Info
Warning
Danger

Study Resources (Accounting)

171) (Present value tables are needed.) Georgia Peach Farms is upgrading its fruit washing/separating machine. Georgia has narrowed the decision down to two machines: Machine A and Machine B. Pertinent information about each machine include : Machine AMachine B Investment$450,000$650,000 Useful life (years)1010 Estimated annual net cash inflows for useful life$75,000$120,000 Residual value$25,000$35,000 Depreciation methodstraight-linestraight-line Required rate.
6 Views
View Answer
31) The ________ is the most important section on the statement of cash flows because it reflects the day-to-day operations that determine the future of an organization. A) operating section B) financing section C) investing section D) None of the above 32) Which of the following sections from the statement of cash flows.
5 Views
View Answer
76) For each of the following independent transactions, indicate the type of activity (operating, investing or financing) and the effect on cash (amount and increase or decrease). TransactionType of ActivityEffect on Cash a.Declared cash dividends of $21,000 during the current period. Dividends payable on January 1 were $1,700 and on December.
6 Views
View Answer
152) A company's income statement reports $30,000 depreciation expenses during the period. Using the direct method to prepare the statement of cash flows, how would the depreciation expense be reported on the statement of cash flows? A) Depreciation expense would be an addition under investing activities. B) Depreciation expense would be.
5 Views
View Answer
172) The following information relates to Harris Corporation. AccountCurrent yearPrior year Net sales (all credit)$520,125$499,500 Cost of goods sold $375,960$353,600 Gross profit $144,165$145,900 Income from operations$95,500$79,900 Interest expense$23,500$19,500 Net income$57,600$51,600 Cash $30,600$15,900 Accounts receivable, net$33,800$23,200 Inventory $42,000$30,300 Prepaid expenses$2,000$1,500 Total current assets$108,400$70,900 Total long-term assets$62,000$38,000 Total current liabilities$46,000$41,600 Total long-term liabilities$20,000$22,700 Common stock, no par, 3,000 shares, value $50/share $30,000 $30,000 Required: a.What is the acid-test ratio for the current year? b.What.
6 Views
View Answer
40) People's Public Power is an electric utility company. The new CEO is interested in implementing new projects that will not only benefit the environment, but will also benefit the company through cost savings. One of the proposed projects is to offer a paperless, online billing solution for its customers.
7 Views
View Answer
138) The Bedford Corporation reported the following income statement and balance sheet amounts and additional information for the end of the current year. End of current yearEnd of prior year Net sales revenue (all credit) $1,220,000 Cost of goods sold $725,000 Gross profit $495,000 Selling/general expenses$280,000 Interest expense$42,000 Net Income$173,000 Current assets $113,000$82,000 Long-term assets$512,000$440,000 Total assets$625,000$522,000 Current liabilities$57,000$52,000 Long-term liabilities$275,000$245,000 Common stockholders' equity$293,000$225,000 Total.
5 Views
View Answer
61) Ferrero Company reported the following information for the current year:   AccountCurrent yearPercentagePrior year Net sales revenue$360,000100%$300,000 COGS$223,200     ?     $240,000 Gross Profit$136,80038.00%$60,000 Selling/General Exp. $64,80018.00%$12,000 Net income before tax $72,000?$48,000 Income Tax$3,600 1.00%$3,000 Net Income$68,400?$45,000 With respect to current year net sales revenue, what would a vertical analysis report? A) COGS would be 15.00% of net sales revenue B) A dividend yield of $8.20 C).
4 Views
View Answer
128) The Bedford Corporation reported the following income statement and balance sheet amounts and additional information for the end of the current year. End of current yearEnd of prior year Net sales revenue (all credit) $1,220,000 Cost of goods sold $725,000 Gross profit $495,000 Selling/general expenses$280,000 Interest expense$42,000 Net Income$173,000 Current assets $113,000$82,000 Long-term assets$512,000$440,000 Total assets$625,000$522,000 Current liabilities$57,000$52,000 Long-term liabilities$275,000$245,000 Common stockholders' equity$293,000$225,000 Total.
5 Views
View Answer
137) Use the indirect method of preparing a statement of cash flows to answer the question. Ending balances for Sunday Hut are listed below: ItemEnd of this yearEnd of prior year Building$356,000$0 Equipment111,0000 Notes Payable39,00033,000 Common Stock256,000192,000 Paid-in Capital in Excess of Par/Common 56,40038,000 Retained Earnings231,000174,000 Net income for this year was $97,000 and dividends of $24,000 were declared.
5 Views
View Answer
158) The Hummel Corporation reported the following income statement and balance sheet amounts and additional information for the end of the current year. End of current yearEnd of prior year Net sales revenue (all credit) $800,000 Cost of goods sold $504,000 Gross profit $296,000 Selling/general expenses$184,000 Interest expense$   32,000 Net income$   80,000 Current assets $   71,000$20,000 Long-term assets$329,000$280,000 Total assets$400,000$300,000 Current.
6 Views
View Answer
142) The managerial accountant at the Holiday Musical Academy is required to complete the statement of cash flows. The managerial accountant is required to determine the amount of money the company used to purchase property, plant, and equipment (PP&E) during the year. The balance of PP&E at the beginning of.
5 Views
View Answer
51) An outflow of cash from an investing activity would be A) making loans to third parties. B) issuing notes payable. C) paying cash dividends to stockholders. D) purchasing treasury stock. 52) Money borrowed for a mortgage would be a(n) ________ activity. A) operating B) financing C) investing D) non-cash 53) All of the following are cash outflows from.
7 Views
View Answer
61) The ________ section from the statement of cash flows would include the issuance of a stock dividend. A) operating B) financing C) investing D) None of the above 62) Which of the following would be considered an operating activity on the statement of cash flows? A) Dividends paid to stockholders B) Purchase of land C).
5 Views
View Answer
21) The Nichols Corporation data for the current year: AccountCurrent yearPrior year Current assets$75,600$60,000 A/R$59,400$44,000 Mdse. Inventory$51,200$40,000 Current liabilities$71,500$55,000 Long-term liabilities$36,000$30,000 Common stock (5,000 shares) $47,460$42,000 Retained earnings$31,240$17,000 Net sales revenue$607,700$515,000 COGS$469,700     $385,000 Gross Profit$138,000$130,000 Selling/General expenses$49,080$52,000 Net income before taxes$88,920$78,000 Income tax expense$20,520$18,000 Net Income$68,400$60,000 What would a horizontal analysis report with respect to long-term liabilities? A) Long-term liabilities increased by $6,000. B) Long-term liabilities decreased by 5.92%. C).
4 Views
View Answer
31) The McCumber Corporation data for the current year: AccountCurrent yearPrior year Current assets$76,200$60,000 A/R$59,400$44,000 Mdse. Inventory$51,200$40,000 Current liabilities$82,500$55,000 Long-term liabilities$38,000$30,000 Common stock (5,000 shares) $47,880$42,000 Retained earnings$18,420$17,000 Net sales revenue$618,000$515,000 COGS$478,140     $385,000 Gross Profit$139,860$130,000 Selling/General expenses$47,860$50,000 Net income before taxes$92,000$80,000 Income tax expense$23,000$20,000 Net Income$69,000$60,000 With respect to common stock, what would a horizontal analysis report? A) Stockholder's equity as 7.75% of total capital B) Sales return of.
5 Views
View Answer
132) Smithson Corporation had the following selected balance sheet changes for the past year: Assets and contra-assetsIncrease/(Decrease) Cash$47,000 Accounts receivable$10,000 Inventory$15,000 Prepaid expenses$ (7,000) Accumulated depreciation$11,000 Liabilities    Increase/(Decrease) Accounts payable$20,000 Wages payable$ (12,000) Taxes payable$9,000 The company's operating income during the year was $35,000. What is the net cash provided by operating activities during last year on the statement of cash flows.
5 Views
View Answer
11) Using a base year as 100% and expressing other years as a percentage of the base year is an example of A) trend analysis. B) vertical analysis. C) horizontal analysis. D) benchmarking. 12) Which type of analysis includes the computation of the percentage change in total assets between two balance sheet dates? A) Profitability B).
7 Views
View Answer
168) The Hummel Corporation reported the following income statement and balance sheet amounts and additional information for the end of the current year. End of current yearEnd of prior year Net sales revenue (all credit) $800,000 Cost of goods sold $504,000 Gross profit $296,000 Selling/general expenses$184,000 Interest expense$   32,000 Net income$   80,000 Current assets $   71,000$20,000 Long-term assets$329,000$280,000 Total assets$400,000$300,000 Current.
4 Views
View Answer
  1) Sustainability is an expense item only. An organization choosing sustainability will see reduced profits. 2) Environmental sustainability should only be the concern of large multinational manufacturing corporations. Learning Outcome:  Discuss responsibility accounting. Define internal controls and list the internal control principles. 3) Sustainability considers not only the needs of the present generation,.
11 Views
View Answer
45) The managerial accountant at the Export Shoppe attended a meeting with the facilities manager to discuss the internal and external costs during the quarter. The facilities manager provided the managerial accountant with the following cost worksheet that highlights the internal and external costs during the period: The managerial accountant reported.
10 Views
View Answer
122) A company reported beginning plant assets, net of depreciation, of $655,000; and, an ending amount of $732,550. Depreciation expense of $48,400 and a loss on the sale of equipment of $5,500 were reported on the income statement. The company acquired $213,800 of plant assets during the year. How much.
5 Views
View Answer
112) A company uses the indirect method to prepare the statement of cash flows. It presents the following data on its financial statements: End of this yearEnd of prior year Accounts receivable$115,000$100,000 Cost of goods sold560,000 Sales revenue830,000 Accounts payable*75,00067,000 Inventory86,000105,000 Salary payable13,00010,000 Salary expense49,00045,000 *Relates solely to the acquisition of inventory What will appear in the operating activities.
5 Views
View Answer
108) The ________ ratio measures the ability of a company to pay all current liabilities if they came due immediately. A) inventory turnover B) current C) day's sales in receivables D) acid-test 109) The ability of a company to collect receivables is measured by which ratio? A) Inventory turnover ratio B) Day's sales.
5 Views
View Answer
173) (Present value of annuity table required) Velocity Tire Company's managerial accountant assesses the net present value of two different types of tread repair machines in order to ascertain the better investment option. The Retreadit-2000 will require an investment of $320,000 while the Econ-4760 will require an investment of $280,000..
7 Views
View Answer
172) A company uses the direct method to prepare the statement of cash flows. It presents the following data on its financial statements: End of this yearEnd of prior year Accounts receivable$115,000$100,000 Cost of goods sold520,000 Sales revenue850,000 Accounts payable*80,00065,000 Inventory92,000110,000 Salary payable15,50012,000 Salary expense50,00044,000 *Relates solely to the acquisition of inventory What will appear in the operating activities.
5 Views
View Answer
21) For maximum effectiveness sustainable strategies are often implemented at which stage of an organization's value chain? A) Design B) Production C) Distribution D) Research 22) A common definition of ________ is the ability to meet the needs of the present without compromising the ability of future generations to meet their own needs. A) environmental management.
4 Views
View Answer
41) The ________ activities section from the statement of cash flows would include the payment of a long-term mortgage payable with cash. A) investing B) financing C) operating D) None of the above 42) Paying cash dividends would be A) a cash outflow from operations. B) a cash outflow from financing. C) a cash outflow from.
6 Views
View Answer
11) Financing activities include transactions that affect long-term liabilities and stockholder's equity on the balance sheet. 12) Which of the following parties would have an interest in the amount of cash at a company? A) Creditors expecting consumers to repay loans and interest B) Employees expecting payment for their work C) Investors expecting a.
9 Views
View Answer
183) A manager wants to know which investment decision will affect the bottom line of the financial statements according to Generally Accepted Accounting Principles. Which capital budgeting method would he choose? A) Payback method B) Accounting rate of return method C) Net present value method D) Profitability index 184) A company is evaluating a variety.
7 Views
View Answer
11) Which of the following is a reason an organization would pursue sustainability? A) To improve its competitive position B) To save money C) To appease shareholders D) All of the above 12) Environmental sustainability is the primary concern of which of the following types of organizations? A) Large domestic corporations B) Global service firms C) Manufacturing firms D).
7 Views
View Answer
79) Horizontal analysis allows the comparison of companies with different amounts of net sales and net assets. 80) Comparing the horizontal analysis of McDonald's financial statements to the horizontal analysis of Burger King's financial statements in percentages of increase or decrease from 2010 to 2011 would be A) vertical analysis. B) benchmarking. C) ratio.
3 Views
View Answer
71) Selected information about The Staccato Company for the current year and prior year is given below. AccountCurrentPrior Net sales revenue$648,000$595,000 Cost of goods sold$401,760$425,000 Gross profit$246,240$170,000 Selling/general expenses $142,560$93,500 Net income before tax $103,680$76,500 Income tax$32,400$22,800 Net income$71,280$53,700 The current year's income tax percentage (as would be found on a vertical analysis of the income statement for the.
3 Views
View Answer
173) The following information relates to The Roberta Corporation. AccountCurrent yearPrior year Net sales (all credit)$445,400$362,000 Cost of goods sold$220,000$185,000 Gross profit$225,400$177,000 Income from operations$72,000$80,000 Interest expense$8,000$14,000 Net income$40,000$35,000 Cash$34,000$28,000 Accounts receivable, net$42,000$62,000 Inventory$120,000$100,000 Prepaid expenses$4,000$2,000 Total current assets$200,000$192,000 Total long-term assets$200,000$230,000 Total current liabilities$100,000$165,000 Total long-term liabilities$44,000$95,000 Common stock, no par, 8,000 shares, value $120/share $80,000 $80,000 Required: a.What is the acid-test ratio for the current year? b.What is the inventory.
5 Views
View Answer
148) The following information relates to Woolf Unlimited for the past two years. AccountCurrent yearPrior year Net sales (all credit)$237,250$180,000 Cost of goods sold$115,000$110,000 Gross profit$122,250$70,000 Income from operations$32,000$30,000 Interest expense$2,000$7,000 Net income$24,000$18,000 Cash$22,000$14,000 Accounts receivable, net$25,000$31,000 Inventory$56,000$44,000 Prepaid expenses$2,000$1,000 Total current assets$105,000$90,000 Total long-term assets$150,000$175,000 Total current liabilities$60,000$90,000 Total long-term liabilities$22,000$78,000 Common stock, no par, 2,500 shares, market value $96 per share $40,000 $40,000 Retained earnings$133,000$57,000 What is the current.
5 Views
View Answer
41) The Stemple Corporation data for the current year: AccountCurrent yearPrior year Current assets$51,240$42,000 A/R$73,800$60,000 Mdse. Inventory$67,500$50,000 Current liabilities$41,400$30,000 Long-term liabilities$26,600$28,000 Common stock (5,000 shares) $41,000$35,000 Retained earnings$83,540$59,000 Net sales revenue$595,000$500,000 COGS$480,000     $400,000 Gross Profit$115,000$100,000 Selling/General expenses$44,000$50,000 Net income before taxes$71,000$50,000 Income tax expense$16,500$15,000 Net Income$54,500$35,000 What would a horizontal analysis report with respect to long-term liabilities show? A) The debt ratio is 35.32%. B) Long-term liabilities increased by.
6 Views
View Answer
118) Which of the following is the formula to compute times-interest-earned? A) Total liabilities/total assets B) Interest expense/income from operations C) Income from operations/interest expense D) Total assets/total liabilities 119) The formula to compute the rate of return on net sales is A) net income/net sales. B) net income/average common stockholder's equity. C) net income + interest.
5 Views
View Answer
89) The practice of comparing one company's performance to another's can be accomplished using A) ratio analysis. B) trend analysis. C) benchmarking. D) all of the above. 90) The ________ balance sheets displays only percentages. A) comparative B) account form C) report form D) common-size 91) In comparing companies of different sizes, which of the following is most helpful? A).
5 Views
View Answer
179) Use the direct method of cash flows to answer the following question: Beginning A/R: $68,000Beginning Inventory: $42,500 Ending A/R: $79,000Ending Inventory: $47,000 Credit Sales: $745,000Beginning A/P: $29,000 Cost of Goods Sold: $412,000Ending A/P: $36,300 Compute the cash receivables received from customers during the year. 180) Use the direct method of cash flows to answer the.
5 Views
View Answer
1) Generally, using more than one year of data to analyze company performance is desirable. 2) Investors and creditors generally evaluate a company by using a single year's data. 3) Most financial statement analysis covers trends of more than one year. 4) Horizontal analysis is the study of percentage changes in comparative financial.
11 Views
View Answer

Welcome Back!

ScholarOn has more then 20 Million answers, flashcards & more being added everyday!

or
Forgot?
Login
Don't have an account? Signup

Join ScholarOn

ScholarOn has more then 20 Million answers, flashcards & more being added everyday!

or
Signup
By registering, I agree to the Terms and Privacy Policies
Already have an account? Log in

Verify Your Email

Check your inbox & click on the link to activate your account.

Resend Email
Verification Mail Send Successfully. Please Check Your Email.

Forgot Password

Please enter your registered email to recieve the password reset link.

Send reset link
Already have an account? Log in
Did you know?

ScholarOn has more than 2 Million+ answers, textbook solutions & flashcards. Explore Now!

Let us boost your grade together!

Get 24/7 homework help from Experts

Let our knowledge be your backup

1

Submit your homework question or assignment

2

Receive a quote & Make the Payment

3

Sit Back & Relax to Earn Better Grades!

Drag files here or Browse your Device

Maximum file size 10MB
2,048,528 Questions Answered! Get Answer

We are The Best Because

  • On Time Delivery
  • Plagiarism ReportFree
  • Unlimited RevisionsFree
  • 100% Privacy & Confidential
  • 24/7 Live Chat Support
4.9 (17166 Ratings)
You can communicate directly with your expert until the solution quality is delivered to your complete satisfaction.
Looking for writing help?
Did you know?

ScholarOn has more than 2 Million+ answers, textbook solutions & flashcards. Explore Now!