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Accounting
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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:

Beginning

 of Year

End 

of Year

Common stock 

$900,000

$1,200,000

Preferred stock

375,000

375,000

Retained earnings

225,000

555,000

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.

Required:

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 

$1,500,000

Current liabilities 

1,800,000

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%

Required:

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
Assets:
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.

Required:

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.

Required:

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) Daniel C.
(997)
School: UC Berkeley
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