1.The following selected information is available for Raydon Corporation: December 31 2014 2013 Cash $21 $35 Marketable securities 27 22 Accounts receivable (net) 60 98 Inventory 105 142 This problem is worth 20 points: ??Prepaid expenses Land and building (net) Accounts payable Accrued expenses Notes payable (short-term) Bonds payable Cash sales Credit sales (percent of cash sales) Cost of goods sold (percent of total sales) Net income Required: 5 3 247 315 $57 $75 10 14 8 4 52 66 For Year Ended December 31, 2014 2013 $750 $675 82% 85% 60% 58% $30 $38 ??Use the information given above to compute the following ratios: a. Current ratio b. Quick ratio c. Accounts receivable turnover d. Inventory turnover e. Asset turnover 2.The following pretax amounts pertain to the Spartan Corp. for the year ended December 31, 2014. This problem is worth 40 points: Sales ................................................. Operating expenses .................................... Extraordinary gain .................................... Interest expense ...................................... Cost of goods sold .................................... Gain on sale of equipment ............................. Prior period adjustment ............................... Gain on disposal of business component.................. Retained earnings, January 1, 2014 .................... Dividends declared .................................... $ 400,000 84,000 30,000 4,000 280,000 10,000 (16,000.00) 30,000 1,600,000 12,000 The effective corporate tax rate is 30 percent. The company had 10,000 shares of common stock outstanding for the entire year. Required: 1. Prepare a multiple-step income statement in good form for the year ended December 31, 2014. 2. Prepare a retained earnings statement in good form for the year ended December 31, 2014.

Intermediate Accounting I Exam 2 This problem is worth 20 points: The following selected information is available for Raydon Corporation: Cash Marketable securities Accounts receivable (net) Inventory Prepaid expenses Land and building (net) December 31 2014 $21 27 60 105 5 247 Accounts payable Accrued expenses Notes payable (short-term) Bonds payable Cash sales Credit sales (percent of cash sales) Cost of goods sold (percent of total sales) Net income $57 10 8 52 For Year Ended December 31, 2014 $750 82% 60% $30 2013 $675 85% 58% $38 Required: Use the information given above to compute the following ratios: a. Current ratio b. Quick ratio c. Accounts receivable turnover d. Inventory turnover e. Asset turnover 2013 $35 22 98 142 3 315 $75 14 4 66 Intermediate Accounting I Exam 2 This problem is worth 40 points: Account balances and supplemental information for the Alain Corporation as of December 31, 2015, are Accounts Payable ....................................... Accounts Receivable .................................... Accumulated Depreciation--Equipment .................... Bonds Payable .......................................... Cash ................................................... Common Stock ........................................... Deferred Income Tax Liability (noncurrent) ............. Dividends Payable ...................................... Equipment .............................................. Income Taxes Payable ................................... Inventory .............................................. Investment in Land ..................................... Investment in Stock of Subsidiary ...................... Note Payable ........................................... Notes Receivable ....................................... Prepaid Insurance ...................................... Retained Earnings ...................................... Salaries and Wages Payable ............................. $75,900 141,600 84,000 300,000 243,900 1,560,000 6,900 45,000 840,000 91,500 395,100 510,000 492,000 120,000 150,000 7,200 453,600 42,900 (a) $300,000 of 12% bonds were sold on November 1, 2015, at par. (b) 40,000 shares of $30 par value common stock were sold for $1,560,000. (c) All the equipment was purchased on January 2, 2014. The depreciation rate is 10 percent per year. (d) 5 percent of accounts receivable are expected to be uncollectible. (e) A two-year insurance policy was purchased on May 1, 2015, for $7,200. (f) Accrued interest on $150,000 of short-term notes receivable from customers was $5,100 at December 31, 2015. (g) $120,000 was borrowed from the bank on a 5-year, 10% note payable dated July 1, 2015. The loan is to be repaid in 10 semiannual payments of $12,000 plus interest, with the first payment due January 1, 2016. Required: Prepare a properly classified balance sheet in report form for Alain Corporation as of December 31, 2015. Intermediate Accounting I Exam 2 This problem is worth 40 points: The following pretax amounts pertain to the Spartan Corp. for the year ended December 31, 2014. Sales ................................................. Operating expenses .................................... Extraordinary gain .................................... Interest expense ...................................... Cost of goods sold .................................... Gain on sale of equipment ............................. Prior period adjustment ............................... Gain on disposal of business component.................. Retained earnings, January 1, 2014 .................... Dividends declared .................................... $ 400,000 84,000 30,000 4,000 280,000 10,000 (16,000.00) 30,000 1,600,000 12,000 The effective corporate tax rate is 30 percent. The company had 10,000 shares of common stock outstanding for the entire year. Required: 1. Prepare a multiple-step income statement in good form for the year ended December 31, 2014. 2. Prepare a retained earnings statement in good form for the year ended December 31, 2014