Question 1
Chesapeake Co. manufactures fine dining tables. During the most productive month of the year, 3,500 tables were manufactured at a total cost of $84,400. In its slowest month, the company made 1,100 tables at a cost of $46,000. Using the high-low method of cost estimation, total fixed costs in August for Chesapeake are:
$56000
$28400
$17000
Cannot be determined from data given
Question 2
What is the break-even sales (units) for Morgana Video Edits LLC if fixed costs are $250,000, the unit selling price is $105, and the unit variable costs are $65,
3846 units
2381 units
10000 units
6250 units
Question 3
What is the amount of sales required by Morgana Video Edits LLC to realize an operating income of $200,000 if fixed costs are $1,400,000, the unit selling price is $220, and the unit variable costs are $120,
14000 units
12000 units
16000 units
13333 units
Question 4
What is the break-even sales (units) required by Morgana Video Edits LLC if fixed costs are reduced by $40,000 if fixed costs are $300,000, the unit selling price is $25, and the unit variable costs are $20,
60000 units
52000 units
62000 units
64000 units
Question 5
If Morgana Video Edits LLC's sales are $425,000, variable costs are 63% of sales, and operating income is $50,000, what is Morgana's contribution margin ratio?
37.8%
26.8%
11.8%
6.3%
Question 6
What is the amount of working capital for Elise Catering Services Based on the following data,?
|
Accounts payable
|
$ 30,000
|
|
Accounts receivable
|
65,000
|
|
Accrued liabilities
|
7,000
|
|
Cash
|
20,000
|
|
Intangible assets
|
40,000
|
|
Inventory
|
72,000
|
|
Long-term investments
|
100,000
|
|
Long-term liabilities
|
75,000
|
|
Marketable securities
|
36,000
|
|
Notes payable (short-term)
|
20,000
|
|
Property, plant, and equipment
|
625,000
|
|
Prepaid expenses
|
2,000
|
$238000
$138000
$178000
$64000
Question 7
What is the quick ratio for Elise Catering Services, rounded to one decimal point based on the following data
|
Accounts payable
|
$ 30,000
|
|
Accounts receivable
|
65,000
|
|
Accrued liabilities
|
7,000
|
|
Cash
|
20,000
|
|
Intangible assets
|
40,000
|
|
Inventory
|
72,000
|
|
Long-term investments
|
100,000
|
|
Long-term liabilities
|
75,000
|
|
Marketable securities
|
36,000
|
|
Notes payable (short-term)
|
20,000
|
|
Property, plant, and equipment
|
625,000
|
|
Prepaid expenses
|
2,000
|
2.4
3.4
2.1
1.5
Question 8
What is the accounts receivable turnover for Elise Catering Services based on the following data for the current year?
|
Net sales on account during year
|
$ 400,000
|
|
Cost of merchandise sold during year
|
300,000
|
|
Accounts receivable, beginning of year
|
45,000
|
|
Accounts receivable, end of year
|
35,000
|
|
Inventory, beginning of year
|
90,000
|
|
Inventory, end of year
|
110,000
|
10
11.4
8.9
4.0
Question 9
Brielle Financial Services reports on its balance sheets at the end of each of the first two years of operations the following:
|
|
2006
|
2005
|
|
Total current assets
|
$600,000
|
$560,000
|
|
Total investments
|
60,000
|
40,000
|
|
Total property, plant, and equipment
|
900,000
|
700,000
|
|
Total current liabilities
|
150,000
|
80,000
|
|
Total long-term liabilities
|
350,000
|
250,000
|
|
Preferred 9% stock, $100 par
|
100,000
|
100,000
|
|
Common stock, $10 par
|
600,000
|
600,000
|
|
Paid-in capital in excess of par-common stock
|
60,000
|
60,000
|
|
Retained earnings
|
325,000
|
210,000
|
If net income is $115,000 and interest expense is $30,000 for 2006, what are the earnings per share on common stock for 2006, (round to two decimal places)?
$1.92
$1.89
$1.77
$1.42
Question 10
Brielle Financial Services reports the following:
|
|
2006
|
|
Market price per share of common stock
|
$25.00
|
|
Earnings per share on common stock
|
1.25
|
Which of the following statements is correct?
The price-earnings ratio is 20 and a share of common stock was selling for 20 times the amount of earnings per share at the end of 2006.
The price-earnings ratio is 5.0% and a share of common stock was selling for 5.0% more than the amount of earnings per share at the end of 2006.
The price-earnings ratio is 10 and a share of common stock was selling for 125 times the amount of earnings per share at the end of 2006.
The market price per share and the earnings per share are not statistically related to each other.
Question 11
Trang Dry Cleaners reports net income on the income statement for the current year in the amount of $275,000. Depreciation recorded on fixed assets and amortization of patents for the year were $40,000 and $9,000, respectively. Balances of current asset and current liability accounts at the end and at the beginning of the year are as follows:
|
|
End
|
Beginning
|
|
Cash
|
$ 50,000
|
$ 60,000
|
|
Accounts receivable
|
112,000
|
108,000
|
|
Inventories
|
105,000
|
93,000
|
|
Prepaid expenses
|
4,500
|
6,500
|
|
Accounts payable (merchandise creditors)
|
75,000
|
89,000
|
What is the amount of cash flows from operating activities reported on the statement of cash flows prepared by the indirect method by Trang Cleaners' accountants?
$198000
$324000
$352000
$296000
Question 12
Trang Dry Cleaners owns a building with a book value of $ 45,000 is sold for $50,000 cash. Using the indirect method, this transaction should be shown on the statement of cash flows as follows:
an increase of $45,000 from investing activities
an increase of $50,000 from investing activities and a deduction from net income of $5,000
an increase of $50,000 from investing activities
an increase of $45,000 from investing activities and an addition to net income of $5,000
Question 13
Trang Dry Cleaners sold Equipment with an original cost of $50,000 and accumulated depreciation of $20,000 at a loss of $7,000. As a result of this transaction, Trang'scash would
an increase of $23000
a decrease of $7000
an increase of $43000
an increase of $30000
Question 14
Vatsala Bakery Group reports the following: The cost of merchandise sold during the year was $50,000. Merchandise inventories were $12,500 and $10,500 at the beginning and end of the year, respectively. Accounts payable were $6,000 and $5,000 at the beginning and end of the year, respectively. Using the direct method of reporting cash flows from operating activities, cash payments by Vatsala for merchandise total
$49000
$47000
$51000
$53000
Question 15
Vatsala Bakery Group reports the following information: Sales for the year were $600,000. Accounts receivable were $100,000 and $80,000 at the beginning and end of the year. Cash received from customers to be reported on the cash flow statement using the direct method is
$700000
$600000
580000
620000
Question 16
Venkat Manufacturing forecasts that total overhead for the current year will be $12,000,000 and that total machine hours will be 200,000 hours. Year to date, the actual overhead is $8,000,000 and the actual machine hours are 100,000 hours. If Venkat Manufacturing uses a predetermined overhead rate based on machine hours for applying overhead, what is that overhead rate?
$80 per machine hour
$120 per machine hour
$40 per machine hour
$60 per machine hour
Question 17
VenkatManufacturing forecasts that total overhead for the current year will be $12,000,000 and that total machine hours will be 200,000 hours. Year to date, the actual overhead is $8,000,000 and the actual machine hours are 100,000 hours. If Venkat Manufacturing uses a predetermined overhead rate based on machine hours for applying overhead, as of this point in time (year to date) the overhead is over/under applied by?
$2 million overapplied
$2 million underapplied
$4 million overapplied
$4 million underapplied
Question 18
Norman Geological Services is to receive $30,000 in two years, at 12% compounded annually, What is the PV of this money (rounded to nearest dollar)
$23916
$37632
$23700
$30000
Question 19
What is the inventory turnover for Brielle Financial Service based on the following data for the current year?
|
Net sales on account during year
|
$ 500,000
|
|
Cost of merchandise sold during year
|
330,000
|
|
Accounts receivable, beginning of year
|
45,000
|
|
Accounts receivable, end of year
|
35,000
|
|
Inventory, beginning of year
|
90,000
|
|
Inventory, end of year
|
110,000
|
3.3
8.3
3.7
3.0
Question 20
20 Venkat Manufacturing during the period incurs labor costs on account amounted to $225,000 including $195,000 for production orders and $30,000 for general factory use. In addition, factory overhead applied to production was $17,000. From the following, select the entry Venkat's accountants will use to record the actual factory overhead costs incurred.
Accounts Payable 30,000
Factory Overhead 30,000
Factory Overhead 17,000
Accounts Payable 17000
Work in Process 30,000
Factory Overhead 30,000
Factory Overhead 30,000
Wages Payable 30,000.