Hello. I'm looking for an accounting major to check my homework please. The excel sheet are my answers in (blue). I've uploaded the homework questions in Word doc and answers are on the excel doc.

Engy Neville Acc203DL Assignment 3 Problem 1: Stanley Black & Decker Yr Ending Dec 28, 2013 Cost of Goods Sold Sales Total Assets Selling, general and adminstrative expenses Other Operating Expenses Net Operating Income Income tax expense Interest and other nonoperating expenses, net Net (loss) earnings from discontinued operations Net (loss) attributable to noncontrolling interests Net Profit Net Income Revenue Gross Profit Gross Profit Margin Net Profit Margin Problem 2: A Accounts Receivable Net Sales Accounts Receivable Turnover ART has remainded relatively stable over the past two years. B Good Sold Average Inventory INVT The INVT has improved slightly in 2012 over the prior year(s). The company was able to ove the goods more quickly in 2012 over the prior year. C Sales Total Assets AT In 2012, the AT slightly improved over the prior year. Problem 3 Net Income Sales Cost of goods sold Operating expenses and income taxes (other than depreciation and amortization) Depreciation of plant assets Amortization of intangible assets Increase in accounts receivable Decrease in inventory Increase in accounts payable Decrease in accrued liabilities Increase in common stock Net Cash Flow from Operating Expenses Using Indirect Method Problem 4 Selected 20x1 balance sheet and income statement information for two manufacturing companies: Cummins, Inc. and Hewlett-Packard Corp follows: Cash Marketable securities Accounts receivable All other current assets Total current liabilities Total liabilities Total equity Pre-tax income (loss) Interest expense Required a. Calculate the current ratio and quick ratios for both companies. Current Ratio for Cummins: 2.29 Quick Ratio:1.09 Current Ratio for HP: 0.7 Quick Ratio: 0.3 b. Which company is more liquid? Based on income statement, Cummins has 2.29 of liquid assets to 1.00 of debt c. Calculate the times interest earned and debt-to-equity ratios for both companies. Times Interest Earned for Cummins: 6.2% Total Interest Earned for HP: 84% Debt to ratio equity for Cummins is 80% and HP 376% d. Which company is more solvent? Meeting long term financial obligations is more feasible for Cummins. Their current and quick ratios are healthier, they have higher equity within the company in comparison to total liability. They also have marketable securities which can generate immediate cash and depending on market value at the time of sale, there's opportunity for large profit margin. $11,001.20 -$7,068.30 $3,932.90 $2,700.90 $497.80 $734.20 $69.30 $147.60 -$28.00 -$1.00 $488.30 $2,848.50 -$7,068.30 -$18,069.50 36.00% 4% 2012 6171.5 83,680 14% 2011 5805 81,104 14% 2010 5335 2012 42,391 7,050 2011 39,859 6,882 2010 37,049 6,384 6% 6% 58% 2012 83,680 135,299 0.618 2011 81,104 133,263 61% 2010 77,567 128,172 132,000 $1,080,000 -632,000 176,000 32,000 16,000 -24,000 22,000 12,000 -6,000 -68,000 $190,000.00 Cummins (in $ millions) $1,369 247 2,235 3,316 3,136 5,574 6,974 HewlettPackard (in $ millions) $11,301 0 16,407 22,929 46,666 85,935 22,833 2,271 32 -11,933 876 Acct 203DL Assignment 3 - Income Statement, Cash Flow Statement & Financial Statement Analysis Problem 1 Below is the account information for Stanley Black and Decker for the year ended December 28, 2013. ($ millions) Cost of goods sold Sales Other operating expenses Selling, general and administrative expenses Income tax expense Interest and other nonoperating expenses, net Net (loss) earnings from discontinued operations Net (loss) attributable to noncontrolling interests $7,068.3 11,001.2 497.8 2,700.9 69.3 147.6 (28.0) (1.0) Required: Using the information above, prepare Black and Decker's Income Statement for the year ending December 28, 2013. Also, using that Income Statement, compute the company's (a) gross profit margin and (b) net profit margin. If the industry average gross margin is 38% and the industry average profit margin is 5.8%, discuss Black and Decker's ratios compared to the related industry averages. Problem 2 The partial balance sheets and income statements for Proctor & Gamble for fiscal years ending June 30, 2012 and 2011 follow: Amounts in millions Current assets Cash and cash equivalents Accounts receivable Inventories Deferred income taxes Prepaid expenses and other current assets Total current assets Property, plant and equipment Accumulated depreciation Net property, plant and equipment Goodwill and other intangible assets Other noncurrent assets Total assets Amounts in millions Years ended June 30, Net sales Cost of products sold Selling, general and administrative expense Goodwill and indefinite lived intangible asset impairment charges Operating income Interest expense Other non-operating income, net Earnings from continuing operations before income taxes Income taxes on continuing operations Net earnings from continuing operations Net earnings from discontinued operations Net earnings 2012 $ 4,436 6,068 6,721 1,001 3,684 21,910 40,233 (19,856) 20,377 4,761 5,196 $132,244 2011 $ 2,768 6,275 7,379 1,140 4,408 21,970 41,507 (20,214) 21,293 90,182 4,909 $138,354 2012 $83,68 0 42,391 26,421 2011 $81,104 39,859 25,750 2010 $77,56 7 37,042 24,793 1,576 13,292 0 15,495 0 15,732 769 262 831 333 946 82 12,785 14,997 14,868 3,468 9,317 1,587 $10,90 4 3,299 11,698 229 4,017 10,851 1,995 $11, 927 $12,846 Required A. Calculate accounts receivable turnover (ART) for 2012 and 2011. Accounts receivable in 2010 totaled $5,335 million. Has ART improved during the year or worsened? B. Calculate inventory turnover (INVT) for 2012 and 2011. Inventories in 2010 were $6,384 million. Has INVT improved during the year or worsened? C. Calculate asset turnover (AT) for 2012 and 2011 considering that 2010 total assets are $128,172 million. Has AT improved during the year or worsened? Problem 3 The following information relates to Angela Company for 2013, in which the company reported a $132,000 net income. Sales Cost of goods sold Operating expenses and income taxes (other than depreciation and amortization) Depreciation of plant assets Amortization of intangible assets Increase in accounts receivable Decrease in inventory Increase in accounts payable Decrease in accrued liabilities Increase in common stock $1,080,000 632,000 176,000 32,000 16,000 24,000 22,000 12,000 6,000 68,000 Required Calculate the 2013 net cash flow from operating activities using the indirect method. Problem 4 Selected 20x1 balance sheet and income statement information for two manufacturing companies: Cummins, Inc. and Hewlett-Packard Corporation follows: Cash Marketable securities Accounts receivable All other current assets Total current liabilities Total liabilities Total equity Pre-tax income (loss) Interest expense Cummins (in $ millions) $1,369 247 2,235 3,316 3,136 5,574 6,974 2,271 32 Hewlett-Packard (in $ millions) $11,301 0 16,407 22,929 46,666 85,935 22,833 (11,933) 876 Required a. Calculate the current ratio and quick ratios for both companies. b. Which company is more liquid? c. Calculate the times interest earned and debt-to-equity ratios for both companies. d. Which company is more solvent? Acct 203DL Assignment 4 - Management Accounting, Cost Behavior, & CVP Questions From chapter 14 1. Briefly describe variable, fixed, and mixed costs. Explain how each change in total as production activity increases. Variable costs are identical for every single unit of activity. Total variable costs chance in direct proportion to chances in activity, equivalent to zero dollars then activity is zero and increasing at a constant amount per unit of activity. Fixed costs are unvarying amount per period of time. The mixed cost curve is flat with a slope of zero. Mixed costs contain a mixed and a variable cost element. They are positive when activity is zero & increase linearly as activity increases. 2. Explain the term \"relevant range\" of production activity. Why is the relevant range an important consideration when estimating total costs? Range of business activity, often related to producing units or servicing customers, over which cost behavior assumptions are valid, i.e. fixed costs and variable costs meet their definitions. It's an important consideration when estimating total costs because it accounts for costs estimates to be incurred beyond normal relevant range (i.e. a time of year when fixed costs increase significantly to accommodate increase in production, sales, etc.) 3. Distinguish between cost estimation and cost prediction. Cost estimation concerns the calculation of previous or current relationships between activity and cost, while cost prediction is the best guess of future costs. Cost estimating equations, developed using past information, are regularly used for predicting future costs 4. Why is a scatter diagram helpful when used in conjunction with other methods of cost estimation? A scatter plot helps select high & low activity levels representative of normal operating conditions 5. Identify two advantages of least-squares regression analysis as a cost estimation technique. Least squares regression analysis uses all available information, rather than just two observations. It can supply us with consistent data on how well the cost estimating equation fits the past time period's cost data. From chapter 15 6. Identify the important assumptions that underlie cost-volume-profit analysis Cost-volume-profit analysis is a technique used to study the associations among the total volume of some independent variables, total costs, total revenues, & profits for the duration of a given time. It is especially helpful in the infant stages of preparing and planning when it gives us a framework for examining planning issues. The important assumptions that underlie cost-volume-profit analysis are: All costs are classified as fixed or variable with unit-level activity cost drivers. The total cost function is linear within the relevant range. The total revenue function is linear within the relevant range. The analysis is for a single products or the sales mix of multiple products is constant. There is only one activity cost driver/ unit or dollar sales volume: 7. Explain the limitation of basic cost-volume-profit analysis as it relates to an organization's sales mix. Basic cost-volume-profit is a technique to examine the relationships among total volume of an independent variable, total costs, total revenues, and profits for a time period. There are several limitations with CVA because the calculations assume: 1. All costs are classified as fixed or variable. 2. The total cost function is linear within the relevant range. 3. The total revenue function is linear within the relevant range. 4. The analysis is for a single product, or the sales mix of multiple products is constant. 5. There is only one activity cost driver: unit or dollar sales volume 8. Distinguish between a contribution income statement and a functional income statement. In a contribution income statement, costs are organized by how they behave as variable or fixed, and the contribution margin that covers fixed costs and providing a profit is emphasized. In a functional income statement, costs are organized according to their function, such as manufacturing & selling, as well as administrative. This is the type of income statement most frequently included in corporate annual reports. 9. Explain the term \"contribution margin.\" How is it used in computing the unit break-even point? The unit contribution margin is equal to the difference between the unit selling price and the unit variable costs. To calculate the unit break-even points, the fixed costs are divided by the unit contribution margin. 10. How is the break-even equation modified to take into consideration the sales required to earn a desired profit? It's modified to include Target Profit in the calculation/formula. For example: Fixed Costs + Target Profit (profit amount desired)/ Selling Price Per Unit - Variable Cost Per Unit 11. What is \"operating leverage\"? How are profit opportunities and the risk of losses affected by operating leverage? Operating leverage is a measurement of the degree to which a firm or project incurs a combination of fixed and variable costs. A business that makes sales providing a very high gross margin and fewer fixed costs and variable costs has much leverage. The higher the degree of operating of leverage, the greater the potential danger from forecasting risk, where a relatively small error in forecasting sales can be magnified into large errors in cash flow projections Problems Problem 1 The J. Page Furniture Company has the following information available regarding costs at various levels of monthly production: Production volume (units) Direct materials Direct labor Indirect materials Supervisors' salaries Depreciation on plant and equipment Maintenance Utilities Insurance on plant and equipment Property taxes on plant and equipment Total 16,000 Units $ 70,000 66,000 21,000 12,000 10,000 32,000 15,000 1,600 2,000 $229,600 Required a. Identify each of the costs above as being variable, fixed, or mixed. a. Direct Materials - FIXED b. Direct Labor - VARIABLE c. Indirect Materials - FIXED d. Supervisor's Salaries - FIXED 22,000 Units $100,000 90,000 30,000 12,000 10,000 44,000 21,000 1,600 2,000 $310,600 e. f. g. h. i. Depreciation on plant and equipment - FIXED Maintenance - MIXED Utilities - MIXED Insurance on plant and equipment - FIXED Property taxes on plant and equipment - FIXED b. Develop an equation for total monthly production costs using the high-low method of cost estimation, and predict total costs for a monthly production volume of 18,000 units high-low method of cost estimation: Variable cost per unit = difference in total cost / difference in activity Problem 2 The STC Supply manufactures memory cards that sell to wholesalers for $4.00 each. Variable and fixed costs are as follows: Variable Costs per card: Manufacturing Direct materials Direct labor Factory overhead Selling and admin. Total Fixed Costs per Month: $0.60 0.50 0.50 $1.60 0.30 $1.90 Factory overhead Selling and admin. Total $14,000 6,000 $20,000 STC Supply produced and sold 20,000 cards during October 2014. Assume the company had no beginning or ending inventories. Required: a. Prepare a contribution income statement for the month of October. b. Determine STC Supply's monthly break-even point in units. c. Determine the effect on monthly profit of a 1,000 unit increase in monthly sales. d. If STC Supply is subject to an income tax of 40 percent, determine the dollar sales volume required to earn a monthly after-tax profit of $30,000. Problem 3 Assume Paper Mate company is planning to introduce a new executive pen that can be manufactured using either a capital-intensive method or a labor-intensive method. The estimated manufacturing costs for each method are as follows: Direct materials per unit Direct labor per unit Variable manufacturing overhead per unit Fixed manufacturing overhead per year $5.00 $5.00 $4.00 $2,440,000.0 0 $8.00 $12.00 $2.00 $700,000.0 0 Paper Mate's market research department has recommended an introductory unit sales price of $40. The incremental selling costs are predicted to be $500,000 per year, plus $2 per unit sold. Required a. Determine the annual break-even point in units if Paper Mate uses the: i. Capital-intensive manufacturing method ii. Labor-intensive manufacturing method b. Determine the annual unit volume at which paper Mate is indifferent between the two manufacturing methods. c. Management wants to know more about the effect of each alternative on operating leverage. i. Compute operating leverage for each alterative at a volume of 250,000 units. ii. Which alternative has the highest operating leverage? Why? Acct 203DL Cisco Systems, Inc. - Case 3 Ratio Analysis Cisco Systems, Inc. vs. Juniper Networks, Inc. For our final case, we're going to use ratio analysis to compare Cisco Systems, Inc's financial performance and financial health to that of Juniper Networks, Inc., one of its competitors. On the next two pages, I have attached the key financial ratios analyses for each company - Cisco Systems and Juniper Networks. The ratios are listed in the 4 major categories - Profitability, Liquidity, Debt Management, and Asset Management. In our course, we the Debt Management ratios are called Solvency ratios and the Asset Management ratios are called either Efficiency ratios or Turnover ratios. The schedules also have some per share ratios. Required Using the relevant ratios from the attached schedules, please answer the following questions. In answering each question, please explain your reasoning using the relevant ratio(s) from the attached. 1. Over the 5-year period presented, which company was most efficient as generating revenue from its investment in total assets? Cisco 2. Over the 5-year period presented, which company was best able to meet their periodic interest payments related to debt obligations? Cisco 3. Based on the 5-year performance, which company generated the highest return on its total financing, i.e. debt and equity? Juniper 4. Based on the 5-year performance, which company is in the best position to meet its long-term debt obligations and stay in business? Cisco 5. If you were a bank lending officer and each of these companies applied for a $500 million shortterm borrowing (i.e. to be repaid in a less than a year), which company would you be more likely to lend to and why? Would your decision and analysis differ if the company was required to repay the borrowing in 5-years rather than less than a year? Please explain your answer. I would lend to Cisco based on their steadily strong ROE% over the course of 5 years. The quick ratio and current ratio declined slightly but remained strong. Additionally, the INVT continues to increase and move quickly, showing that inventory doesn't sit long on the shelf. A short payment term wouldn't concern me as their AT and APT are healthy numbers as well. 6. Based solely on the attached ratios, which company's common stock would you most likely invest in? Please explain your answer. Juniper? The consistent increase shows potential for long term company growth Note: Assume that the market price per share of the companies' common stock are: a. Cisco Systems, Inc. - $30.98 b. Juniper Networks. Inc. - $29.20 1 2 3 Acct 203DL Assignment 4 - Management Accounting, Cost Behavior, & CVP Questions From chapter 14 1. Briefly describe variable, fixed, and mixed costs. Explain how each change in total as production activity increases. Variable costs are identical for every single unit of activity. Total variable costs chance in direct proportion to chances in activity, equivalent to zero dollars then activity is zero and increasing at a constant amount per unit of activity. Fixed costs are unvarying amount per period of time. The mixed cost curve is flat with a slope of zero. Mixed costs contain a mixed and a variable cost element. They are positive when activity is zero & increase linearly as activity increases. 2. Explain the term \"relevant range\" of production activity. Why is the relevant range an important consideration when estimating total costs? Range of business activity, often related to producing units or servicing customers, over which cost behavior assumptions are valid, i.e. fixed costs and variable costs meet their definitions. It's an important consideration when estimating total costs because it accounts for costs estimates to be incurred beyond normal relevant range (i.e. a time of year when fixed costs increase significantly to accommodate increase in production, sales, etc.) 3. Distinguish between cost estimation and cost prediction. Cost estimation concerns the calculation of previous or current relationships between activity and cost, while cost prediction is the best guess of future costs. Cost estimating equations, developed using past information, are regularly used for predicting future costs 4. Why is a scatter diagram helpful when used in conjunction with other methods of cost estimation? A scatter plot helps select high & low activity levels representative of normal operating conditions 5. Identify two advantages of least-squares regression analysis as a cost estimation technique. Least squares regression analysis uses all available information, rather than just two observations. It can supply us with consistent data on how well the cost estimating equation fits the past time period's cost data. From chapter 15 6. Identify the important assumptions that underlie cost-volume-profit analysis Cost-volume-profit analysis is a technique used to study the associations among the total volume of some independent variables, total costs, total revenues, & profits for the duration of a given time. It is especially helpful in the infant stages of preparing and planning when it gives us a framework for examining planning issues. The important assumptions that underlie cost-volume-profit analysis are: All costs are classified as fixed or variable with unit-level activity cost drivers. The total cost function is linear within the relevant range. The total revenue function is linear within the relevant range. The analysis is for a single products or the sales mix of multiple products is constant. There is only one activity cost driver/ unit or dollar sales volume: 7. Explain the limitation of basic cost-volume-profit analysis as it relates to an organization's sales mix. Basic cost-volume-profit is a technique to examine the relationships among total volume of an independent variable, total costs, total revenues, and profits for a time period. There are several limitations with CVA because the calculations assume: 1. All costs are classified as fixed or variable. 2. The total cost function is linear within the relevant range. 3. The total revenue function is linear within the relevant range. 4. The analysis is for a single product, or the sales mix of multiple products is constant. 5. There is only one activity cost driver: unit or dollar sales volume 8. Distinguish between a contribution income statement and a functional income statement. In a contribution income statement, costs are organized by how they behave as variable or fixed, and the contribution margin that covers fixed costs and providing a profit is emphasized. In a functional income statement, costs are organized according to their function, such as manufacturing & selling, as well as administrative. This is the type of income statement most frequently included in corporate annual reports. 9. Explain the term \"contribution margin.\" How is it used in computing the unit break-even point? The unit contribution margin is equal to the difference between the unit selling price and the unit variable costs. To calculate the unit break-even points, the fixed costs are divided by the unit contribution margin. 10. How is the break-even equation modified to take into consideration the sales required to earn a desired profit? It's modified to include Target Profit in the calculation/formula. For example: Fixed Costs + Target Profit (profit amount desired)/ Selling Price Per Unit - Variable Cost Per Unit 11. What is \"operating leverage\"? How are profit opportunities and the risk of losses affected by operating leverage? Operating leverage is a measurement of the degree to which a firm or project incurs a combination of fixed and variable costs. A business that makes sales providing a very high gross margin and fewer fixed costs and variable costs has much leverage. The higher the degree of operating of leverage, the greater the potential danger from forecasting risk, where a relatively small error in forecasting sales can be magnified into large errors in cash flow projections Problems Problem 1 The J. Page Furniture Company has the following information available regarding costs at various levels of monthly production: Production volume (units) Direct materials Direct labor Indirect materials Supervisors' salaries Depreciation on plant and equipment Maintenance Utilities Insurance on plant and equipment Property taxes on plant and equipment Total 16,000 Units $ 70,000 66,000 21,000 12,000 10,000 32,000 15,000 1,600 2,000 $229,600 Required a. Identify each of the costs above as being variable, fixed, or mixed. a. Direct Materials - FIXED b. Direct Labor - VARIABLE c. Indirect Materials - FIXED d. Supervisor's Salaries - FIXED 22,000 Units $100,000 90,000 30,000 12,000 10,000 44,000 21,000 1,600 2,000 $310,600 e. f. g. h. i. Depreciation on plant and equipment - FIXED Maintenance - MIXED Utilities - MIXED Insurance on plant and equipment - FIXED Property taxes on plant and equipment - FIXED b. Develop an equation for total monthly production costs using the high-low method of cost estimation, and predict total costs for a monthly production volume of 18,000 units high-low method of cost estimation: Variable cost per unit = difference in total cost / difference in activity Problem 2 The STC Supply manufactures memory cards that sell to wholesalers for $4.00 each. Variable and fixed costs are as follows: Variable Costs per card: Manufacturing Direct materials Direct labor Factory overhead Selling and admin. Total Fixed Costs per Month: $0.60 0.50 0.50 $1.60 0.30 $1.90 Factory overhead Selling and admin. Total $14,000 6,000 $20,000 STC Supply produced and sold 20,000 cards during October 2014. Assume the company had no beginning or ending inventories. Required: a. Prepare a contribution income statement for the month of October. b. Determine STC Supply's monthly break-even point in units. c. Determine the effect on monthly profit of a 1,000 unit increase in monthly sales. d. If STC Supply is subject to an income tax of 40 percent, determine the dollar sales volume required to earn a monthly after-tax profit of $30,000. Problem 3 Assume Paper Mate company is planning to introduce a new executive pen that can be manufactured using either a capital-intensive method or a labor-intensive method. The estimated manufacturing costs for each method are as follows: Direct materials per unit Direct labor per unit Variable manufacturing overhead per unit Fixed manufacturing overhead per year $5.00 $5.00 $4.00 $2,440,000.0 0 $8.00 $12.00 $2.00 $700,000.0 0 Paper Mate's market research department has recommended an introductory unit sales price of $40. The incremental selling costs are predicted to be $500,000 per year, plus $2 per unit sold. Required a. Determine the annual break-even point in units if Paper Mate uses the: i. Capital-intensive manufacturing method ii. Labor-intensive manufacturing method b. Determine the annual unit volume at which paper Mate is indifferent between the two manufacturing methods. c. Management wants to know more about the effect of each alternative on operating leverage. i. Compute operating leverage for each alterative at a volume of 250,000 units. ii. Which alternative has the highest operating leverage? Why? Acct 203DL Cisco Systems, Inc. - Case 3 Ratio Analysis Cisco Systems, Inc. vs. Juniper Networks, Inc. For our final case, we're going to use ratio analysis to compare Cisco Systems, Inc's financial performance and financial health to that of Juniper Networks, Inc., one of its competitors. On the next two pages, I have attached the key financial ratios analyses for each company - Cisco Systems and Juniper Networks. The ratios are listed in the 4 major categories - Profitability, Liquidity, Debt Management, and Asset Management. In our course, we the Debt Management ratios are called Solvency ratios and the Asset Management ratios are called either Efficiency ratios or Turnover ratios. The schedules also have some per share ratios. Required Using the relevant ratios from the attached schedules, please answer the following questions. In answering each question, please explain your reasoning using the relevant ratio(s) from the attached. 1. Over the 5-year period presented, which company was most efficient as generating revenue from its investment in total assets? Cisco 2. Over the 5-year period presented, which company was best able to meet their periodic interest payments related to debt obligations? Cisco 3. Based on the 5-year performance, which company generated the highest return on its total financing, i.e. debt and equity? Juniper 4. Based on the 5-year performance, which company is in the best position to meet its long-term debt obligations and stay in business? Cisco 5. If you were a bank lending officer and each of these companies applied for a $500 million shortterm borrowing (i.e. to be repaid in a less than a year), which company would you be more likely to lend to and why? Would your decision and analysis differ if the company was required to repay the borrowing in 5-years rather than less than a year? Please explain your answer. I would lend to Cisco based on their steadily strong ROE% over the course of 5 years. The quick ratio and current ratio declined slightly but remained strong. Additionally, the INVT continues to increase and move quickly, showing that inventory doesn't sit long on the shelf. A short payment term wouldn't concern me as their AT and APT are healthy numbers as well. 6. Based solely on the attached ratios, which company's common stock would you most likely invest in? Please explain your answer. Juniper? The consistent increase shows potential for long term company growth Note: Assume that the market price per share of the companies' common stock are: a. Cisco Systems, Inc. - $30.98 b. Juniper Networks. Inc. - $29.20 1 2 3