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 $$24,302\mathrm{.}84$ to $$24,303$ and record this value on iCollege at

$24303.$

Financial statement data for Fitness Factor $($a fitness equipment retail company$)$ are given below. All figures are

in dollars. Use this data to construct an Income Statement for the year ending December $31,2023,$ and use your

constructed statement to answer the following $4$ questions.

$16.$ What was gross profit from Fitness Factor$$s income statement for the year ending December $31,2023?$

$17.$ What was operating profit $($i$.$e$.,$ EBIT$)$ from Fitness Factor$$s income statement for the year ending

December $31,2023?$

$18.$ What was profit before taxes $($i$.$e$.,$ EBT$)$ from Fitness Factor$$s income statement for the year ending

December $31,2023?$

$19.$ What was net income from Fitness Factor$$s income statement for the year ending December $31,2023?$

$20.$ Given the following information for Weedy, Inc., calculate per share dividend dollar amount $($that is$,$ the

dividends per share$),$ rounded to the nearest cent $($i$.$e$.,$ $$5\mathrm{.}21843=$ $$5\mathrm{.}22)$ that the company paid out in $2023$:

$$ Retained earnings reported on December $31,2022$ balance sheet: $$647,600$

$$ Retained earnings reported on December $31,2023$ balance sheet: $$718,400$

$$ Net Income reported on December $31,2022$ income statement: $$168,800$

$$ Net Income reported on December $31,2023$ income statement: $$174,700$

$$ Number of shares of common stock outstanding at the end of $2022$: $68,200$ shares

$$ Number of shares of common stock outstanding at the end of $2023$: $73,300$ sharesAdvertising $33,960$

Beginning of year inventory $79,790$

Depreciation $10,740$

Dividends paid to common stockholders $22,640$

End of year inventory $64,350$

General and administrative expenses $34,560$

Gross sales $886,000$

Interest expense $8,350$

Lease payments $19,860$

Management salaries $102,780$

Purchases $407,300$

Research and development $1,930$

Returns and allowances $6,960$

Taxes $20,970$

$5$

$21.$ The Symmetric Shoe Company gathered the following condensed data for the year ended December $31,2023$:

The Symmetric Shoe Company's assets at the beginning of $2023$ were $$9,100,000,$ and the assets were

$$9,518,000$ at the end of $2023.$

What did the Symmetric Shoe Company report as net income on its $2023$ income statement?

$22.$ In $2023,$ the Kilmar Design Agency, Inc. purchased $2,965,800$ units from its supplier at a cost of $$46\mathrm{.}00$ per

unit. Kilmar Design Agency sold $2,784,650$ units of its product in $2023$ at a price of $$72\mathrm{.}00$ per unit. Kilmar

Design Agency began $2023$ with $345,900$ units in inventory $($inventory is carried at a cost of $$46\mathrm{.}00$ per unit$).$

Using this information, compute Kilmar Design Agency$$s gross profit for $2023.$

$23.$ Referring back to the previous question, compute Kilmar Design Agency$$s $2023$ ending inventory balance in

dollars $($valued at cost per unit of $$46\mathrm{.}00).$

$24.$ In $2023,$ Fashionosa $($a retail clothing company$)$ sold $443,000$ units of its product at an average price of $$40\mathrm{.}00$

per unit. The company reported estimated returns and allowances in $2023$ of $1\mathrm{.}5$ percent of gross revenue.

Fashionosa actually purchased $426,000$ units of its product from its manufacturer in $2023$ at an average cost

of $$25\mathrm{.}00$ per unit. Fashionosa began $2023$ with $58,000$ units of its product in inventory $($carried at an average

cost of $$25\mathrm{.}00$ per unit$).$ Operating expenses $($excluding depreciation$)$ for Fashionosa in $2023$ were $$2,988,040$

and depreciation expense was $$220,000.$ Fashionosa had $$5,000,000$ in debt outstanding throughout all of

$2023.$ This debt carried an average interest rate of $10\mathrm{.}6$ percent. Finally, Fashionosa's tax rate was $25$ percent.

Fashionosa's fiscal year runs from January $1$ through December $31.$ Given this information, compute net

income for Fashionosa for $2023.$Account Amount $($or percentage$)$

Cost of Goods Sold $$628,430$

Net Sales $$947,620$

Selling Expenses $$142,360$

Interest Expense $$18,610$

Administrative Expenses $$76,900$

Common Stock Dividends Paid $$15,200$

Income tax percentage $31\%$

$25.$ Referring back to the previous problem, compute Fashionosa$$s ending inventory balance for $2023($that is$,$

what did Fashionosa report as inventory on its December $31,2023$ balance sheet$).$