Alpha Company has the following account balances information for fiscal year 2015 & 2016 (all balances are normal):

Alpha Company

December 31

Accounts

2016

2015

Merchandise Inventory

$1,200,000

$800,000

Office Supplies

25,000

20,000

Sales

3,000,000

2,500,000

Cost of Goods Sold

2,750,000

1,600,000

Freight Out

15,000

10,000

What is the FY 2016 inventory turnover ratio? Enter the answer as a number rounded to one decimal place followed by a space and the word times. (Example 1.123 would be entered 1.1 times)

Homework Quiz #4 GJ - 1 Question 1 (9 points) Alpha Company used the periodic inventory system for purchase & sales of merchandise. Discount terms for both purchase & sales are, FOB Destination, 2/10, n30 and the gross method is used. > Alpha Company purchased on account $2,600 of merchandise from Bravo Company on May 2, 2016. > Alpha Company returned, to Bravo Company, $300 of this merchandise on May 3, 2016. > Freight charges related to this transaction of $150 were paid by Bravo Company. Use this information to prepare Alpha Company's compound General Journal entry (without explanation) for the payment for merchandise on May 12. If no entry is required then write "No Entry Required." General Journal: Date Accounts Debit GJ - 2 Question 2 (10 points) Alpha Company used the periodic inventory system for purchase & sales of merchandise. Discount terms for both purchase & sales are, FOB Destination, 2/10, n30 and the gross method is used. > Alpha Company purchased on account $2,600 of merchandise from Bravo Company on May 2, 2016. Credit > Alpha Company returned, to Bravo Company, $300 of this merchandise on May 3, 2016. > Freight charges related to this transaction of $150 were paid by Bravo Company. Use this information to prepare Alpha Company's General Journal entries (without explanation) for May 2 & May 3 entries. If no entry is required then write "No Entry Required." General Journal: Date Accounts Debit GJ - 3 Question 3 (8 points) Alpha Company used the periodic inventory system for purchase & sales of merchandise. Discount terms for both purchase & sales are, FOB Destination, 2/10, n30 and the gross method is used. > Alpha Company sold on account $3,000 of merchandise to Bravo Company on May 2, 2016. Selling price was $5,000 > Bravo Company returned, to Alpha Company, $300 of this merchandise on May 3, 2016. Merchandise was sold for $500 > Freight charges related to this transaction of $150 were paid by Alpha Company. Credit Use this information to prepare Alpha Company's compound General Journal entry (without explanation) for the payment for merchandise on May 12. If no entry is required then write "No Entry Required." General Journal: Date Accounts Debit GJ - 4 Question 4 (8 points) Alpha Company used the periodic inventory system for purchase & sales of merchandise. Discount terms for both purchase & sales are, FOB Destination, 2/10, n30 and the gross method is used. > Alpha Company sold on account $4,000 of merchandise to Bravo Company on May 2, 2016. Selling price was $7,000 > Bravo Company returned, to Alpha Company, $400 of this merchandise on May 3, 2016. Merchandise was sold for $700 > Freight charges related to this transaction of $150 were paid by Alpha Company. Use this information to prepare Alpha Company's General Journal entry (without explanation) for the payment for merchandise on May 15. If no entry is required then write "No Entry Required." Cred General Journal: Date Accounts Debit Credit GJ - 5 Question 5 (10 points) Alpha Company used the periodic inventory system for purchase & sales of merchandise. Discount terms for both purchase & sales are, FOB Destination, 2/10, n30 and the net method is used. > Alpha Company purchased on account $2,500 of merchandise from Bravo Company on May 2, 2016. > Alpha Company returned, to Bravo Company, $250 of this merchandise on May 3, 2016. > Freight charges related to this transaction of $150 were paid by Bravo Company. Use this information to prepare Alpha Company's General Journal entries (without explanation) for May 2 & May 3 entries. If no entry is required then write "No Entry Required." General Journal: Date Accounts Debit Credit GJ - 6 Question 6 (9 points) Alpha Company used the periodic inventory system for purchase & sales of merchandise. Discount terms for both purchase & sales are, FOB Destination, 2/10, n30 and the net method is used. > Alpha Company purchased on account $2,500 of merchandise from Bravo Company on May 2, 2016. > Alpha Company returned, to Bravo Company, $250 of this merchandise on May 3, 2016. > Freight charges related to this transaction of $150 were paid by Bravo Company. Use this information to prepare Alpha Company's compound General Journal entry (without explanation) for the payment for merchandise on May 15. If no entry is required then write "No Entry Required." General Journal: Date Accounts Debit Cred FIB - 1 Question 7 (6 points) Alpha Company uses the periodic inventory system and had the following inventory & sales activity for the month of May 2016: Date Activity Quantity Unit Price 5/1 Beginning Inventory 175 $10 5/5 Purchase 200 $12 5/15 Purchase 300 $15 5/25 Purchase 150 $16 Sales were 545 units at $25. Using the LIFO method, determine the dollar values following for the month of May: 1. Ending Inventory 2. Cost of Goods Available for Sale 3. Cost of Goods Sold FIB - 2 Question 8 (6 points) Alpha Company uses the periodic inventory system and had the following inventory & sales activity for the month of May 2016: Date Activity Quantity Unit Price 5/1 Beginning Inventory 175 $10 5/5 Purchase 200 $12 5/15 Purchase 300 $15 5/25 Purchase 150 $16 Sales were 545 units at $25. Using the FIFO method, determine the dollar values following for the month of May: 1. Ending Inventory 2. Cost of Goods Available for Sale 3. Cost of Goods Sold FIB - 3 Question 9 (6 points) Alpha Company uses the periodic inventory system and had the following inventory & sales activity for the month of May 2016: (Round all per unit calculations to the nearest penny.) Date Activity Quantity Unit Price 5/1 Beginning Inventory 100 $10.10 5/5 Purchase 200 $11.15 5/15 Purchase 300 $13.00 5/25 Purchase 150 $15.00 Sales were 545 units at $25.00. Using weighted-average method, determine the dollar values following for the month of May: (Enter only whole dollar values.) 1. Ending Inventory 2. Cost of Goods Available for Sale 3. Cost of Goods Sold FIB - 4 Question 10 (15 points) The following is a partial Adjusted Trial Balance for Alpha Company for the month: Alpha Company Adjusted Trial Balance (partial) January 31, 2016 Accounts Inventory Debit Credit $2,750 $12,500 Sales Sales Discounts Sales Returns & Allowances 200 1,200 Purchases 4,000 Purchases Discounts 150 Purchase Returns & Allowances 450 Freight In 50 Advertising Expense 150 Depreciation Expense 145 Freight Out 70 Income Tax Expense 500 Salaries Expense 500 Utilities Expense 100 Additionally, Inventory for December 31, 2015 was $2,700. Prepare a multiple-step income statement. What amount should Alpha Company report on a Multi-Step Income Statement for the following items: 1. Net Sales 2. Cost of Goods Available for Sales 3. Gross Profit 4. General & Administrative Expenses 5. Income before Taxes FIB - 5 Question 11 (7 points) On May 15, 2016 the Smoky Bear Company inventory storage facility was completely destroyed in a fire. Offsite accounting records reflect the normal gross profit rate is 40% of sales. Sales to the date of the fire were $1,650,000. The April 30, 2016 inventory value was $500,000. Two purchases were made during May, before the fire, for the values of $500,000 and $800,000. Using the Gross Profit Method determine the estimated inventory loss due to the fire. FIB - 6 Question 12 (2 points) The following are selected account balances for Charlie Company's operations for the FY ended December 31, 2016. (All balances are normal): Accounts Net Sales Amount $100,500 Administrative Expenses 22,000 Selling Expenses 12,000 Cost of Goods Sold 46,000 Interest Expense 2,000 Income Tax Expense 1,000 Prepaid Expenses $5,000 Interest Receivable $1,000 What is the Net Profit on Sales ratio for the year 2016? (Enter the value as a percentage rounded to one decimal place. Example, 0.105134 would be entered as 10.5%) FIB - 7 Question 13 (2 points) The following are selected account balances for Charlie Company's operations for the FY ended December 31, 2016. (All balances are normal): Accounts Net Sales Amount $100,500 Administrative Expenses 22,000 Selling Expenses 12,000 Cost of Goods Sold 46,000 Interest Expense 2,000 Income Tax Expense 1,000 Prepaid Expenses $5,000 Interest Receivable $1,000 What is the Gross Profit Margin ratio for the year 2016? (Enter the value as a percentage rounded to one decimal place. Example, 0.105134 would be entered as 10.5%) FIB - 8 Question 14 (2 points) Alpha Company has the following account balances information for fiscal year 2015 & 2016 (all balances are normal): Alpha Company December 31 Accounts Merchandise Inventory 2016 2015 $1,200,000 $800,000 25,000 20,000 Sales 3,000,000 2,500,000 Cost of Goods Sold 2,750,000 1,600,000 15,000 10,000 Office Supplies Freight Out What is the FY 2016 inventory turnover ratio? Enter the answer as a number rounded to one decimal place followed by a space and the word times. (Example 1.123 would be entered 1.1 times)