New Semester Started Get 50% OFF Study Help! --h --m --s Claim Now

Question Answers

Textbooks

Find textbooks, questions and answers

Oops, something went wrong!

Change your search query and then try again

Result Not Found

Books FREE
Study Help
Tutors
AI Study Planner NEW
Sell Books

Search
Sign In
Register

study help
business
management accounting information

Principles Of Accounting Volume 2 Chapters 12-25 1st Edition Robert Libby, Patricia Libby, Fred Phillips, Stacey Whitecotton - Solutions

M18-7 Calculating Missing Amounts For each of the following independent cases A–D, compute the missing values in the table below Case Direct Materials Direct Labor Manufacturing Overhead Prime Cost Conversion Cost A $800 $1,400 $2,100 $ ? $ ? B 400 ? 1,325 2,550 ? C ? 675 1,500 2,880 ? D ? 750 ?
M18-6 Classifying Costs Lighten Up Lamps, Inc., manufactures table lamps and other lighting products. For each of the following costs, use an X to indicate the category of product cost and whether it is a prime cost, conversion cost, or both.PRODUCT COSTS Direct Materials Direct Labor Mfg. Overhead
M18-5 Classifying Costs You are considering the possibility of pursuing a master’s degree after completing your undergraduate degree. 1. List three costs (or benefits) that would be relevant to this decision including at least one opportunity cost. 2. List two costs that would be irrelevant to
M18-4 Classifying and Calculating Cost Refer to M18-3. Assume that you have following about Top Shelf’s costs for the most recent month . Depreciation on factory equipment $2,000 Depreciation on delivery trucks 900 Wood used to build bookcases 1,300 Production supervisor’s salary 3,000 Glue and
M18-3 Classifying Costs Top Shelf Company builds oak bookcases. Determine whether each of the following is a direct material (DM), direct labor (DL), manufacturing overhead (MOH), or a period cost (P) for Top Shelf. ____ 1. Depreciation on factory equipment. ____ 2. Depreciation on delivery trucks.
M18-2 Identifying Management Functions You were recently hired as a production manager for Medallion Company. You just received a memo regarding a company meeting being held this week. The memo stated that one topic of discussion will be the basic management functions as they relate to the
M18-1 Comparing Financial and Managerial Accounting Match each of the following characteristics that describe financial accounting, managerial accounting, both financial and managerial accounting, or neither financial and managerial accounting. ____ 1. Is future oriented. A. Financial accounting
10. Nguyen, Inc., has the following information available for January: Cost of goods manufactured $15,000 Finished goods inventory (1-31) 4,000 Finished goods inventory (1-1) 2,000 What amount will appear on Nguyen’s income statement as cost of goods sold?a. $21,000.b. $17,000.c. $13,000.d.
9. Work in Process Inventory would appear as an asset on the balance sheet for which type of company?a. Manufacturing.b. Merchandising.c. Service.d. All of the above.
8. Suppose you are trying to decide whether to sell your accounting book at the end of the semester or keep it for a reference book in future courses. If you decide to keep the book, the money you would have received from selling it is a(n)a. Sunk cost.b. Opportunity cost.c. Out-of-pocket cost.d.
7. What is Garcia’s manufacturing overhead?a. $24,000.b. $12,500.c. $14,000.d. $10,000.
6. What is Garcia’s prime cost?a. $11,500.b. $12,500.c. $15,500.d. $21,500.
5. What is Garcia’s total current manufacturing cost?a. $25,500.b. $24,000.c. $21,500.d. $10,000.
4. Suppose you have decided that you would like to purchase a new home in five years. To do this, you will need a down payment of approximately $20,000, which means that you need to save $350 each month for the next five years. This is an example ofa. Directing.c. Planning.b. Control.d. Organizing.
3. Which of the four basic functions of management involves monitoring actual results to see whether the objectives set in the planning stage are being met and, if necessary, taking corrective action to adjust the objectives or implementation of the plan?a. Directing.c. Planning.b. Control.d.
2. Which of the following is not one of the four basic functions of management?a. Directing.c. Planning.b. Control.d. Customer service.
1. The primary difference between financial accounting and managerial accounting is thata. Financial accounting is used by internal parties, while managerial accounting is used by external parties.b. Managerial accounting is future oriented, while financial accounting is historical in nature.c.
20. Explain the relationship between cost of goods manufactured and cost of goods sold.
19. Explain why ending work in process inventory is subtracted from total manufacturing costs to arrive at cost of goods manufactured.
18. What is the cost of goods manufactured? What type of costs should be included in cost of goods manufactured?
17. What triggers the movement of product costs from an asset on the balance sheet to an expense on the income statement?
16. What are the three types of inventory accounts that you would expect to see on a manufacturing firm’s balance sheet? Explain what each one represents and how a particular cost would move through these accounts.
15. Suppose you have been given a balance sheet for Garcia Company. Without knowing any information about the company, how would the balance sheet help you determine what type of company Garcia is?
14. Consider the area in a 3-mile radius of your campus. What service companies, merchandising companies, and manufacturing firms are located within that area?
13. Explain the difference between service companies, merchandising companies, and manufacturing companies.
12. Suppose you and your friends are planning a trip for spring break. You have narrowed the destination choices to Panama City, Florida, and Galveston Bay, Texas. List three relevant costs for this decision. List two costs that are irrelevant to this decision.
11. Explain the difference in fixed and variable costs. Give an example of a cost that varies with the number of miles you drive your car each week and an example of a cost that is fixed regardless of how many miles you drive your car each week.
10. Explain why product costs are also called inventoriable costs and how those costs move through a company’s financial statements.
9. Why can’t prime cost and conversion cost be added together to arrive at a total manufacturing cost?
8. What types of costs are included in manufacturing overhead? Other than direct materials and direct labor, what costs would not be included in manufacturing overhead?
7. Explain the difference between a direct cost and an indirect cost. Look at the pen or pencil you are using to do your homework. Give an example of a direct cost that went into making that pen or pencil and an indirect cost of making the pen or pencil.
6. Why is it important for managers to be able to cost a particular item? Name one decision that a company might make using cost information.
5. Think about all of the choices you make on a day-to-day basis: everything from driving versus riding a bike to school or deciding where to have lunch. Pick three decisions you have made today. Identify the out-of-pocket and opportunity costs of each decision.
4. What are the four basic functions that all managers perform? How are these functions interrelated?
3. Why are traditional, GAAP-based financial statements not necessarily useful to managers and other internal parties?
2. Explain how the primary difference between financial and managerial accounting results in other differences between the two.
1. What is the primary difference between financial accounting and managerial accounting?
CP17-7 Using a Spreadsheet to Calculate Financial Statement Ratios Use the financial statement information from Exhibits 17.2 , and 17.3 . Required: Enter the financial information for each exhibit into two separate worksheets in one spreadsheet file. Create a third worksheet that uses the formulas
CP17-6 Thinking Critically: Analyzing the Impact of Alternative Depreciation Methods on Ratio Analysis Speedy Company uses the double-declining-balance method to depreciate its property, plant, and equipment. Turtle Company uses the straight-line method. The two companies are exactly alike except
CP17-5 Making Ethical Decisions: A Mini Case Capital Investments Corporation (CIC) requested a sizable loan from First Federal Bank to acquire a large piece of land for future expansion. CIC reported current assets of $1,900,000 (including $430,000 in cash) and current liabilities of $1,075,000.
CP17-4 Making Ethical Decisions: A Real-Life Example During its deliberations on the Sarbanes-Oxley Act, the U.S. Senate considered numerous reports evaluating the quality of work done by external auditors. One study by Weiss Ratings, Inc., focused on auditors’ ability to predict bankruptcy. The
CP17-3 Examining an Annual Report: Internet-Based Team Research As a team, select an industry to analyze. Using your Web browser, each team member should acquire the annual report or 10-K for one publicly traded company in the industry with each member selecting a different company. (See CP1-3 in
CP17-2 Comparing Financial Information Refer to the financial statements of Lowe’s in Appendix B at the end of this book, or download the annual report from the Cases section of the text’s Web site at www.mhhe.com/LLPW1e. From the list of ratios that were discussed in this chapter, compute and
CP17-1 Finding Financial Information Refer to the financial statements of The Home Depot in Appendix A at the end of this book, or download the annual report from the Cases section of the text’s Web site at www.mhhe.com/LLPW1e. Compute and interpret the ratios discussed in the chapter for the
PB17-5 Analyzing an Investment by Comparing Selected Ratios You have the opportunity to invest $10,000 in one of two companies from a single industry. The only information you have is shown here. The word high refers to the top third of the industry; average is the middle third; low is the bottom
PB17-4 Using Ratios to Compare Loan Requests from Two Companies The 2010 financial statements for Thor and Gunnar Companies are summarized here:These two companies are in the same line of business and in the same state but in different cities. One-half of Thor’s sales are on credit, whereas
PB17-3 Interpreting Profitability, Liquidity, Solvency, and P/E Ratios Mattel and Hasbro are the two largest makers of games and toys in the world. Mattel sells more than $5 billion of products each year while annual sales of Hasbro products exceed $3 billion. Compare the two companies as a
PB17-2 Analyzing Comparative Financial Statements Using Selected Ratios Use the data given in PB17-1 for Tiger Audio. Required: 1. Compute the gross profit percentages in 2010 and 2009. Is the trend going in the right direction? 2. Compute the net profit margin ratios in 2010 and 2009. Is the trend
PB17-1 Analyzing Financial Statements Using Ratios and Percentage Changes The comparative financial statements prepared at December 31, 2010, for Tiger Audio showed the following summarized data:Required: 1. Complete the Amount and Percentage columns in Tiger Audio’s comparative financial
PA17-5 Analyzing an Investment by Comparing Selected Ratios You have the opportunity to invest $10,000 in one of two companies from a single industry. The only information you have is shown here. The word high refers to the top third of the industry; average is the middle third; low is the bottom
PA17-4 Using Ratios to Compare Loan Requests from Two Companies The 2008 financial statements for Royale and Cavalier companies are summarized here:These two companies are in the same line of business and in the same state but in different cities. One-half of Royale’s sales are on credit whereas
PA17-3 Interpreting Profitability, Liquidity, Solvency, and P/E Ratios Coke and Pepsi are well-known international brands. Coca-Cola sells more than $23 billion worth of beverages each year while annual sales of Pepsi products exceed $32 billion. Compare the two companies as a potential investment
PA17-2 Analyzing Comparative Financial Statements Using Selected Ratios Use the data given in PA17-1 for Pinnacle Plus.Required: 1. Compute the gross profit percentages in 2009 and 2008. Round the percentages to one decimal place. Is the trend going in the right direction? 2. Compute the net profit
PA17-1 Analyzing Financial Statements Using Horizontal (Trend) and Vertical (Common Size) Analysis The comparative financial statements prepared at December 31, 2009, for Pinnacle Plus showed the following summarized data:Required: 1. Complete the Amount and Percentage columns in Pinnacle Plus’s
E17-19 Analyzing the Impact of Alternative Inventory Methods on Selected Ratios Company A uses the FIFO method to cost inventory, and Company B uses the LIFO method. The two companies are exactly alike except for the difference in inventory costing methods. Costs of inventory items for both
E17-18 Using Financial Information to Identify Mystery Companies The following selected financial data pertain to four unidentified companies (balance sheet amounts reported in millions):This financial information pertains to the following companies:a. Cable TV company.b. Grocery store.c.
E17-17 Inferring Financial Information from Profitability and Liquidity Ratios Dollar General Corporation operates approximately 8,250 general merchandise stores that feature quality merchandise at low prices to meet the needs of middle-, low-, and fixed-income families in southern, eastern, and
E17-16 Computing the Accounts Receivable and Inventory Turnover Ratios Procter & Gamble is a multinational corporation that manufactures and markets many products that are probably in your home or dorm room. In 2006, sales for the company were $68,222 (all amounts in millions). The annual report
E17-15 Analyzing the Impact of Selected Transactions on the Current Ratio Current assets totaled $500,000, the current ratio was 2.00, and the company uses the perpetual inventory method. Assume that the following transactions were completed: (1) sold $12,000 in merchandise on short-term credit for
E17-14 Analyzing the Impact of Selected Transactions on the Current Ratio Sports Authority, Inc., is the country’s largest private full-line sporting goods retailer. Stores are operated under four brand names: Sports Authority, Gart Sports, Oshman’s, and Sportmart. Assume one of the Sports
E17-13 Analyzing the Impact of Selected Transactions on the Current Ratio In its most recent annual report, Sunrise Enterprises reported current assets of $1,090,000 and current liabilities of $602,000. Required: Determine the impact of the following transactions on the current ratio for Sunrise:
E17-12 Analyzing the Impact of Selected Transactions on the Current Ratio In its most recent annual report, Appalachian Beverages reported current assets of $54,000 and a current ratio of 1.80. Assume that the following transactions were completed: (1) purchased merchandise for $6,000 on account
E17-11 Computing and Interpreting Liquidity Ratios Cintas Corporation is the largest uniform supplier in North America. More than 5 million people wear Cintas clothing each day. Selected information from a recent balance sheet follows. For Year 2, the company reported sales revenue of $2,686,585
E17-10 Computing and Interpreting Selected Liquidity Ratios DuckWing Stores (DWS) reported sales of $600,000 for the year; one-half of sales were on credit. The average gross profit percentage was 40 percent on sales. Account balances follow: Beginning Ending Accounts receivable (net) $45,000
E17-9 Matching Each Ratio with Its Computational Formula Match each ratio or percentage with its formula by entering the appropriate letter for each numbered item.Ratios or Percentages Formula ___ 1. Current ratio A. Net income ÷ Net sales revenue. ___ 2. Net profit margin B. (Net sales revenue
E17-8 Computing a Commonly Used Solvency Ratio Use the information in E17-5 for Computer Tycoon to complete the following requirement. Required: Compute the times interest earned ratios for 2009 and 2008. In your opinion, does Computer Tycoon generate sufficient net income (before taxes and
E17-7 Computing Profitability Ratios Use the information in E17-5 for Computer Tycoon to complete the following requirements. Required: 1. Compute the gross profit percentage for each year (one decimal place). Assuming that the change for 2008 to 2009 is the beginning of a sustained trend, is
E17-6 Preparing and Interpreting a Vertical (Common Size) Analysis Use the information in E17-5 to conduct a vertical (common size) analysis of Computer Tycoon’s income statements and then answer the following questions. Required: 1. Was Computer Tycoon able to lower its costs of goods to offset
E17-5 Preparing and Interpreting a Horizontal (Trend) Analysis The average selling price of low-end laptops fell about $200 (25 percent) from $800 in 2008 to $600 in 2009. Let’s see whether these changes are reflected in the income statement of Computer Tycoon Inc. for the year ended December 31,
E17-4 Computing a Commonly Used Solvency Ratio Use the information for Chevron Corp. in E17-1 to complete the following requirement. Required: Interest expense in the amount of $482 million was included with Other Operating Costs in 2005 ($406 million in 2004). Compute the times interest earned
E17-3 Computing and Interpreting Profitability Ratios Use the information for Chevron Corp. in E17-1 to complete the following requirements. Required: 1. Compute the gross profit percentage for each year (one decimal place). Assuming the change for 2004 to 2005 is the beginning of a sustained
E17-2 Preparing and Interpreting a Vertical (Common Size) Analysis Use the information for Chevron Corp. in E17-1 to conduct a vertical (common size) analysis of the income statements and then answer the following questions. Required: 1. Was Chevron able to raise gas prices to offset the increase
E17-1 Preparing and Interpreting a Horizontal (Trend) Analysis The average price of a gallon of gas in 2005 jumped $0.43 (24 percent) from $1.81 in 2004 to $2.24 in 2005. Let’s see whether these changes are reflected in the income statement of Chevron Corp. for the year ended December 31, 2005
M17-8 Interpreting Ratios Generally speaking, do the following indicate good or bad news? 1. Increase in times interest earned ratio. 2. Decrease in days to sell. 3. Increase in gross profit percentage. 4. Decrease in EPS. 5. Increase in asset turnover ratio.
M17-7 Identifying Relevant Ratios Identify the ratio that is relevant to answering each of the following questions. 1. How much net income does the company earn from each dollar of sales? 2. Is the company financed primarily by debt or equity? 3. How many dollars of sales were generated for each
M17-6 Inferring Financial Information Using the P/E Ratio In 2009, Big W Company reported earnings per share of $2.50 when its stock was selling for $50.00. In 2010, its earnings increased by 10 percent. If all other relationships remain constant, what is the price of the stock? Explain.
M17-5 Analyzing the Impact of Accounting Alternatives Nevis Corporation operates in an industry in which costs are falling. The company is considering changing its inventory method from FIFO to LIFO and wants to determine the impact that the change would have on selected accounting ratios in future
M17-4 Analyzing the Inventory Turnover Ratio A manufacturer reported an inventory turnover ratio of 8.6 during 2009. During 2010, management introduced a new inventory control system that was expected to reduce average inventory levels by 25 percent without affecting sales volume or cost of goods
M17-3 Computing the Return on Equity Ratio Given the following data, compute the 2008 return on equity ratio (expressed as a percentage to one decimal place). 2008 2007 Net income $ 1,850,000 $ 1,600,000 Stockholders’ equity 10,000,000 13,125,000 Total assets 24,000,000 26,000,000 Interest
M17-2 Calculations and Interpretations of Vertical (Common Size) Analyses Using the information in M17-1, prepare common size income statements to determine how the company increased its net income as a percent of revenues in 2009.
M17-1 Calculations and Interpretations of Horizontal (Trend) AnalysesWhat are the two most significant year-to-year changes in terms of dollars and in terms of percentages? Lockey Fencing Corporation Income Statements For the Years Ended December 31 2009 2008 Net sales $100,000 $75,000 Cost of
10. (Supplement 17A) Which of the following items is reported net of related income taxes?a. Gain or loss from discontinued operations.b. Gain or loss from disposal of property, plant, and equipment.c. Interest on long-term debt.d. Gain or loss from early extinguishment of debt.
9. Which of the following accounting concepts do accountants and auditors assess by using financial analyses?a. Cost benefit.c. Industry practices.b. Materiality.d. Going-concern assumption.
8. A bank is least likely to use which of the following ratios when analyzing the likelihood that a borrower will pay interest and principal on its loans?a. Free cash flow.c. Times interest earned ratio.b. Debt-to-assets ratio.d. Return on equity ratio.
7. A decrease in selling and administrative expenses would directly impact what ratio?a. Fixed asset turnover ratio.c. Current ratio.b. Times interest earned.d. Gross profit percentage.
6. Given the following ratios for four companies, which company is least likely to experience problems paying its current liabilities promptly? Current Ratio Receivables Turnover Ratioa. 1.2 7.0b. 1.2 6.0c. 1.0 6.0d. 0.5 7.0
5. Which of the following incorporates cash flows from operations?a. Inventory turnover.c. Free cash flow.b. Earnings per share.d. All of the above.
4. Analysts use ratios toa. Compare different companies in the same industry.b. Track a company’s performance over time.c. Compare a company’s performance to industry averages.d. All of the above.
3. Which of the following ratios is used to analyze liquidity?a. Earnings per share.b. Debt to assets.c. Current ratio.d. Both debt to assets and current ratio.
2. Which of the following would not directly change the receivables turnover ratio for your company?a. Increases in the selling prices of your inventory.b. A change in your credit policy.c. Increases in the cost you incur to purchase inventory.d. None of the above.
1. Which of the following ratios is not used to analyze profitability?a. Fixed asset turnover ratio.b. Gross profit percentage.c. Current ratio.d. Return on equity.
7. (Supplement 17A) Name the most commonly reported nonrecurring item, and explain where and how it is reported on the income statement.
6. Into what three categories of performance are most financial ratios classified? To what in particular does each of these categories relate?
5. What benchmarks are commonly used for interpreting ratios?
4. What is ratio analysis ? Why is it useful?
3. How is a year-to-year percentage change calculated?
2. What is the general goal of trend analysis?
1. What are the major categories of information in the annual report financial section?
CP16-6 Using a Spreadsheet that Calculates Cash Flows from Operating Activities (Indirect Method) You’ve recently been hired by B2B Consultants to provide financial advisory services to small business managers. B2B’s clients often need advice on how to improve their operating cash flows and,
CP16-5 Thinking Critically: Interpreting Adjustments Reported on the Statement of Cash Flows from a Management Perspective (Indirect Method) QuickServe, a chain of convenience stores, was experiencing some serious cash flow difficulties because of rapid growth. The company did not generate

Showing 400 - 500 of 4138

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Last

Step by Step Answers

Services

Sitemap
Fun
Definitions
Become Tutor
Used Textbooks
Study Help Categories
Recent Questions
Expert Questions
Campus Wear
Sell Your Books

Company Info

Security
Copyrights
Privacy Policy
Terms & Conditions
SolutionInn Fee
Scholarship
Online Quiz
Give Feedback, Get Rewards

Get In Touch

About Us
Contact Us
Career
Jobs
FAQ
Student Discount
Campus Ambassador

Secure Payment

Download Our App

© 2026 SolutionInn. All Rights Reserved