accounting help 175
Please show work.
QUESTION #1
Using the following selected items from the comparative balance sheet of Anders Company, illustrate horizontal and vertical analysis.
December 31, 2009 December 31, 2008
Accounts Receivable $ 900,000 $ 600,000
Inventory 975,000 750,000
Total Assets 4,000,000 2,500,000
QUESTION #2
The financial statements of Dobson Company appear below:
DOBSON COMPANY
Comparative Balance Sheet
December 31,
———————————————————————————————————————————
Assets 2009 2008
Cash……………………………………………………………………………………… $ 35,000 $ 40,000
Short term investments…………………………………………………………… 15,000 60,000
Accounts receivable (net)………………………………………………………… 50,000 30,000
Inventory……………………………………………………………………………….. 50,000 70,000
Property, plant and equipment (net)………………………………………….. 250,000 300,000
Total assets ……………………………………………………………………… $400,000 $500,000
Liabilities and stockholders’ equity
Accounts payable…………………………………………………………………… $ 10,000 $ 30,000
Short term notes payable………………………………………………………… 40,000 90,000
Bonds payable……………………………………………………………………….. 88,000 160,000
Common stock………………………………………………………………………. 160,000 145,000
Retained earnings…………………………………………………………………… 102,000 75,000
Total liabilities and stockholders’ equity………………………………… $400,000 $500,000
DOBSON COMPANY
Income Statement
For the Year Ended December 31, 2009
Net sales……………………………………………………………………………….. $360,000
Cost of goods sold………………………………………………………………….. 198,000
Gross profit……………………………………………………………………………. 162,000
Expenses
Interest expense……………………………………………………………….. $12,000
Selling expenses……………………………………………………………….. 40,000
Administrative expenses…………………………………………………….. 59,000
Total expenses…………………………………………………………….. 111,000
Income before income taxes……………………………………………………. 51,000
Income tax expense……………………………………………………………….. 15,000
Net income……………………………………………………………………………. $ 36,000
Additional information:
a. Cash dividends of $9,000 were declared and paid in 2009.
b. Weighted average number of shares of common stock outstanding during 2009 was 30,000 shares.
c. Market value of common stock on December 31, 2009, was $21 per share.
Instructions
Using the financial statements and additional information, compute the following ratios for Coulter Company for 2009. Show all computations.
Computations
1. Current ratio _________.
2. Return on common stockholders’ equity _________.
3. Price earnings ratio _________.
4. Acid test ratio _________.
5. Receivables turnover _________.
6. Times interest earned _________.
7. Profit margin _________.
8. Days in inventory _________.
9. Payout ratio _________.
10. Return on assets _________.
QUESTION #3
Gumble Corporation had income from continuing operations of $300,000 for the year ended December 31, 2008. It also had the following items (before income taxes):
1. Extraordinary flood loss of $150,000.
2. Loss of $60,000 on discontinuance of a division.
All items are subject to income taxes at a 30% tax rate.
Instructions
Prepare a partial income statement, beginning with income from continuing operations.
QUESTION #4
Presented below is a list of costs and expenses incurred in the factory by Nu Way Corporation, a manufacturer of recreational vehicles.
____ 1. Property taxes on the factory land
____ 2. Nails and glue used in production
____ 3. Cabinet maker’s wages
____ 4. Factory supervisors’ salaries
____ 5. Metal used in manufacturing
____ 6. Depreciation on factory machines
____ 7. Factory utilities
____ 8. Carpeting for the recreational vehicles
____ 9. Property taxes on the factory building
____ 10. Insurance on factory equipment
Instructions
Classify the above items into the following categories:
DM — Direct Materials
DL — Direct Labor
MO — Manufacturing Overhead
QUESTION #5
For each item, identify all applicable cost labels. Use the following code in your answer:
1 — Product Cost
2 — Period Cost
a. Advertising _________
b. Direct materials used _________
c. Sales salaries _________
d. Indirect factory labor _________
e. Repairs to office equipment _________
f. Factory manager’s salary _________
g. Direct labor used _________
h. Indirect materials _________
QUESTION #6
Among the items that Gentry Print Shop accounts for are the following:
1. Direct labor _________
2. Office supplies used _________
3. Depreciation on printing machines _________
4. Finished goods inventory, 12/31 _________
5. Raw materials inventory, 1/1 _________
6. Cost of goods manufactured _________
7. Work in process, 1/1 _________
8. Office supplies inventory, 12/31 _________
9. Indirect labor _________
10. Heat and electricity for the print shop _________
Gentry Print Shop prepares the following schedule and financial statements on a yearly basis:
(a) Cost of goods manufactured schedule.
(b) Income statement.
(c) Balance sheet.
Instructions
For each item, indicate by using the appropriate letter(s) the schedule and/or financial statements in which the item will appear.
QUESTION #7
From the account balances listed below, prepare a schedule of cost of goods manufactured for Timmons Manufacturing Company for the month ended December 31, 2008.
Account Balances
Finished Goods Inventory, December 31 $42,000
Factory Supervisory Salaries 12,000
Income Tax Expense 18,000
Raw Materials Inventory, December 1 12,000
Work In Process Inventory, December 31 25,000
Sales Salaries Expense 14,000
Factory Depreciation Expense 8,000
Finished Goods Inventory, December 1 &nb
Looking for a similar assignment? Our writers will offer you original work free from plagiarism. We follow the assignment instructions to the letter and always deliver on time. Be assured of a quality paper that will raise your grade. Order now and Get a 15% Discount! Use Coupon Code "Newclient"
