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here link of the homework. there all short homework. Problem 1 Required: Identify the financial statement on which each of the following items appears by

here link of the homework. there all short homework.image text in transcribed

Problem 1 Required: Identify the financial statement on which each of the following items appears by making an X in the appropriate column. The first one is done for you! (15 points total, 1 point each) Item Accounts Payable Accounts Receivable Advertising Expense Common Stock Dividends Equipment Financing Activities Investing Activities Land Operating Activities Rent Expense Retained Earnings Revenue Salaries Payable Utility Expense Income Statement Balance Sheet X Statement of Cash Flows Problem 2 Required: Show the effects on the financial statements using a horizontal statement model as outlined below. The first one is done for you! (35 points total, 5 points each) 1 Sold $30,000 in merchandise for cash 2 Paid $5,000 for rent with cash 3 Paid $10,000 in salaries to employees with cash 4 Sold $25,000 in merchandise and customer paid on credit 5 Collected $10,000 cash for transaction #4 6 Purchased a building for $100,000 and took out a loan for the money 7 Paid $1,200 for insurance Balance Sheet Event No. 1 2 3 4 5 6 7 Assets 30,000 = = = = = = = = Liabilities + + + + + + + + Income Statement Owner's Equity 30,000 Revenue 30,000 - Expenses = = = = = = = = Net Income 30,000 - ACCT301 Week 2 Homework 1. In two to three paragraphs, describe the Sarbanes-Oxley Act and why it is important to the accounting profession. (15 points) 2. Name and briefly describe the five components of COSO's internal control framework. (10 points) 3. Describe the relationship between the Sarbanes-Oxley Act and COSO. (10 points) 4. Tom Jackson is a CPA who really likes to go to Las Vegas, play poker, and bet on football games. Tom knows that the accounting profession disapproves of gambling, but because he spends a lot of time studying sports facts and how to win at poker, he feels that he is simply making educated decisions based on facts. He says that this is no different from using accounting information to buy stocks. Use the fraud triangle as a basis to comment on Tom's gambling activities. (15 points) Problem 1 Required: Express each income statement component as a percentage of sales, and comment on the trends in each line from 2012 to 2013. (25 points) Sales Cost of goods sold Gross margin Operating expenses Net income 2013 % Sales $1,000,000 $450,000 $550,000 $600,000 $(50,000) 2012 % Sales $1,200,000 $600,000 $600,000 $450,000 $150,000 Comments Problem 2 Required: Compute (1) accounts receivable turnover for 2013, (2) the inventory turnover for 2013, and (3) the net margin for 2013. (25 points) 2013 2012 Balance sheet items Accounts receivable $380,000.00 $376,000.00 Allowance for doubtful accounts $(20,000.00) $(16,000.00) Net accounts receivable $360,000.00 $360,000.00 Inventory $480,000.00 $440,000.00 Income statement items Sales $3,400,000.00 $3,080,000.00 Cost of goods sold $1,600,000.00 $1,440,000.00 $780,000.00 $680,000.00 Operating expenses Problem 1 Required: Use the following information to complete the below schedule of cost of goods manufactured. (25 points) Purchases of raw materials Raw materials available for use Cost of direct raw materials used Manufacturing overhead Total manufacturing costs Ending work-in-process inventory Cost of goods manufactured $ $ $ $ $ $ $ 120,000.00 148,000.00 124,000.00 24,000.00 310,000.00 (46,000.00) 306,000.00 Schedule of Cost of Goods Manufactured Beginning inventory, raw materials Plus: Purchases of raw materials Raw materials available for use Less: Ending raw materials inventory Cost of direct raw materials used Direct labor Manufacturing overhead Total manufacturing costs Plus: Beginning work-in-process inventory Total work in process Less: Ending work-in-process inventory Cost of goods manufactured $ - $ - $ - $ - $ - Problem 2 Required: JZ is a musician who is considering whether to independently produce and sell a CD. JZ estimates fixed costs of $10,000 and variable costs of $4.00 per unit. The expected selling price is $12 per CD. What is JZ's break-even point in units and dollars? (25 points) Break-even point in units Fixed Costs Contribution margin per unit Break-even point in dollars Break-even point in units * selling price Problem 1 Required: Identify each of the following as either a direct or indirect cost. (20 points) Direct or Indirect? Material used in production Salary of manufacturing supervisor Wages of manufacturing worker Telephone costs Rent Problem 2 Required: GH Company is trying to decide whether to replace a current piece of machinery with a new machine. Using the below data, determine the relevant costs of the old machine and the new machine. Should GH Company purchase the new machine? (30 points) Original cost Accumulated depreciation Book value Market value (now) Salvage value (in 5 years) Annual depreciation expense Operating expenses Per year Times number of years Total operating expenses Old Machine 100,000 (50,000) 50,000 New machine 25,000 5,000 11,000 30,000 8,000 9,000 4 36,000 4,500 4 18,000 Problem 1 Required: In the space below, describe the advantages of budgeting. (10 points) Problem 2 Required: Compute the ROI for each division below to two decimal places. (30 points) Which division has the best performance? (10 points) (40 points total) Operating income Operating assets Division A 245,000 1,200,000 Division B 125,000 775,000 Division C 350,000 1,500,000 Problem 1 Required: In the space below, describe the net present value method of capital budgeting. (10 points) Problem 2 Required: Compute the average annual cash inflows. (20 points) Compute the payback period using the accumulation method. (20 points) (40 points total) 2013 Incremental revenue Cost of new machine 6,000 12,000 2014 2015 2,000 4,000 2016 2,000 2017 1,000

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