Part II: Open Ended Accounting Problems Instructions: Determine a final numerical answer for each question. You will record your ANSWERS ONLY on THPS-1 Answer Submission Form on iCollege. For all questions (unless otherwise specifically instructed), round (if necessary) all answers to whole dollar amounts (i.e., zero decimal places), but you will NOT record the dollar sign or any commas on iCollege. For example, round $24,302.84 to $24,303 and record this value on iCollege at 24303. Financial statement data for Plum Crazy Boutique (a high-end clothing retail company) are given below. All figures are in dollars. Use this data to construct an Income Statement for the year ending December 31, 2021 and use your constructed statement to answer the following 4 questions. Advertising Beginning of year inventory Depreciation End of year inventory 38,730 86,490 7,620 91,740 General and administrative expenses 47,620 Gross sales 954,760 Interest expense 12,760 Lease payments 29,500 Management salaries Purchases Research and development Returns and allowances Taxes 142,750 576,580 6,850 6,750 33,840 15. What was gross profit from Plum Crazy Boutique's income statement for the year ending December 31, 2021? 16. What was operating profit (i.e., EBIT) from Plum Crazy Boutique's income statement for the year ending December 31, 2021? 17. What was profit before taxes (i.e., EBT) from Plum Crazy Boutique's income statement for the year ending December 31, 2021? 18. What was net income from Plum Crazy Boutique's income statement for the year ending December 31, 2021? 19. Given the following information for Langs, Inc., calculate per share dividend dollar amount (that is, the dividends per share), rounded to the nearest cent (i.e., $5.21843-$5.22) that the company paid out in 2021: Retained earnings reported on December 31, 2020 balance sheet: $4,816,200 Retained earnings reported on December 31, 2021 balance sheet: $5,326,800 Net Income reported on December 31, 2020 income statement: $658,700 Net Income reported on December 31, 2021 income statement: $747,900 Number of shares of common stock outstanding at the end of 2020: 206,600 shares Number of shares of common stock outstanding at the end of 2021: 220,000 shares 20. The Cochran Tire Company gathered the following condensed data for the year ended December 31, 2021: Account Cost of Goods Sold Net Sales Selling Expenses Interest Expense Administrative Expenses Common Stock Dividends Paid Income tax percentage Amount (or percentage) $105,762,400 $314,756,900 $38,476,100 $24,756,800 $106,574,900 $5,000,000 40% The Cochran Tire Company's assets at the beginning of 2021 were $9,100,000, and the assets were $9,518,000 at the end of 2021. What did the Cochran Tire Company report as net income on its 2021 income statement? 21. In 2021, the Kilmar Design Agency, Inc. purchased 2,985,600 units from its supplier at a cost of $62.00 per unit. Kilmar Design Agency sold 2,786,450 units of its product in 2021 at a price of $93.00 per unit. Kilmar Design Agency began 2021 with 349,500 units in inventory (inventory is carried at a cost of $62.00 per unit). Using this information, compute Kilmar Design Agency's gross profit for 2021. 22. Referring back to the previous question, compute Kilmar Design Agency's 2021 ending inventory balance in dollars (valued at cost per unit of $62.00). 23. In 2021, Bumble Bee Boutique (a retail clothing company) sold 258,000 units of its product at an average price of $40.00 per unit. The company reported estimated returns and allowances in 2021 of 2.5 percent of gross revenue. Bumble Bee Boutique actually purchased 292,000 units of its product from its manufacturer in 2021 at an average cost of $25.00 per unit. Bumble Bee Boutique began 2021 with 62,000 units of its product in inventory (carried at an average cost of $25.00 per unit). Operating expenses (excluding depreciation) for Bumble Bee Boutique in 2021 were $1,816,000 and depreciation expense was $105,000. Bumble Bee Boutique had $3,400,000 in debt outstanding throughout all of 2021. This debt carried an average interest rate of 5.0 percent. Finally, Bumble Bee Boutique's tax rate was 30 percent. Bumble Bee Boutique's fiscal year runs from January 1 through December 31. Given this information, compute net income for Bumble Bee Boutique for 2021. 24. Referring back to the previous problem, compute Bumble Bee Boutique's ending inventory balance for 2021 (that is, what did Bumble Bee Boutique report as inventory on its December 31, 2021 balance sheet). 5 Financial data for Peach Tree Boutique is given below. All figures are in dollars. Use this data to construct a Balance Sheet for the company for the year ending December 31, 2021 and use your constructed statement to answer the following 5 questions (L.e., 25 through 29). NOTE: Not every item in the list below belongs on the balance sheet-you have to use some given data to determine needed accounts for the balance sheet. However, other than what is listed and/or can be derived, there are no other accounts on the company's balance sheet - use cash as a plug figure to balance the balance sheet. Accounts payable Accruals Accumulated depreciation Additional paid in capital Beginning of year inventory 347,800 162,400 7,418,300 2,247,500 1,875,900 Common stock ($1.75 par value) 462,000 Cost of goods sold 15,017,600 Current portion of Long-term debt 401,600 Gross accounts receivable 726,500 Gross fixed assets 18,479,300 Long-term debt (excluding current portion) 8,547,000 Purchases 15,479,900 Retained earnings 3,472,100 Returns and allowances 14,900. Short-term bank loan 104,700 Cash ??? 25. What did Peach Tree Boutique record as Total Current Assets on December 31, 2021 balance sheet? 26. What did Peach Tree Boutique record as Total Current Liabilities on December 31, 2021 balance sheet? 27. What did Peach Tree Boutique record as Total Assets on December 31, 2021 balance sheet? 28. What was Total Shareholder's Equity on Peach Tree Boutique December 31, 2021 balance sheet? 29. Peach Tree Boutique reported net income for 2021 of $338,200 and the company paid dividends of $1.05 per share in 2021. Given this information (along with the data provided above), compute what Peach Tree Boutique reported as retained earnings on its December 31, 2020 balance sheet? (Assume that no additional shares of stock were issued between December 31, 2020 and December 31, 2021). 30. The year-end 2021 balance sheet for Thitch, Inc. lists common stock ($1.20 par value) at $7,620,000 capital surplus at $86,543,000 and retained earnings at S218,546,000. On the 2020 year-end balance sheet, retained earnings is listed as $214,368,000. The firm's net income in 2021 was $12,500,000. No stock was issued or repurchased in 2021. What were dividends per share paid by the firm in 2021 (rounded to the nearest cent; for example, record $5.18734 as 5.19). 31. The Lunder Company has total assets of $22,542,000, current liabilities of $2,547,000, and long-term liabilities of $7,410,000. The firm has 1,000,000 shares of common stock outstanding. Compute the firm's book value of equity per share (rounded to the nearest cent; for example, record $5.18734 as 5.19). 32. Referring back to the previous question, if Lunder's net income equals $1,600,000 and Lunder has a P/E ratio of 15.0 (note that P/E ratio stock price per share divided by earnings per share), what is the current price of the stock (rounded to the nearest cent; for example, record $5.18734 as 5.19)? 6 USE THE FOLLOWING INFORMATION TO ANSWER QUESTIONS 33-36 The Hester Corporation, a diversified distribution company, purchases cartons of canned golf balls from the LongDistance Company and markets the balls under the Hester brand name. Hester started operations on January 1, 2021. In the table below, Quarter 1 represents the time period from January 1, 2021 to March 31, 2021 and Quarter 2 represents the time period from April 1, 2021 to June 30, 2021. Hester began operations on January 1, 2021 with no inventory. Purchases and sales data for Hester's first two quarters of business are shown below: Quarter 1 Sales Purchases: 80,000 cartons at $8.00 per carton - January February March Quarter 2 Sales Purchases April May June 20,000 cartons at $4.00 35,000 cartons at $4.40 40,000 cartons at $4.90 165,000 cartons at $9.00 per carton 45,000 cartons at $5.10 50,000 cartons at $5.60 60,000 cartons at $5.90 33. Calculate the Quarter 2 ending inventories (in dollars) using the LIFO inventory valuation method. 34. Calculate Quarter 2 GROSS PROFIT using the LIFO inventory valuation method. 35. Calculate the Quarter 2 ending inventories (in dollars) using the FIFO inventory valuation method. 36. Calculate Quarter 2 GROSS PROFIT using the FIFO inventory valuation method. Part III: Open Ended Math Review Problems Instructions: For each of the algebra problems below, round your answer to 2 decimal places and record your answer on D2L without (if applicable) a comma. Thus, enter 3.24765 as 3.25 or 18763 as 0.19 or 3,214.842876 as 3214.85. 37. Given the following ratio relationships: 0.44 . D/A . . D+E=A N/E=0.12 What is N/A? (Record your answer to a percent, rounded to 1 decimal place). 38. Given the following ratio relationships: D/A=0.21 A-D-E What is D/E? (Record your answer as a whole number rounded to 2 decimal places). 39. Given the following ratio relationships: D/A 0.25 N/A= .235 A=D+E What is N/E? (Record your answer to a percent, rounded to 1 decimal place). 40. Given the following ratio relationships: S/A=7.6 N/S-.08 D/A-.55 . A=D+E What is N/A? (Record your answer to a percent, rounded to 1 decimal place) 41. Suppose A-D E, that N = 62,000, E/A = .565 and N/E .40. Compute D/A (record your answer to a percent, rounded to 1 decimal place). 42. Assume that S/A = 2.5, D/A = .15, N/E= .75 and A D+ E. Solve for N/S (Record your answer to a percent, rounded to 1 decimal place). 43. Given the following equations: . 4x+y=12 8x-4y=15 Solve for y. (Record your answer rounded to 2 decimal places; for example, record 18.3498 as 18.35). 44. Referring back to the prior problem, what is x? (Record your answer rounded to 2 decimal places; for example, record 18.3498 as 18.35). 45. Alex and Sam each build tables. Together they make 34 tables in 12 days. Alex working alone can make 46 tables in 30 days. How many days would it take Sam working alone to make 46 tables? (Record your answer in days rounded to one decimal place. For example, if the answer you find is 4.2835 days, record 4.3). 46. Which of the following numbers is the smallest? a. -3/4 b. -3/2 c. -1 d. -2/3 e. -7/4 47. Solve the following: 7m+3mn, given that m=8 and n = 14. 48. Alex broke open his piggy bank. He had 30 more dimes than nickels and 8 more quarters than nickels. The value of the quarters is exactly the same as the value of the sum of the dimes and nickels. How much total money does Alex have (in cents, assuming the quarters are worth 25 cents, dimes are worth 10 cents, and nickesl are worth 5 cents)? 49. You must have an average score of at least 80 to get a B- in a class that you are taking. The class has 5 exams (all equally weighted). On exams 1, 2, 3 and 4 you earned grade of 61, 70, 99 and 73, respectively. What is the minimum score that you must get on exam 5 t get a B- in the class? (Record your answer as a number rounded to one decimal place; for example, record 83.8924 as 83.9). 50. Ed invests $68,000 in certificates of deposit (i.e., CDs) paying 1.75%. How much additional money does he need to invest in stocks that are expected to generate a return of 11.8% so that the average return on all of Ed's investments is 7.5%? (Record your answer as a dollar amount rounded to 2 decimal places, but do not include the dollar sign or any commas in your answer on iCollege; for example, record $29,354.22895 as 29354.23). 8