1 The Jimbo Company has provided you with the following information Balance Sheet December 31, 2016 31-Dec-16 31-Dec-15 Assets Cash $490 $160 Accounts Rec $280 $200 Inventory $175 $110 Land $400 $450 Equipment $225 $175 Accum Deprec $(60) $(30) Total $1,510 $1,065 Liabilities Accounts Pay $175 $160 Dividends Pay $30 $- Common stock $100 $50 APIC $250 $125 Retained earnings $955 $730 Total $1,510 $1,065 A. Land was sold for $125 B. Equipment was acquired for cash C. There were no disposal foa equpment during the year D. The common stock was issued for cash E. There was a $325 credit to Retained Earnings for net income F There was an $100 debit to Retained earnings for cash dividends declared Prepare only the Operating portion of the Cash Flow Statement 2 In your own words, please explain th purpose of the horizontal and vertical analysis for the income statement 3 Using the following data prepare the Cost of Goods Manufactured Statement for the Romeo Company Jan 1 Dec 31 Direct material $77,350 $95,550 Work in process $109,200 $96,200 Finished Goods $113,750 $100,100 Advertising expense $68,250 Deprec exp - factory equip $22,750 Deprec exp - office equip $14,560 Direct labor $186,550 Utilities - factory $5,850 Indirect labor $23,660 Materials purchased $123,500 Office salary exp $77,350 Property tax - Factory $4,095 Property tax - Admin $13,650 Rent expense - Factory $6,825 Sales $864,500 Sales salary expense $136,500 Indirect material $3,250 Mgmt salary - Factory $92,400 Required 1 Prepare the cost of goods manufactured statement 2 Explain how you would convert the total cost of goods manufacture to the unit cost of goods manufactured . 3 Explan how management uses the unit cost of goods manufactured 4 Please explain, in your own words, why a company uses an overhead rate to apply the manufacturing overhead cost to their product or service. 5 You are the CEO of That Company and your Marketing Department is presenting a break even analysis for a possible new product at the company. During the presentation it was stated that the monthly number of units required to break even was 1,000. The information also presented that the number of units required to meet the target profit after taxes was 1,500. Assume that the total estimated monthly demand for the new product is 12,000 units. The Marketing Department has estimated that the company's market share is 11% As the CEO would you accept the Marketing Department's proposal to start producing and selling the new product? Explain 6 The Bobble Head Company has created their new product. The new product is called Old Teacher Person Bobble Head Doll. Wow that is scary. The company has provided you with the following information: Direct material per doll $3.00 Direct labor per doll $8.00 Variable overhead per doll $7.50 (includes manufacturing and marketing) Manufacturing fixed cost (annual cost) $220,000 Marketing fixed cost (annual cost) $194,500 Accounts Receivable $14,000 Accounts Payable $12,000 Selling price is $35 Required: a. Calculate the monthly break-even point for the Old Teacher Person Bobble Head Doll. Show your work 7 Refer to problem #6, now this time management wants to have a monthly profit after taxes of $36,000. the tax rate for the company is 32%. Required a. Calculate the number of units required to meet the target income b. Prove your answer with an income statement 8 The Fun Company issued a bond on Jan 1, 2016. The principal amount of the bond was $72,000,000, maturity 12 years, stated annual interest rate 6%, market annual interest rate was 7%, interest is paid semi annual. Required a. Calculate the present value for the bond -- show your work b. Prepare the journal entry when the bond was issued.