Brief Exercise 175 Brief Exercise 175Selected transactions for the Hamiltion Company are listed below. Classify each transaction as either an operating activity, an investing activity, a financing activity, or a noncash activity.

1.Collected accounts receivable.

2.Declared and paid dividends on common stock.

3.Sold long-term investments for cash.

4.Issued stock for equipment.

5.Repaid five year note payable.

6.Paid employee wages.

7.Converted bonds payable to common stock.

8.Acquired long-term investment with cash.

9.Sold buildings and equipment for cash.

10.Sold merchandise to customers.

Problem 12-5A Problem 12-5ARewe Company's income statement contained the condensed information below.

Rewe Company

Income Statement

For the Year Ended December 31, 2017

Service revenue$970,000

Operating expenses, excluding depreciation$614,000

Depreciation expense55,000

Loss on disposal of plant assets

16,000

685,000

Income before income taxes285,000

Income tax expense56,000

Net income$229,000

Rewe Company's balance sheet contained the comparative data at December 31.

2017

2016

Accounts receivable$70,000$60,000Accounts payable41,00032,000Income taxes payable13,0007,000

Accounts payable pertain to operating expenses.

Prepare the operating activities section of the statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

Rewe Company

Partial Statement of Cash Flows

$

Adjustments to reconcile net income to

$

$

Multiple Choice Question 91 Multiple Choice Question 91Assume the following cost of goods sold data for a company:

2018$14000002017120000020161000000

If 2016 is the base year, what is the percentage increase in cost of goods sold from 2016 to 2018?

a. 20%

b. 40%

c. 17%

d. 140%

Answer:

Multiple Choice Question 97 Multiple Choice Question 97In a common size financial statement, which of the following is given a percentage of 100 percent?

a. Total liabilities

b. Net income

c. Cost of goods sold

d. Total assets

Answer:

Multiple Choice Question 132 Multiple Choice Question 132A high accounts receivable turnover indicates

a. customers are making payments quickly.

b. a large portion of the company's sales are on credit.

c. many customers are not paying their receivables.

d. the company's sales have increased.

Answer:

Multiple Choice Question 135 Multiple Choice Question 135Hickory Hills Pro Shop had a balance in the Accounts Receivable account of $800000 at the beginning of the year and a balance of $900000 at the end of the year. Net credit sales during the year amounted to $8040000. The average collection period of the receivables in terms of days was

a.37.2 days.

b.4 days.

c.36.1 days.

d.38.4 days.

Answer:

Multiple Choice Question 149 Multiple Choice Question 149The debt to assets ratio measures

a. the company's profitability.

b. the proportion of interest paid relative to dividends paid.

c. the percentage of the total assets provided by creditors.

d. whether interest can be paid on debt in the current year.

Answer:

Multiple Choice Question 143 Multiple Choice Question 143The asset turnover measures

a. the overall rate of return on assets.

b. how often a company replaces its assets.

c. the portion of the assets that have been financed by creditors.

d. how efficiently a company uses its assets to generate sales.

Answer:

Multiple Choice Question 161 Multiple Choice Question 161A liquidity ratio measures the

a. income or operating success of an enterprise over a period of time.

b. number of times interest is earned.

c. ability of the enterprise to survive over a long period of time.

d. short-term ability of the enterprise to pay its maturing obligations and to meet unexpected needs for cash.

Answer:

Multiple Choice Question 169 Multiple Choice Question 169A successful grocery store would probably have

a. a high inventory turnover.

b. low volume.

c. a low inventory turnover.

d. zero profit margin.

Answer:

Multiple Choice Question 178 Multiple Choice Question 178Junebag Corporation reported net income $24000; net sales $400000; and average assets $600000 for 2017. What is the 2017 profit margin?

a. 6%

b. 4%

c. 40%

d. 67%

Answer:

Multiple Choice Question 126 Multiple Choice Question 126The current ratio is

a. calculated by dividing current liabilities by current assets.

b. used to evaluate a company's solvency and long-term debt paying ability.

c. used to evaluate a company's liquidity and short-term debt paying ability.

d. calculated by subtracting current liabilities from current assets.

Answer:

Multiple Choice Question 39 Multiple Choice Question 39Managerial accounting information is generally prepared for

a. creditors.

b. managers.

c. regulatory agencies.

d. stockholders.

Answer:

Multiple Choice Question 85 Multiple Choice Question 85Which of the following are period costs?

a. Direct materials and direct labor

b. Raw materials

c. Selling expenses

d. Direct labor and manufacturing overhead

Answer:

Brief Exercise 152 Brief Exercise 152Presented below are Truck Company's monthly manufacturing cost data related to its personal computer products.

(a)Taxes on factory building$820,000(b)Raw materials

66,000(c)Depreciation on manufacturing equip.

210,000(d)Wages for assembly line workers

340,000

Enter each cost item in the following table, placing an "X" under the appropriate headings.

Product CostsDirect MaterialsDirect LaborManufacturing Overhead(a)

(b)

(c)

(d)

Exercise 175 Exercise 175The following information is available for Elliot Company.

January 1, 2016

2016December 31, 2016

Raw materials inventory

$26,000$30,000Work in process inventory

18,50022,200Finished goods inventory

30,00021,000Materials purchased

$170,000Direct labor

230,000Manufacturing overhead

180,000Sales

800,000

Compute cost of goods manufactured.

Cost of goods manufactured

$

income statement through gross profit.

ELLOIT COMPANY

Income Statement

December 31, 2016

$

$

:

$

Exercise 162 Exercise 162Cline Manufacturing Company uses a job order system and maintains perpetual inventory records.

The columns indicating the appropriate account(s) to be debited and credited for the transactions listed below.

TransactionsAccount(s)

Debited

Account(s)

Credited

1.Raw materials were purchased on account.

2.Issued a check to Dixon Machine Shop for repair work on factory equipment.

3.Direct materials were requisitioned for Job 280.

4.Factory labor was paid as incurred.

5.Recognized direct labor and indirect labor used.

6.The production department requisitioned indirect materials for use in the factory.

7.Overhead was applied to production based on a predetermined overhead rate of $8 per labor hour.

8.Goods that were completed were transferred to finished goods.

9.Goods costing $80,000 were sold for $105,000 on account.

10.Paid for raw materials purchased previously on account.

Exercise 185 Exercise 185Edwards Company applies manufacturing overhead to jobs on the basis of machine hours used. Overhead costs are expected to total $1,800,000 for the year, and machine usage is estimated at 200,000 hours.

In January, $186,000 of overhead costs are incurred and 22,000 machine hours are used. For the remainder of the year, $1,940,000 of additional overhead costs are incurred and 214,000 additional machine hours are worked.

Compute the manufacturing overhead rate for the year.

Manufacturing overhead rate

per machine hour

What is the amount of over- or underapplied overhead at January 31?

overhead

$

What is the amount of over- or underapplied overhead at December 31?

overhead

$

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Brief Exercise 158 Brief Exercise 158The following amounts were reported by Burke Company before adjusting its immaterial overapplied manufacturing overhead of $8,000.

Raw Materials Inventory$40,000Finished Goods Inventory60,000Work in Process Inventory100,000Cost of Goods Sold730,000

Compute what amount Burke will report as cost of goods sold after it disposes of its overapplied overhead.

Cost of goods sold

$