Attached Document is for acct 221

Directions: Please complete the following parts. You can enter your answers after each question. Part 1 (Ch. 17) - Prepare the Operating Activities of a Statement of Cash Flows - Indirect Method Mandy's Candies reported Net income of $330,000 for fiscal year 2011. Here is some additional information during the year: 1. Accounts receivable increased $20,000 2. Inventory decreased $50,000 3. Prepaid Expenses increased $10,000 4. Accounts Payable decreased $48,000 5. Other Accrued expenses (payables) decreased $40,000 6. Operating Expenses in the Income Statement included depreciation expense of $8,000 7. The company had a Loss on the sale of equipment of $10,000 Instructions: Prepare the operating activities section of the statement of cash flows for the year ended January 31, 2012 for Mandy's Candies, using the indirect method. Use the format shown in Illustration 17-13, indicating cash outflows by using parentheses. Mandy's Candies Statement of Cash Flows - For the Year Ended January 31, 2012 Cash Flows from Operating Activities: Net Cash Provided by operating Activities Part 2 (Ch. 18) - Compute ratios and prepare vertical, horizontal analyses Cambria Construction Company Income Statement For the Years Ended December 31 Horizontal Analysis (show % increase or 2013 2012 decrease) $1,818,500 $1,750,500 3.88% Net sales Cost of goods sold Gross profit Selling and admin. expense Income from operations Other expenses, losses, Interest expense Income before income taxes Income tax expense Net income 1,011,500 754,500 516,000 479,000 291,000 275,500 18,000 14,000 273,000 261,500 81,000 77,000 $192,000 100% 996,000 807,000 Vertical Analysis For 2013 $184,500 5.19% 2 Cambria Construction Company Balance Sheets Assets Current assets: Cash 2013 Horizontal Analysis (show % increase or decrease) 2012 $60,100 $64,200 Vertical Analysis For 2013 (6.38%) Short-term investments Accounts receivable (net) Inventory 69,000 50,000 117,800 102,800 123,000 115,500 Total current assets 369,900 332,500 38.13% Plant assets (net) 600,300 520,300 61.87% Total assets $970,200 $852,800 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $160,000 $145,400 Income taxes payable Total current liabilities Bonds payable 43,500 187,400 200,000 200,000 Total liabilities 403,500 387,400 Stockholders' equity: Common stock ($5 par) Retained earnings 280,000 300,000 286,700 165,400 566,700 465,400 $970,200 100% 42,000 203,500 13.77% $852,800 Total stockholders' equity Total liabilities and stockholders' 0% 100% 3 equity All sales were on account. Compute the following ratios for 2013. (Weighted-average common shares in 2013 were 57,000.) (0.40 per ratio) Show work as appropriate. (a) Earnings per share. (b) Return on common stockholders' equity. (c) Return on assets. (d) Current ratio. (e) Acid-test ratio. (f) Receivables turnover. (g) Inventory turnover. (h) Times interest earned. (i) Asset turnover. (j) Debt to total assets. Part 3 (Ch. 19) - Complete a Cost of Goods Manufactured Schedule Here is some accounting and cost information for Lamar Mfg. Company for the period ended July 31, 2011 Inventories Beginning Ending Raw Materials $90,000 $131,000 Work in process 50,000 120,000 Finished goods 90,000 60,000 Costs incurred: Raw materials purchases $640,000, direct labor $570,000, manufacturing overhead $219,000. The specific overhead costs were: indirect labor $75,000, factory insurance $30,000, machinery depreciation $50,000, machinery repairs $18,000, factory utilities $31,000, miscellaneous factory costs $15,000. Assume that all raw materials used were direct materials. Instructions Prepare the cost of goods manufactured schedule for the month ended July 31, 2011. Use the format shown in Illustration 19-8. 4 Lamar Mfg. Company Cost of Goods Manufactured Schedule For the Month Ended July 31, 2011 Part 4 (Ch. 20) -Compute, apply OH rates Linda's by Design uses a job order costing system to collect the costs of its interior decorating business. Each client's consultation is treated as a separate job. Overhead is applied to each job based on the number of decorator hours incurred. Listed below are data for the current year. Budgeted overhead $960,000 Actual overhead $982,800 Budgeted decorator hours 40,000 Actual decorator hours 40,500 The company uses Operating Overhead in place of Manufacturing Overhead. Instructions (a) Compute the predetermined overhead rate. (b) Prepare the entry to apply the overhead for the year. (c) Determine whether the overhead was under- or overapplied and by how much. 5