1) Shamrock Company had net income of $30,000. On January 1, the number of shares of common stock outstanding was 8,000. The company declared a $2,700 dividend on its noncumulative, nonparticipating preferred stock. There were no other stock transactions. What is the company's earnings per share?

2) A company had total assets of $1,760,000, total cash flows of $1,320,000, and cash flows from operations of $205,000. This implies its cash flow on total assets ratio is equal to _____?

3) Everrine Corporation owns 3,000 shares of JRW Corporation. JRW Corporation has 25,000 shares of stock outstanding. JRW paid $4 per share in cash dividends to its stockholders. What is the entry to record the receipt of these dividends?

4) What are comparative statements?

5) A company must repay the bank $10,000 cash in 3 years for a loan it entered into. The loan is at 8% interest compounded annually. The present value factor for 3 years at 8% is 0.7938. What is the present value of the loan?

6) Alton Company has an overhead application rate of 160% and allocates overhead based on direct materials. During the current period, direct labor is $50,000 and direct materials used are $80,000. Determine the amount of overhead Alton Company should record in the current period.

7) A corporation is authorized to issue 9,000 shares of $5 common stock. What should the corporation report as paid-in capital from the issuance of common stock?

8) Canoe Company uses a job order cost accounting system and allocates its overhead on the basis of direct labor costs. Canoe Company's production costs for the year were: direct labor, $30,000; direct materials, $50,000; and factory overhead applied, $6,000. What was the overhead application rate?

9) What is customer orientation?

10) What is a cash equivalent investment?

11) What is a bond? Identify and discuss the different types of bonds.

12) A retail store has three departments, A, B, and C, each of which has four full-time employees. The store does general advertising that benefits all departments. Advertising expense totaled $90,000 for the current year, and departmental sales were:

Department A.. 356,250

Department B.. 641,250

Department C.. 427,500

How much advertising expense should be allocated to each department?

13) What is one advantage and one disadvantage of using the accounting rate of return to evaluate investment alternatives?

14) A manufacturing company uses an overhead allocation rate based on direct labor cost. The company's Goods in Process Inventory account has a $15,000 debit balance after all posting is completed, and the cost sheet of the one job still in process shows direct material costs of $6,600 and direct labor costs of $3,000. What is the company's overhead application rate?

15) Based on the following information provided about a company's operations, calculate its cost of goods purchased and its cash paid for merchandise.

Cost of goods sold- 413,000

Merchandise inventory, beginning year- 70,000

Accounts payable, beginning year- 52,000

Merchandise inventory, end of year- 67,000

Accounts payable, end of year- 48,000

16) Identify and explain the four building blocks of financial statement analysis.

17) Job order manufacturing and process manufacturing are two major costing systems used in manufacturing. Briefly contrast the characteristics of these two systems.

Job Order SystemProcess System

Custom OrdersRepetitive production

Heterogeneous ProductHomogeneous Product

Low Production VolumeHigh Production Volume

High production FlexibilityLow production flexibility

Low to medium standardizationHigh Standardization

18) Describe at least five benefits of budgeting.

19) Identify and explain the primary differences between fixed and flexible budgets.

20) Describe what happens to the net income of a company under each of the following assumptions: (a) Sales volume is less than break-even sales. (b) Sales volume is greater than break-even sales. (c) Sales volume is equal to the break-even point.