Managerial Accounting
Managerial Accounting
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- Accounts receivable arising from sales to customers amounted to $120000 and $105000 at the beginning and end of the year, respectively. Income reported on the income statement for the year was $457000. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows is
- Catalina Company reported a net loss of $15000 for the year ended December 31, 2017. During the year, accounts receivable decreased $7500, inventory increased $12000, accounts payable increased by $15000, and depreciation expense of $9000 was recorded. During 2017, operating activities
- A company had net income of $282000. Depreciation expense is $26000. During the year, accounts receivable and inventory increased $15000 and $40000, respectively. Prepaid expenses and accounts payable decreased $2000 and $14000, respectively. There was also a loss on the sale of equipment of $17000. How much cash was provided by operating activities?
- If $2500000 of bonds are issued during the year but $4000000 of old bonds are retired during the year, the statement of cash flows will show a(n)
- If a gain of $225000 is incurred in selling (for cash) a building having a book value of $900000, the total amount reported in the cash flows from investing activities section of the statement of cash flows is
- If a loss of $9000 is incurred in selling (for cash) office equipment having a book value of $90000, the total amount reported in the cash flows from investing activities section of the statement of cash flows is
- Catalina Company reported net income of $200000 for the year ended December 31, 2017. During the year, inventories decreased by $40000, accounts payable decreased by $60000, depreciation expense was $45000 and a gain on disposal of equipment of $15000 was recorded. Net cash provided by operating activities in 2017 using the indirect method was
- During 2017, Ecuyer Industries reported cash provided by operations of $794000, cash used in investing of $686000, and cash used in financing of $190000. In addition, cash spent for fixed assets during the period was $2276000. Average current liabilities were $650000 and average total liabilities were $1716000. No dividends were paid. Based on this information, what was Ecuyer’s free cash flow?
- If a company has a discontinued operation gain of $30000 and a 32% tax rate, what is the effect on net income?
- Dandy Candy Company sold its licorice division resulting in a loss of $80000. Assuming a tax rate of 25%, the loss on this disposal will be reported on the income statement at what amount?
- Lupton Inc. disposes of an unprofitable segment of its business. The operation of the segment suffered a $200000 loss in the year of disposal. The loss on disposal of the segment was $100000. If the tax rate is 30%, and income before income taxes was $1600000,
- Danner Corporation reported net sales of $650000, $720000, and $780000 in the years 2016, 2017, and 2018, respectively. If 2016 is the base year, what percentage do 2018 sales represent of the base?
13.Assume the following sales data for a company:
| 2018 | $980000 |
| 2017 | $875000 |
| 2016 | 700000 |
If 2016 is the base year, what is the percentage increase in sales from 2016 to 2017?
14.
Salamagundi, Inc. has the following Income Statement (in millions):
| SALAMAGUNDI, INC. Income Statement For the Year Ended December 31, 2017 |
|
| Net Sales | $160 |
| Cost of Goods Sold | 100 |
| Gross Profit | 60 |
| Operating Expenses | 40 |
| Net Income | $ 20 |
Using vertical analysis, what percentage is assigned to gross profit?
Cochran Corporation, Inc. has the following income statement (in millions):
| COCHRAN CORPORATION, INC. Income Statement For the Year Ended December 31, 2017 |
|
| Net Sales | $240 |
| Cost of Goods Sold | 150 |
| Gross Profit | 90 |
| Operating Expenses | 65 |
| Net Income | $ 25 |
Using vertical analysis, what percentage is assigned to net income?
- A company with $60,000 in current assets and $35,000 in current liabilities pays a $1,000 current liability. As a result of this transaction, the current ratio and working capital will
| both decrease. |
| both increase. |
| increase and remain the same, respectively. |
| remain the same and decrease, respectively. |
- Winsor Clothing Store had a balance in the Accounts Receivable account of $760000 at the beginning of the year and a balance of $840000 at the end of the year. Net credit sales during the year amounted to $7200000. The average collection period of the accounts receivable in terms of days was
- Chodron Corporation had net credit sales of $13000000 and cost of goods sold of $9250000 for the year. The average inventory for the year amounted to $1250000. The inventory turnover for the year is
- The current assets of Orangette Company are $292500. The current liabilities are $130000. The current ratio expressed as a proportion is
- A company has an accounts receivable turnover of 10. The average net accounts receivable during the period are $900000. What is the amount of net credit sales for the period?
- If the average collection period is 73 days, what is the accounts receivable turnover?
- A company has an average inventory on hand of $90000 and its average days in inventory is 36.5 days. What is the cost of goods sold?
- The following information pertains to Unique Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit.
| Assets | |
| Cash and short-term investments | $ 40000 |
| Accounts receivable (net) | 25000 |
| Inventory | 20000 |
| Property, plant and equipment | 210000 |
| Total Assets | $295000 |
| Liabilities and Stockholders’ Equity | |
| Current liabilities | $ 60000 |
| Long-term liabilities | 85000 |
| Stockholders’ equity—common | 150000 |
| Total Liabilities and Stockholders’ Equity | $$295000 |
| Income Statement | |
| Sales revenue | $85000 |
| Cost of goods sold | 45000 |
| Gross profit | 40000 |
| Operating expenses | 20000 |
| Net income | $ 20000 |
| Number of shares of common stock | 6000 |
| Market price of common stock | $20 |
| Dividends per share on common stock | 0.9 |
| Cash provided by operations | $30000 |
What is the current ratio for this company?
- The following information pertains to Unique Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit.
| Assets | |
| Cash and short-term investments | $ 40000 |
| Accounts receivable (net) | 25000 |
| Inventory | 20000 |
| Property, plant and equipment | 210000 |
| Total Assets | $295000 |
| Liabilities and Stockholders’ Equity | |
| Current liabilities | $ 60000 |
| Long-term liabilities | 85000 |
| Stockholders’ equity—common | 150000 |
| Total Liabilities and Stockholders’ Equity | $$295000 |
| Income Statement | |
| Sales revenue | $85000 |
| Cost of goods sold | 45000 |
| Gross profit | 40000 |
| Operating expenses | 20000 |
| Net income | $ 20000 |
| Number of shares of common stock | 6000 |
| Market price of common stock | $20 |
| Dividends per share on common stock | 0.9 |
| Cash provided by operations | $30000 |
What is the return on assets for this company?
- The following information pertains to Unique Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit.
| Assets | |
| Cash and short-term investments | $ 40000 |
| Accounts receivable (net) | 25000 |
| Inventory | 20000 |
| Property, plant and equipment | 210000 |
| Total Assets | $295000 |
| Liabilities and Stockholders’ Equity | |
| Current liabilities | $ 60000 |
| Long-term liabilities | 85000 |
| Stockholders’ equity—common | 150000 |
| Total Liabilities and Stockholders’ Equity | $$295000 |
| Income Statement | |
| Sales revenue | $85000 |
| Cost of goods sold | 45000 |
| Gross profit | 40000 |
| Operating expenses | 20000 |
| Net income | $ 20000 |
| Number of shares of common stock | 6000 |
| Market price of common stock | $20 |
| Dividends per share on common stock | 0.9 |
| Cash provided by operations | $30000 |
What is the profit margin for this company?
26.
| Assets | |
| Cash and short-term investments | $ 40000 |
| Accounts receivable (net) | 25000 |
| Inventory | 20000 |
| Property, plant and equipment | 210000 |
| Total Assets | $295000 |
| Liabilities and Stockholders’ Equity | |
| Current liabilities | $ 60000 |
| Long-term liabilities | 85000 |
| Stockholders’ equity—common | 150000 |
| Total Liabilities and Stockholders’ Equity | $$295000 |
| Income Statement | |
| Sales revenue | $85000 |
| Cost of goods sold | 45000 |
| Gross profit | 40000 |
| Operating expenses | 20000 |
| Net income | $ 20000 |
| Number of shares of common stock | 6000 |
| Market price of common stock | $20 |
| Dividends per share on common stock | 0.9 |
| Cash provided by operations | $30000 |
What is the return on common stockholders’ equity for this company?
- Junebag Corporation reported net income $24000; net sales $400000; and average assets $600000 for 2017. What is the 2017 profit margin?
- The following information pertains to Unique Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit.
| Assets | |
| Cash and short-term investments | $ 45000 |
| Accounts receivable (net) | 30000 |
| Inventory | 25000 |
| Property, plant and equipment | 210000 |
| Total Assets | $310000 |
| Liabilities and Stockholders’ Equity | |
| Current liabilities | $ 60000 |
| Long-term liabilities | 95000 |
| Stockholders’ equity—common | 155000 |
| Total Liabilities and Stockholders’ Equity | $310000 |
| Income Statement | |
| Sales revenue | $ 116000 |
| Cost of goods sold | 66000 |
| Gross profit | 50000 |
| Operating expenses | 30000 |
| Net income | $ 20000 |
| Number of shares of common stock | 6000 |
| Market price of common stock | $20 |
| Dividends per share on common stock | 0.5 |
| Cash provided by operations | $35000 |
What is the return on assets for this company?
