Question 1
17. (Points: 1) Which of the following transactions is not a direct source of cash? a. Disposal of inventory for cash. b. Borrowing cash. c. Sale and issuance of capital stock for cash. d. Sale of services for cash. e. All of the above are direct sources of cash. 19. (Points: 1) Which of the following transactions is not a source of cash? a. Cash sales of merchandise. b. Sale and issuance of capital stock for cash. c. Short-term borrowing of cash. d. Sale of operational assets for cash. e. All of the above are typical sources of cash. 31. (Points: 1) On July 1, 20A, Wilson Company issued $300,000, five-year, 9% bonds at 103. The reason Wilson issued the bonds at a premium was a. the stated rate of interest was higher than the rate being paid on investments with comparable risk. b. the stated rate of interest was the same as the rate being paid on investments with comparable risk. c. the stated rate of interest was lower than the rate being paid on investments with comparable risk. d. the bonds were callable. e. None of the above is correct. 32. (Points: 1) Deany Company issued $100,000 bonds. The stated rate of interest was 8% and the market rate 9%. Which of the following statements is true? a. The bonds were issued at a premium. b. Annual interest expense will exceed the company's actual cash payments for interest. c. Annual interest expense will be $8,000. d. Deany Company cannot issue bonds if the market rate is higher than the stated rate. e. None of the above is correct. Save Answer 33. (Points: 1) If a bond is sold at 98, its stated rate of interest would be a. higher than the market rate. b. lower than the market rate. c. equal to the market rate. d. unrelated to the market rate. e. None of the above is correct. Save Answer 34. (Points: 1) Ratios are most useful for analysis when a. used alone. b. compared with historical ratios of the same company. c. compared with ratios for other companies in the industry. d. Both B and C are correct. e. All of the above are correct. Save Answer 35. (Points: 1) The base amount in preparing a common-size income statement is usually a. cost of goods sold. b. gross profit. c. net income. d. net sales. e. All of the above are appropriate. Save Answer 36. (Points: 1) The Able Company had net income of $47,500 and earnings per share of $3.17 during 20B. On December 31, 20B, the stock had a market price of $18.50 per share. What is Able's price/earnings ratio? a. 25.70. b. 8.11. c. 5.84. d. 0.17. e. None of the above is correct. Save Answer 37. (Points: 1) Perot Company had income before interest and taxes of $120,000. Interest expense for the period was $17,000 and income taxes amounted to $28,500. The average stockholders' equity was $680,000. What is Perot's return on equity? a. 17.65%. b. 15.15%. c. 13.46%. d. 10.96%. e. None of the above is correct. Save Answer 38. (Points: 1) A business must maintain a sufficient amount of working capital to a. meet current debts b. carry adequate inventories c. take advantage of cash discounts d. to maintain liquidity. e. All of the above are correct. Save Answer 39. (Points: 1) Crusader Company reported the following amounts in the 20A balance sheet Total assets $330,000 Total liabilities $100,000 Common stock, par value $9 (no preferred stock) $90,000 The book value of the common stock was a. $11. b. $20. c. $33. d. $22. e. None of the above is correct. Save Answer 40. (Points: 1) At the end of 20B, Storage Company reported outstanding common stock (par $20) of $300,000. Total liabilities were $440,000 and total assets were $860,000. The company had no preferred stock. The book value per share of common stock was a. $29.00. b. $13.90. c. $28.00. d. $14.00. e. None of the above is correct. Save Answer 41. (Points: 1) Bailey Corporation reported the following information for 20A Net income $10,000 Total assests $16,000 Total stockholders' equity $8,000 Morgan's debt/equity ratio was a. .33 or 33%. b. 1.25 or 125 %. c. 1.0 or 100%. d. 3.0 or 300%. e. None of the above is correct. Save Answer 42. (Points: 1) Shore Company reported income before extraordinary items of $25,000, total liabilities of $150,000, and total stockholders' equity of $100,000. The return on assets was a. 10%. b. 25%. c. 16.67%. d. Cannot be determined from the data given. e. None of the above is correct. 44. (Points: 1) The records of ZZZZ Better Corporation include the following: Average total assets $60,000 Average total liabilities $45,000 Total revenue $107,600 Total expense (including income tax) $104,000 The return on equity is (round to the nearest percent) a. 13%. b. 6%. c. 24%. d. 6%. e. None of the above is correct. Save Answer 45. (Points: 1) An important measure of the average movement of goods "on and off the shelf" of a company is the a. Profit margin. b. Price/earnings ratio. c. Inventory turnover ratio. d. Gross inventory ratio. e. None of the above is correct.,Thanks, These questions have been submitted to course hero before, I just couldn't access the answers if that helps or speeds the process.,Thanks my assignment grades automatically, here are the ones that were marked wrong. 39. Crusader Company reported the following amounts in the 20A balance sheet Total assets $330,000 Total liabilities $100,000 Common stock, par value $9 (no preferred stock) $90,000 The book value of the common stock was Student Response Value Correct Answer Feedback A. $11. B. $20. C. $33. D. $22. E. None of the above is correct. 0% Score: 0/1 The the correct answer is D. $22 45. An important measure of the average movement of goods "on and off the shelf" of a company is the Student Response Value Correct Answer Feedback A. Profit margin. B. Price/earnings ratio. C. Inventory turnover ratio. D. Gross inventory ratio. E. None of the above is correct. 0% Score: 0/1 The correct answer is C. Inventory Turnover Ratio
Question 2
Complete problems 4.1, 4.3, 4.5, 4.25, and 4.27 in the textbook. Submit one Excel file. Put each problem result on a separate sheet in your file. 4.1 The following gives the number of pints of type B blood used at Woodlawn Hospital in the past 6 weeks: WEEK OF PINTS USED August 31 360 September 7 389 September 14 410 September 21 381 September 28 368 October 5 374 a) Forecast the demand for the week of October 12 using a 3-week moving average. b) Use a 3-week weighted moving average, with weights of .1, .3, and .6, using .6 for the most recent week. Forecast demand for the week of October 12. c) Compute the forecast for the week of October 12 using exponential smoothing with a forecast for August 31 of 360 and a 5 .2 4.2 YEAR 1 2 3 4 5 6 7 8 9 10 11 DEMAND 7 9 5 9 13 8 12 13 9 11 7 4.3 Refer to Problem 4.2. Develop a forecast for years 2 through 12 using exponential smoothing with a 5 .4 and a forecast for year 1 of 6. Plot your new forecast on a graph with the actual data and the naive forecast. Based on a visual inspection, which forecast is better? 4.5 The Carbondale Hospital is considering the purchase of a new ambulance. The decision will rest partly on the anticipated mileage to be driven next year. The miles driven during the past 5 years are as follows: YEAR MILEAGE 1 3,000 2 4,000 3 3,400 4 3,800 5 3,700 a) Forecast the mileage for next year (6th year) using a 2-year moving average. b) Find the MAD based on the 2-year moving average. (Hint: You will have only 3 years of matched data.) c) Use a weighted 2-year moving average with weights of .4 and .6 to forecast next year?s mileage. (The weight of .6 is for the most recent year.) What MAD results from using this approach to forecasting? (Hint: You will have only 3 years of matched data.) d) Compute the forecast for year 6 using exponential smoothing, an initial forecast for year 1 of 3,000 miles, and a 5 .5. 4.25 The following gives the number of accidents that occurred on Florida State Highway 101 during the past 4 months: MONTH NUMBER OF ACCIDENTS January 30 February 40 March 60 April 90 Forecast the number of accidents that will occur in May, using least-squares regression to derive a trend equation. 4.27 George Kyparisis owns a company that manufactures sailboats. Actual demand for George?s sailboats during each of the past four seasons was as follows: YEAR SEASON 1 2 3 4 Winter 1,400 1,200 1,000 900 Spring 1,500 1,400 1,600 1,500 Summer 1,000 2,100 2,000 1,900 Fall 600 750 650 500 George has forecasted that annual demand for his sailboats in year 5 will equal 5,600 sailboats. Based on this data and the multiplicative seasonal model, what will the demand level be for George?s sailboats in the spring of year 5?
Question 3
2. George Wilkins checked the spreadsheet where he keeps track of his assets and liabilities. He discovered that (i) he owes $80,000 on his house, which he believes to be worth $150,000; (ii) his car is worth $20,000, against which there is $2,000 on the remaining bank loan; (iii) his stock portfolio has risen to $50,000; (iv) he has a $10,000 balance in his bank account, which is earning a 1.2 percent annual interest rate; and (v) the value of his other belongings is $45,000. He has just received his monthly paycheck for $6,000 and he is trying to decide about taking a vacation and whether or not to pay off his car loan. His monthly expenses are $3,000 which includes the interest expense on his auto loan. He has two possible vacation choices: the Bahamas for $2,000 or a local beach for $1,000. If he has any money left over at the end of the month, it will go into his bank account. If he doesn?t have enough money to cover all of his expenses for the month, he will sell enough of his stock to cover the excess expenses. A. Use a spreadsheet to input each of George?s assets, (i) to (v), in the first column; the value of these assets in the second column; and the liabilities (if any) against those assets in the third column. In the fourth column compute the net asset value of each of the assets. Total the fourth column to determine George?s net worth at the beginning of the month. B. Compute the additional net income that George will have from his paycheck plus the interest on his bank account minus the monthly expenses. Use this information to answer parts (c) through (f) below. C. Repeat part (a) for the end of the month assuming George does not take a vacation and pays off his auto loan. D. Repeat part (a) for the end of the month assuming George takes the Bahamas vacation and only pays $1,000 on the principal of the auto loan. E. Repeat part (a) for the end of the month assuming that George takes the local beach vacation and pays off his auto loan. F. Repeat part (a) for the end of the month assuming George takes the Bahamas vacation and pays off the auto loan.
Question 4
John Rella is a long-time auditor of a medium-size public accounting firm that serves clients in the Miami area. He is auditing Green Market Vitamin Company for the fourth year in a row, but this year Green Market has a new CEO, who has an unusual style of doing business. Margaret Boracha, the new CEO, likes to drink and party, and she insists that top employees and business associates drink and party with her. On the first day of the audit, she invites John to meet with her on her private yacht where she has her second office. He thinks nothing of it because he has met with clients on corporate yachts before. When John arrives at the yacht, he is in for a big surprise. Margaret is sitting outside on the rear deck in a skimpy bikini, talking with two men in Spanish. She tries to introduce John to the men, but neither of them speaks English. John studied Spanish in college, but he does not try to speak to them in Spanish for fear of showing his weak command of the language. A minute later a man appearing to be the captain (because of his white navy-style clothes) calls Margaret to the front of the boat, leaving John alone with the two men. The two begin a heated conversation, but John simply stares out over the water, not letting on that he understands. John listens as one of the men begins to describe what sounds like a small airplane arriving from Cartagena. They speak in somewhat coded language, but it does not take him long to figure out that they are speaking about a shipment of cocaine. The men leave as soon as Margaret returns. She then sits down with John and begins speaking about her company. She drinks a lot but does not push John to do the same. After a while, John finds she is not only charming but very knowledgeable about business, and he becomes convinced that she is a good leader and probably an effective CEO for Green Market Vitamin Company. John leaves the meeting with mixed feelings. On one hand, he would like to retain the engagement because Green Market has been a profitable client in past years and, under Margaret?s leadership, will probably add an extra six figures to his personal annual income. On the other hand, he is worried about getting mixed up with someone affiliated with drug dealers. How should John handle the situation? Should he confront Margaret with his concerns? Should John go to the police? Assume that this year is the first year that John is the auditor of Green Market Vitamin Company. Does he need to issue a report if he walks away from Green Market? What might such a report say?
Question 5
8. Small Industries has fixed costs of $ 100,000 and breakeven sales of $ 800,000. What is the firm?s estimated pre-tax profit at $ 1,200,000 sales? A) $75,000 B) $50,000 C) $25,000 D) $ 5,000 14. Conan Company's monthly activity level ranged from a low of 17,000 units in May to a high of 26,000 units in October. Average production was 20,000 units per month. Utilities cost was $8,250 in May and $10,500 in October. The variable utility cost per unit, to the nearest cent, is: A) $0.49. B) $0.47. C) $0.25. D) $0.40. 26. NoIdea Records Company uses activity-based costing. The company produces CDs and DVDs. The estimated costs and expected activity for each of the activity pools follow: Activity Estimated Expected Activity Cost Pool Cost DVDs CDs Total Activity 1 $31,350 8,000 3,000 11,000 Activity 2 $23,800 5,000 2,000 7,000 Activity 3 $55,200 8,000 4,000 12,000 Total costs which would be charged to DVDs would be: A. $110,50. B. $36,800. C. $76,600. D. $59,850. 27. SnowBird Company produces two products, X and Y. The annual production and sales of product X and Y are 1,200 and 750 units, respectively. The company has traditionally used direct labor hours to apply manufacturing overhead. Product X requires 0.6 labor hours per unit and product B requires 0.4 labor hours per unit. The company has decided to utilize activity based costing with three cost pools. Estimated costs for each pool are as follows: Overhead Expected Activity Cost Pool COST Product X Product Y Total Activity 1 $72,075 225 210 435 Activity 2 $50,640 1,000 375 1,375 General Factory $96,042 60 75 135 Total $218,757 The predetermined overhead rate for activity 1 using activity based costing system is closest to: A. $490.86. B. $320.24. C. $343.20. D. $165.66. Use the following information for questions 28 - 29. RossSignal Company?s market for the Model 225CM ski has declined, and RossSignal has had to drop the price per pair from $795 to $375. There are some pairs in the work in process inventory that have costs of $450 per pair associated with them. RossSignal could sell these skis in their current state for $300 per pair. It will cost RossSignal $30 per pair to complete these skis so that they can be sold for $375 per pair. 28. When the incremental revenues and expenses are analyzed, the company is better off by A. $375 per pair if they complete the units. B. $45 per pair if they complete the units. C. $30 per pair if the sell the units in their current state. D. $75 per pair if they sell the units in their current state. 29. Which of the following is the amount of sunk costs in this problem? A. $795 per pair B. $450 per pair C. $375 per pair D. $30 per pair 30. Picayune Company estimates that ordering costs are $6.00 per order, picking costs are $4.50 per unique item ordered, packing costs are $0.075 per item, and return costs are $135.00 per return. A customer orders $30,000 worth of goods with direct costs of $24,000. The customer places 200 orders, orders 240 unique items, 1600 items, and makes 22 returns. What is the profit (loss) on this customer? A. $6,000 B. $630 C. ($300) D. $1200,Would you be able to show step by step so that I may get a full understanding. Thanks
