QUICK ANSWERS to 6 questions

timer Asked: Nov 16th, 2015

Question description

Question 1

Carrier Company reported net income of $360,000 and paid dividends of $30,000 on its preferred stock during the current year. Other selected financial data for the company includes the following:


 of Year


of Year

Common stock 



Preferred stock



Retained earnings



What is the company's return on common stockholders' equity for the year?

Question 2

Suermann Corporation's only product sells for $140 per unit. Its current sales are 17,500 units and its break-even sales are 14,350 units.


Compute the margin of safety in both dollars and as a percentage of sales

Question 3

Chaka Company had no prepaid expenses and inventories remained unchanged during the year. Other selected year-end data for the company includes the following:

Cost of goods sold 


Current liabilities 


Current ratio 

3.0 to 1

Acid-test ratio 

2.5 to 1

What was the company's inventory turnover ratio for the year?

Question 4

The following data have been provided by Fattig Corporation, which uses the weighted-average method in its process costing. The data are for the company's Shaping Department for October.  Percent Complete
  Units Materials Conversion
Work in Process, Oct  900  55%  60%
Units started into production during
  October 8,200
Units completed during Oct and
transferred to the next dept  7,100
Work in process, Oct. 31  2,000  85%  35%


Compute the equivalent units of production for both materials and conversion costs for the Shaping Department for October using the weighted-average method. 

Question 5

Roosevelt Corporation's balance sheet appears below:

  Comparative Balance Sheet 
  Ending  Beginning
  Balance  Balance
Cash and cash equivalents-------------------------------  $ 31  $ 26
Accounts receivable---------------------------------------  60  71
Inventory--------------------------------------------------  64 55
Property, plant, and equipment-------------------------  477  450
Less accumulated depreciation--------------------------  334  280
Total assets-----------------------------------------------  $298  $322

Liabilities and stockholders' equity:
Accounts payable----------------------------------------  $45  $42
Bonds payable-------------------------------------------  213  200
Common stock-------------------------------------------  84  80
Retained Earnings----------------------------------------  (44)  0
Total liabilities and stockholders' equity  $298  $322

Net income for the year was -$43. Cash dividends were $1. The company did not dispose of any property, plant, and equipment, issue any bonds payable, or repurchase any of its own common stock during the year.


Prepare a statement of cash flows in good form using the indirect method. 

Question 6

In September, Pino Corporation sold 2,100 units of its only product. Its total sales were $195,300, its total variable expenses were $84,000, and its total fixed expenses were $98,700.


a. Construct the company's contribution format income statement for September in good form.
b. Redo the company's contribution format income statement assuming that the company sells 2,300 units. 

Tutor Answer

(Top Tutor) Studypool Tutor
School: Carnegie Mellon University
Studypool has helped 1,244,100 students
flag Report DMCA
Similar Questions
Hot Questions
Related Tags

Brown University

1271 Tutors

California Institute of Technology

2131 Tutors

Carnegie Mellon University

982 Tutors

Columbia University

1256 Tutors

Dartmouth University

2113 Tutors

Emory University

2279 Tutors

Harvard University

599 Tutors

Massachusetts Institute of Technology

2319 Tutors

New York University

1645 Tutors

Notre Dam University

1911 Tutors

Oklahoma University

2122 Tutors

Pennsylvania State University

932 Tutors

Princeton University

1211 Tutors

Stanford University

983 Tutors

University of California

1282 Tutors

Oxford University

123 Tutors

Yale University

2325 Tutors