Q1: (a) Data for Aston Company are as follows. Calculate the indicated ratios for Aston. Aston Company: Income Statement for year ended December 31, 2018. Sales 1,607,500 Cost of Goods sold 1,392,500 Selling, general and administrative expenses 145,000 Earnings before interest and taxes (EBIT) 70000 Interest expense 24,500 Earnings before taxes (EBT) 45,500 Income Taxes (40%) 18,200 Net Income 27,300 Ratio Aston 1. Current Ratio _____ 2. Quick Ratio _____ 3. Receivable Turnover in Days _____ 4. Inventory turnover _____ 5. Net Profit Margin _____ 6. ROA _____ 7. ROE _____ 8. Debt-to-Total-Asset _____ 9. Debt-To-Equity _____ 10. Interest coverage _____ Note: the last digit of your registration number will represent either odd number or even. The even number will solve the ratios according to the even number and odd will solve accordingly. Q. In what different ways are financial ratios important? (b) Kitchen Electrics is a wholesaler of refrigerators. Some of the transactions during the current year are as follows. Apr. 15 Sold refrigerators on account to Harrys services, $30,000. The inventory subsidiary ledger shows the cost of this merchandise was $(last five digits of your registration number). Apr. 19 Purchased refrigerator accessories on account from CPI Company, $4,500. May 10 Collected in cash the $30,000 account receivable from Harrys services. May 19 paid the $4,500 owed to CPI Company. Dec. 31 Kitchen Electrics personnel counted the inventory on hand and determined its cost to be $120,000. The accounting records, however, indicate inventory of $121,000 and a cost of goods sold of $730,000. The physical count of the inventory was observed by the companys auditors and is considered correct. Instructions a. Prepare journal entries to record these transactions and events in the accounting records of Kitchen Electrics. (The company uses a perpetual inventory system.) b. Prepare a partial income statement showing the companys gross profit for the year. (Net sales for the year amount to $your registration number). (5+5=10 Marks) Q2. Devise a cash flow statement by using the following information: Royce Interiors Income Statement For the year ended December 31, 2018 Revenues Costs & Expenses Net sales 31,955,500 Cost of goods sold 11,542,000 Dividend Income 150,000 Operating Expense( Depreciation: your registration number ) 8,537,500 Interest Income 856,000 Interest Expense 622,500 Gain on sale of Marketable Securities 182,000 Income Taxes 700,000 Loss on sale of plant assets Last five digits of your registration number TOTAL TOTAL The following table summarizes all the debit and credit entries during the year: Items Debit Credit Marketable Securities 300,000 515,000 Notes Receivable 525,500 637,500 Plant assets 8,852,000 995,000 Notes Payable 762,800 873,500 Bonds payable 2,983,000 Capital stock 155,200 Additional paid-in-capital 802,000 Retained Earnings 828,000 2,456,000 Additional Information: Selected Account Balances End of Year Beginning of Year Accounts Receivable 800,000 600,000 Accrued interest receivable 75,000 125,000 Inventories 1,250,000 550,000 Short term prepayments 150,000 205,000 Accounts payable 1,495,000 900,000 Accrued operating expenses payable 145,000 50,000 Accrued interest payable 100,800 55,000 Accrued income tax payable 31,500 100,000 Cash & cash equivalents: beginning of year: Your registration number (10 Marks) Q3. (a) Charter Holding uses the balance sheet approach to estimate uncollectible accounts expense. At year-end an aging of the accounts receivable produced the following five groupings. Not yet due 565,000 1-30 days past due 130,000 31-60 days past due 70,000 61-90 days past due 50,000 Over 90 days past due 80,000 Total 895,000 On the basis of past experience, the company estimated the percentages probably uncollectible for the five age groups to be as follows: Group a, 1 percent; Group b, 3 percent; Group c, 15 percent; Group d, 15 percent; and Group e, (last two digits of registration number). The Allowance for Doubtful Accounts before adjustments at December 31 showed a credit balance of $(last four digits of your registration number). Instructions a. Compute the estimated amount of uncollectible accounts based on the above classification by age groups. b. Prepare the adjusting entry needed to bring the Allowance for Doubtful Accounts to the proper amount. Assume that on January 25 of the following year, Charter learned that an account receivable that had originated on August 1 in the amount of $(last four digits of your registration number) was worthless because of the bankruptcy of the client, May Flowers. Prepare the journal entry required on January 25 to write off this account. (b) Thaxton Corporation purchased a truck for deliveries on April 1, 2018. The truck is expected to have a 7-year life and no residual value. The following expenditures were associated with the purchase. Cost of the truck $(last five digits of your registration number) Freight Charges 485 Sales taxes 675 Installation of tracking device 95 Cost to repair truck damaged during parking 550 Instructions 1. Compute depreciation expense for the years 2018 through 2021 under each depreciation method listed. Straight-line, with fractional years rounded to the nearest whole month and 200 percent declining-balance, using the half-year convention. 2. Assume that Thaxton Corporation sold the old truck that was being replaced. The old truck had originally cost $4,500. Its book value at the time of the sale was $700. Record the sale of the old truck under the following conditions. The truck was sold for $980 cash. The truck was sold for $(last three digits of your registration number) cash.

note mine registration no is 2011220