1.A company had net cash flows from operations of $140,000, total cash flows of $600,000, and average total assets of $2,400,000. The cash flow on total assets ratio equals(rounded):

A. 9.3%.

B. 17.1%.

C. 25.0%.

D. 4.3%.

E. 5.8%.

2. Use the following information and the indirect method to calculate the net cash provided or used by operating activities:

Net income $12,800

Depreciation expense 11,600

Payment on mortgage payable 14,400

Gain on sale of land 7,900

Increase in merchandise inventory 2,100

Increase in accounts payable 6,500

Proceeds from sale of land 8,500

A. $35,300.

B. $12,400.

C. $20,900.

D. $7,900.

E. $40,900.

3. The statement of cash flows reports:

A. Assets, liabilities and equity

B. Revenues, gains, expenses and losses

C. Cash inflows and outflows for an accounting period

D. Equity, net income and dividends

E. Changes in equity

4. The statement of cash flows is:

A. Another name for the statement of financial position

B. A financial statement that presents information about changes in equity during a period

C. A financial statement that reports the cash inflows and outflows for an accounting period and that classifies those cash flows as operating activities, investing activities or financing activities

D. A financial statement that lists the types and amounts of assets, liabilities and equity of a business on a specific date

E. A financial statement that lists the types and amounts of the revenues and expenses of a business for an accounting period

5.

A company had a profit margin of 15%. If net income equaled $44,000 and average total assets equaled $335,000, how much were net sales? (Rounded to the nearest whole dollar.)

A. $293,333

B. $6,600

C. $223

D. $50,250

E. $291,000

6. A company has sales of $2,418,422, a gross profit ratio of 25%, a days' sales in inventory ratio of 13.8, and total current assets of $535,600. What is the ending inventory for the year?

A. $69,006

B. $328,640

C. $68,577

D. $133,900

E. $38,812

7. Net income divided by average total assets is equal to the:

A. Profit margin

B. Total asset turnover

C. Return on total assets

D. Days' income in assets

E. Current ratio

8. The three most common tools of financial analysis are:

A. Financial reporting, ratio analysis, vertical analysis

B. Ratio analysis, horizontal analysis, financial reporting

C. Horizontal analysis, vertical analysis, ratio analysis

D. Trend analysis, financial reporting, ratio analysis

E. Vertical analysis, political analysis, horizontal analysis

9. Financial statements with data for two or more successive accounting periods placed in columns side by side, sometimes with changes shown in dollar amounts and percents, are referred to as:

A. Period-to-period statements

B. Controlling statements

C. Successive statements

D. Comparative statements

E. Serial statements

10. A company produces work boots. The company received and produced an order for 4,600 pairs of boots. The following information is available regarding this order.

Process time 5.6 days

Inspection time. 6.5 days

Move time 6.3 days

Wait time 9.6 days

What is this company's manufacturing cycle efficiency?

A. 28 days

B. 7.0 days

C. 23.21%

D. 20%

E. 22.5%

11. The following information is available for Talking Toys, Inc., for the current year:

Direct materials used $7,500

Goods in process, January 1 48,000

Goods in process, December 31 44,000

Total Factory overhead 6,200

Direct labor used 28,500

The total manufacturing costs incurred during the year were:

A. $46,200.

B. $44,200.

C. $7,500.

D. $42,200.

E. $89,000.

12. Compute cost of goods manufactured for this period given the following amounts.

Ending finished goods inventory $66,000

Cost of Goods Sold 54,000

Beginning finished goods inventory 60,000

A. $72,000

B. $48,000

C. $60,000

D. $66,000

E. $180,000.

13. Which of the following is never included in direct materials costs?

A. Invoice costs of direct materials.

B. Outgoing delivery charges.

C. Materials storage costs.

D. Materials handling costs.

E. Insurance on stored material.

14. Which of the following costs would not be classified as factory overhead?

A. Property taxes on maintenance machinery.

B. Expired insurance on factory equipment.

C. Wages of the factory janitor.

D. Metal doorknobs used on wood cabinets produced.

E. Small tools used in production.

15.

The S&S Company's manufacturing costs for August are: direct labor, $13,000; indirect labor, $8,100; direct materials, $14,400; taxes on raw materials and work in process, $800; heat, lights and power, $900; and insurance on plant and equipment, $400. S&S Company's factory overhead incurred for August is:

A. $2,100.

B. $24,600.

C. $21,100.

D. $10,200.

E. $13,000

16. A company has an overhead application rate of 115% of direct labor costs. How much overhead would be allocated to a job if it required total labor costing $15,000?

A. $115,000

B. $2,250

C. $17,250

D. $230,000

E. $13,250

17. When factory payroll costs are recorded in a job cost accounting system:

A. Factory Payroll is debited and Goods in Process is credited.

B. Goods in Process Inventory and Factory Overhead are debited and Factory Payroll is credited.

C. Cost of Goods Manufactured is debited and Direct Labor is credited.

D. Direct Labor and Indirect Labor are debited and Factory Payroll is credited.

E. Goods in Process is debited and factory payroll is credited.

18. Job order costing systems normally use:

A. Periodic inventory systems.

B. Perpetual inventory systems.

C. Real inventory systems.

D. General inventory systems.

E. All of the above.

19. A job order cost accounting system would best fit the needs of a company that makes:

A. Shoes and apparel.

B. Paint.

C. Cement.

D. Custom machinery.

E. Pencils and erasers.

20.

At the beginning of the recent period, there were 2,100 units of product in a department, 1/3 completed. These units were finished and an additional 9,000 units were started and completed during the period. 1,200 units were still in process at the end of the period, 1/4 completed. Using the FIFO valuation method, the equivalent units produced by the department were:

A. 16,500 units.

B. 12,300 units.

C. 11,100 units.

D. 10,700 units.

E. 10,900 units.

21.

A department had 2,300 units which were 30% complete in beginning Goods in Process Inventory. During the current period, 24,000 units were transferred out. Ending Goods in Process Inventory was 2,500 units which were 30% complete. Using the FIFO method, what are the equivalent units produced if all direct material and direct labor are added uniformly throughout the process?

A. 24,060

B. 23,970

C. 24,750

D. 26,360

E. 26,500

22. To compute an equivalent unit of production, one must be able to reasonably estimate:

A. The percentage of completion.

B. Units completed.

C. Units started and completed.

D. Direct labor cost.

E. Materials cost.

23. Which of the following five types of products is least likely to be produced in a process manufacturing system?

A. Compact disks.

B. Slacks for casual wear.

C. Baseball hats.

D. Calculators.

E. Oil paintings.

26. Ridley Company estimates that overhead costs for the next year will be $6,870,000 for indirect labor and $450,000 for factory utilities. The company uses machine hours as its overhead allocation base. If 160,000 machine hours are planned for this next year, what is the company's plantwide overhead rate?

A. $.02186 per machine hour.

B. $42.9375 per machine hour.

C. $45.75 per machine hour.

D. $2.8125 per machine hour.

E. $.3555 per machine hour.