#1 Refer to following financial statements and calculate the total asset turnover ratio of Tabor Hill Designers as of December 31, 2010. Then, indicate what this ratio measures and how you would interpret the results. Tabor Hill Designers Income Statement For the Month Ended February 28, 2011 Operating Revenues: Design revenue Operating Expenses: $61,000 Wage expense 16,000 Utilities expense 500 Telephone expense 250 16.750 Pretax Income 44.250 Income tax expense 0 Net income $44.250 Tabor Hill Designers Statement of Stockholders' Equity For the Month Ended February 28, 2011 Total Contributed Retained Stockholders' Capital Earnings Equity Balance, January 31, 2011 $10,000 $10,000 Net income 44.250 44.250 Dividends declared (0% Balance, February 28, 2011 $10,000 $44,250 $54,250 Assets Current Assets: Cash Accounts receivable Tabor Hill Designers Balance Sheet February 28, 2011 $33,600 2,000 Supplies 900 Prepaid expenses 12,000 Total Current Assets 48.500 Property, plant, and equipment 21,000 Tabor Hill Designers Statement of Stockholders' Equity For the Month Ended February 28, 2011 Total Contributed Retained Stockholders Capital Earnings Equity Balance, January 31, 2011 $10,000 $10,000 Net income 44,250 44.250 Dividends declared 401 Balance, February 28, 2011|| $10,000 $44,250 Assets Current Assetsc Cash Accounts receivable Tabor Hill Designers Balance Sheet February 28, 2011 533,600 2.000 Supplies 900 Prepaid expenses 12,000 Total Current Assets 41.500 Property, plant, and equipment 21,000 Total Assets 569.500 Liabilities Current Liabilities Accounts Payable Notes Payable 250 15,000 Notes Payable Total Current Liabilities 15.250 Stockholders' Equity Contributed Capital Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity 569,500 10,000 44.250 54,250 Calculation: What it measures and how to interpret: Tabor Hill Designers Statement of Stockholders' Equity For the Month Ended February 28, 2011 Total Contributed Retained Stockholders Capital Earnings Equity Balance, January 31, 2011 $10,000 S $10,000 Net income 44.250 Dividends declared 10 Balance, February 28, 2011|| $10,000 $54,250 Assets Current Assets Cash Accounts receivable Supplies Prepaid expenses Tabor Hill Designers Balance Sheet February 28, 2011 $33,600 2,000 900 12,000 Total Current Assets 4K 500 Property, plant, and equipment 21,000 Total Assets $69.500 Liabilities Current Liabilities: Accounts Payable $250 Notes Payable 15,000 Notes Payable Total Current Liabilities 15.250 Stockholders' Equity Contributed Capital Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity $69.500 10,000 34.25 Calculation: What it measures and how to interpret: On March 3, Gooddeal.com sold merchandise for $2,500, terms 2/10 n/30. Prepare the journal entry. Debit and credit the accounts affected Mar Ensure the equation still balances and debits-credits Assets Liabilities Stockholders' Equity The customer paid for the merchandise on March 6, taking advantage of the permitted discount. Prepare the journal entry. Debit and credit the accounts affected Mat Ensure the equation still balances and debits credits Assets Liabilities Stockholders' Equity On March 8, the customer returned $1,250 (or one-half) of the merchandise that was purchased back on March 3. Prepare the journal entry. Debit and credit the accounts affected Mar Ensure the equation still balances and debits-credits Assets Liabilities Stockholders' Equity Q#3 Quickie Grocery acquired the following five bottles of Corporate-Cola soft drink: Cost $1.00 $2.00 $3.00 $4.00 $5.00 A January 31 inventory count revealed that two bottles remained on the shelf. How many bottles were sold in January? Q#3 Quickie Grocery acquired the following five bottles of Corporate-Cola soft drink: Date Jan, 2Jan 10 Jan. 12 Jan 16 Jan 25 Cost $1.00 $2.00 $3.00 $4.00 $5.00 A January 31 inventory count revealed that two bottles remained on the shelf. How many bottles were sold in January? Specific Identification The Quickie Grocery keeps track of each individual bottle. Suppose the Grocery knows that it sold the bottles acquired on Jan. 2, 12, and 16. Date Jan Jan. 10 Jan 12 Jan 16 Jan 25 Total Cost COGS Inventory $1.00 $2.00 $3.00 $4.00 $5.00 $15.00 What was the value of inventory on January 31? What was the cost of goods sold for January? First-in, First-out (FIFO) Dane Jan Jan. 10Jan 12 Jan 16an 25 Total Cost $1.00 $2.00 $3.00 $4.00 $5.00 $15.00 COGS aventory What was the value of inventory on January 31? What was the cost of goods sold for January? Last-in. First-out (LIFO) !!! What was the cost of goods sold for January? Last-in. First-out (LIFO) Date Jan. 2 Jan. 10 Jan 12 Jan 16Jan 25 Total Cost $1.00 $2.00 $3.00 $4.00 $5.00 $15.00 COGS Inventory What was the value of inventory on January 31? What was the cost of goods sold for January? Average Cost Date Jan. 2 Jan, 10 Jan 12 Jan 16 Jan 25 Cost $1.00 $2.00 $3.00 $4.00 $5.00 $15.00 What was the value of inventory on January 31? What was the cost of goods sold for January? Complete the following table: Specific Identification FIFO LIFO Average Cost Cost of Goods Sold Inventory