Managerial Accounting The Cornerstone Of Business Decision Making 9th Edition Maryanne Mowen, Don Hansen, Dan Heitger - Solutions

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BlueDenim Company makes blue jeans. On May 1, BlueDenim had $68,000 of materials in inventory. During the month of May, BlueDenim purchased $210,000 of materials. On May 31, materials inventory equaled $22,000.Required:Calculate the cost of direct materials used in production for the month of May.
BlueDenim Company makes blue jeans. During the month of May, BlueDenim purchased$210,000 of materials and incurred direct labor cost of $135,000 and manufacturing overhead of $150,000. On May 31, materials inventory equaled $22,000. Inventory information is as follows:May 1 May 31 Materials $68,000
What is the main difference between product costs and period costs?
Which of the following items should be included as part of product costs?a. Manufacturing overheadb. Direct materialsc. Direct labord. All of the abovee. None of the above
BlueDenim Company makes blue jeans. Last week, direct materials (denim, thread, zippers, and rivets) costing $48,000 were put into production. Direct labor of $30,000(50 workers × 40 hours × $15 per hour) was incurred. Manufacturing overhead equaled$72,000. By the end of the week, BlueDenim had
How does the percentage of organizations that issue corporate sustainability reports compare to the percentage of organizations that have their corporate sustainability reports externally assured?
Which area within the business sustainability cycle immediately follows risk management?a. Strategyb. Performance measurementc. Sustainability assuranced. Carbon emissions testing
What term is associated with accountants who meet certain requirements to conduct expert work in the areas of fraud prevention, detection, and deterrence?
Which of the following groups requires members to pass an examination as part of becoming a member?(a) Certified Management Accountant, (b) Certified Internal Auditor,(c) Certified Public Accountant, (d) All three require an examination,(e) None of these requires an examination
How do groups such as the IMA attempt to teach ethics?
Which of the following items is not a common core value of ethical behavior?(a) Fairness, (b) Integrity, (c) Immediacy, (d) Accountability
Does Walmart more heavily emphasize a cost leadership or a product differentiation strategy?
The notion of “continuous improvement” is most closely associated with which of the following areas of managerial accounting focus: cross-functional perspective, customer orientation, or total quality management?
The desire to attract and retain the most talented workers in a given industry is an example of which activity: decision-making, planning, or control?
Which activity generally occurs first: decision-making, planning, or control?
Briefly explain why earnings per share is important to investors.
Which of the following ratios contains both balance sheet and income statement accounts?a. Dividend yieldb. Return on common stockholders’ equityc. Return on salesd. Price-earnings ratio
Assume that the market price per common share is $15. Refer to the information for Payne Ex amp l e 1 5 . 1 3 Company in Exhibits 15.3 (p. 870) and 15.4 (p. 871).Required:1. Compute the dividends per share.2. Compute the dividend yield.3. Compute the dividend payout ratio.
Assume that the price per common share for Payne Company is $15.Required:Compute the price-earnings ratio.
How would a company’s debt-to-equity ratio change if it were to raise capital by issuing common stock (assume nothing else changes)?a. Increaseb. Decreasec. Remain the samed. Impossible to determine
Quickly estimate your total debts and your total assets. Calculate your own debt ratio. Do you expect it to change over the next 5 years? Why or why not?
Jemell Company’s balance sheet contains total liabilities of $450,000, total stockholders’ Ex amp l e 1 5 . 7 equity of $300,000, and total assets of $750,000.Required:1. Calculate the debt ratio for Jemell.2. Calculate the debt-to-equity ratio for Jemell.
Calvin Company provided the following income statement for last year: Ex amp l e 1 5 . 6 Sales $900,000 Cost of goods sold 350,000 Gross margin $550,000 Operating expenses 270,000 Operating income $280,000 Interest expense 15,000 Income before taxes $265,000 Income taxes 80,000 Net income $185,000
Which of the following four liquidity ratios contains an item that appears on the income statement? (Hint: There could be more than one.)I. Quick ratio II. Accounts receivable turnover ratio III. Current ratio IV. Inventory turnover ratioa. I and IIIb. III onlyc. II and IIId. IV onlye. II and IV
This year, Bellows Company has the same level of current assets and current liabilities as last year. However, last year current assets were 50% cash and accounts receivable, while this year current assets are 75% inventories. How will the change in the current asset mix affect this year’s
Last year, Shuster Company had net sales of $750,000 and cost of goods sold of $400,000.Shuster had the following balances:Required:1. Calculate the average inventory.2. Calculate the inventory turnover ratio.3. Calculate the inventory turnover in days. Accounts receivable Inventories January 1
Last year, Shuster Company had net sales of $750,000 and cost of goods sold of $400,000.Shuster had the following balances:Required:1. Calculate the average accounts receivable.2. Calculate the accounts receivable turnover ratio.3. Calculate the accounts receivable turnover in days. Accounts
Bordner Company has current assets equal to $120,000. Of these, $15,000 is cash, $30,000 is accounts receivable, and the remainder is inventories. Current liabilities total $50,000.Required:1. Calculate the current ratio.2. Calculate the quick ratio (acid-test ratio).
Which one of the following items is NOT a category into which ratios generally are placed?a. Performance ratiosb. Profitability ratiosc. Liquidity ratiosd. Leverage ratios
Which of the three ratio categories is most important?
Horizontal analysis also is referred to asa. vertical analysis.b. sideways analysis.c. longways analysis.d. trend analysis.e. numerical analysis.
Hornsby Company’s net income is $1,000 one year and $1,500 the following year. Grabowski Company’s net income is $10,000 one year and $12,000 the following year. What is the percentage increase from one year to the next for each company? Which company is performing better?
Simpson Company provided the following income statements for its first 3 years of operation:Required:Prepare common-size income statements by using net sales as the base. Net sales Less: Cost of goods sold Gross margin Less: Operating expenses Income taxes Net income Year 1 Year 2 Year 3 $100,000
Simpson Company provided the following income statements for its first 3 years of operation:Required:Prepare common-size income statements by using Year 1 as the base period. Net sales Less: Cost of goods sold Gross margin Less: Operating expenses Income taxes Net income Year 1 $100,000 Year 2
Using the Internet, locate the most recent financial statements for two companies from the same industry. Find (or calculate) the ratios listed below, and compare the two companies. (If you cannot calculate a particular ratio, explain why.) Which company do you think is performing better? Why?a.
Pete Donaldson, president and owner of Donaldson Mining Supplies, was concerned about the firm’s liquidity. He had an easy time selling supplies to the local coal mines, but had a difficult time collecting the receivables. He had even tried offering discounts for prompt payment.The outcome
Suppose that you are considering investing in one of two companies, each in the same industry.The most recent income statements for each company and other relevant information are as follows:Required:Note: Round answers to two decimal places.1. Compute the following for each company: (a) earnings
Problem 15-67 Analysis of Accounts Receivable and Credit Policy Based on customer feedback, Ted Pendleton, manager of Gray Company, which produces photo supplies, decided to grant more liberal credit terms. Ted chose to allow customers to have 60 days before full payment of the account was
Problem 15-66 Profitability Analysis Albion, Inc., provided the following information for its most recent year of operations. The tax rate is 40%.Sales $100,000 Preferred dividends $300 Cost of goods sold 45,000 Common dividends (paid December 31) $8,000 Net income 10,500 Common shares
Problem 15-65 Profitability Ratios Refer to the information for Kepler Company above. Also, assume that for last year and for the current year, the market price per share of common stock is $2.98. In addition, for last year, assets and equity were the same at the beginning and end of the
Problem 15-64 Leverage Ratios Refer to the information for Kepler Company above.Required:Note: Round all answers to two decimal places.1. Compute the following for each year: (a) the times-interest-earned ratio and (b) the debt ratio 2. Conceptual Connection Does Kepler have too much debt? What
Problem 15-63 Liquidity Ratios Refer to the information for Kepler Company above.Required:Note: Round all answers to two decimal places.1. Compute the following ratios for each year: (a) current ratio, (b) quick ratio, (c) accounts receivable turnover (in days), and (d) inventory turnover (in
Problem 15-62 Vertical Analysis Refer to the information for Kepler Company above.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 item in the liabilities and equity
Problem 15-61 Horizontal Analysis Refer to the information for Kepler Company above.Required:Note: Round all percentages to one decimal place.1. Compute the percentage change for each item in the balance sheet and income statement.2. Conceptual Connection Comment on any significant trends.
Problem 15-60 Profitability Ratios The following information has been gathered for Malette Manufacturing:Net income $ 5,000,000 Common dividends $1,200,000 Interest expense 400,000 Average common shares outstanding 800,000 shares Average total assets 60,000,000 Average common stockholders’ equity
Problem 15-59 Leverage Ratios Grammatico Company has just completed its third year of operations. The income statement is as follows:Sales $2,460,000 Less: Cost of goods sold 1,410,000 Gross profit margin $1,050,000 Less: Selling and administrative expenses 710,000 Operating income $ 340,000 Less:
Problem 15-58 Liquidity Analysis 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 balances:Inventory 250,000 Accounts receivable 400,000 Cash
Exercise 15-57 Dividend Yield Ratio, Dividend Payout Ratio Refer to the information for Rebert, Inc., above. Also, assume that the dividends paid to common stockholders for last year were $2,600,000 and that the market price per share of common stock is $51.50.Required:1. Compute the dividends per
Exercise 15-56 Earnings per Share, Price-Earnings Ratio Refer to the information for Rebert, Inc., above. Also, assume that the market price per share for Rebert is $51.50.Required:1. Compute the dollar amount of preferred dividends.2. Compute the number of common shares.3. Compute earnings per
Exercise 15-55 Average Common Stockholders’ Equity, Return on Stockholders’Equity Refer to the information for Rebert, Inc., above.Required:1. Calculate the average common stockholders’ equity.2. Calculate the return on stockholders’ equity.
Exercise 15-54 Average Total Assets, Return on Assets Refer to the information for Juroe Company above. Also, assume that Juroe’s total assets at the beginning of last year equaled $17,350,000 and that the tax rate applicable to Juroe is 40%.Required:Note: Round answers to two decimal places.1.
Exercise 15-53 Return on Sales Refer to the information for Juroe Company above.Required:1. Calculate the return on sales. (Note: Round the percent to two decimal places.)2. Conceptual Connection Briefly explain the meaning of the return on sales ratio, and comment on whether Juroe’s return on
Exercise 15-52 Times-Interest-Earned Ratio, Debt Ratio, Debt-to-Equity Ratio Refer to the information for Juroe Company above.Required:Note: Round answers to two decimal places.1. Calculate the times-interest-earned ratio.2. Calculate the debt ratio.3. Calculate the debt-to-equity ratio.
Exercise 15-51 Debt Ratio, Debt-to-Equity Ratio Busch Retailer Company’s balance sheet reports total liabilities of $510,900, total equity of$126,000, and total assets of $636,900.Required:Note: Round answers to two decimal places.1. Calculate the debt ratio.2. Calculate the debt-to-equity
Exercise 15-50 Times-Interest-Earned Tsao Company provided the following income statement for last year:Sales $16,250,000 Cost of goods sold 6,500,000 Gross margin $ 9,750,000 Operating expenses 3,750,000 Operating income $ 6,000,000 Interest expense 500,000 Income before taxes $ 5,500,000 Income
Exercise 15-49 Profitability Ratios Bryce Company manufactures pet supplies. However, Bryce’s electronic accounting system recently crashed and, unfortunately, only a partial recovery of the company’s year-end accounting records (which included several profitability ratios) was possible. As a
Exercise 15-48 Average Inventory, Inventory Turnover Ratio, Inventory Turnover in Days Delater Company had sales of $3,948,340 and a gross margin of $1,859,260. Delater had beginning inventory of $53,420 and ending inventory of $62,640.Required:Note: Round answers to one decimal place.1. Calculate
Exercise 15-47 Average Inventory, Inventory Turnover Ratio, Inventory Turnover in Days Belt Company had net sales of $2,225,500,000 and cost of goods sold of $1,557,850,000. Belt had the following balances:January 1 December 31 Inventories $335,000,000 $350,000,000 Required:Note: Round answers to
Exercise 15-46 Average Accounts Receivable, Accounts Receivable Turnover Ratio, Accounts Receivable Turnover in Days Whalen Company had net sales of $125,500,250,000. Whalen had the following balances:January 1 December 31 Accounts receivable $2,500,500,000 $2,750,000,000 Inventories 1,500,000,000
Exercise 15-45 Average Accounts Receivable, Accounts Receivable Turnover Ratio, Accounts Receivable Turnover in Days Brunello Company had net sales of $34,000,000. Brunello had the following balances:January 1 December 31 Accounts receivable $5,625,000 $5,000,000 Inventories 2,000,000 2,500,000
Exercise 15-44 Current Ratio and Quick (Acid-Test) Ratio Kate Company has current assets equal to $120,500,000. Of these, $42,000,000 is cash,$28,000,000 is accounts receivable, $15,500,000 is marketable securities, and the remainder is inventories. Current liabilities total
Exercise 15-43 Current Ratio and Quick (Acid-Test) Ratio Barkley Company provided the following information:Current assets:Cash $26,500,000 Accounts receivable 20,500,000 Inventories 21,000,000 Total current assets $68,000,000 Current liabilities $42,000,000 Required:Note: Round answers to one
Exercise 15-42 Vertical Analysis Refer to the information for Cuneo Company above.Required:1. Prepare a common-size income statement for Year 1 by expressing each line item as a percentage of sales revenue. (Note: Round percentages to the nearest tenth of a percent.)2. Prepare a common-size income
Exercise 15-41 Horizontal Analysis Refer to the information for Cuneo Company above.Required:1. Prepare a common-size income statement for Year 2 by expressing each line item for Year 2 as a percentage of that same line item from Year 1. (Note: Round percentages to the nearest tenth of a
Exercise 15-40 Vertical Analysis Refer to the information for Sundahl Company above.Required:1. Prepare a common-size income statement for Year 1 by expressing each line item as a percentage of sales revenue. (Note: Round percentages to the nearest tenth of a percent.)2. Prepare a common-size
Exercise 15-39 Horizontal Analysis Refer to the information for Sundahl Company above.Required:Prepare a common-size income statement for Year 2 by expressing each line item for Year 2 as a percentage of that same line item from Year 1. (Note: Round percentages to the nearest tenth of a percent.)
Brief Exercise 15-38 Computing the Dividend Yield and the Dividend Payout Ratio Refer to the information for Santiago Systems above. Also, assume that the market price per common share is $20.Required:Note: Round answers to four decimal places.1. Compute the dividends per share.2. Compute the
Brief Exercise 15-37 Computing the Price-Earnings Ratio Refer to the information for Santiago Systems above. Also, assume that the price per common share for Santiago is $20.Required:Compute the price-earnings ratio. (Note: Round the answer to two decimal places.)
Brief Exercise 15-36 Computing Earnings per Share Refer to the information for Santiago Systems above.Required:Note: Round answers to two decimal places.1. Compute the number of common shares.2. Compute earnings per share.
Brief Exercise 15-35 Calculating the Average Common Stockholders’ Equity and the Return on Stockholders’ Equity Refer to the information for Santiago Systems above.Required:Note: Round answers to four decimal places.1. Calculate the average common stockholders’ equity.2. Calculate the return
Brief Exercise 15-34 Calculating the Average Total Assets and the Return on Assets Refer to the information for Santiago Systems above. Assume a tax rate of 40%.Required:Note: Round answers to four decimal places.1. Calculate the average total assets.2. Calculate the return on assets.
Brief Exercise 15-33 Calculating the Return on Sales Refer to the information for Santiago Systems above.Required:Calculate the return on sales. (Note: Round the answer to three decimal places.)
Brief Exercise 15-32 Calculating the Debt Ratio and the Debt-to-Equity Ratio Khumalo Company’s balance sheet reports total liabilities of $25,000,000, total stockholders’equity of $50,000,000, and total assets of $75,000,000.Required:Note: Round answers to two decimal places.1. Calculate the
Brief Exercise 15-31 Calculating the Times-Interest-Earned Ratio Elsa’s Makeup Manufacturers provided the following income statement for last year:Sales $27,710,000 Cost of goods sold 11,410,000 Gross margin $16,300,000 Operating expenses 4,200,000 Operating income $12,100,000 Interest expense
Brief Exercise 15-30 Calculating the Average Inventory, the Inventory Turnover Ratio, and the Inventory Turnover in Days Refer to the information for Esmeralda’s above.Required:Note: Round answers to one decimal place.1. Calculate the average inventory.2. Calculate the inventory turnover ratio.3.
Brief Exercise 15-29 Calculating the Average Accounts Receivable, the Accounts Receivable Turnover Ratio, and the Accounts Receivable Turnover in Days Refer to the information for Esmeralda’s above.Required:Note: Round answers to one decimal place.1. Calculate the average accounts receivable.2.
Brief Exercise 15-28 Calculating the Current Ratio and the Quick (or Acid-Test)Ratio Chantelle Company has current assets equal to $1,000,000. Of these, $500,000 is cash,$200,000 is accounts receivable, $175,000 is inventory, and the remainder is marketable securities.Current liabilities total
Brief Exercise 15-27 Preparing Income Statements by Using Net Sales as the Base: Vertical Analysis Refer to the information for Azita Company above.Required:Prepare common-size income statements by using net sales as the base. (Note: Round answers to the nearest whole percentage.)
Brief Exercise 15-26 Preparing Common-Size Income Statements by Using Base Period Horizontal Analysis Refer to the information for Azita Company above.Required:Prepare common-size income statements by using Year 1 as the base period. (Note: Round answers to the nearest whole percentage.)
Brief Exercise 15-25 Computing the Dividend Yield and the Dividend Payout Ratio Refer to the information for Somerville Company above. Also, assume that the market price per common share is $8.10.Required:Note: Round answers to four decimal places.1. Compute the dividends per share.2. Compute the
Brief Exercise 15-24 Computing the Price-Earnings Ratio Refer to the information for Somerville Company above. Also, assume that the price per common share for Somerville is $8.10.Required:Compute the price-earnings ratio. (Note: Round the answer to two decimal places.)
Brief Exercise 15-23 Computing Earnings per Share Refer to the information for Somerville Company above.Required:Note: Round answers to two decimal places.1. Compute the number of common shares.2. Compute earnings per share.
Brief Exercise 15-22 Calculating the Average Common Stockholders’ Equity and the Return on Stockholders’ Equity Refer to the information for Somerville Company above.Required:Note: Round answers to four decimal places.1. Calculate the average common stockholders’ equity.2. Calculate the
Brief Exercise 15-21 Calculating the Average Total Assets and the Return on Assets Refer to the information for Somerville Company above. Assume a tax rate of 40%.Required:Note: Round answers to four decimal places.1. Calculate the average total assets.2. Calculate the return on assets.
Brief Exercise 15-20 Calculating the Return on Sales Refer to the information for Somerville Company above.Required:Calculate the return on sales. (Note: Round the answer to three decimal places.)
Brief Exercise 15-19 Calculating the Debt Ratio and the Debt-to-Equity Ratio Ernst Company’s balance sheet reports total liabilities of $32,500,000, total stockholders’ equity of $8,125,000, and total assets of $40,625,000.Required:Note: Round answers to two decimal places.1. Calculate the debt
Brief Exercise 15-18 Calculating the Times-Interest-Earned Ratio Paxton Company provided the following income statement for last year:Sales $87,021,000 Cost of goods sold 62,138,249 Gross margin $24,882,751 Operating expenses 19,371,601 Operating income $ 5,511,150 Interest expense 875,400 Income
Brief Exercise 15-17 Calculating the Average Inventory, the Inventory Turnover Ratio, and the Inventory Turnover in Days Refer to the information for Nikkola Company above.Required:Note: Round answers to one decimal place.1. Calculate the average inventory.2. Calculate the inventory turnover
Brief Exercise 15-16 Calculating the Average Accounts Receivable, the Accounts Receivable Turnover Ratio, and the Accounts Receivable Turnover in Days Refer to the information for Nikkola Company above.Required:Note: Round answers to one decimal place.1. Calculate the average accounts receivable.2.
Brief Exercise 15-15 Calculating the Current Ratio and the Quick (or Acid-Test)Ratio Chen Company has current assets equal to $5,000,000. Of these, $1,000,000 is cash, $2,250,000 is accounts receivable, $500,000 is inventory, and the remainder is marketable securities. Current liabilities total
Brief Exercise 15-14 Preparing Income Statements by Using Net Sales as the Base: Vertical Analysis Refer to the information for Scherer Company above.Required:Prepare common-size income statements by using net sales as the base. (Note: Round answers to the nearest whole percentage.)
Brief Exercise 15-13 Preparing Common-Size Income Statements by Using Base Period Horizontal Analysis Refer to the information for Scherer Company above.Required:Prepare common-size income statements by using Year 1 as the base period. (Note: Round answers to the nearest whole percentage.)
15-12 Which of the following ratios illustrates a reason for Apple’s financial success?a. Return on salesb. Inventory turnoverc. Gross margind. All of the abovee. None of the above
15-11 The after-tax cost of interest expense is used in calculating which of the following?a. Times-interest-earned ratiob. Return on assetsc. Debt ratiod. Inventory turnover ratioe. All of these
15-10 A small pizza restaurant, founded and owned by the Martinelli sisters, would be expected to have which of the following?a. Low inventory turnover and high gross marginb. Low accounts receivable turnover and low gross marginc. High price-earnings ratiod. High inventory turnover and low gross
15-9 Fred and Torrie Jones are a retired couple looking for income. They are currently rebalancing their portfolio of stocks to include more with high dividends. Fred and Torrie will be most interested in which of the following?a. Current ratiob. Debt-to-equity ratioc. Return on assetsd.
15-8 Profitability ratios are used by which of the following groups?a. Company managersb. Creditorsc. Lendersd. Investorse. All of these
15-7 Etchey Company identifies that 46% of its assets are financed by creditors. Which of the following reveals this result?a. Current ratiob. Times-interest-earned ratioc. Debt ratiod. Inventory turnover in dayse. Return on sales
15-6 Pedee Company’s inventory turnover in days is 80 days. Which of the following actions could help to improve that ratio?a. Increase the sales price.b. Increase manufacturing costs.c. Reduce the cost of goods sold.d. Reduce average inventory.e. All of these.
15-5 The measures of the ability of a company to meet its current obligations are calleda. ratios.b. liquidity ratios.c. leverage ratios.d. profitability ratios.e. percentage changes.

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Managerial Accounting The Cornerstone Of Business Decision Making 9th Edition Maryanne Mowen, Don Hansen, Dan Heitger - Solutions

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