Info
Warning
Danger

Study Resources (Accounting)

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). Transaction Type of Activity Effect on Cash a. Declared cash dividends of $21,000 during the current period. Dividends payable on January 1 were $1,700 and on December.
9 Views
View Answer
133) The following information is available for three companies. The information relates to the companies' plant assets. For each of the companies, determine the unknown amounts. Fox Co. Wolf Co. Coyote Co. Beginning plant assets, net of depreciation $860,000 $715,000 $489,700 Ending plant assets, net of depreciation 950,000 702,400 288,300 Depreciation expense 55,300 49,500 (c) Gain (loss) on sale of plant assets 5,600 (b) (15,200) Cost of plant assets.
6 Views
View Answer
168) (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 for each machine follows: 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 of return10%12% Required: a.Calculate.
7 Views
View Answer
97) Operating activities resulting from the sales of goods and services relate to A) retained earnings reported on the balance sheet. B) assets and liabilities reported on the balance sheet. C) the income statement. D) net income on the retained earnings statement. 98) All of the following would be done when calculating the change in.
8 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: Item End of this year End of prior year Building $365,000 $0 Equipment 111,000 0 Notes Payable 39,000 33,000 Common Stock 256,000 192,000 Paid-in Capital in Excess of Par/Common 56,400 38,000 Retained Earnings 231,000 174,000 Net income for this year was $97,000 and dividends of $24,000 were declared.
5 Views
View Answer
117) A company uses the indirect method to prepare the statement of cash flows. It presents the following amounts on its financial statements. End of this year End of prior year Accounts receivable $115,000 $100,000 Cost of goods sold 560,000 Sales revenue 830,000 Accounts payable* 77,000 67,000 Inventory 90,000 105,000 Salary payable 12,000 10,000 Salary expense 49,000 45,000 *Relates solely to the acquisition of inventory What will appear in the operating.
5 Views
View Answer
41) The Stemple Corporation data for the current year: Account Current year Prior 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? A) The debt ratio is 35.32%. B) Long-term liabilities increased by 4.47%. C).
7 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
170) A company uses the direct method to prepare the statement of cash flows. It presents the following amounts on its financial statements. End of this year End of prior year Accounts receivable $115,000 $100,000 Cost of goods sold 520,000 Sales revenue 850,000 Accounts payable* 80,000 65,000 Inventory 92,000 110,000 Salary payable 15,500 12,000 Salary expense 50,000 44,000 *Relates solely to the acquisition of inventory What will appear in the operating activities.
8 Views
View Answer
135) The income statement and a partial balance sheet for Regovich Company is presented below. Prepare the operating activities section of the statement of cash flows using the indirect method. Regovich Company Income Statement For the Current Year Sales $550,00 Cost of goods sold   390,000 Gross profit $160,000 Operating expenses:    Salaries $70,000    Depreciation expense 28,000    Miscellaneous 10,000 108,000 Net income $52,000 Regovich Company Partial.
6 Views
View Answer
152) (Present value tables are needed.) The Janus Vending Machine Company is looking to expand its business by adding a new line of vending machines. The management team is considering expanding into either soda machines or snack machines. Following is the relevant financial data relating to the decision: Soda Machines Snack.
5 Views
View Answer
127) The balance sheet for Bostick Corporation follows: Ending balance Beginning balance Assets: Current assets: Cash and cash equivalents $ 58,400 $ 44,600 Accounts receivable $ 19,000 $ 22,300 Inventory $ 48,900 $ 53,000 Total current assets $ 126,300 $ 119,900 Property, plant, and equipment $ 287,800 $ 275,300 Less accumulated depreciation $ 108,600 $ 101,550 Net property, plant, and equipment $ 179,200 $ 173,750 Total assets $ 305,500 $ 293,650 Liabilities and stockholders' equity: Current liabilities: Accounts payable $ 26,030 $ 29,580 Wages.
6 Views
View Answer
180) The ________ capital budgeting method uses accrual accounting income. A) accounting rate of return B) payback C) net present value D) internal rate of return 181) Which of the following is not an advantage of post-audits of capital investments? A) They indicate whether project should continue or should be abandoned. B) They help.
9 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.
30 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.
8 Views
View Answer
51) Suppose Whole Foods is considering investing in warehouse-management software that costs $600,000, has $60,000 residual value and should lead to cash cost savings of $130,000 per year for its five-year life. In calculating the ARR, which of the following figures should be used as the equation's denominator? A) $60,000 B) $600,000 C).
45 Views
View Answer
21) The Nichols Corporation data for the current year: Account Current year Prior 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).
6 Views
View Answer
169) (Present value tables are needed.) Shaker Investments, a private investment holding company, is searching for a new investment opportunity. Shaker Investments has identified two potential investment opportunities: an upstart fast food chain and a growing organic grocery chain. Information for each investment follows: Fast FoodOrganic Grocery ChainChain Investment$975,000$1,500,000 Useful life (years)1515 Estimated annual net.
8 Views
View Answer
41) The ________ 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 investing. D).
5 Views
View Answer
174) Use the direct method of cash flows to answer the 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 change in accounts receivable for the year. 175) Use the direct method of cash flows to answer the question. Beginning A/R:.
7 Views
View Answer
177) Use the direct method of cash flows to answer the 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 Calculate the cost of merchandise purchased during the year. 178) Use the direct method of cash flows to answer the question. Beginning A/R:.
7 Views
View Answer
11) Financing activities include activities that affect long-term liabilities and owner's equity on the balance sheet. 12) Which of the following parties would have an interest in the cash a company has? A) Creditors expecting loans and interest to be repaid B) Employees expecting to be reimbursed for their work C) Investors expecting.
7 Views
View Answer
31) The McCumber Corporation data for the current year: Account Current year Prior 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.
8 Views
View Answer
77) Comparative balance sheets analyze balance sheets by comparing the ending balances of two fiscal periods; usually highlighting the changes in each account. 78) The indirect method of presenting the investing activities section of the statement of cash flow reconciles net income to net cash provided by investing activities. 79) When.
9 Views
View Answer
41) Gomez Corporation is considering two alternative investment proposals with the following data: Proposal X Proposal Y Investment $ 850,000 $ 468,000 Useful life 8 years 8 years Estimated annual net cash inflows for 8 years $ 125,000 $ 78,000 Residual value $ 40,000 $ - Depreciation method Straight-line Straight-line Required rate of return 14% 10% What is the accounting rate of return for Proposal Y? A) 5.24% B) 4.17% C) 29.17% D) 16.67% 42) The Warren.
29 Views
View Answer
74) For each of the following transactions indicate the effect on the cash balance. Use + for increase, - for decrease, and 0 for no effect. ________a.Payment of cash dividends ________b.Payment of interest ________c.Sale of treasury stock ________d.Conversion of debt to common stock ________e.Payment of accounts payable ________f.Payment of salaries.
7 Views
View Answer
170) The ARR is the only method that uses accrual accounting figures and thus making it important to financial statement users. 171) Neither the payback period nor the IRR capital budgeting method recognizes the time value of money. 172) The payback and accounting rate of return models are conceptually better than the.
8 Views
View Answer
47) Use the following information to do a horizontal analysis of Boyce Corporation's income statement for the current year and prior year: Account Current Prior Cost of goods sold $347,700 $305,000 Selling/general expenses $ 40,320 $ 32,000 Gross profit $ 94,080 $ 84,000 Net income $ 12,840 $ 12,000 48) Net income is used as the base for vertical analysis percentages on the income statement. 49) Trend.
9 Views
View Answer
142) Senseman Company has three potential projects from which to choose. Selected information on each of the three projects follows: Project A Project B Project C Investment required $ 42,500 $ 56,000 $ 53,700 Net present value of project $ 45,700 $ 75,400 $ 70,200 Using the profitability index, rank the projects from most profitable to least profitable. A) A, B, C B) C,.
9 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.
8 Views
View Answer
Student
Expert

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!

Welcome Aboard!

Let's join the fastest growing Online Academic Experts Community. Earn more than $3K/Month

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?

Every Project is learning oppurtunity & our Experts commits to constant lifelong learning.

Let us boost your grade together!