Question: Consider the following independent events: a. Gain

> Klynveld Company’s balance sheet shows total liabilities of $94,000,000, total stockholders’ equity of $75,000,000, and total assets of $169,000,000. Required: Note: Round answers to two decimal places. 1. Calculate the debt ratio. 2. Calculate the debt

> Alessandra Makeup Manufacturers provided the following income statement for last year: Sales ………………………………………………..$51,350,000 Cost of goods sold ……………………………….19,250,000 Gross margin …………………………………….$32,100,000 Operating expenses ………………………………6,200,000 Oper

> Refer to the information for Toby’s on the previous page. Required: Note: Round answers to one decimal place. 1. Calculate the average accounts receivable. 2. Calculate the accounts receivable turnover ratio. 3. Calculate the accounts

> LoLo Lemon Company has current assets equal to $500,000. Of these, $300,000 is cash, $75,000 is accounts receivable, $125,000 is inventory, and the remainder is marketable securities. Current liabilities total $425,000. Required: Note: Round answers to

> Frankle Manufacturing produces cylinders used in internal combustion engines. During June, Frankle’s welding department had the following data: Units in BWIP…………………………………………………………..— Units completed ………………………………………………112,000 Units in EWIP (40% complete)

> During the year, Roberts Company sold equipment with a book value of $140,000 for $190,000 (original purchase cost of $240,000). New equipment was purchased. Roberts provided the following comparative balance sheets: Required: Calculate the investing

> Cannon Company invested $8,000,000 in a new product line. The life cycle of the product is projected to be 8 years with the following net income stream: $400,000, $300,000, $700,000, $800,000, $1,100,000, $2,000,000, and $1,100,000. Required: Calculate

> Folsom Advertising, Inc. is considering an investment in a new information system. The new system requires an investment of $1,800,000 and either has (a) even cash flows of $750,000 per year or (b) the following expected annual cash flows: $450,000, $22

> During the last 2 years of operations, Lelkes Company had the following transactions: a. Purchased land for $1,000,000. b. Issued bonds with a 5-year maturity date for $3,000,000. c. Reported a loss of $2,000,000 for the most recent year. d. Bought equip

> Refer to the information for Barnard Manufacturing on the previous page. Total capital employed equaled $1,400,000. Barnard’s actual cost of capital is 12%. Required: Calculate the EVA for Barnard Manufacturing. Data for Exercise 21: Barnard Manufactu

> Refer to the information for Barnard Manufacturing on the previous page. Barnard requires a minimum rate of return of 15%. Required: Calculate (1) average operating assets and (2) residual income. Data for Exercise 20: Barnard Manufacturing earned ope

> Refer to the information provided in Brief Exercises 14-27, 14-28, and 14-29. Required: 1. Prepare a statement of cash flows for Roberts Company for 20X2. 2. What is the relationship between the statement of cash flows and the change in cash calculated

> Roberts Company earned net income of $450,000 in 20X2. Roberts provided the following information: Required: Compute the financing cash flows for the current year. Roberts Company Comparative Balance Sheets At December 31, 20X1 and 20X2 20X1 20X2

> Roberts Company provided the following partial comparative balance sheets and the income statement for 20X2. Required: Compute operating cash flows using the indirect method. Roberts Company Comparative Balance Sheets At December 31, 20X1 and 20X

> On March 1, Friedle Import-Export Company sells merchandise costing 75,000 Mexican pesos. Payment will be made in pesos, on June 1. The exchange rates of pesos for $1 were as follows: March 1 ……………….$1 = 10.9 pesos June 1 ……………………$1 = 11.4 pesos Rou

> Refer to the information for Aztec Inc. on the previous page. Required: Prepare a production report. Data for Exercise 30: Aztec Inc. produces soft drinks. Mixing is the first department, and its output is measured in gallons. Aztec uses the FIFO meth

> During 20X2, Evans Company had the following transactions: a. Cash dividends of $6,000 were paid. b. Equipment was sold for $2,880. It had an original cost of $10,800 and a book value of $5,400. The loss is included in operating expenses. c. Land with a

> Roberts Company provided the following information: Required: 1. Calculate the change in cash. 2. Explain the role of the change in cash flow in the statement of cash flows. Roberts Company Comparative Balance Sheets At December 31, 20X1 and 20X2

> Cassara, Inc., had the following quality costs for the years ended December 31, 20X1 and 20X2: At the end of 20X1, management decided to increase its investment in control costs by 40% for each category’s items, with the expectation t

> Richins Company produces automobile engine parts. The company is examining the possibility of investing in a new production system that will reduce the costs of the current system. The new system will require a cash investment of $11,551,968 and will pro

> During 20X2, Norton Company had the following transactions: a. Cash dividends of $20,000 were paid. b. Equipment was sold for $9,600. It had an original cost of $36,000 and a book value of $18,000. The loss is included in operating expenses. c. Land with

> Refer to the information provided in Brief Exercises 14-19, 14-20, and 14-21. Required: 1. Prepare a statement of cash flows for Swasey for 20X2. 2. What is the relationship between the statement of cash flows and the change in cash calculated in Brief

> On March 1, Friedle Import-Export Company purchased merchandise costing 70,100 Mexican pesos. Payment was due, in pesos, on June 1. The exchange rates of pesos for $1 were as follows: March 1 ……………………….$1 = 10.9 pesos June 1 …………………………..$1 = 11.4 pesos

> Swasey Company earned net income of $1,800,000 in 20X2. Swasey provided the following information: Required: Compute the financing cash flows for the current year. Swasey Company Comparative Balance Sheets At December 31, 20X1 and 20X2 20X1 20X2

> Lisun Company produces a variety of gardening tools and aids. The company is examining the possibility of investing in a new production system that will reduce the costs of the current system. The new system will require a cash investment of $4,607,200 a

> Andresen Company had the following quality costs for the years ended June 30, 20X1 and 20X2: At the end of 20X1, management decided to increase its investment in control costs by 50% for each category’s items, with the expectation tha

> McCourt Company produces small engines for lawnmower producers. The accounts payable department at McCourt has 10 clerks who process and pay supplier invoices. The total cost of their salaries is $500,000. The work distribution for the activities that th

> Uchdorf Company invested $9,000,000 in a new product line. The life cycle of the product is projected to be 7 years with the following net income stream: $360,000, $360,000, $600,000, $1,080,000, $1,200,000, $2,520,000, and $1,444,000. Required: Calcula

> Payson Manufacturing is considering an investment in a new automated manufacturing system. The new system requires an investment of $1,200,000 and either has (a) even cash flows of $300,000 per year or (b) the following expected annual cash flows: $150,0

> Swasey Company provided the following information: Required: 1. Calculate the change in cash. 2. Explain the role of the change in cash in the statement of cash flows. Swasey Company Comparative Balance Sheets At December 31, 20X1 and 20X2 20X1 2

> Willison Company produces stuffed toy animals; one of these is Betty Rabbit. Each rabbit takes 0.2 yard of fabric and 6 ounces of polyfiberfill. Fabric costs $3.50 per yard, and polyfiberfill is $0.05 per ounce. Willison has budgeted production of stuffe

> Allison Manufacturing produces a subassembly used in the production of jet aircraft engines. The assembly is sold to engine manufacturers and aircraft maintenance facilities. Projected sales in units for the coming 5 months follow: January â€

> Bender Automotive Works Inc. manufactures a variety of front-end assemblies for automobiles. A front-end assembly is the unified front of an automobile that includes the headlamps, fender, and surrounding metal/plastic. Bender has two producing departmen

> MedServices Inc. is divided into two operating departments: Laboratory and Tissue Pathology. The company allocates delivery and accounting costs to each operating department. Delivery costs include the costs of a fleet of vans and drivers that drive thro

> At the beginning of the year, Smith Company budgeted overhead of $129,600 as well as 13,500 direct labor hours. During the year, Job K456 was completed with the following information: direct materials cost, $2,750; direct labor cost, $5,355. The average

> Refer to the information for Kepler Company on the previous page. Required: Note: Round all percentages to one decimal place. 1. Express each item in the asset section of the balance sheet as a percentage of total assets for each year. 2. Express each i

> Refer to the information for Alfombra Inc. on the previous page. Required: 1. Prepare a physical flow analysis for the throw rug department for August. 2. Calculate equivalent units of production for the throw rug department for August. 3. Calculate the

> Kolby Company takes 36,000 hours to produce 144,000 units of a product. Required: What is the velocity? Cycle time?

> Folsom Company manufactures specialty tools to customer order. There are three producing departments. Departmental information on budgeted overhead and various activity measures for the coming year is as follows: Currently, overhead is applied on the b

> The following selected information is taken from the financial statements of Arnn Company for its most recent year of operations: Beginning balances: Inventory ……………………………………………………………….$200,000 Accounts receivable ……………………………………………………300,000 Ending bala

> The income statement for Mendelin Corporation is as follows: Additional information is as follows: a. Interest expense includes $1,800 of discount amortization. b. The prepaid insurance expense account decreased by $2,000 during the year. c. Wages paya

> Refer to the information for Rosie-Lee Company above. Required: Prepare a statement of cash flows using a worksheet similar to the one shown in Example 14.8 (p. 804). Use the indirect method to prepare the statement. Data for Problem 51: The following

> Refer to the information for Rosie-Lee Company above. Required: 1. Prepare a schedule of operating cash flows using (a) the indirect method and (b) the direct method. 2. Prepare a statement of cash flows using the indirect method. Data for Problem 50:

> Refer to the information for Booth Manufacturing above. Required: Calculate operating cash flows using the direct method. Data for Problem 49: Booth Manufacturing has provided the following financial statements. Other information includes: (a) equi

> Khaling Company sold 19,000 units last year at $18.00 each. Variable cost was $14.60, and total fixed cost was $68,000. Required: 1. Prepare an income statement for Khaling for last year. 2. Calculate the break-even point in units. 3. Calculate the unit

> Whalen Company had net sales of $125,500,250,000. Whalen had the following balances: Required: Note: Round answers to two decimal places. 1. Calculate the average accounts receivable. 2. Calculate the accounts receivable turnover ratio. 3. Calculate th

> Montalcino Company had net sales of $54,000,000. Montalcino had the following balances: Required: Note: Round answers to one decimal place. 1. Calculate the average accounts receivable. 2. Calculate the accounts receivable turnover ratio. 3. Calculate

> Jordan Company provided the following information: Current assets: Cash …………………………………….……….$12,450,000 Accounts receivable …………………………..8,740,000 Inventories ………………………………………..8,150,000 Total current assets ………………………..$29,340,000 Current liabilities ……………

> Lemmons Inc. has the following two activities: (1) Retesting reworked products, cost: $720,000. The retesting cost of the most efficient competitor is $225,000. (2) Welding subassemblies, cost: $1,350,000 (67,500 welding hours). A benchmarking study reve

> Refer to Exercise 13-48. Suppose that Kamber is considering building a new plant inside a foreign trade zone to replace its chemical manufacturing plant. Required: 1. How much duty will be paid per year by the factory located inside the foreign trade zo

> At the beginning of the year, Lopez Company had the following standard cost sheet for one of its chemical products: Direct materials (4 lbs. @ $2.80) ………………………….$11.20 Direct labor (2 hrs. @ $18.00) ……………………………….36.00 FOH (2 hrs. @ $5.20) …………………………………

> Kamber, Inc., owns a factory located close to, but not inside, a foreign trade zone. The plant imports volatile chemicals that are used in the manufacture of chemical reagents for laboratories. Each year, Kamber imports about $14,200,000 of chemicals sub

> Match each term in Column A with its related definition in Column B. Column A 1. Spot rate 2. Currency appreciation 3. Translation risk 4. Transaction risk 5. Exchange rate Column B a. The rate at which one currency can be traded for another currenc

> Match each term in Column A with its related definition in Column B. Column A 1. Maquiladora 2. Import 3. Joint venture 4. Export 5. MNC Column B a. A company that does business in more than one country in such volume that its wellbeing and growth r

> Langer Company produces plastic items, including plastic housings for humidifiers. Each housing requires about 15 ounces of plastic costing $0.08 per ounce. Langer molds the plastic into the proper shape. Langer has budgeted production of the housings fo

> Refer to the information regarding Stillwater Designs above. Required: 1. Prepare a sales budget for each quarter of 20X1 and for the year in total. Show sales by product and in total for each time period. 2. How will Stillwater Designs use this sales b

> Peanut Land Inc. produces all-natural organic peanut butter. The peanut butter is sold in 12-ounce jars. The sales budget for the first 4 months of the year is as follows: Company policy requires that ending inventories for each month be 25% of next

> Refer to the information regarding Stillwater Designs on the previous page. Stillwater Designs needs a production budget for each product (representing the amount that must be outsourced to manufacturers located in Asia). Beginning inventory of S12L7 for

> All star Exposure designs and sells advertising services to small, relatively unknown companies. Last month, All star had sales commissions costs of $50,000, technology costs of $75,000, and research and development costs of $200,000. Selling expenses we

> H. Banks Company would like to design, produce, and sell versatile toasters for the home kitchen market. The toaster will have four slots that adjust in thickness to accommodate both slim slices of bread and oversized bagels. The target price is $60. Ban

> Mino Inc. manufactures chocolate syrup in three departments: cooking, mixing, and bottling. Mino uses the weighted average method. The following are cost and production data for the cooking department for April (Note: Assume that units are measured in ga

> The following information was obtained for the grinding department of Harlan Company for May: a. BWIP had 91,500 units, 30% complete with respect to manufacturing costs. b. EWIP had 25,200 units, 25% complete with respect to manufacturing costs. c. Start

> Prull Company, a job-order costing firm, worked on three jobs in July. Data are as follows: Overhead is applied to jobs at the rate of $10 per machine hour. By July 31, Jobs 86 and 88 were completed. Jobs 82 and 86 were sold. Job 87 remained in proce

> Refer to the information for Lauren Ashely Company above. Required: What was the cost of goods sold for September? Data for Exercise 46: In September, Lauren Ashley Company purchased materials costing $200,000 and incurred direct labor cost of $120,00

> Refer to the information for Lauren Ashley above. Required: 1. What was the cost of direct materials used in September? 2. What was the total manufacturing cost in September? 3. What was the cost of goods manufactured for September? Data for Exercise 4

> Refer to the information for Cherry Blossom Products on the previous page. Required: 1. What is the sales mix of DVDs and equipment sets? 2. Compute the break-even quantity of each product. Data for Exercise 43: Cherry Blossom Products Inc. produces a

> Linsenmeyer Company produces a common machine component for industrial equipment in three departments: molding, grinding, and finishing. The following data are available for September: During September, 18,000 components were completed. There is no beg

> Refer to the information for Grin Company above. Required: 1. What was the total prime cost in January? 2. What was the prime cost per unit in January? 3. What was the total conversion cost in January? 4. What was the conversion cost per unit in January

> Refer to the information for Grin Company above. Required: 1. What was the total product cost in January? 2. What was the product cost per unit in January? Data for Exercise 41: Grin Company manufactures digital cameras. In January, Grin produced 4,00

> Refer to the information for Slap shot Company above. Required: Prepare an income statement for Slap shot for the month of June and calculate the percentage of sales revenue represented by each line of the income statement. (Note: Round answers to one d

> A company has the following collection pattern: month of sale, 40%; month following sale, 60%. If credit sales for January and February are $100,000 and $200,000, respectively, the cash collections for February are a. $140,000. b. $300,000. c. $120,000.

> Tristar Manufacturing produces two types of battery-operated toy soldiers: infantry and special forces. The soldiers are produced by using one continuous process. Four activities have been identified: machining, setups, receiving, and packing. Resource d

> Refer to the information for Cherry Blossom Products on the previous page. Suppose that in the coming year, the company plans to produce an extra-thick yoga mat for sale to health clubs. The company estimates that 9,000 mats can be sold at a price of $15

> Refer to the information for Fly High Airlines above. Required: Use the high-low method to answer the following questions. 1. What is the variable rate for airplane depreciation? The fixed cost? 2. What is the cost formula for airplane depreciation? 3.

> Information on four independent companies follows. Calculate the correct amount for each question mark. (Note: Round unit dollar amounts and ratios to two decimal places; round break-even units to the nearest whole unit.) Laertes Ophelia Fortinbras

> The blending department had the following data for the month of March Units in BWIP…………………………………………………….— Units completed…………………………………………..21,600 Units in EWIP (60% complete)………………………2,250 Total manufacturing costs ………………………..$82,620 Required: 1. What

> Wellington Chocolate Company uses activity-based costing (ABC). The controller identified two activities and their budgeted costs: Setting up equipment …………â€&brv

> Bowman Company manufactures cooling systems. Bowman produces all the parts necessary for its product except for one electronic component, which is purchased from two local suppliers: Manzer Inc. and Buckner Company. Both suppliers are reliable and seldom

> Suppose that Stillwater Designs has two classes of distributors: JIT distributors and non-JIT distributors. The JIT distributor places small, frequent orders, and the non-JIT distributor tends to place larger, less frequent orders. Both types of distribu

> Examine the graphs in Exercise 3-40. Required: As explained in the chapter, cost behavior patterns can be described as fixed, variable, semi- variable, mixed, or step function (i.e., semi-fixed) in nature. Explain the exact type of cost behavior patter

> Suppose that a surgical ward has gathered the following information for four nursing activities and two types of patients: Required: 1. Determine the total nursing costs assigned to each patient category. 2. Output is measured in patient days. Assuming

> What is a focused value stream?

> At the beginning of the year, Han Company estimated the following: Overhead ………………………………….$582,400 Direct labor hours ………………………….80,000 Han uses normal costing and applies overhead on the basis of direct labor hours. For the month of January, direct la

> The controller of Ashton Company prepared the following projected income statement: Sales ……………………………………………………..$88,000 Total variable cost ……………………………………23,760 Contribution margin ………………………………$64,240 Total fixed cost ………………………………………..43,800 Operating i

> Paterson Company,* a U.S.-based company, manufactures and sells electronic components worldwide. Virtually all its manufacturing takes place in the United States. The company has marketing divisions throughout Europe, including France. Debbie Kishimoto,

> Corporate sustainability reports vary greatly across companies and industries. Select two companies that interest you and conduct an online search to find their corporate sustainability report. (If one or both of the companies you selected do not issue a

> Artistic Woodcrafting Inc. began several years ago as a one-person, cabinet-making operation. Employees were added as the business expanded. Last year, sales volume totaled $850,000. Volume for the first five months of the current year totaled $600,000,

> Lindell Manufacturing embarked on an ambitious quality program that is centered on continual improvement. This improvement is operationalized by declining quality costs from year to year. Lindell rewards plant managers, production supervisors, and worker

> Luna Company is a printing company and a subsidiary of a large publishing company. Luna is in its fourth year of a 5-year, quality improvement program. The program began in 20X1 as a result of a report by a consulting firm that revealed that quality cost

> Gateway Construction Company, run by Jack Gateway, employs 25 to 30 people as subcontractors for laying gas, water, and sewage pipelines. Most of Gateway’s work comes from contracts with city and state agencies in Nebraska. The company&

> The comparative balance sheets and income statement of Piura Manufacturing follow. Additional transactions for 20X2 were as follows: a. Cash dividends of $8,000 were paid. b. Equipment was acquired by issuing common stock with a par value of $6,000

> Shaftel Ready Mix is a processor and supplier of concrete, aggregate, and rock products. The company operates in the intermountain western United States. Currently, Shaftel has 14 cement-processing plants and a labor force of more than 375 employees. Wit

> Under the weighted average method, how are prior-period costs and output treated? How are they treated under the FIFO method?

> Manny Carson, certified management accountant and controller of Wakeman Enterprises, has been given permission to acquire a new computer and software for the company’s accounting system. The capital investment analysis showed an NPV of $100,000. However,

> Refer to the information for Jasmine Company above. Required: Prepare common-size income statements by using Year 1 as the base period. (Note: Round answers to the nearest whole percentage.) Data for Exercise 24: Jasmine Company provided the followin

> Refer to the information for Toby’s on the previous page. Required: Note: Round answers to one decimal place. 1. Calculate the average inventory. 2. Calculate the inventory turnover ratio. 3. Calculate the inventory turnover in days. 4

> Refer to the information for Jasmine Company above. Required: Prepare common-size income statements by using net sales as the base. (Note: Round answers to the nearest whole percentage.) Data for Exercise 25: Jasmine Company provided the following inc

> Refer to the information for Theta Company above. Required: Compute the (1) theoretical cycle time (in minutes), (2) actual cycle time (in minutes), (3) theoretical velocity in units per hour, and (4) actual velocity in units per hour. (Round units to t

> Teslum Inc. has a number of divisions, including the Machina Division, a producer of high-end espresso makers, and the Java Division, a chain of coffee shops. Machina Division produces the EXP-100 model espresso maker that can be used by Java Division to

> Blackburn Inc. uses Otavalo Manufacturing and Piura Company to buy two precision- machined parts used in the manufacture of its permanent-magnet motors: Part #625 and Part #827. Consider two activities: testing parts and reordering parts. After the two p