1) Ending Balance Beginning Balance Assets: Cash and cash equivalents Accounts receivable Inventory Plant and equipment Less accumulated depreciation Total assets $43 53 73 582 (301) $450 $35 59 69 490 (286) $367 Liabilities and stockholders' equity Accounts payable Wages payable Taxes payable $57 21 15 $48 18 13 Income Statement Sales Cost of good sold Gross margin Selling and administrative Expense Net operating income Income taxes Net income $893 587 306 189 117 35 $82 The net cash provided by (used by) financing activities for the year was A. ($12). B. $1. C. $5. D. ($18). 2) Kava Inc. manufactures industrial components. One of its products, which is used in the construction of industrial air conditioners, is known as K65. Data concerning this product are given below: Per Unit Selling price $180 Direct materials $29 Direct labor $5 Variable manufacturing overhead $4 Fixed manufacturing overhead $21 Variable selling expense $2 Fixed selling and administrative expense $17 The above per unit data are based on annual production of 4,000 units of the component. Direct labor can be considered to be a variable cost. (Source: CMA, adapted) The company has received a special, one-time-only order for 500 units of component K65. There would be no variable selling expense on this special order, and the total fixed manufacturing overhead and fixed selling and administrative expenses of the company wouldn't be affected by the order. Assuming that Kava has excess capacity and can fill the order without cutting back on the production of any product, what is the minimum price per unit on the special order below which the company shouldn't go? A. $180 B. $78 C. $38 D. $59 3) Ending Balance Beginning Balance Assets: Cash and cash equivalents Accounts receivable Inventory Plant and equipment Less accumulated depreciation Total assets $43 53 73 582 (301) $450 $35 59 69 490 (286) $367 Liabilities and stockholders' equity Accounts payable Wages payable Taxes payable $57 21 15 $48 18 13 Income Statement Sales Cost of good sold Gross margin Selling and administrative Expense Net operating income Income taxes Net income $893 587 306 189 117 35 $82 The net cash provided by (used by) investing activities for the year was A. ($77). B. $77. C. $92. D. ($92). 4) Financial statements for Larkins Company appear below: Larkins Company Statement of Financial Position December 31, Year 2 and Year 1 (dollars in thousands) Year 2 Year 1 Current assets: Cash and marketable securities Accounts receivable, net Inventory Prepaid expenses Total current assets Noncurrent assets: Plant & equipment, net $180 210 130 50 570 1,540 $180 180 120 50 530 1,480 Total assets $2,110 $2,010 Current liabilities: Accounts payable Accrued liabilities Notes payable, short term Total current liabilities Noncurrent liabilities: Bonds payable Total liabilities Stockholders' equity: Preferred stock, $20 par, 10% Common stock, $10 par Additional paid-in capital--common stock Retained earnings Total stockholders' equity Total liabilities & stockholders' equity $100 60 90 250 480 730 120 180 240 840 1,380 $2,110 $130 60 120 310 500 810 120 180 240 660 1,200 $2,010 Larkins Company Income Statement For the Year Ended December 31, Year 2 (dollars in thousands) Sales (all on account) Cost of goods sold Gross margin Selling and administrative expense Net operating income Interest expense Net income before taxes Income taxes (30%) Net income $2,760 1,930 830 330 500 50 450 135 $315 Dividends during Year 2 totaled $135 thousand, of which $12 thousand were preferred dividends. The market price of a share of common stock on December 31, Year 2 was $150. Larkins Company's return on common stockholders' equity for Year 2 was closest to: A. 25.9%. B. 24.4%. C. 26.9%. D. 23.5%. 5) Ending Balance Beginning Balance Assets: Cash and cash equivalents Accounts receivable Inventory Plant and equipment Less accumulated depreciation Total assets $43 53 73 582 (301) $450 $35 59 69 490 (286) $367 Liabilities and stockholders' equity Accounts payable Wages payable Taxes payable $57 21 15 $48 18 13 Income Statement Sales Cost of good sold Gross margin Selling and administrative Expense Net operating income Income taxes Net income $893 587 306 189 117 35 $82 The net cash provided by (used by) investing activities for the year was A. ($77). B. $77. C. $92. D. ($92). 6) Ending Balance Beginning Balance Assets: Cash and cash equivalents Accounts receivable Inventory Plant and equipment Less accumulated depreciation Total assets $43 53 73 582 (301) $450 $35 59 69 490 (286) $367 Liabilities and stockholders' equity Accounts payable Wages payable Taxes payable $57 21 15 $48 18 13 Income Statement Sales Cost of good sold Gross margin Selling and administrative Expense Net operating income Income taxes Net income $893 587 306 189 117 35 $82 The net cash provided by (used by) operations for the year was A. $117. B. $52. C. $30. D. $112.