Question 19

On January 1, Easton Company had cash on hand of $110,000.All of January's $224,000 sales were on account. December sales of $230,000 were also all on account.Experience has shown that Easton typically collects 30% of receivables in the month of the sale and the balance the following month.All materials and supplies are purchased on account and Easton has a history of paying for half of these purchases in the month of purchase and half the following month.Such purchases were $162,000 for December and $166,000 for January.All other expenses including wages are paid in the month incurred.These amounted to $42,000 in December and $80,000 in January.Use this information to determine the projected ending balance of cash on hand for January. (Round answer to the nearest whole dollar)

Question 20

On January 2, 2018, Baltimore Company purchased 20,000 shares of the stock of Towson Company at $15 per share.Baltimore obtained significant influence as the purchase represents a 35% ownership stake in Towson Company.On August 1, 2018, Towson Company paid cash dividends of $15,000.Baltimore Company intended this investment to a long-term investment.On December 31, 2018, Towson Company reported $60,000 of net income for FY 2018.Additionally, the current market price for Towson Company's stock increased to $22 per share at the end of the year.Use this information to determine, how much Baltimore Company should report for its investment in Towson Company on December 31, 2018. (Round to the nearest dollar.)

Question 21

On January 2, 2018, Baltimore Company purchased 10,000 shares of the stock of Towson Company at $15 per share.Baltimore did NOT obtain significant influence as the purchase represents a 10% ownership stake in Towson Company.On August 1, 2018, Towson Company paid cash dividends of $19,000.Baltimore Company intended this investment to a long-term investment.On December 31, 2018, Towson Company reported $50,000 of net income for FY 2018.Additionally, the current market price for Towson Company's stock increased to $28 per share at the end of the year.Use this information to determine, how much Baltimore Company should report for its investment in Towson Company on December 31, 2018. (Round to the nearest dollar.)

Question 22

Frederick Company has two service departments (Cafeteria Services & Maintenance).Frederick has two production departments (Assembly Department & Packaging Department.)Frederick uses a step allocation method where Cafeteria Services is allocated to all departments and Maintenance Services is allocated to the production departments.All allocations are based on total employees.Cafeteria Services has costs of $300,000 andMaintenancehas costs of $240,000 before any allocations.What amount of Maintenance total cost is allocated to the Packaging Department?(round to closest whole dollar) Employees are:

Cafeteria Services6

Maintenance3

AssemblyDepartment10

Packaging Department11

Question 23

Bowie Sporting Goods manufactures sleeping bags.The manufacturing standards per sleeping bag, based on 5,000 sleeping bags per month, are as follows:

Direct material of 6.00 yards at $5.75 per yard

Direct labor of 3.00 hours at $18.00 per hour

Overhead applied per sleeping bag at $18.00

In the month of April, the company actually produced 4,900 sleeping bags using 25,500 yards of material at a cost of $5.30 per yard.The labor used was 11,500 hours at an average rate of $20.50 per hour.The actual overhead spending was $96,200.

Determine the materials price variance and round to the nearest whole dollar.Enter a favorable variance as a negative number.Enter an unfavorable variance as a positive number.

Question 24

Bowie Sporting Goods manufactures sleeping bags.The manufacturing standards per sleeping bag, based on 5,000 sleeping bags per month, are as follows:

Direct material of 5.00 yards at $6.00 per yard

Direct labor of 2.50 hours at $17.00 per hour

Overhead applied per sleeping bag at $18

In the month of April, the company actually produced 5,100 sleeping bags using 26,800 yards of material at a cost of $6.10 per yard.The labor used was 12,500 hours at an average rate of $19.50 per hour.The actual overhead spending was $96,200.

Determine the labor quantity variance and round to the nearest whole dollar.Enter a favorable variance as a negative number.Enter an unfavorable variance as a positive number.

Question 25

Selected financial information for the Adelphi Company for the fiscal years ended December 31, 2018 and 2017 follows.Prepare cash flow statement using the indirect method.Properly title the statement.

2018 2017

Cash balance $113,500 $37,500

Net income 142,500 162,000

Depreciation Expense 42,000 35,000

Purchase of Plant Assets 135,000 125,000

Disposal of Plant Assets 40,000 50,000

Gain (Loss) on Disposal of Plant Assets (10,000) 5,000

Accounts Receivable Balance 64,500 58,000

Accounts Payable Balance 42,000 39,000

Interest Expense 8,000 6,000

Income Taxes Paid 35,000 28,000

Dividends Paid 30,000 25,000

Common Stock Issued for Cash 20,000 0