1. The following information was taken from the balance sheet of Berkshire

Corporation on June 30, 2015:

Preferred stock, 8%, $100 par value, . . . . . . . . $3,000,000

Common stock, $10 par value, 300,000 shares

authorized; __??__ shares issued and _??____

outstanding .................................. 1,600,000

Additional paid-in capital

In excess of par value-common................... 400,000

Retained Earnings .................................. 700,000

Treasury stock (6,000 shares)............... 150,000

INSTRUCTIONS

Complete the following statements and show your computations.

The number of shares of common stock issued was _______________.

The number of shares of common stock outstanding was __________.

The total annual preferred stock dividend is_______________.

The total Paid-In-Capital is_____________________.

(e) The average sales price of the common stock per share when issued was

$__________.

(f) The cost per share of the treasury stock was $_____________.

2. The Publix Corporation is authorized to issue 25,000 shares of 6%, $100 par value preferred stock and 800,000 shares of $2 par value common stock. During 2015, its first year of operation, the company has the following stock transactions.

Jan. 1 Issued 200,000 shares of common stock for cash at $5 per share.

Jan. 15 Issued 6,000 shares of preferred stock for cash at $108 per share.

Mar. 2 Attorneys for the company accepted 7,000 shares of common

stock as payment for legal services rendered in helping the

company incorporate. The legal services are estimated to

have a value of $42,000.

Apr. 30 Issued 50,000 shares of stock for land. The land had an

asking price of $400,000. The stock is currently selling

on a national exchange at $8 per share.

Sept. 5 Purchased 9,000 shares of common treasury stock at

$12 per share.

Dec. 6 Sold 4,000 shares of the treasury stock at $13 per share.

Dec. 10 Sold the remaining treasury stock for $15 per share.

Dec. 31 Determined that net income for the year was $450,000.

INSTRUCTIONS

Journalize the transactions for Publix Corporation.

3. The following information is from the accounts of Rockefeller, Inc. at

December 31, 2015.

Common Stock, $6 par value, 500,000 shares authorized, $2,400,000

Paid-in Capital in Excess of Par Value--Common Stock 600,000

Preferred Stock, $50 par value, 10%, 50,000 shares

authorized 800,000

Retained Earnings at January 1, 2015 950,000

Treasury Stock (15,000 common shares) 75,000

Paid-in Capital in Excess of Par Value--Preferred Stock 300,000

Cash dividends declared on preferred stock 25,000

Prior period adjustment that was recorded as a credit to

Retained Earnings for an error discovered from 2013???? 10,000

Net income for 2015 375,000

INSTRUCTIONS

Prepare a retained earnings statement at December 31, 2015.

Prepare the stockholders' equity section at December 31, 2015.

4. The comparative balance sheets of Mattel Corporation are presented below.

Mattel Corporation

Comparative Condensed Balance Sheets

December 31

2016 2015

Assets

Current assets $ 90,000 $ 80,000

Property, plant, and equipment (net) 96,000 90,000

Intangibles 33,000 40,000

Total assets $219,000 $210,000

Liabilities and stockholders' equity

Current liabilities $ 58,300 $ 48,000

Long-term liabilities 142,500 150,000

Stockholders' equity 18,200 12,000

Total liab & stockholders' equity $219,000 $210,000

Instructions

(a) Prepare a horizontal analysis of the balance sheet data for Mattel Corporation using 2015 as a base.

(b) Prepare a vertical analysis of the balance sheet data for Mattel Corporation in columnar form for 2016.

5. On January 1, 2015, NetFlix Corporation had 700,000 shares of $3 par value common stock issued and outstanding. During the year, the following transactions occurred:

June 1 Declared a cash dividend of $1.75 per share to stockholders

of record on June 15.

June 30 Paid the cash dividend.

July 1 Announced a 2-for-1 stock split to be distributed on August 1.

Oct. 1 Declared a cash dividend of $0.60 per share.

INSTRUCTIONS

Prepare journal entries if necessary to record the above transactions.

6. Alexion Pharmaceuticals Company incurs manufacturing costs during the month

of August. (shown on ?answer page?)

INSTRUCTIONS

Complete the following matrix by placing an X mark under the

appropriate headings.

Direct Materials

Direct Labor

Mfg. Overhead

Period Costs

7. Cooper Tire Manufacturing Company has developed the following information

for the year ended December 31, 2015:

Work In Process Inventory, December 31 $ 30,000

Finished Goods Inventory, December 31 52,000

Raw Materials Inventory, December 31 20,000

Raw Materials purchases 35,000

Plant manager?s salary 5,000

Operating expenses 44,000

Factory depreciation expense 2,000

Factory utilities expense 4,000

Factory repair expense 3,000

Direct labor 36,000

Indirect labor 7,000

Sales revenue 450,000

Sales discounts 10,000

Work In Process Inventory, January 1 60,000

Finished Goods Inventory, January 1 42,000

Raw Materials Inventory, January 1 40,000

INSTRUCTIONS

A. Prepare a Cost of Goods Manufactured Schedule for Cooper Tire

Manufacturing Company for the year ended December 31, 2015.

B. Prepare a complete income statement for the year ended December 31, 2015

8. Selected transactions of Aeropostale Company are listed on the exam ?answer

page?.

INSTRUCTIONS

Classify each transaction as either a(n)operating activity, investing activity, financing activity, or non-cash investing and financing activity by placing in X in the appropriate column on the answer sheet.

9. The comparative balance sheets for Kimberly-Clark Company appear below:

Kimberly-Clark Company

Comparative Balance Sheet

Dec. 31, Dec. 31,

2015 2014

Assets

Cash $ 61,000 $12,000

Accounts receivable 5,000 8,000

Prepaid expenses 2,000 3,000

Inventory 11,000 7,000

Land 0 0

Building 20,000 20,000

Accumulated depreciation?Bldg (3,000) (2,000)

Total assets $96,000 $48,000

Liabilities and Stockholders' Equity

Accounts payable $ 1,700 $ 3,200

Income Tax Payable 300 800

Bonds payable 13,000 14,000

Common stock 38,000 18,000

Retained earnings 43,000 12,000

Total liabilities and stockholders' equity $96,000 $48,000

The income statement for Kimberly-Clark contains the following information:

Sales revenue $143,500

Loss on sale 2,500

Cost of goods sold 78,000

Operating expenses 10,000

Depreciation expense 1,000

Income tax expense 2,000

Net Income $50,000

Additional information:

1. Cash dividends of $19,000 were declared and paid during the year.

2. Land costing $20,000 was acquired by issuing common stock.

3. The land in #2 was later sold for $17,500 cash.

INSTRUCTIONS

a. Prepare a statement of cash flows for the year ended December 31,

2015, using the indirect method.

Compute free cash flow for 2015.

10. The following information relates to Constellation Brands Corporation for the year ended December 31, 2016. All amounts are before income taxes. Assume a 28% income tax rate for all items.

Net sales $ 2,000,000

Other expenses and losses $ 120,000

Operating expenses $ 250,000

Other revenues and gains $ 70,000

Cost of goods sold $ 950,000

Unrealized gain on available-for-sale securities $ 60,000

Additional information:

The entire snack division was discontinued on September 30. The gain from operations for this division before income tax was $60,000. The snack division was sold at a loss of $40,000 before income taxes.

Instructions

Prepare a statement of comprehensive income for the year. (Assume a tax rate of 28%). If necessary, round any calculations to the nearest whole dollar.

Name (2 points) Problem 1 12 points Spring 2016 Read all the directions in the exam module before starting. You must show all calculations, formulas etc.for all problems where appropriate or NO show work here CREDIT GIVEN Place Answer here (a) (b) (c ) (d) (e) (f) 19 20 19 20 Name Date 1 Jan. 1 2 3 4 5 Jan. 15 6 7 8 9 Mar. 2 10 11 12 13 Apr. 30 14 15 16 17 Sept. 5 18 19 20 21 Dec. 6 22 23 24 25 Dec.10 26 27 28 29 Dec. 31 30 31 32 33 34 Problem 2 22 points Account Titles and Explanation Debit Credit Name Problem 3 18 points (a ) Retained Earnings Statement For the Year Ended December 31, 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 (b) Stockholder's Equity Section of the Balance Sheet December 31, 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Name Problem 4 10 points (a) Mattel Corporation Condensed Balance Sheets December 31, 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 2016 2015 Increase or (Decrease) Amount Percent 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Amount 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 (b) Mattel Corporation Condensed Balance Sheet December 31, 2016 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Percent Name Problem 5 9 points Show work for dividend calculations Date June 1 1 2 3 4 5 6 June 30 7 8 9 10 11 July 1 12 13 14 15 16 Oct. 1 17 18 19 20 21 22 23 24 25 26 27 Account Titles and Explanation Debit Credit Name Problem 6 13 points Place an "X" in the spaces that apply. Direct Materials a Assembly line wages b Indirect materials used in production c Depreciation on factory equipment d Wages for factory maintenance workers e Sales commissions f Property taxes on factory building g Income taxes h Advertising i Factory utilities j Raw materials used directly in product k Insurance on factory building l Factory manager's salary m Depresciation on office equipment Direct Labor Mfg. Overhead Period Costs Name Problem 7 12 points Date 7A. Cooper Tire Manufactuing Company Cost of Goods Manufactured Schedule For The Year Ended December 31, 2015 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Name Problem 7 6 points Date 7B. Cooper Tire Manufacturing Company Income Statement For The Year Ended December 31, 2015 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Problem 8 (12 points) Classify each transaction as either a(n)operating activity, investing activity, financing activity, or non-cash investing and financing activity by placing a X in the correct column. Operating a. b. c. d. e. f. g. h. i. j. k. l.. Increase in accounts receivable. Depreciation Receipt of dividends on investment in stock. Land is sold for cash at book value. Purchase of treasury stock. Equipment is purchased by signing a 3-year, 10% note payable. Cash dividends on common stock are declared and paid. 100 shares of Xerox common stock are purchased for cash. Decrease in inventory. Bonds payable are converted into common stock. Increase in accounts payable. Issued common stock for cash above par value. Investing Financing Non-cash invest/fin Name (Place answer to part b at the bottom) (a) Kimberly-Clark Company Statement of Cash Flows For the Year Ended December 31, 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 39 b) Free cash flow Problem 9 14 points Name Problem 10 Constellation Brands Statement of Comprehensive Income For the Year Ended December 31, 2016 1 2 3 4 5 6 7 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40