Cash Flow Questions For questions 1 7, indicateOP for Operating, I for Investing, F for Finance and S for Supplemental Depreciation expense Change in A P Paid cash for building Bought IBM stock for cash Bought our own stock for cash Exchanged one car for another car ( no cash paid) Paid a cash dividend Net income 900 , depr expense 100, loss on sale of land 40, A R decrease 30, inventory increase 15, A P increase 18, salary payable decrease 7 Amortization expense (patent) 5 Find net cash from operations Ratio Questions Cash 20 A R 10 merchandise 30 land 60 short term investments 40 Current liabilities 20 Find the current ratio Quick assets 50 A P 10 taxes payable 10 long term bond payable 30 Find the quick ratio Inventory( Jan 1) 80 Inventory (Dec 31) 60 COGS 280 Find inventory turnover Inventory turnover 20 Find days sales in inventory ( use 360 days) Average assets 100 sales 70 , net income 8, gross profit 10 Find return on assets Sales 300, gross profit 90, net income 60 Find return on sales Operating income 200, tax expense 40, interest expense 50 Find times interest earned Base year is 2017 2017 sales 5,000 2018 sales 4700 2019 sales 4,900 2020 sales 5500 Find the Index for 2020 Manufacturing Questions For questions 17 23, indicate DM, DL, FOH or EXPENSE Baker labor Wool in dress Nails and glues Sales office insurance Page 2 Factory rent Factory electricity Sales office security guards Journal Entries For the transactions in questions 24 30 , indicate the TITLE of the debit and the TITLE of the credit Finished up goods 24A) Dr 24B) Cr Applied FOH 25A) Dr 25B) Cr Sold goods for cash ( the entry for the selling price) 26A) Dr 26B) Cr Sold goods on account ( the entry for the cost) 27A) Dr 27B) Cr Used indirect labor on account 28A) Dr 28B) Cr Used indirect materials 29A) Dr 29B) Cr Used up factory insurance 30A) dr 30B) Cr END OF JOURNAL ENTRIES Additional Manuf Questions DM 6 DL 3 FOH 7 Find conversion costs Estimated FOH 800, estimated direct labor hours 100 Blue Suit used 6 hours Find applied FOH Actual FOH 70 , applied FOH 65 , In the Dec 31 adjustment entry, what do we debit for the 5 difference Standard Costing Questions Price var 25 fav , quant var 19 unf Find the total var (indicate dollar amount and fav or unf) Stand hrs x Stand rate 300 Act hrs X Act rate 350 price var 60 unfav Find the quant variance ( indicate $ amount and if fav or unf) Page 3 Standard per suit is 8 hours 8 per hour Made 10 suits Used 85 hours 7 per hour 36A) find the quant var (indicate $ amount and if fav or unf) 36B) find the rate var ( indicate $ amount and if fav or unf) Standard per suit is 10 lbs material 10 per lb Made 10 suits Used 95 lbs , bought 107 lbs 12 per lb Find the quant variance (indicate $ amount and fav or unf) Capital Budgeting Questions Net income 29 depreciation expense 10 , salary expense 7 Find net cash flow Investment cost 300 , annual net cash flows 30 , annual net income 25 Find the payback period Annual flows Year 1 200 Year 2 300 Year 3 400 Year 4 500 Investment cost 700 Find the payback period Investment cost 800 Salvage value 400 Find average cost Average cost 500, annual net income 100 annual net cash flow 200 Find annual return CVP ANALYSIS If the variable cost is 60 , find the contribution margin Fixed costs 400 , contribution margin is 40 Find sales dollars needed to break even Fixed costs 500 , contribution margin per unit 10 Find sales in units to earn a net income of 100 Selling price per unit 80 variable costs per unit 60 fixed costs 200 Find the contrib margin Actual sales 600 break even sales 400 contribution margin 100 Find the margin of safety in dollars If Net Present Value is zero, do we accept or reject a project Present value 60 cost 58 Find the net present value A graph which does NOT start at the origin slopes upward to the right Does this represent variable costs, mixed costs or fixed costs

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Cash Flow Questions For questions 1-7, indicateOP for Operating, I for Investing, F for Finance and S for Supplemental Depreciation expense Change in A/P Paid

Cash Flow Questions

For questions 1-7, indicateOP for Operating, I for Investing, F for Finance and S for Supplemental

Depreciation expense
Change in A/P
Paid cash for building
Bought IBM stock for cash
Bought our own stock for cash
Exchanged one car for another car ( no cash paid)
Paid a cash dividend

Net income=900 , depr expense=100, loss on sale of land=40, A/R decrease=30, inventory increase== 15, A/P increase = 18, salary payable decrease= 7

Amortization expense (patent)=5

Find net cash from operations.

Ratio Questions

Cash=20 A/R = 10 merchandise=30 land =60 short-term investments=40

Current liabilities= 20. Find the current ratio.

Quick assets=50 A/P= 10 taxes payable=10 long term bond payable=30

Find the quick ratio.

Inventory( Jan 1)=80 Inventory (Dec 31)=60 COGS=280

Find inventory turnover

Inventory turnover=20 . Find days sales in inventory ( use 360 days)
Average assets= 100 sales =70 , net income=8, gross profit=10. Find return on assets.
Sales=300, gross profit=90, net income=60. Find return on sales
Operating income=200, tax expense= 40, interest expense=50. Find times interest earned
Base year is 2017

2017 sales= 5,000

2018 sales= 4700

2019 sales= 4,900

2020 sales 5500.

Find the Index # for 2020

Manufacturing Questions

For questions 17-23, indicate DM, DL, FOH or EXPENSE

Baker labor
Wool in dress
Nails and glues
Sales office insurance Page 2
Factory rent
Factory electricity
Sales office security guards

Journal Entries

For the transactions in questions 24- 30 , indicate the TITLE of the debit and the TITLE of the credit

Finished up goods

24A) Dr.

24B) Cr.

Applied FOH

25A) Dr.

25B) Cr.

Sold goods for cash ( the entry for the selling price)

26A) Dr.

26B) Cr.

Sold goods on account ( the entry for the cost)

27A) Dr.

27B) Cr.

Used indirect labor on account

28A) Dr.

28B) Cr.

Used indirect materials

29A) Dr.

29B) Cr.

Used up factory insurance.

30A) dr

30B) Cr

END OF JOURNAL ENTRIES

Additional Manuf. Questions:

DM=6 DL= 3 FOH= 7 . Find conversion costs
Estimated FOH= 800, estimated direct labor hours= 100

Blue Suit used 6 hours . Find applied FOH.

Actual FOH= 70 , applied FOH= 65 , In the Dec 31 adjustment entry, what do we debit for the 5 difference ?

Standard Costing Questions

Price var = 25 fav , quant var = 19 unf . Find the total var (indicate dollar amount and fav or unf)
Stand hrs x Stand rate = 300 ; Act hrs X Act rate= 350 ; price var= 60 unfav. Find the quant variance ( indicate $ amount and if fav or unf)

Page 3

Standard per suit is 8 hours @ 8 per hour . Made 10 suits.

Used 85 hours @ 7 per hour

36A) find the quant var (indicate $ amount and if fav or unf)

36B) find the rate var ( indicate $ amount and if fav or unf)

Standard per suit is 10 lbs material @ 10 per lb. Made 10 suits

Used 95 lbs , bought 107 lbs @ 12 per lb. Find the quant variance (indicate $ amount and fav or unf)

Capital Budgeting Questions

Net income= 29 depreciation expense = 10 , salary expense = 7 . Find net cash flow
Investment cost= 300 , annual net cash flows= 30 , annual net income=25 . Find the payback period
Annual flows:

Year 1= 200

Year 2= 300

Year 3= 400

Year 4= 500

Investment cost=700 . Find the payback period

Investment cost= 800

Salvage value = 400 . Find average cost.

Average cost= 500, annual net income= 100; annual net cash flow= 200

Find annual return.

CVP ANALYSIS

If the variable cost % is .60 , find the contribution margin %
Fixed costs= 400 , contribution margin % is .40. Find sales dollars needed to break even.
Fixed costs= 500 , contribution margin per unit =10. Find sales in units to earn a net income of 100.
Selling price per unit= 80 ; variable costs per unit= 60; fixed costs= 200.

Find the contrib. margin %.

Actual sales=600 ; break even sales =400 ; contribution margin= 100. Find the margin of safety in dollars.
If Net Present Value is zero, do we accept or reject a project?
Present value = 60 ; cost= 58. Find the net present value
A graph which does NOT start at the origin slopes upward to the right. Does this represent variable costs, mixed costs or fixed costs?