Question: Sperry Company reported the following operating

> Best Auto Parts Company was started on January 1, Year 1, when the owners invested $120,000 cash in the business. During Year 1, the company earned cash revenues of $80,000 and incurred cash expenses of $56,000. The company also paid cash distributions o

> Bill Wheeler established a partnership with June Cramer. The new company, W&C Fuels, purchased coal directly from mining companies and contracted to ship the coal via waterways to a seaport where it was delivered to ships that were owned and operated by

> The Electric Company engaged in the following transactions during Year 2. The beginning cash balance was $43,000 and the ending cash balance was $48,600. 1. Sales on account were $274,000. The beginning receivables balance was $86,000 and the ending bala

> The comparative balance sheets and an income statement for Wang Beauty Products, Inc. are shown next. Other Information 1. Purchased land for $112,000. 2. Purchased new equipment for $100,000. 3. Sold old equipment that cost $132,000 with accumulated

> The following selected information was drawn from the records of Fleming Company: Fleming is experiencing cash flow problems. Despite the fact that it reported significant increases in operating income, operating activities produced a net cash outflow.

> The following financial statements were drawn from the records of Culinary Products Co.: 1. During Year 2, the company sold equipment for $18,500; it had originally cost $30,000. Accumulated depreciation on this equipment was $12,000 at the time of th

> The following information can be obtained by examining a company’s balance sheet and income statement information: a. Increases in current asset account balances, other than cash. b. Cash outflows to purchase noncurrent assets. c. Decre

> The following information was drawn from the year-end balance sheets of Mass Trading Company: Additional information regarding transactions occurring during Year 2: 1. Investment securities that had cost $6,100 were sold. The Year 2 income statement co

> Green Brands, Inc. (GBI) presents its statement of cash flows using the indirect method. The following accounts and corresponding balances were drawn from GBI’s Year 2 and Year 1 year-end balance sheets The Year 2 income statement is

> Use the financial statements for Allendale Company from Problem 13-17A to calculate the following ratios for Year 4 and Year 3: a. Working capital. b. Current ratio. c. Quick ratio. d. Receivables turnover (beginning receivables at January 1, Year 3, wer

> Selected data for Dalton Company for Year 3 and additional information on industry averages follow: Required: a. Calculate and compare Dalton Company’s ratios with the industry averages. b. Discuss factors you would consider in decid

> Riley Manufacturing has a current ratio of 3:1 on December 31, Year 3. Indicate whether each of the following transactions would increase (+), decrease (−), or have no effect (NA) on Riley’s current ratio and its working capital. Required: a. Paid cash

> Use the financial statements for Allendale Company from Problem 13-17A to perform a vertical analysis of both the balance sheets and income statements for Year 4 and Year 3. Round computations to two decimal points.

> The following events were experienced by Sequoia, Inc.: 1. Issued cumulative preferred stock for cash. 2. Issued common stock for cash. 3. Issued noncumulative preferred stock for cash. 4. Paid cash to purchase treasury stock. 5. Sold treasury stock for

> Choctaw Co. completed the following transactions in Year 1, the first year of operation: 1. Issued 20,000 shares of $1 par common stock for $10 per share. 2. Issued 3,000 shares of $20 stated value preferred stock for $20 per share. 3. Purchased 1,000 sh

> The following financial statements and information are available for Blythe Industries Inc.: Additional Information 1. Sold land that cost $40,000 for $44,000. 2. Sold equipment that cost $30,000 and had accumulated depreciation of $20,000 for $18,000

> Brice Co. completed the following transactions in Year 1, the first year of operation 1. Issued 40,000 shares of no par common stock for $10 per share. 2. Issued 8,000 shares of $20 par, 6 percent, preferred stock for $20 per share. 3. Paid a cash divide

> The stockholders’ equity section of the balance sheet for Mann Equipment Co. at December 31, Year 1, is as follows: Note: The market value per share of the common stock is $42, and the market value per share of the preferred stock is

> The following information pertains to Austin, Inc. and Huston Company: Required: a. Compute each company’s debt-to-assets ratio, current ratio, and times interest earned (EBIT must be computed). Identify the company with the greater f

> On January 1, Year 1, Twain Corp. sold $500,000 of its own 7 percent, 10-year bonds. Interest is payable annually on December 31. The bonds were sold to yield an effective interest rate of 8 percent. Twain uses the effective interest rate method. The bon

> The three typical accounting events associated with borrowing money through a bond issue are: 1. Exchanging the bonds for cash on the day of issue. 2. Making cash payments for interest expense and recording amortization when applicable. 3. Repaying the p

> OZ Company was started when it issued bonds with a $500,000 face value on January 1, Year 1. The bonds were issued for cash at 96. OZ uses the straight-line method of amortization. They had a 20-year term to maturity and an 8 percent annual interest rate

> During Year 1 and Year 2, Agatha Corp. completed the following transactions relating to its bond issue. The corporation’s fiscal year is the calendar year. Year 1 Jan.  1 Issued $300,000 of 10year, 6 percent bonds for $294,000. The annual cash payment f

> Pine Land Co. was formed when it acquired cash from the issue of common stock. The company then issued bonds at a premium on January 1, Year 1. Interest is payable annually on December 31 of each year, beginning December 31, Year 1. On January 2, Year 1,

> b. Interest Expense: $48,000  Loss on Bond Redemptions: $24,000 Arnold Corp. issued $600,000 of 20-year, 8 percent, callable bonds on January 1, Year 1, with interest payable annually on December 31. The bonds were issued at their face

> Boyd Company has a line of credit with State Bank. Boyd can borrow up to $400,000 at any time over the course of the Year 1 calendar year. The following table shows the prime rate expressed as an annual percentage along with the amounts borrowed and repa

> Tesla, Inc. began operations in 2003 but did not begin selling its stock to the public until June 28, 2010. It has lost money every year it has been in existence, and by December 31, 2016, it had total lifetime losses of approximately $3 billion. In addi

> On January 1, Year 1, Brown Co. borrowed cash from First Bank by issuing a $100,000 face-value, four-year term note that had an 8 percent annual interest rate. The note is to be repaid by making annual cash payments of $30,192 that include both interest

> The following percentages apply to Thornton Company for Year 3 and Year 4: Required: Assuming that sales were $800,000 in Year 3 and $960,000 in Year 4, prepare income statements for the two years. Year 4 Year 3 Sales 100.0% 100.0% Cost of goods so

> The following correctly prepared entries without explanations pertain to Corners Corporation: The original sale (Entry 1) was for 400,000 shares, and the treasury stock was acquired for $5 per share (Entry 2). Required: a. What was the sales price per

> Nowell Inc. had the following stock issued and outstanding at January 1, Year 2: 1. 150,000 shares of no-par common stock. 2. 30,000 shares of $50 par, 4 percent, cumulative preferred stock. (Dividends are in arrears for one year, Year 1.) On March 8, Ye

> Cascade Company was started on January 1, Year 1, when it acquired $60,000 cash from the owners. During Year 2, the company earned cash revenues of $35,000 and incurred cash expenses of $18,100. The company also paid cash distributions of $4,000. Requir

> The following financial statements were drawn from the records of Matrix Shoes: Additional Information 1. Sold equipment costing $72,000 with accumulated depreciation of $56,000 for $15,200 cash. 2. Paid a $7,200 cash dividend to owners. Required: An

> York Company engaged in the following transactions for the year Year 1. The beginning cash balance was $86,000 and the ending cash balance was $59,100. 1. Sales on account were $548,000. The beginning receivables balance was $128,000 and the ending balan

> The comparative balance sheets and an income statement for Raceway Corporation follow: Other Information 1. Purchased land for $66,000. 2. Purchased new equipment for $62,000. 3. Sold old equipment that cost $66,000 with accumulated depreciation of $5

> The comparative balance sheets and income statements for Gypsy Company follow: 1. During Year 2, the company sold equipment for $21,500; it had originally cost $36,000. Accumulated depreciation on this equipment was $16,000 at the time of the sale. Al

> The following information can be obtained by examining a company’s balance sheet and income statement information: a. Increases in current asset account balances, other than cash. b. Decreases in current asset account balances, other th

> Obtain the Target Corporation’s annual report at http://investors.target.com using the instructions in Appendix B, and use it to answer the following questions: a. For the year ended January 28, 2017 (2016), which was larger, Target’s net income or its c

> The following information was drawn from the year-end balance sheets of Fox River, Inc.: Additional information regarding transactions occurring during Year 2: 1. Fox River, Inc. issued $100,000 of bonds during Year 2. The bonds were issued at face val

> On January 1, Year 1, Monroe Co. borrowed $80,000 cash from First Bank by issuing a four-year, 6 percent note. The principal and interest are to be paid by making annual payments in the amount of $23,087. Payments are to be made December 31 of each year,

> Pare Co. borrowed $80,000 from National Bank by issuing a note with a five-year term. Pare has two options with respect to the payment of interest and principal. Option 1 requires the payment of interest only on an annual basis with the full amount of th

> Compute the specified ratios using the following December 31, Year 3, statement of financial position for Palmer Company: The average number of common shares outstanding during Year 3 was 1,500. Net income for the year was $60,000. Required: Compute e

> During Year 4, Roper Corporation reported net income after taxes of $1,200,000. During the year, the number of shares of stock outstanding remained constant at 20,000 shares of $100 par, 8 percent preferred stock and 200,000 shares of common stock. The c

> December 31, Year 4, balance sheet data for Hestand Company follow. All accounts are represented. Amounts indicated by question marks (?) can be calculated using the following additional information: Required: Determine the following: a. The balance in

> Balance sheet data for the Beech Corporation follows: Required: Compute the following and round computations to one decimal point: a. Working capital. b. Current ratio. c. Debt-to-assets ratio. d. Debt-to-equity ratio. $ 80,000 320,000 $400,000 $ 3

> On October 31, Year 4, Corona Company’s total current assets were $160,000 and its total current liabilities were $40,000. On November 1, Year 4, Corona purchased marketable securities for $20,000 cash. Required: a. Compute Corona’s working capital befo

> Bruno Corporation purchased $480 of merchandise on account. Required: Explain the effect of the purchase on Bruno’s current ratio.

> Alpena Company reported the following operating results for Year 4 and Year 3: Required: Round percentages to one decimal point. a. Perform a horizontal analysis, showing the percentage change in each income statement component between Year 4 and Year

> Using either Starbucks Corporation’s most current Form 10-K or the company’s annual report, answer the following questions. To obtain the Form 10-K, use either the EDGAR system, following the instructions in Appendix A, or the company’s website. The comp

> The following is a list of transactions: a. Paid cash for short-term marketable securities. b. Purchased a computer, issuing a short-term note for the purchase price. c. Purchased factory equipment, issuing a long term note for the purchase price. d. Sol

> Haskell Corporation reported the following operating results for two consecutive years: Required: a. Compute the percentage changes in Haskell Corporation’s income statement components for the two years. Round percentages to one decim

> On January 1, Year 1, Sanita Company had a balance of $76,300 in its Office Equipment account. During Year 1, Sanita purchased office equipment that cost $30,300. The balance in the Office Equipment account on December 31, Year 1, was $75,400. The Year 1

> On January 1, Year 1, Poole Company had a balance of $178,000 in its Land account. During Year 1, Poole sold land that had cost $71,000 for $95,000 cash. The balance in the Land account on December 31, Year 1, was $210,000. Required: a. Determine the ca

> The following accounts and corresponding balances were drawn from Geneses Company’s Year 2 and Year 1 year-end balance sheets: The Year 2 income statement is shown next: Required: a. Prepare the operating activities section of the s

> Ragg Shop, Inc. (RSI) recognized $3,800 of sales revenue on account and collected $2,950 of cash from accounts receivable. Further, RSI recognized $1,200 of operating expenses on account and paid $900 cash as partial settlement of accounts payable. Requ

> The following accounts and corresponding balances were drawn from Pixi Company’s Year 2 and Year 1 year-end balance sheets: The Year 2 income statement is shown next: Required: a. Use the direct method to compute the amount of cash

> The following accounts and corresponding balances were drawn from Osprey Company’s Year 2 and Year 1 year-end balance sheets: During the year, $84,000 of unearned revenue was recognized as having been earned. Rent expense for Year 2 w

> Pella Company presents its statement of cash flows using the indirect method. The following accounts and corresponding balances were drawn from Pella’s Year 2 and Year 1 year-end balance sheets: The income statement reported a $700 lo

> There were 36,899 McDonald’s Company restaurants in 120 countries as of December 31, 2016. Shake Shack, Inc., a much newer fast-food restaurant company, began operations as a hot dog cart in 2001. It incorporated on September 23, 2014,

> Napoleon Incorporated presents its statement of cash flows using the indirect method. The following accounts and corresponding balances were drawn from the company’s Year 2 and Year 1 year-end balance sheets: The Year 2 income stateme

> The following accounts and corresponding balances were drawn from Cushing Company’s Year 2 and Year 1 year-end balance sheets: Other information drawn from the accounting records: 1. Dividends paid during the period amounted to $50,00

> On January 1, Year 1, Milam Company had a balance of $300,000 in its Common Stock account. During Year 1, Milam paid $18,000 to purchase treasury stock. Treasury stock is accounted for using the cost method. The balance in the Common Stock account on Dec

> On January 1, Year 1, Van Company had a balance of $800,000 in its Bonds Payable account. During Year 1, Van issued bonds with a $300,000 face value. There was no premium or discount associated with the bond issue. The balance in the Bonds Payable accoun

> The following accounts and corresponding balances were drawn from Teva Company’s Year 2 and Year 1 year-end balance sheets: Other information drawn from the accounting records: 1. Teva incurred a $3,000 loss on the sale of investment

> An accountant for Farve Enterprise Companies (FEC) computed the following information by making comparisons between FEC’s Year 2 and Year 1 balance sheets. Further information was determined by examining the company’s Year 2 income statement. 1. The amou

> Reiss Inc. was organized on June 1, Year 1. It was authorized to issue 500,000 shares of $10 par common stock and 100,000 shares of 4 percent cumulative class A preferred stock. The class A stock had a stated value of $50 per share. The following stock t

> Newly formed Irwin Services Corporation has 100,000 shares of $10 par common stock authorized. On March 1, Year 1, Irwin Services issued 20,000 shares of the stock for $12 per share. On May 2, the company issued an additional 30,000 shares for $15 per sh

> ALR Corporation had the following stock issued and outstanding at January 1, Year 1: 1. 200,000 shares of $10 par common stock. 2. 8,000 shares of $100 par, 4 percent, noncumulative preferred stock. On May 10, ALR Corporation declared the annual cash div

> When Ching Corporation was organized in January Year 1, it immediately issued 10,000 shares of $50 par, 5 percent, cumulative preferred stock and 15,000 shares of $10 par common stock. The company’s earnings history is as follows: Year 1, net loss of $18

> Ford Motor Company is one of the world’s largest automobile manufacturing companies. The following data were taken from the company’s 2016 annual report: Required: a. Compute Ford’s price-earnings r

> The stockholders’ equity section of Creighton Company’s balance sheet is shown as follows: Required: a. Assuming the preferred stock was originally issued for cash, determine the amount of cash that was collected whe

> Bronson Inc. has 300,000 shares authorized, 175,000 shares issued, and 25,000 shares of treasury stock. At this point, Bronson has $820,000 of assets. $250,000 liabilities, $400,000 of common stock, and $170,000 of retained earnings. Further, assume that

> D. Reed and J. Files started the RF partnership on January 1, Year 1. The business acquired $70,000 cash from Reed and $140,000 from Files. During Year 1, the partnership earned $75,000 in cash revenues and paid $39,000 for cash expenses. Reed withdrew $

> Pepper Company’s earnings were approximately the same in Year 1 and Year 2. Even so, the company’s P/E ratio dropped significantly. Required: Speculate about why Pepper’s P/E ratio dropped significantly while its earnings remained constant.

> A sole proprietorship was started on January 1, Year 1, when it received $30,000 cash from Maria Lopez, the owner. During Year 1, the company earned $50,000 in cash revenues and paid $22,300 in cash expenses. Lopez withdrew $10,000 cash from the business

> Davis, Inc. and Royal, Inc. reported net incomes of $81,000 and $93,000, respectively, for their most recent fiscal years. Both companies had 10,000 shares of common stock issued and outstanding. The market price per share of Davis’ stock was $130, while

> The Cutting Edge (TCE) is one of the world’s largest lawn mower distributors. TCE is concerned about maintaining an adequate supply of the economy line mowers that it sells in its stores. TCE currently obtains its economy-line mowers from two suppliers.

> On December 30, Odom Enterprises (OE) had $120,000 of cash, $35,000 of liabilities, $50,000 of common stock, and $35,000 of unrestricted retained earnings. On December 31, OE appropriated retained earnings in the amount of $15,000 for a future remodeling

> The market value of Granger Corporation’s common stock had become excessively high. The stock was currently selling for $240 per share. To reduce the market price of the common stock, Granger declared a 3-for-1 stock split for the 200,000 outstanding sha

> Egrett Corporation issued a 4 percent stock dividend on 20,000 shares of its $10 par common stock. At the time of the dividend, the market value of the stock was $30 per share. Required: a. Compute the amount of the stock dividend. b. Show the effects o

> Listed here are data for five companies. These data are for the companies’ 2016 fiscal years. The market price per share is the closing price of the companies’ stock as of March 24, 2017. Except for market price per sh

> Obtain the Target Corporation’s annual report at http://investors.target.com using the instruction in Appendix B, and use it to answer the following questions: Required: a. What is the par value per share of Target’s stock? b. How many shares of Target’

> (***) Omega Design is moving into an old Victorian building with a very unusual floor layout:Distances, in meters, between the areas are as follows:The numbers of daily interdepartmental trips are as follows:Use the “minimal distance tr

> Dr. Mike Douvas is opening a new sports clinic and is wondering how to arrange the six different departments of the clinic:1. Waiting;2. Reception;3. Records and staff lounge;4. Examination;5. Outpatient surgery; and6. Physical therapy.A map of the clini

> (**) As the new facilities manager at Hardin Company, you have been asked to determine the layout for four departments on the fourth floor of the company’s headquarters. Following is a map of the floor with distances between the areas:T

> ABS sells construction materials to commercial and home builders. One of ABS’s key processes is the order fulfillment process shown below and described as follows:• All orders are assessed on arrival. Of the orders, 30

> The Lenovo Refurbishing Center repairs used laptops that are returned under warranty. • The center receives and processes, on average, 200 laptops per day.• All laptops are tested upon receipt: 30% are immediately reje

> (***) (Microsoft Excel problem) The following figure shows an expanded version of the Excel spreadsheet described in Using Excel in Capacity Management (see the following page). In addition to the break-even and indifference points, the expanded spreadsh

> The local university has developed an eight-step process for screening the thousands of admissions applications it gets each year. The provost has decided that the best way to take a first cut at all these applications is by employing a line process. The

> Rich Sawyer runs a landscaping firm. Each year Rich contracts for labor and equipment hours from a local construction company. The construction company has given Rich three different capacity options: Cost per labor hour: …â&#1

> After graduating from college, your friends and you start an Internet auction service called TriangCom. Business has been fantastic, with 10 million customer visits—or “hits”—to the

> Wake County has a special emergency rescue team. The team is practicing rescuing dummies from a smokefilled building. The first time, the team took 240 seconds (4 minutes). The second time, it took 180 seconds (3 minutes).a. (*) What is the estimated lea

> Benson Racing is training a new pit crew for its racing team. For its first practice run, the pit crew is able to complete all the tasks in exactly 30 seconds—not exactly world-class. The second time around, the crew shaves 4.5 seconds off its time.a. (*

> Peri Thompson is the sole dispatcher for Thompson Termite Control. Peri’s job is to take customer calls, schedule appointments, and in some cases resolve any service or billing questions while the customer is on the phone. Peri can handle about 15 calls

> Clay runs a small hot dog stand in downtown Chapel Hill. Clay can serve about 30 customers an hour. During lunchtime, customers randomly arrive at a rate of 20 per hour.a. (*) What percentage of the time is Clay busy?b. (*) On average, how many customers

> Merck is considering launching a new drug called Laffolin. Merck has identified two possible demand scenarios:Demand Level………………&acirc

> Philip Neilson owns a fireworks store. Philip’s fixed costs are $15,000 a month, and each fireworks assortment he sells costs, on average, $10. The average selling price for an assortment is $30.a. (*) What is the break-even point for Philip’s fireworks

> Emily Watkins, a recent college graduate, faces some tough choices. Emily must decide whether to accept an offer for a job that pays $35,000 or hold out for another job that pays $45,000 a year. Emily thinks there is a 75% chance that she will get an off

> You are the new CEO of Dualjet, a U.S. company that makes premium kitchen stoves for home use. You must decide whether to assemble the stoves in-house or to have a Mexican company do it. The fixed and variable costs for each option are as follows: a. (*

> Rayloc rebuilds automotive components. Its main facility has a work cell dedicated to rebuilding fuel pumps. The tasks, times, and predecessor relationships are as follows:a. (**) Draw a precedence diagram for the tasks. Rayloc would like the cell to be