Product Cost Markup Percentage

Apex Lighting Inc. produces and sells lighting fixtures. An entry light has a total cost of $64 per unit, of which $32 is product cost and $32 is selling and administrative expenses. In addition, the total cost of $64 is made up of $44 variable cost and $20 fixed cost. The desired profit is $12 per unit.

Determine the markup percentage on product cost. Round the answer to nearest whole number. fill in the blank 1 %

2.The following items are reported on a company's balance sheet:

Cash	$500,200
Marketable securities	390,800
Accounts receivable (net)	510,400
Inventory	161,700
Accounts payable	539,000

Determine (a) the current ratio and (b) the quick ratio. Round to one decimal place.

a. Current ratio	fill in the blank 1
b. Quick ratio	fill in the blank 2

3.A project is estimated to cost $186,846 and provide annual net cash flows of $38,000 for six years.

Present Value of an Annuity of $1 at Compound Interest
Year	6%	10%	12%	15%	20%
1	0.943	0.909	0.893	0.870	0.833
2	1.833	1.736	1.690	1.626	1.528
3	2.673	2.487	2.402	2.283	2.106
4	3.465	3.170	3.037	2.855	2.589
5	4.212	3.791	3.605	3.352	2.991
6	4.917	4.355	4.111	3.784	3.326
7	5.582	4.868	4.564	4.160	3.605
8	6.210	5.335	4.968	4.487	3.837
9	6.802	5.759	5.328	4.772	4.031
10	7.360	6.145	5.650	5.019	4.192

Determine the internal rate of return for this project, using the Present Value of an Annuity of $1 at Compound Interest table shown above. fill in the blank 1 %

4. The cash flows from operating activities are reported by the direct method on the statement of cash flows. Determine the following:

a. If sales for the current year were $655,200 and accounts receivable decreased by $47,200 during the year, what was the amount of cash received from customers? $fill in the blank 1

b. If income tax expense for the current year was $53,200 and income tax payable decreased by $6,800 during the year, what was the amount of cash payments for income taxes? $fill in the blank 2

c. Briefly explain why the cash received from customers in part (a) is different from sales. Because the customers paid

moreless

than the amount of sales for the period, cash received from customers

exceededis less than

sales made on account by $47,200 during the current year.