2000 points awarded for the correct answers to 5 questions.
1.Biancuzzo Corporation has provided the following data from its most recent balance sheet:
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Total Assets
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$660,000
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Total Liabilities
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$560,000
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Total Stockholders%u2019 equity
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$100,000
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The debt-to-equity ratio is closest to:
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A. |
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B. |
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C. |
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D. |
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2.Salvia Urban Diner is a charity supported by donations that provides free meals to the homeless. The diner's budget for May was based on 3,400 meals, but the diner actually served 3,700 meals. The diner's director has provided the following cost data to use in the budget: groceries, $2.90 per meal; kitchen operations, $4,100 per month plus $1.90 per meal; administrative expenses, $2,400 per month plus $0.20 per meal; and fundraising expenses, $1,000 per month.
Required:
Prepare the diner's flexible budget for the actual number of meals served in May. The budget will only contain the costs listed above; no revenues will be on the budget.
3.List the term(s) that best matches each of the following descriptions.
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Description
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Term(s)
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Differences between standard and actual amounts.
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Standard representing a level of performance attainable with reasonable effort.
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A variance that occurs when actual costs exceed standard costs.
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Budgets that show expected revenues and costs for multiple levels of activity.
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Managers should concentrate on areas of significance.
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4.Payment Inc. is preparing its cash budget for February. The budgeted beginning cash balance is $27,000. Budgeted cash receipts total $136,000 and budgeted cash disbursements total $128,000. The desired ending cash balance is $50,000. The company can borrow up to $110,000 at any time from a local bank, with interest not due until the following month.
Required:Prepare the company's cash budget for February in good form. Make sure to indicate what borrowing, if any, would be needed to attain the desired ending cash balance
5.The following events occurred last year for the Cashback Company:
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Issuance of Common Stock
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$46,000
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Dividends paid to shareholders
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$11,000
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Dividends received from investments
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$4,000
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Interest paid on Bonds Payable
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$14,000
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Proceeds from sales of used equipment
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$19,000
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Repurchase of preferred stock
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$10,000
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Based solely on the above information, the net cash provided by financing activities for the year on the statement of cash flows was:
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A. |
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B. |
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C. |
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D. |
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