding. Calculate the dividend payout ratio. (Round any intermediate calculations and your final answer to two decimal places.)
A) 147.06% B) 0.63% C) 20.00% @D) 168.07% E.4-61 Net income $190,000 Average number of common shares outstanding / 160,000 Earnings per share* 1.19 Annual dividend per share $2.00 Dividend payout ratio (2/1.19 )** 168.07% * Earnings per share = (Net income - Preferred dividend) / Weighted average number of common shares outstanding **Dividend payout ratio = Annual dividend per share / Earnings per share
Seidner, Inc. provides the following data: 2017 2016 Assets Current Assets: Cash and Cash Equivalents $40,000 $25,000 Accounts Receivable, Net 37,000 62,000 Merchandise Inventory 60,000 50,000 Total Current Assets $137,000 137,000 Property, Plant, and Equipment, Net $121,000 120,000 Total Assets $258,000 $257,000 Net Credit Sales $550,000 Cost of Goods Sold (155,000 ) Gross Profit $395,000 Calculate the asset turnover ratio for 2017. (Round your answer to two decimal places.)
A) 4.01 times B) 1.07 times C) 0.60 times @D) 2.14 times E4-33 Asset turnover ratio = Net Sales / Average total assets = $550,000 / [($258,000+ $257,000 ) / 2] = $550,000 / 257,500 = 2.14 times
Kelemen, Inc. provides the following information for 2017: Net income $260,000 Market price per share of common stock $50 per share Dividends paid $190,000 Common stock outstanding at Jan. 1, 2017 150,000 shares Common stock outstanding at Dec. 31, 2017 210,000 shares The company has no preferred stock outstanding. Calculate the price/earnings ratio of common stock. (Round any intermediate calculations and your final answer to two decimal places.)
A) 40.32 times B) 50.00 times @C) 34.72 times D) 28.90 times E.4-59 Net income $260,000 Average number of common shares outstanding / 180,000 Earnings per share* $1.44 Market price per share $50 Price/earnings ratio** 34.72 times * Earnings per share = (Net income- Preferred dividend) / Weighted average number of common shares outstanding **Price/earnings ratio = Market price per share of common stock / Earnings per share
Bryant, Inc. provides the following data: 2017 2016 Cash $47,000 $25,000 Accounts Receivable, Net 100,000 62,000 Merchandise Inventory 75,000 50,000 Property, Plant, and Equipment, Net 182,000 120,000 Total Assets $404,000 $257,000 Additional information: Net Credit Sales $530,000 Cost of Goods Sold 170,000 Interest Expense 20,000 Net Income 185,000 Calculate the rate of return on total assets for 2017. (Round your answer to two decimal places.)
A) 45.79% @B) 62.03% C) 71.98% D) 50.74% Net income $185,000 Interest expense Average total assets 330,500 Return on total assets = (Net Income + Interest Expense) / Average total assets = {$185,000 + 20,000 ) / [($404,000 + $257,000 ) / 2] = 62.03%
The following is a summary of information presented on the financial statements of a company on December 31, 2017. Account 2017 2016 Net Sales Revenue $604,000 $504,000 Cost of Goods Sold 453,000 400,000 Gross Profit 151,000 104,000 Selling Expenses 58,000 50,000 Net Income Before Income Tax Expense 93,000 54,000 Income Tax Expense 41,000 21,000 Net Income $52,000 $33,000 With respect to net sales revenue, a horizontal analysis reveals ________.
A. a decrease of $53,000 in net sales revenue @B. a 19.84% increase in net sales revenue C. a $53,000 increase in net sales revenue D.a 238.48% decrease in net sales revenue E.2-6
The vertical analysis statement of Bateman, Inc. is as shown below: Bateman, Inc. Comparative Income Statement Years Ended December 31, 2017 and 2016 data..... 4 lines of data.. The figure 47.0% shown for gross profit in 2017 signifies that the gross profit is ________.
A.increased by 47.0% over the previous year B.equal to 47.0% of net income @C.47.0% of net sales revenue .D.47.0% of cost of goods sold E.3-8
Lakeside Manufacturing provided the following information for the month ended March 31: Sales Revenue $26,000 Beginning Finished Goods Inventory 8,000 Ending Finished Goods Inventory 13,500 Cost of Goods Manufactured 15,600 Compute cost of goods available for sale.
A.$10,100 B.$29,100 @@C.$23,600 D.$15,60 16.2-29 +Add Cost Of Goods Manufactured 13,500 -Minus Beginning Finished Goods Inventory 8,000 =23,600
Damsel, Inc. is a large manufacturer of auto tires. Damsel has provided the following information: Sales Revenue $75,000 Beginning Finished Goods Inventory 28,000 Cost of Goods Sold 36,500 Cost of Goods Manufactured 43,000 Calculate the amount of ending Finished Goods Inventory reported on Damsel's balance sheet.
A.$32,000 @B.$34,500 c.$6,500 D.$71,000 16.2-23 16.2-23 Beginning Finished Goods Inventory $28,000 +Add: Cost of Goods Manufactured 43,000 Cost of Goods Available for Sale 71,000 -Less: Cost of Goods Sold 36,500 Ending Finished Goods Inventory $34,500
The net income of a company for the year was $570,000. The company has no preferred stock. Common stockholders' equity was $1,800,000 at the beginning of the year and $2,300,000 at the end of the year. Calculate the rate of return on common stockholders' equity. (Round your answer to two decimal places.)
A.31.67% B.24.78% @C.27.80% .D. 19.86% net income -perfereed dividends/ avergage common stock holder 570,000-0= 570,000 /( the average of stock equity) 2050000 =0.278048780487804 Movee two decimals right. *Average Calc http://www.calculatorsoup.com/calculators/statistics/average.php
Which of the following statements is true of costing systems?
An accounting firm would likely use a job order costing system. 17.1-8
Caltran, Inc. completed manufacturing Job 445. It included $ 320$320 of direct materials cost, $ 1 comma 200$1,200 of direct labor cost, and $ 560$560 of allocated manufacturing overhead. Which of the following is the correct journal entry needed to record the completed job?
Finished Goods Inventory 2,080 Work−in−Process Inventory 2,080 17.4-6
Altec Designs makes fashion clothing and reports the following data for the month of September: Salaries paid to seamstresses $140,000 Wages paid to fabric cutters 20,000 Indirect wages 5,000 What is the journal entry to record the total labor charges incurred during September?
Work-in-Process Inventory 160,000 (left) Manufacturing Overhead 5,000 (left) Wages Payable 165,00 (right) 17.2-26 + Add salaries paid $140,000 +Wages paid 20,000 = Work-in-process $160,000